[Congressional Record Volume 144, Number 36 (Thursday, March 26, 1998)]
[Senate]
[Pages S2660-S2683]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Ms. MIKULSKI (for herself, Mrs. Murray and Mr. Wyden):
  S. 1864. A bill to amend title XVIII of the Social Security Act to 
exclude clinical social worker services from coverage under the 
Medicare skilled nursing facility prospective payment system; to the 
Committee on Finance.


              THE MEDICARE SOCIAL WORK EQUITY ACT OF 1998

  Ms. MIKULSKI. Mr. President, I rise today to introduce the ``Medicare 
Social Work Equity Act of 1998''. I am proud to sponsor this 
legislation which will amend section 4432 in the Balanced Budget Act of 
1997 which prevents social workers from directly billing Medicare for 
mental health services provided in skilled nursing facilities. I am 
honored to be joined by my good friends Senator Murray and Senator 
Wyden who care equally about correcting this inequity for social 
workers.

  Last year's Balanced Budget Act changed the payment method for 
skilled nursing facility care. Under current law, reimbursement is made 
after services have been delivered for the reasonable costs incurred. 
However, this ``cost-based system'' was blamed for inordinate growth in 
Medicare spending at skilled nursing facilities.
  The Balanced Budget Act of 1997 phases in a prospective payment 
system for skilled nursing facilities beginning July 1, 1998. Payments 
for Part B services for skilled nursing facility residents will be 
consolidated. This means that the provider of the services must bill 
the facility instead of directly billing Medicare.
  Congress was careful to not include psychologists and psychiatrists 
in this new consolidated billing provision. Social workers were 
included, I think by mistake. Clinical social workers are the primary 
providers of mental health services to residents of nursing homes, 
particularly in underserved urban and rural areas. Clinical social 
workers are also the most cost effective mental health providers.
  This legislation is important for three reasons: First, I am 
concerned that section 4432 will inadvertently reduce mental health 
services to nursing home residents. Second, I believe that the new 
consolidated billing requirement will result in a shift from using 
social workers to other mental health professionals who are reimbursed 
at a higher cost. This will result in higher costs to Medicare. 
Finally, I am concerned that clinical social workers will lose their 
jobs in nursing homes or will be inadequately reimbursed.
  I like this bill because it will correct an inequity for America's 
social workers, it will assure quality of care for nursing home 
residents, and will assure cost efficiency for Medicare. I look forward 
to the Senate's support of this worthy legislation.
                                 ______
                                 
      By Mr. BAUCUS:
  S. 1865. A bill to amend title IV of the Social Security Act to 
provide safeguards against the abuse of information reported to the 
National Directory of New Hires; to the Committee on Finance.

[[Page S2661]]

         the safeguard of new employee information act of 1998

  Mr. BAUCUS. Mr. President, today I am introducing the Safeguard of 
New Employee Information Act of 1998. This bill will ensure that the 
mechanisms created in the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (PRWORA) to enhance our child support 
enforcement system will not lead to a misuse of personal information. I 
believe that my bill will assure that new employee information is kept 
confidential without compromising the usefulness of the National 
Directory of New Hires. The legislation provides clear safeguards 
against the abuse of personal employee information, and makes sure that 
the information is erased two years after entry.

  As we all know, child support is a critical part of welfare reform. I 
strongly support the measures in PRWORA that help states track and 
crack down on parents who fail to pay court-ordered child support. In 
response to the fact that over 30 percent of child support cases 
involve parents who do not live in the same state as their children, a 
National Directory of New Hires was created to assist states in 
locating parents who reside in other states.
  Thus far, the new data base has been very successful in enabling 
states to locate delinquent parents, enforcing payment orders and 
reducing the number of welfare families. However, many folks are 
concerned about the confidentiality of the registry, and the fact that 
this information is never deleted.
  Last year, for example, the Montana State Legislature passed a child 
support bill to comply with the new federal regulations. I must add, 
this bill was passed in the final hours of the legislative session and 
under the threat of losing $52 million a year in federal funds. At that 
time, the legislature was hesitant to pass the bill because of concerns 
regarding confidentiality.
  Mr. President, the Safeguard of New Employee Information Act of 1998 
makes needed changes to the National Directory to alleviate these fears 
and ensure the registry's continuation. The bill provides penalties for 
misuse of information by federal employees. Specifically, it 
establishes a fine of $1,000 for each act of unauthorized access to, 
disclosure, or use of information in the National Directory of New 
Hires.
  The bill also establishes a 24-month limit on retention of New Hire 
data. This two year limit gives Child Support Enforcement agencies the 
necessary time to determine paternity, establish a child support order 
or enforce existing orders. A shorter period of data retention would 
impede enforcement activities, and a longer period of retention 
increases the potential for abuse.
  Mr. President, in my state of Montana, 90 percent of families on 
welfare are headed by single parents. That is why it is so important to 
require that the absent mothers or fathers provide money to feed, 
clothe and care for their children. The National Directory of New Hires 
is a good idea--we just need to ensure new employee confidentiality. I 
urge my colleagues to protect new hire confidentiality and support this 
important legislation.
                                 ______
                                 
      By Mr. DeWINE:
  S. 1866. A bill to provide assistance to improve research regarding 
the quality and effectiveness of health care for children, to improve 
data collection regarding children's health, and to improve the 
effectiveness of health care delivery systems for children; to the 
Committee on Labor and Human Resources.


         the child health care quality research improvement act

  Mr. DeWINE. Mr. President, I rise today to introduce the Child Health 
Care Quality Research Improvement Act. We have been hearing a great 
deal recently about the quality of health care in this country. Most of 
the debate, both here in Congress and back home in our States, has been 
driven, at least in part, by a fear among consumers that efforts to 
control costs and move people into managed care has compromised 
quality. This fear has driven legislation such as the bill we passed 
just last year to provide for 48-hour maternity stays. This year a 
whole host of health care quality bills have been introduced in the 
Congress. Even more such legislation has been moving forward at the 
State level as well.
  As I have learned more and more about the concerns about the quality 
of health care, I have tried to focus particular attention on children, 
how their health care is delivered and whether its quality has been 
compromised. Frankly, I have learned something that I find very 
interesting.
  While the drive to improve quality and reduce cost has driven a great 
deal of new research over the past several years, relatively little has 
been done for children in this area. While we are getting better at 
measuring quality of health care for adults, we have made little such 
progress for our children.
  Between 1993 and 1995, only some 5 percent of the health services 
research study outcomes focused on our children. This is highly 
alarming because I frankly cannot think of anything more critical to 
our Nation's future than the quality of our children's health. Clearly 
we need to correct this serious lack of good health care quality 
measures.
  I have spoken with experts in the field of pediatric research and 
they agree with this assessment. They tell me that we have to do more 
in this field if we expect to improve the care that our children 
receive. Many times, frankly, we don't know exactly which treatments 
are cost effective or best improve a child's quality of life. We don't 
know how to manage children's complicated health problems in ways that 
will allow them to lead normal lives
  We can answer many of these questions if the patient is an adult, but 
we have far fewer answers for our children. Here is one example. One 
study recently found that children have three times greater chance of 
dying after heart surgery at some hospitals than they have at other 
hospitals--three times. We must fix this. That means we have to find 
out why, why one hospital loses three times as many children as 
another. As both a parent and a grandparent, I can speak from firsthand 
experience about the stress and the uncertainty that goes along with 
any childhood illness. To think that a parent's choice of a hospital 
could actually be harmful to a child is certainly a very scary thought 
for a parent.
  Another example is asthma. Asthma is the most common chronic health 
condition in children, affecting 5 million children in this country, 
and that percentage, tragically, is rising. We are not sure why this 
has been happening, but we do know that the quality of health care a 
child receives can dramatically affect the severity of his or her 
asthma. As a result, the better the quality of health care, the less 
time that child spends in the hospital, the fewer visits to the 
emergency room, and the less time a child has to miss from school. If 
we do not even know what kinds of treatment work best for children or 
that different treatments work better in different environments, we 
cannot help. We certainly can't begin to debate how to improve quality 
if we can't even define it or measure it. For that, we need to conduct 
research in real world settings.

  As a means of getting this research into real world settings and 
improving the quality of health care that our children receive, I am 
introducing a bill today entitled the Child Health Care Quality 
Research Improvement Act. This legislation was developed with the help 
of leaders in the pediatric community, child advocates, and health 
services researchers. My bill takes a three-pronged approach to address 
this issue: One, focusing on training; two, research; and three, data 
collection for child health outcomes and effectiveness research.
  Let me start with the first one.
  In order for us to make advances in the study of pediatric health 
outcomes, it is essential that we have researchers who have received 
training in this field. This bill I am introducing today promotes 
research training programs in child health services research at the 
doctoral, post-doctoral, and junior faculty levels. By bringing 
professionals into this very important field, we can ensure that issues 
that affect the lives of children are receiving the attention they 
deserve.
  The second component of this bill establishes research centers and 
networks. The goal of the centers and networks will be to foster 
collaboration among experts in the field of pediatric health care 
quality and effectiveness.

[[Page S2662]]

We envision that these centers and networks will bring together 
pediatric specialists from children's hospitals, physicians in managed 
care plans, statisticians from schools of public health, and other 
experts in the field to work together on research projects and to 
translate these findings into real-world settings where children are 
receiving health care.
  Third, and finally, this legislation contains a component that adds 
supplements to existing national health surveys that are today 
administered by the National Center for Health Statistics and the 
Maternal and Child Health Bureau. In addition to not knowing how to 
measure health care quality in children, other data, like that 
measuring children's use of health care systems and health care 
expenditures, are lacking. Adding supplements to existing surveys is a 
very sensible measure. This bill does not require yet another survey to 
be administered. Rather, it simply adds questions to existing surveys, 
to allow us to collect valuable data on children. This is the type of 
information that we need if we want to look at trends in children's 
health and what we can do to improve their health.
  Mr. President, we are all well aware that children have medical 
conditions and health care needs that are different from those of 
adults. It doesn't make sense to do health services research for adults 
and hope that one size fits all--that the things we learn will make 
sense for children. Federal support for child health quality and 
effectiveness research is vital to ensure that children are receiving 
appropriate health care. We owe it to our Nation's children to train 
health professionals in this important filed, and to support these very 
important research initiatives.
  Mr. President, 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. 1866

       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 ``Child Health Care Quality 
     Research Improvement Act''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) There is increased emphasis on using evidence of 
     improved health care outcomes and cost effectiveness to 
     justify changes in our health care system.
       (2) There is a growing movement to use health care quality 
     measures to ensure that health care services provided are 
     appropriate and likely to improve health.
       (3) Few health care quality measures exist for children, 
     especially for the treatment of acute and chronic conditions.
       (4) A significant number of children in the United States 
     have health problems, and the percentage of children with 
     special health care needs is increasing.
       (5) Children in the health care marketplace have unique 
     health attributes, including a child's developmental 
     vulnerability, differential morbidity, and dependency on 
     adults, families, and communities.
       (6) Children account for less than 15 percent of the 
     national health care spending, and do not command a large 
     amount of influence in the health care marketplace.
       (7) The Federal government is the major payer of children's 
     health care in the United States.
       (8) Numerous scientifically sound measures exist for 
     assessing quality of health care for adults, and similar 
     measures should be developed for assessing the quality of 
     health care for children.
       (9) The delivery structures and systems that provide care 
     for children are necessarily different than systems caring 
     for adults, and therefore require appropriate types of 
     quality measurements and improvement systems.
       (10) Improving quality measurement and monitoring will--
       (A) assist health care providers in identifying ways to 
     improve health outcomes for common and rare childhood health 
     conditions;
       (B) assist consumers and purchasers of health care in 
     determining the value of the health care products and 
     services they are receiving or buying; and
       (C) assist providers in selecting effective treatments and 
     priorities for service delivery.
       (11) Because of the prevalence and patterns of children's 
     medical conditions, research on improving care for relatively 
     rare or specific conditions must be conducted across multiple 
     institutions and practice settings in order to guarantee the 
     validity and generalizability of research results.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) High priority areas.--the term ``high priority areas'' 
     means areas of research that are of compelling scientific or 
     public policy significance, that include high priority areas 
     of research identified by the Conference on Improving Quality 
     of Health Care for Children: An Agenda for Research (May, 
     1997), and that--
       (A) are consistent with areas of research as defined in 
     paragraphs (1)(A) and (2) of section 1142(a) of the Social 
     Security Act;
       (B) are relevant to all children or to specific subgroups 
     of children; or
       (C) are consistent with such other criteria as the 
     Secretary may require.
       (2) Local community.--The term ``local community'' means 
     city, county, and regional governments, and research 
     institutes in conjunction with such cities, counties, or 
     regional governments.
       (3) Pediatric quality of care and outcomes research.--The 
     term ``pediatric quality of care and outcomes research'' 
     means research involving the process of health care delivery 
     and the outcomes of that delivery in order to improve the 
     care available for children, including health promotion and 
     disease prevention, diagnosis, treatment, and rehabilitation 
     services, including research to--
       (A) develop and use better measures of health and 
     functional status in order to determine more precisely 
     baseline health status and health outcomes;
       (B) evaluate the results of the health care process in 
     real-life settings, including variations in medical practices 
     and patterns, as well as functional status, clinical status, 
     and patient satisfaction;
       (C) develop quality improvement tools and evaluate their 
     implementation in order to establish benchmarks for care for 
     specific childhood diseases, conditions, impairments, or 
     populations groups;
       (D) develop specific measures of the quality of care to 
     determine whether a specific health service has been provided 
     in a technically appropriate and effective manner, that is 
     responsive to the clinical needs of the patient, and that is 
     evaluated in terms of the clinical and functional status of 
     the patient as well as the patient's satisfaction with the 
     care; or
       (E) assess policies, procedures, and methods that can be 
     used to improve the process and outcomes of the delivery of 
     care.
       (4) Provider-based research networks.--The term ``provider-
     based research network'' refers to 1 of the following which 
     exist for the purpose of conducting research:
       (A) A hospital-based research network that is comprised of 
     a sufficient number of children's hospitals or pediatric 
     departments of academic health centers.
       (B) A physician practice-based research network that is 
     comprised of a sufficient number of groups of physicians 
     practices.
       (C) A managed care-based research network that is comprised 
     of a sufficient number of pediatric programs of State-
     licensed health maintenance organizations or other State 
     certified managed care plans.
       (D) A combination provider-based research network that is 
     comprised of all or part of a hospital-based research 
     network, a physician practice-based research network, and a 
     managed care-based research network.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.

     SEC. 4. EXPANSION OF THE HEALTH SERVICES RESEARCH WORKFORCE.

       (a) Grants.--The Secretary shall annually award not less 
     than 10 grants to eligible entities at geographically diverse 
     locations throughout the United States to enable such 
     entities to carry out research training programs that are 
     dedicated to child health services research training 
     initiatives at the doctoral, post-doctoral, and junior 
     faculty levels.
       (b) Eligibility.--To be eligible to receive a grant under 
     subsection (a), an entity shall--
       (1) be a public or nonprofit private entity; and
       (2) prepare and submit to the Secretary an application, at 
     such time, in such manner, and containing such information as 
     the Secretary may require.
       (c) Limitation.--A grant awarded under this section shall 
     be for an amount that does not exceed $500,000.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section, $5,000,000 for 
     each of the fiscal years 1999 through 2003.

     SEC. 5. DEVELOPMENT OF CHILD HEALTH IMPROVEMENT RESEARCH 
                   CENTERS AND PROVIDER-BASED RESEARCH NETWORKS.

       (a) Grants.--In order to address the full continuum of 
     pediatric quality of care and outcomes research, to link 
     research to practice improvement, and to speed the 
     dissemination of research findings to community practice 
     settings, the Secretary shall award grants to eligible 
     entities for the establishment of--
       (1) not less that 10 national centers for excellence in 
     child health improvement research at geographically diverse 
     locations throughout the United States; and
       (2) not less than 5 national child health provider quality 
     improvement research networks at geographically diverse 
     locations throughout the United States, including at least 1 
     of each type of network as described in section 3(4).
       (b) Eligibility.--To be eligible to receive a grant under 
     subsection (a), an entity shall--
       (1) for purposes of--
       (A) subsection (a)(1), be a public or nonprofit entity, or 
     group of entities, including universities, and where 
     applicable their

[[Page S2663]]

     schools of Public Health, research institutions, or 
     children's hospitals, with multi-disciplinary expertise 
     including pediatric quality of care and outcomes research and 
     primary care research; or
       (B) subsection (a)(2), be a public or nonprofit institution 
     that represents children's hospitals, pediatric departments 
     of academic health centers, physician practices, or managed 
     care plans; and
       (2) prepare and submit to the Secretary an application, at 
     such time, in such manner, and containing such information as 
     the Secretary may require, including--
       (A) in the case of an application for a grant under 
     subsection (a)(1), a demonstration that a research center 
     will conduct 2 or more research projects involving pediatric 
     quality of care and outcomes research in high priority areas; 
     or
       (B) in the case of an application for a grant under 
     subsection (a)(2)--
       (i) a demonstration that the applicant and its network will 
     conduct 2 or more projects involving pediatric quality of 
     care and outcomes research in high priority areas;
       (ii) a demonstration of an effective and cost-efficient 
     data collection infrastructure;
       (iii) a demonstration of matching funds equal to the amount 
     of the grant; and
       (iv) a plan for sustaining the financing of the operation 
     of a provider-based network after the expiration of the 5-
     year term of the grant.
       (c) Limitations.--A grant awarded under subsection (a)(1) 
     shall not exceed $1,000,000 per year and be for a term of 
     more that 5 years and a grant awarded under subsection (a)(2) 
     shall not exceed $750,000 per year and be for a term of more 
     than 5 years.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated--
       (1) to carry out subsection (a)(1), $10,000,000 for each of 
     the fiscal years 1999 through 2003; and
       (2) to carry out subsection (a)(2), $3,750,000 for each of 
     the fiscal years 1999 through 2003.

     SEC. 6. RESEARCH IN SPECIFIC HIGH PRIORITY AREAS.

       (a) Additional Funds for Grants.--From amounts appropriated 
     under subsection (c), the Secretary shall provide support, 
     through grant programs authorized on the date of enactment of 
     this Act, to entities determined to have expertise in 
     pediatric quality of care and outcomes research. Such 
     additional funds shall be used to improve the quality of 
     children's health, especially in high priority areas, and 
     shall be subject to the same conditions and requirements that 
     apply to funds provided under the existing grant program 
     through which such additional funds are provided.
       (b) Advisory Committee.--
       (1) In general.--To evaluate progress made in pediatric 
     quality of care and outcomes research in high priority areas, 
     and to identify new high priority areas, the Secretary shall 
     establish an advisory committee which shall report annually 
     to the Secretary.
       (2) Membership.--The Secretary shall ensure that the 
     advisory committee established under paragraph (1) includes 
     individuals who are--
       (A) health care consumers;
       (B) health care providers;
       (C) purchasers of health care;
       (D) representative of health plans involved in children's 
     health care services; and
       (E) representatives of Federal agencies including--
       (i) the Agency for Health Care Policy and Research;
       (ii) the Centers for Disease Control and Prevention;
       (iii) the Health Care Financing Administration;
       (iv) the Maternal and Child Health Bureau;
       (v) the National Institutes of Health; and
       (vi) the Substance Abuse and Mental Health Services 
     Administration.
       (3) Evaluation of research.--The advisory committee 
     established under paragraph (1) shall evaluate research in 
     high priority areas using criteria that include--
       (1) the generation of research that includes both short and 
     long term studies;
       (2) the ability to foster public and private partnerships; 
     and
       (3) the likelihood that findings will be transmitted 
     rapidly into practice.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section, $12,000,000 for 
     each of the fiscal years 1999 through 2003.

     SEC. 7. IMPROVING CHILD HEALTH DATA AND DEVELOPING BETTER 
                   DATA COLLECTION SYSTEMS.

       (a) Survey.--The Secretary shall provide assistance to 
     enable the appropriate Federal agencies to--
       (1) conduct ongoing biennial supplements and initiate and 
     maintain a longitudinal study on children's health that is 
     linked to the appropriate existing national surveys 
     (including the National Health Interview Survey and the 
     Medical Expenditure Panel Survey) to--
       (A) provide for reliable national estimates of health care 
     expenditures, cost, use, access, and satisfaction for 
     children, including uninsured children, poor and near-poor 
     children, and children with special health care needs;
       (B) enhance the understanding of the determinants of health 
     outcomes and functional status among children with special 
     health care needs, as well as an understanding of these 
     changes over time and their relationship to health care 
     access and use; and
       (C) monitor the overall national impact of Federal and 
     State policy changes on children's health care; and
       (2) develop an ongoing 50-State survey to generate reliable 
     State estimates of health care expenditures, cost, use, 
     access, satisfaction, and quality for children, including 
     uninsured children, poor and near-poor children, and children 
     with special health care needs.
       (b) Grants.--The Secretary shall award grants to public and 
     nonprofit entities to enable such entities to develop the 
     capacity of local communities to improve child health 
     monitoring at the community level.
       (c) Eligibility.--To be eligible to receive a grant under 
     subsection (b), an entity shall--
       (1) be a public or nonprofit entity; and
       (2) prepare and submit to the Secretary an application, at 
     such time, in such manner, and containing such information as 
     the Secretary may require.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section, $14,000,000 for 
     each of the fiscal years 1999 through 2003, of which--
       (1) $6,000,000 shall be made available in each fiscal year 
     for grants under subsection (a)(1);
       (2) $4,000,000 shall be made available in each fiscal year 
     for grants under subsection (a)(2);
       (3) $4,000,000 shall be made available in each fiscal year 
     for grants under subsection (b).

     SEC. 8. OVERSIGHT.

       Not later than ____ after the date of enactment of this 
     Act, The Secretary shall prepare and submit a report to 
     Congress on progress made in pediatric quality of care and 
     outcomes research, including the extent of ongoing research, 
     programs, and technical needs, and the Department of Health 
     and Human Services' priorities for funding pediatric quality 
     of care and outcomes research.
                                 ______
                                 
      By Ms. COLLINS:
  S. 1867. A bill to amend chapter 35 of title 44, United States Code, 
for the purpose of facilitating compliance by small businesses with 
certain Federal paperwork requirements, and to establish a task force 
to examine the feasibility of streamlining paperwork requirements 
applicable to small businesses; to the Committee on Governmental 
Affairs.


               the small business paperwork reduction act

  Ms. COLLINS. Mr. President, today I am introducing the Small Business 
Paperwork Reduction Act Amendments of 1998, a companion bill to 
legislation pending in the House of Representatives.
  This legislation has five components. First, it requires the Office 
of Management and Budget to publish annually in the Federal Register 
and on the Internet all of the Federal paperwork requirements imposed 
on small business. This will not only serve as a valuable tool for 
those who must comply with these mandates, but it will also make it far 
easier for policy makers to monitor, and I would hope check, the growth 
in the paperwork burden.
  Second, under the bill, each agency will have to establish one point 
of contact to act as a liaison with small businesses on paperwork 
requirements. In an era when serving the customer has become recognized 
by the private sector as critical, this is a modest step to ask of our 
government.
  Third, the legislation provides for the suspension of civil fines 
imposed on small enterprises for first-time paperwork violations, 
except under certain circumstances, such as when the violation causes 
serious harm to the public or presents an imminent danger to the public 
health or safety. In dealing with America's entrepreneurs, we need to 
move away from a culture that seems to place a higher priority on 
imposing punishment than on facilitating compliance.
  Fourth, in addition to meeting the mandates of the Paperwork 
Reduction Act, agencies will have to make further efforts to reduce the 
burden on enterprises with fewer than 25 employees. There must be some 
measure of proportionality between the size of a business and its costs 
of complying with government regulation.
  Fifth, a task force will be established to examine the feasibility of 
requiring agencies to consolidate their paperwork mandates in a manner 
that will allow small businesses to satisfy those mandates through a 
single filing, in a single format, and on the same date. By reducing 
the amount of time currently devoted to these tasks, our companies will 
have more to spend on the activities for which they were formed.
  Mr. President, all too often the relationship between the owners of 
small businesses and government is an adversial one. That benefits no 
one--not the owners of these enterprises, not the many Americans they 
employ, not

[[Page S2664]]

the government they help to support, and not the public at large.
  The problem often is not with the goals which underlie our 
regulations, but rather in how we seek to achieve those goals. We 
should not forget that we are dealing with Americans who make a great 
contribution to the prosperity of our nation. In seeking to meet our 
regulatory objectives, we should be reaching out to these entrepreneurs 
with a helping hand and not a heavy hand. That, Mr. President, is the 
purpose of this legislation.
                                 ______
                                 
      By Mr. NICKLES (for himself, Mr. Mack, Mr. Lieberman, Mr. 
        Kempthorne, Mr. Craig, Mr. Hutchinson, and Mr. DeWine):
  S. 1868. A bill to express United States foreign policy with respect 
to, and to strengthen United States advocacy on behalf of, individuals 
persecuted for their faith worldwide; to authorize United States 
actions in response to religious persecution worldwide; to establish an 
Ambassador at Large on International Religious Freedom within the 
Department of State, a Commission on International Religious Freedom 
within the Department of State, a Commission on International Religious 
Persecution, and a Special Adviser on International Religious Freedom 
within the National Security Council; and for other purposes; to the 
Committee on Foreign Relations.


            the international religious freedom act of 1998

  Mr. NICKLES. Mr. President, today I am prompted to speak by both a 
tragic reality, and also what I would think is a promising hope. The 
tragic reality is that literally millions of religious believers around 
the world live gripped by the incessant, terrifying prospect of 
persecution, of being tortured, arrested, imprisoned or even killed for 
simply practicing their faith. A promising hope, I believe, might 
perhaps be found in the bill that I am introducing today with Senator 
Lieberman, Senator Mack, Senator Kempthorne, Senator Craig, Senator 
Hutchinson and Senator DeWine. It is called the International Religious 
Freedom Act. The International Religious Freedom Act will establish a 
process to ensure that on an ongoing basis the United States closely 
monitors religious persecution worldwide.
  It is wrong for a country to persecute, to prosecute, to imprison, 
harass individuals for simply practicing their faith, whether that 
faith is Jewish or Christian or Muslim or Hindu. It is absolutely wrong 
for them to be persecuted for practicing their faith. This act requires 
the U.S. Government to take action against all countries engaging in 
religious persecution.
  What kind of persecution am I talking about? First, three facts 
command attention.
  One reliable estimate indicates that more Christian martyrs have 
perished in this century than all previous centuries combined. That is 
a staggering, staggering statement.
  A recent book reports that 200 million Christians around the world 
live under daily fear and threat of persecution, including 
interrogation, imprisonment, torture and in some cases death.
  Finally, over half the world's population lives under regimes which 
severely restrict if not prohibit their ability to believe in and 
practice the religious faith of their choice and conviction.
  Of course, religious persecution goes beyond facts and figures. It 
happens to real people in real places. Let me point out just four 
compelling examples.
  At this very moment one of China's leading house church pastors, 
Pastor Peter Xu, is languishing in a Chinese prison under a 3-year term 
for the so-called ``crime'' of ``disturbing public order.'' Hundreds, 
perhaps thousands of other believers in China currently suffer similar 
treatment.
  Again, at this very moment, 13 courageous Christians are imprisoned 
by the Communist authorities in Laos. What was their ``crime''? Simply 
that they organized an ``unauthorized'' Bible study in the privacy of a 
home.
  In Pakistan, just a few months ago, Pastor Noor Alam was brutally 
stabbed to death by anti-Christian assailants. Shortly before that, 
they had destroyed Pastor Alam's church building. Meanwhile, Christians 
and other religious minorities in Pakistan continue to sufferer under 
the notorius ``blasphemy laws.''
  Or consider Russia, which, as many of my colleagues will remember, 
just last summer passed a draconian law that will effectively shut down 
the vast majority of independent churches and other religious 
organizations and severly curtail the religious freedom of the Russian 
people.
  I could go on and on. However, I do want to share just a few 
highlights of what we humbly but earnestly hope our bill can do to 
begin to address the scourge of religious persecution worldwide.
  I should also mention that, in 1996, I was honored to sponsor a 
Senate resolution on religious persecution, which passed by unanimous 
consent. In that resolution, the Senate made a strong recommendation 
``that the President expand and invigorate the United States' 
international advocacy on behalf of persecuted Christians, and initiate 
a thorough examination of all United States' policies that affect 
persecuted Christians.''
  What was a mere resolution in 1996, I hope it will become a reality 
in 1998. While then we acted with words, I hope that this year we can 
act with deeds.
  In short, this bill seeks to ensure that the U.S. Government 
aggressively monitors religious oppression around the world and takes 
decisive action against those regimes engaged in persecution, all the 
while maintaining the integrity and credibility of the U.S. foreign 
policy system.
  The International Religious Freedom Act establishes an ``Ambassador-
at-Large for Religious Liberty'' at the State Department. The 
Ambassador will be responsible for representing our Government in 
vigorous diplomacy with nations guilty of religious persecution. In 
addition, the Ambassador will oversee an annual report on religious 
persecution which will specify the details on religious persecution 
around the world. This report will name names. And those countries 
named will be held accountable.
  For any country cited in the report, the Act presents a menu of 
diplomatic and economic options, and the President is required to 
select from at least one of those actions. Silence or passivity are not 
options. At the same time, the Act seeks to provide the President 
maximum flexibility entailing the most appropriate, effective response 
to that particular situation in a particular country. Furthermore, 
because we desire good results to follow our good intentions, the Act 
requires a consideration of how the action taken by America will affect 
American economic and security interests and, most important, how it 
will affect the very people that it purports to help.
  The International Religious Freedom Act has other provisions--
improved reporting, improved training for immigration and foreign 
service officials, a commission on international religious liberty to 
provide more attention and expertise on the issue. I invite all my 
colleagues, and certainly those who are deeply concerned about the 
plight of persecuted religious believers, to join me in supporting this 
bill. Not because it might be popular or expedient or convenient to 
support this legislation, but because it is the right thing to do and 
because I believe it will make a real difference in protecting the 
lives of some of the most vulnerable people in the world, those people 
who wish to express their religious beliefs and convictions.
  Mr. President, I thank my cosponsors, particularly Senator Lieberman, 
also Senator Mack, in addition to Senator Hutchinson and Senator Craig 
and Senator Kempthorne, for helping us put this legislation together.
  Mr. President, I ask unanimous consent that the text of the bill 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1868

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a)  Short Title.--This Act may be cited as the 
     ``International Religious Freedom Act of 1998''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings; policy.
Sec. 3. Definitions.

                TITLE I--DEPARTMENT OF STATE ACTIVITIES

Sec. 101. Office on International Religious Freedom; Ambassador at 
              Large for International Religious Freedom.

[[Page S2665]]

Sec. 102. Reports.
Sec. 103. Establishment of a religious freedom Internet site.
Sec. 104. Training for Foreign Service officers.
Sec. 105. High-level contacts with NGOs.
Sec. 106. Programs and allocations of funds by United States missions 
              abroad.
Sec. 107. Equal access to United States missions abroad for conducting 
              religious activities.
Sec. 108. Prisoner lists and issue briefs on religious persecution 
              concerns.

      TITLE II--COMMISSION ON INTERNATIONAL RELIGIOUS PERSECUTION

Sec. 201. Establishment and composition.
Sec. 202. Duties of the Commission.
Sec. 203. Report of the Commission.
Sec. 204. Termination.

                  TITLE III--NATIONAL SECURITY COUNCIL

Sec. 301. Special Adviser on Religious Persecution.

                          TITLE IV--SANCTIONS

     Subtitle I--Targeted Responses to Religious Persecution Abroad

Sec. 401. Executive measures and sanctions in response to findings made 
              in the Annual Report on Religious Persecution.
Sec. 402. Presidential determinations of gross violations of the right 
              to religious freedom.
Sec. 403. Consultations.
Sec. 404. Report to Congress.
Sec. 405. Description of Executive measures and sanctions.
Sec. 406. Contract sanctity.
Sec. 407. Presidential waiver.
Sec. 408. Publication in Federal Register.
Sec. 409. Congressional review.
Sec. 410. Termination of sanctions.

                Subtitle II--Strengthening Existing Law

Sec. 421. United States assistance.
Sec. 422. Multilateral assistance.
Sec. 423. Exports of items relating to religious persecution.

                TITLE V--PROMOTION OF RELIGIOUS FREEDOM

Sec. 501. Assistance for promoting religious freedom.
Sec. 502. International broadcasting.
Sec. 503. International exchanges.
Sec. 504. Foreign Service awards.

            TITLE VI--REFUGEE, ASYLUM, AND CONSULAR MATTERS

Sec. 601. Use of Annual Report.
Sec. 602. Reform of refugee policy.
Sec. 603. Reform of asylum policy.
Sec. 604. Inadmissibility of foreign government officials who have 
              engaged in gross violations of the right to religious 
              freedom.

                  TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 701. Business codes of conduct.
Sec. 702. International Criminal Court.

     SEC. 2. FINDINGS; POLICY.

       (a) Findings.--Congress makes the following findings:
       (1) Freedom of religious belief and practice is a 
     fundamental human right articulated in numerous international 
     agreements and covenants, including the Universal Declaration 
     of Human Rights, the International Covenant on Civil and 
     Political Rights, the Helsinki Accords, the Declaration on 
     the Elimination of All Forms of Intolerance and 
     Discrimination Based on Religion or Belief, the United 
     Nations Charter, and the European Convention for the 
     Protection of Human Rights and Fundamental Freedoms.
       (2) The right to freedom of religion undergirds the very 
     origin and existence of the United States. Many of our 
     Nation's founders fled religious persecution abroad, 
     cherishing in their hearts and minds the ideal of religious 
     freedom. They established in law, as a fundamental right and 
     as a pillar of our Nation, the right to freedom of religion. 
     From its birth to this day, the United States has prized this 
     legacy of religious freedom and honored this heritage by 
     standing for religious freedom and offering refuge to those 
     suffering religious persecution.
       (3) Article 18 of the Universal Declaration of Human Rights 
     recognizes that ``Everyone has the right to freedom of 
     thought, conscience, and religion. This right includes 
     freedom to change his religion or belief, and freedom, either 
     alone or in community with others and in public or private, 
     to manifest his religion or belief in teaching, practice, 
     worship, and observance.''. Article 18(1) of the 
     International Covenant on Civil and Political Rights 
     recognizes that ``Everyone shall have the right to freedom of 
     thought, conscience, and religion. This right shall include 
     freedom to have or to adopt a religion or belief of his 
     choice, and freedom, either individually or in community with 
     others and in public or private, to manifest his religion or 
     belief in worship, observance, practice, and teaching''. 
     Governments have the responsibility to protect the 
     fundamental rights of their citizens and to pursue justice 
     for all. Religious freedom is a fundamental right of every 
     individual, regardless of race, country, creed, or 
     nationality, and should never be arbitrarily abridged by any 
     government.
       (4) The right to freedom of religion is under renewed and, 
     in some cases, increasing assault in many countries around 
     the world. More than one-half of the world's population lives 
     under regimes that severely restrict or prohibit the freedom 
     of their citizens to study, believe, observe, and freely 
     practice the religious faith of their choice. Religious 
     believers and communities suffer both government-sponsored 
     and government-tolerated violations of their rights to 
     religious freedom. Among the many forms of such violations 
     are state-sponsored slander campaigns, confiscations of 
     property, surveillance by security police, including by 
     special divisions of ``religious police'', severe 
     prohibitions against construction and repair of places of 
     worship, denial of the right to assemble and relegation of 
     religious communities to illegal status through arbitrary 
     registration laws, prohibitions against the pursuit of 
     education or public office, and prohibitions against 
     publishing, distributing, or possessing religious literature 
     and materials.
       (5) Even more abhorrent, religious believers in many 
     countries face such severe and violent forms of religious 
     persecution as detention, torture, beatings, forced marriage, 
     rape, imprisonment, enslavement, mass resettlement, and death 
     merely for the peaceful belief in, change of or practice of 
     their faith. In many countries, religious believers are 
     forced to meet secretly, and religious leaders are targeted 
     by national security forces and hostile mobs.
       (6) Though not confined to a particular region or regime, 
     religious persecution is often particularly widespread, 
     systematic, and heinous under totalitarian governments and in 
     countries with militant, politicized religious majorities.
       (7) Congress has recognized and denounced acts of religious 
     persecution through the adoption of the following 
     resolutions:
       (A) House Resolution 515 (104th), expressing the sense of 
     the House of Representatives with respect to the persecution 
     of Christians worldwide.
       (B) Senate Concurrent Resolution 71 (104th), expressing the 
     sense of the Senate regarding persecution of Christians 
     worldwide.
       (C) House Concurrent Resolution 102, concerning the 
     emancipation of the Iranian Baha'i community.
       (b) Policy.--It shall be the policy of the United States, 
     as follows:
       (1) To condemn religious persecution, and to promote, and 
     to assist other governments in the promotion of, the 
     fundamental right to religious freedom.
       (2) To seek to channel United States security and 
     development assistance to governments other than those found 
     to be engaged in gross violations of human rights, including 
     the right to religious freedom, as set forth in the Foreign 
     Assistance Act of 1961, in the International Financial 
     Institutions Act of 1977, and in other formulations of United 
     States human rights policy.
       (3) To be vigorous and flexible, reflecting both the 
     unwavering commitment of the United States to religious 
     freedom and the desire of the United States for the most 
     effective and principled response, in light of the range of 
     violations of religious freedom by a variety of persecuting 
     regimes, and the status of the relations of the United States 
     with different nations.
       (4) To work with foreign governments that affirm and 
     protect religious freedom, in order to develop multilateral 
     documents and initiatives to combat religious persecution and 
     promote the right to religious freedom abroad.
       (5) Standing for liberty and standing with the persecuted, 
     to use and implement appropriate tools in the United States 
     foreign policy apparatus, including diplomatic, political, 
     commercial, charitable, educational, and cultural channels, 
     to promote respect for religious freedom by all governments 
     and peoples.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Ambassador at large.--The term ``Ambassador at Large'' 
     means the Ambassador at Large on International Religious 
     Freedom appointed under section 101(b).
       (2) Annual report on religious persecution.--The term 
     ``Annual Report on Religious Persecution'' means the report 
     described in section 102(b).
       (3) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committee 
     on Foreign Relations of the Senate and the Committee on 
     International Relations of the House of Representatives and, 
     in the case of any determination made with respect to the 
     imposition of a sanction under paragraphs (9) through (16) of 
     section 405, the term ``appropriate congressional 
     committees'' includes those committees, together with the 
     Committee on Ways and Means and the Committee on Banking and 
     Financial Services of the House of Representatives and the 
     Committee on Finance of the Senate.
       (4) Commission.--The term ``Commission'' means the United 
     States Commission on International Religious Persecution 
     established in section 201(a).
       (5) Government or foreign government.--The term 
     ``government'' or ``foreign government'' includes any agency 
     or instrumentality of the government.
       (6) Gross violations of the right to freedom of religion.--
     The term ``gross violations of the right to freedom of 
     religion'' means a consistent pattern of gross violations of 
     the right to freedom of religion that include torture or 
     cruel, inhuman, or degrading treatment or punishment, 
     prolonged detention without charges, causing the 
     disappearance of persons by the abduction or clandestine 
     detention of those persons, or other flagrant denial of the 
     right to life, liberty, or the security of persons, within 
     the meaning of section 116(a) of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2151n(a)).

[[Page S2666]]

       (7) Human rights reports.--The term ``Human Rights 
     Reports'' means the reports submitted by the Department of 
     State to Congress under sections 116 and 502B of the Foreign 
     Assistance Act of 1961.
       (8) Office.--The term ``Office'' means the Office on 
     International Religious Freedom established in section 
     101(a).
       (9) Religious persecution.--The term ``religious 
     persecution'' means any violation of the internationally 
     recognized right to freedom of religion, as defined in 
     Article 18 of the Universal Declaration of Human Rights and 
     Article 18 of the International Covenant on Civil and 
     Political Rights, including violations such as--
       (A) arbitrary prohibitions on, restrictions of, or 
     punishment for--
       (i) assembling for peaceful religious activities such as 
     worship, preaching, and prayer, including arbitrary 
     registration requirements,
       (ii) speaking freely about one's religious beliefs,
       (iii) changing one's religious beliefs and affiliation,
       (iv) possession and distribution of religious literature, 
     including Bibles, or
       (v) raising one's children in the religious teachings and 
     practices of one's choice,

     as well as arbitrary prohibitions or restrictions on the 
     grounds of religion on holding public office, or pursuing 
     educational or professional opportunities; and
       (B) any of the following acts if committed on account of an 
     individual's religious belief or practice: detention, 
     interrogation, harassment, imposition of an onerous financial 
     penalty, forced labor, forced mass resettlement, 
     imprisonment, beating, torture, mutilation, rape, 
     enslavement, murder, and execution.
       (10) Special adviser.--The term ``Special Adviser'' means 
     the Special Adviser to the President on Religious Persecution 
     established in section 101(i) of the National Security Act of 
     1947, as added by section 301 of this Act.
                TITLE I--DEPARTMENT OF STATE ACTIVITIES

     SEC. 101. OFFICE ON INTERNATIONAL RELIGIOUS FREEDOM; 
                   AMBASSADOR AT LARGE FOR INTERNATIONAL RELIGIOUS 
                   FREEDOM.

       (a) Establishment of Office.--There is established within 
     the Department of State an Office on International Religious 
     Freedom that shall be headed by the Ambassador at Large on 
     International Religious Freedom appointed under subsection 
     (b).
       (b) Appointment.--The Ambassador at Large shall be 
     appointed by the President, by and with the advice and 
     consent of the Senate.
       (c) Duties.--The Ambassador at Large shall have the 
     following responsibilities:
       (1) In general.--The primary responsibility of the 
     Ambassador at Large shall be to advance the right to freedom 
     of religion abroad, to denounce the violation of that right, 
     and to recommend appropriate responses by the United States 
     Government when this right is violated.
       (2) Advisory role.--The Ambassador at Large shall be the 
     principal adviser to the President and the Secretary of State 
     regarding matters affecting religious freedom abroad and, 
     with advice from the Commission on International Religious 
     Persecution, shall make recommendations regarding the 
     policies of the United States Government toward governments 
     that violate the freedom of religion or that fail to ensure 
     the individual's right to religious belief and practice.
       (3) Diplomatic representation.--The Ambassador at Large is 
     authorized to represent the United States in matters and 
     cases relevant to religious persecution in--
       (A) contacts with foreign governments, international 
     organizations, intergovernmental organizations, and 
     specialized agencies of the United Nations, the Organization 
     on Security and Cooperation in Europe, and other 
     organizations of which the United States is a member; and
       (B) multilateral conferences and meetings relevant to 
     religious persecution.
       (4) Reporting responsibilities.--The Ambassador at Large 
     shall have the reporting responsibilities described in 
     section 102.
       (d) Funding.--The Secretary of State shall provide the 
     Ambassador at Large with such funds as may be necessary for 
     the hiring of staff for the Office, for the conduct of 
     investigations by the Office, and for necessary travel to 
     carry out the provisions of this section.

     SEC. 102. REPORTS.

       (a) Portions of Annual Human Rights Reports.--The 
     Ambassador at Large shall assist the Secretary of State in 
     preparing those portions of the Human Rights Reports that 
     relate to freedom of religion and discrimination based on 
     religion and those portions of other information provided 
     Congress under sections 116 and 502B of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2151m, 2304) that relate to 
     the right to religious freedom.
       (b) Annual Report on Religious Persecution.--
       (1) In general.--
       (A) Deadline for submission.--Not later than May 1 of each 
     year, the Ambassador at Large shall submit to the appropriate 
     congressional committees an Annual Report on Religious 
     Persecution, expanding upon the most recent Human Rights 
     Reports. Each Annual Report on Religious Persecution shall 
     contain the following:
       (i) An identification of each foreign country the 
     government of which engages in or tolerates acts of religious 
     persecution.
       (ii) An assessment and description of the nature and extent 
     of religious persecution, including persecution of one 
     religious group by another religious group, religious 
     persecution by governmental and nongovernmental entities, 
     persecution targeted at individuals or particular 
     denominations or entire religions, and the existence of 
     government policies violating religious freedom.
       (iii) A description of United States policies in support of 
     religious freedom, including a description of the measures 
     and policies implemented during the preceding 12 months by 
     the United States under title IV of this Act in opposition to 
     religious persecution and in support of religious freedom.
       (iv) A description of any binding agreement with a foreign 
     government entered into by the United States under section 
     402(c).
       (B) Classified addendum.--If the Ambassador determines that 
     it is in the national security interests of the United States 
     or is necessary for the safety of individuals to be 
     identified in the Annual Report, any information required by 
     subparagraph (A), including measures taken by the United 
     States, may be summarized in the Annual Report and submitted 
     in more detail in a classified addendum to the Annual Report.
       (C) Designation of report.--Each report submitted under 
     this subsection may be referred to as the ``Annual Report on 
     Religious Persecution''.
       (2) Foreign government input.--Prior to submission of each 
     report under this subsection, the Secretary of State may 
     offer the government of any country concerned an opportunity 
     to respond to the relevant portions of the report. If the 
     Secretary of State determines that doing so would further the 
     purposes of this Act, the Secretary shall request the 
     Ambassador at Large to include the country's response as an 
     addendum to the Annual Report on Religious Persecution.
       (c) Preparation of Reports Regarding Religious 
     Persecution.--
       (1) Standards and investigations.--The Secretary of State 
     shall ensure that United States missions abroad maintain a 
     consistent reporting standard and thoroughly investigate 
     reports of religious persecution.
       (2) Contacts with ngos.--In compiling data and assessing 
     the respect of the right to religious freedom for the Human 
     Rights Reports and the Annual Report on Religious 
     Persecution, United States mission personnel shall seek out 
     and maintain contacts with religious and human rights 
     nongovernmental organizations, with the consent of those 
     organizations, including receiving reports and updates from 
     such organizations and, when appropriate, investigating such 
     reports.
       (d) Amendments to the Foreign Assistance Act.--
       (1) Content of human rights reports for countries receiving 
     economic assistance.--Section 116(d) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2151n(d)) is amended--
       (A) by striking ``and'' at the end of paragraph (4);
       (B) by striking the period at the end of paragraph (5) and 
     inserting``; and ''; and
       (C) by adding at the end the following:
       ``(6) wherever applicable, the practice of religious 
     persecution, including gross violations of the right to 
     religious freedom.''.
       (2) Contents of human rights reports for countries 
     receiving security assistance.--Section 502B(b) of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2304(b)) is 
     amended--
       (A) by inserting ``and with the assistance of the 
     Ambassador at Large for Religious Freedom'' after ``Labor''; 
     and
       (B) by inserting after the second sentence the following 
     new sentence: ``Such report shall also include, wherever 
     applicable, information on religious persecution, including 
     gross violations of the right to religious freedom.''.

     SEC. 103. ESTABLISHMENT OF A RELIGIOUS FREEDOM INTERNET SITE.

       In order to facilitate access by nongovernmental 
     organizations (NGOs) and by the public around the world to 
     international documents on the protection of religious 
     freedom, the Ambassador at Large shall establish and maintain 
     an Internet site containing major international documents 
     relating to religious freedom, the Annual Report on Religious 
     Persecution, and any other documentation or references to 
     other sites as deemed appropriate or relevant by the 
     Ambassador at Large.

     SEC. 104. TRAINING FOR FOREIGN SERVICE OFFICERS.

       Chapter 2 of title I of the Foreign Service Act of 1980 is 
     amended by adding at the end the following new section:

     ``SEC. 708. TRAINING FOR FOREIGN SERVICE OFFICERS.

       ``The Secretary of State and the Ambassador at Large on 
     International Religious Freedom, appointed under section 
     101(b) of the International Religious Freedom Act of 1998, 
     acting jointly, shall establish as part of the standard 
     training for officers of the Service, including chiefs of 
     mission, instruction in the field of internationally 
     recognized human rights. Such instruction shall include--
       ``(1) standards for proficiency in the knowledge of 
     international documents and United States policy in human 
     rights, and shall be mandatory for all members of the Service 
     having reporting responsibilities relating to human rights, 
     and for chiefs of mission; and
       ``(2) instruction on the international right to freedom of 
     religion, the nature, activities,

[[Page S2667]]

     and beliefs of different religions, and the various aspects 
     and manifestations of religious persecution.''.

     SEC. 105. HIGH-LEVEL CONTACTS WITH NGOS.

       United States chiefs of mission shall seek out and contact 
     religious nongovernmental organizations to provide high-level 
     meetings with religious nongovernmental organizations where 
     appropriate and beneficial. United States chiefs of mission 
     and Foreign Service officers abroad shall seek to meet with 
     imprisoned religious leaders where appropriate and 
     beneficial.

     SEC. 106. PROGRAMS AND ALLOCATIONS OF FUNDS BY UNITED STATES 
                   MISSIONS ABROAD.

       It is the sense of Congress that--
       (1) United States diplomatic missions in countries the 
     governments of which engage in or tolerate religious 
     persecution should develop, as part of annual program 
     planning, a strategy to promote the respect of the 
     internationally recognized right to freedom of religion; and
       (2) in allocating or recommending the allocation of funds 
     or the recommendation of candidates for programs and grants 
     funded by the United States Government, United States 
     diplomatic missions should give particular consideration to 
     those programs and candidates deemed to assist in the 
     promotion of the right to religious freedom.

     SEC. 107. EQUAL ACCESS TO UNITED STATES MISSIONS ABROAD FOR 
                   CONDUCTING RELIGIOUS ACTIVITIES.

       (a) In General.--Subject to this section, the Secretary of 
     State shall permit, on terms no less favorable than that 
     accorded other nongovernmental activities, access to the 
     premises of any United States diplomatic mission or consular 
     post by any United States citizen seeking to conduct an 
     activity for religious purposes.
       (b) Timing and Location.--The Secretary of State shall make 
     reasonable accommodations with respect to the timing and 
     location of such access in light of--
       (1) the number of United States citizens requesting the 
     access (including any particular religious concerns regarding 
     the time of day, date, or physical setting for services);
       (2) conflicts with official activities and other 
     nonofficial United States citizen requests;
       (3) the availability of openly conducted, organized 
     religious services outside the premises of the mission or 
     post; and
       (4) necessary security precautions.
       (c) Discretionary Access for Foreign Nationals.--The 
     Secretary of State may permit access to the premises of a 
     United States diplomatic mission or consular post to foreign 
     nationals for the purpose of attending or participating in 
     religious activities conducted pursuant to this title.

     SEC. 108. PRISONER LISTS AND ISSUE BRIEFS ON RELIGIOUS 
                   PERSECUTION CONCERNS.

       (a) Sense of Congress.--To encourage involvement with 
     religious persecution concerns at every possible opportunity 
     and by all appropriate representatives of the United States 
     Government, it is the sense of Congress that officials of the 
     executive branch of Government should promote increased 
     advocacy on such issues during meetings between executive 
     branch and congressional leaders and foreign dignitaries.
       (b) Religious Persecution Prisoner Lists and Issue 
     Briefs.--The Secretary of State, in consultation with United 
     States chiefs of mission abroad, regional experts, the 
     Ambassador at Large, and nongovernmental human rights and 
     religious groups, shall prepare, and maintain issue briefs on 
     religious freedom, on a country-by-country basis, consisting 
     of lists of persons believed to be imprisoned for their 
     religious faith, together with brief evaluations and 
     critiques of policies of the respective country restricting 
     religious freedom. The Secretary of State shall exercise 
     appropriate discretion regarding the safety and security 
     concerns of prisoners in considering the inclusion of their 
     names on the lists.
       (c) Availability of Information.--The Secretary shall 
     provide these religious freedom issue briefs to executive 
     branch and congressional officials and delegations in 
     anticipation of bilateral contacts with foreign leaders, both 
     in the United States and abroad.
      TITLE II--COMMISSION ON INTERNATIONAL RELIGIOUS PERSECUTION

     SEC. 201. ESTABLISHMENT AND COMPOSITION.

       (a) Generally.--There is established the United States 
     Commission on International Religious Persecution.
       (b) Membership.--
       (1) Appointment.--The Commission shall be composed of--
       (A) the Ambassador at Large, who shall serve as Chair; and
       (B) 6 other members, who shall be appointed as follows:
       (i) 2 members of the Commission shall be appointed by the 
     President.
       (ii) 2 members of the Commission shall be appointed by the 
     President pro tempore of the Senate, upon the recommendations 
     of the Majority Leader and the Minority Leader.
       (iii) 2 members of the Commission shall be appointed by the 
     Speaker of the House of Representatives upon the 
     recommendations of the Majority Leader and the Minority 
     Leader.
       (2) Selection.--Members of the Commission shall be selected 
     among distinguished individuals noted for their knowledge and 
     experience in fields relevant to the issue of international 
     religious persecution, including foreign affairs, human 
     rights, and international law.
       (3) Time of appointment.--The appointments required by 
     paragraph (1) shall be made not later than 120 days after the 
     date of enactment of this Act.
       (c) Terms.--The term of office of each member of the 
     Commission shall be 2 years, except that an individual may 
     not serve more than 2 terms.
       (d) Quorum.--Four members of the Commission constitute a 
     quorum of the Commission.
       (e) Meetings.--No more than 15 days after the issuance of 
     the Annual Report on Religious Persecution, the Commission 
     shall convene.
       (f) Administrative Support.--The Ambassador at Large shall 
     provide to the Commission such staff and administrative 
     services of the Office as may be necessary for the Commission 
     to perform its functions. The Secretary of State shall assist 
     the Ambassador at Large and the Commission by detailing staff 
     resources as needed and as appropriate.
       (g) Funding.--
       (1) Travel expenses.--Members of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (2) No compensation for government employees.--Any member 
     of the Commission who is an officer or employee of the United 
     States shall not be paid compensation for services performed 
     as a member of the Commission.

     SEC. 202. DUTIES OF THE COMMISSION.

       (a) In General.--The Commission shall have as its primary 
     responsibility the consideration of the facts and 
     circumstances of religious persecution presented in the 
     Annual Report on Religious Persecution, as well as 
     information from other sources as appropriate, and to make 
     appropriate policy recommendations to the President, the 
     Secretary of State, and Congress.
       (b) Policy Review and Recommendations in Response to 
     Violations.--The Commission, in evaluating the United States 
     Government policies in response to religious persecution, 
     shall consider and recommend policy options, including 
     diplomatic inquiries, diplomatic protest, official public 
     protest, demarche of protest, condemnation within 
     multilateral fora, cancellation of cultural or scientific 
     exchanges, or both, cancellation of state visits, reduction 
     of certain assistance funds, termination of certain 
     assistance funds, imposition of targeted trade sanctions, 
     imposition of broad trade sanctions, and withdrawal of the 
     chief of mission.
       (c) Policy Review and Recommendations in Response to 
     Progress.--The Commission, in evaluating the United States 
     Government policies with respect to countries found to be 
     taking deliberate steps and making significant improvement in 
     respect for religious freedom, shall consider and recommend 
     policy options, including private commendation, diplomatic 
     commendation, official public commendation, commendation 
     within multilateral fora, an increase in cultural or 
     scientific exchanges, or both, termination or reduction of 
     existing sanctions, an increase in certain assistance funds, 
     and invitations for official state visits.
       (d) Effects on Religious Communities and Individuals.--
     Together with specific policy recommendations provided under 
     subsections (b) and (c), the Commission shall also indicate 
     its evaluation of the potential effects of such policies, if 
     implemented, on the religious communities and individuals 
     whose rights are found to be violated in the country in 
     question.
       (e) Monitoring.--The Commission shall, on an ongoing basis, 
     monitor facts and circumstances of religious persecution, in 
     consultation with independent human rights groups and 
     nongovernmental organizations, including churches and other 
     religious communities, and make such recommendations as may 
     be necessary to the appropriate officials and offices in the 
     United States Government.

     SEC. 203. REPORT OF THE COMMISSION.

       (a) In General.--Not later than August 1 of each year, the 
     Commission shall submit a report to the President and to 
     Congress setting forth its recommendations for changes in 
     United States policy based on its evaluations under section 
     202.
       (b) Classified Form of Report.--The report may be submitted 
     in classified form, together with a public summary of 
     recommendations.
       (c) Individual or Dissenting Views.--Each member of the 
     Commission may include the individual or dissenting views of 
     the member.

     SEC. 204. TERMINATION.

       The Commission shall terminate 4 years after the initial 
     appointment of Commissioners.
                  TITLE III--NATIONAL SECURITY COUNCIL

     SEC. 301. SPECIAL ADVISER ON RELIGIOUS PERSECUTION.

       Section 101 of the National Security Act of 1947 (50 U.S.C. 
     402) is amended by adding at the end the following new 
     subsection:
       ``(i) It is the sense of the Congress that there should be 
     within the staff of the National Security Council a Special 
     Adviser to the President on Religious Persecution, whose 
     position should be comparable to that of a director within 
     the Executive Office of

[[Page S2668]]

     the President. The Special Adviser should serve as a resource 
     for executive branch officials, compiling and maintaining 
     information on the facts and circumstances of religious 
     persecution and violations of religious freedom, and making 
     policy recommendations. The Special Adviser should serve as 
     liaison with the Ambassador at Large on International 
     Religious Freedom, the United States Commission on 
     International Religious Persecution, Congress and, as 
     advisable, religious nongovernmental organizations.''.
                          TITLE IV--SANCTIONS
     Subtitle I--Targeted Responses to Religious Persecution Abroad

     SEC. 401. EXECUTIVE MEASURES AND SANCTIONS IN RESPONSE TO 
                   FINDINGS MADE IN THE ANNUAL REPORT.

       (a) In General.--For each foreign country the government of 
     which engages in or tolerates religious persecution, as 
     described in the Annual Report on Religious Persecution, the 
     President shall oppose such persecution and promote the right 
     to freedom of religion in that country through the actions 
     described in subsection (b).
       (b) Presidential Actions.--As expeditiously as practicable, 
     but not later than one year after the date of submission of 
     each Annual Report on Religious Persecution, the President, 
     in consultation with the Ambassador at Large, the Special 
     Advisor, and the Commission, shall take one or more of the 
     actions described in paragraphs (1) through (16) of section 
     405(a) with respect to a foreign government described in 
     subsection (a).
       (c) Executive Measures.--The President shall notify the 
     appropriate congressional committees and, as appropriate, the 
     Commission, of any measure or measures taken by the President 
     under paragraphs (1) through (8) of section 405(a).
       (d) Sanctions.--Any measure imposed under paragraphs (9) 
     through (16) of section 405(a) may only be imposed in 
     accordance with the procedures set forth in section 409 after 
     the requirements of sections 403 and 404 have been satisfied.
       (e) Implementation.--
       (1) In general.--In carrying out subsection (b), the 
     President shall--
       (A) take the action or actions that most appropriately 
     respond to the nature and severity of the religious 
     persecution;
       (B) seek to the fullest extent possible to target action as 
     narrowly as practicable with respect to the agency or 
     instrumentality of the foreign government, or specific 
     officials thereof, that are responsible for such persecution; 
     and
       (C) make every reasonable effort to conclude a binding 
     agreement concerning the cessation of such persecution.
       (2) Guidelines for sanctions.--In addition to the 
     guidelines under paragraph (1), the President, in determining 
     whether to impose a sanction under paragraphs (9) through 
     (16) of section 405(a) or commensurate action under section 
     405(b), shall seek to minimize any adverse impact on--
       (A) the population of the country whose government is 
     targeted by the sanction or sanctions; and
       (B) the humanitarian activities of United States and 
     foreign nongovernmental organizations in such country.

     SEC. 402. PRESIDENTIAL DETERMINATIONS OF GROSS VIOLATIONS OF 
                   THE RIGHT TO RELIGIOUS FREEDOM.

       (a) Determination of Gross Violations of the Right to 
     Religious Freedom.--Not more than 30 days after transmittal 
     of the Annual Report on Religious Persecution to the 
     appropriate congressional committees, the President, in 
     consultation with the Ambassador at Large, the Special 
     Advisor, and the Commission shall determine whether any of 
     the governments of the countries described in the Annual 
     Report on Religious Persecution have engaged in a consistent 
     pattern of gross violations of the right to religious 
     freedom.
       (b) Determination of Responsible Parties.--The President 
     shall at the same time as the determination under subsection 
     (a) identify, to the extent practicable for each foreign 
     government under that subsection, the responsible agency or 
     instrumentality thereof and specific officials thereof that 
     are responsible for such gross violations, in order to 
     appropriately target sanctions in response.
       (c) Sanctions Against Governments Engaged in Gross 
     Violations of Religious Freedom.--
       (1) In general.--Subject to paragraph (2) of this 
     subsection, in the case of a determination under subsection 
     (a) with respect to a foreign government, unless Congress 
     enacts a joint resolution of disapproval in accordance with 
     section 409, the President shall carry out one or more of the 
     following actions after the requirements of sections 403 and 
     404 have been satisfied:
       (A) Sanctions.--One or more of the sanctions described in 
     paragraphs (9) through (16) of section 405(a), to be 
     determined by the President.
       (B) Commensurate actions.--Commensurate action, as 
     described in section 405(b).
       (2) Substitution of binding agreements.--In lieu of 
     carrying out action under paragraph (1), the President may 
     conclude a binding agreement with the respective foreign 
     government concerning the cessation of such violations. The 
     existence of a binding agreement under this paragraph with a 
     foreign government shall be considered by the President prior 
     to making any determination under section 401 or this 
     section.

     SEC. 403. CONSULTATIONS.

       (a) Duty To Consult With Foreign Governments Prior to 
     Imposition of Sanctions.--
       (1) In general.--The President shall--
       (A) as soon as practicable after a determination is made 
     under section 402(a) or a sanction is proposed to be taken 
     under section 401(d), request consultation with each 
     respective foreign government regarding the violations 
     determined under those sections; and
       (B) if agreed to, enter into such consultations, privately 
     or publicly.
       (2) Use of multilateral fora.--If the President determines 
     it to be appropriate, such consultations may be sought and 
     may occur in a multilateral forum.
       (3) Election of nondisclosure of negotiations to public.--
     If negotiations are undertaken or an agreement is reached 
     with a foreign government regarding steps to alter the 
     pattern of violations by that government, and if public 
     disclosure of such negotiations or agreement would jeopardize 
     the negotiations or the implementation of such agreement, as 
     the case may be, the President may refrain from disclosing 
     such negotiations and such agreement to the public, except 
     that the President shall inform the appropriate congressional 
     committees of the nature and extent of such negotiations and 
     any agreement reached.
       (b) Duty To Consult With Humanitarian Organizations.--The 
     President shall consult with appropriate humanitarian and 
     religious organizations concerning the potential impact of 
     the intended sanctions.
       (c) Duty To Consult With United States Interested 
     Parties.--The President shall consult with United States 
     interested parties as to the potential impact of the intended 
     sanctions on the economic or other interests of the United 
     States. The President shall provide the opportunity for 
     consultation with, and the submission of comments by, those 
     United States interested parties likely to be affected by 
     intended United States measures.

     SEC. 404. REPORT TO CONGRESS.

       (a) In General.--Subject to subsection (b), not later than 
     September 1 of any year in which a determination is made 
     under section 402(a) with respect to a foreign country, or 
     not later than 90 days after the President may determine to 
     take action under section 401(d) with respect to a foreign 
     country, as the case may be, the President shall submit a 
     report to Congress containing the following:
       (1) Identification of sanctions.--An identification of the 
     sanction or sanctions described in paragraphs (9) through 
     (16) of section 405(a) proposed to be taken against the 
     foreign country.
       (2) Description of violations.--A description of the 
     violations giving rise to the sanction or sanctions proposed 
     to be taken.
       (3) Purposes of sanctions.--A description of the purpose of 
     the sanction.
       (4) Evaluation.--An evaluation, in consultation with the 
     Ambassador at Large, the Commission, the Special Advisor, and 
     the parties described in section 403 (b) and (c) of (A) the 
     impact upon the foreign government, (B) the impact upon the 
     population of the country, and (C) the impact upon the United 
     States economy and other interested parties. The President 
     may withhold part or all of such evaluation from the public 
     but shall provide the entire evaluation to the appropriate 
     congressional committees.
       (5) Exhaustion of policy options.--A statement that other 
     policy options designed to bring about alteration of the 
     gross violations of the right to religious freedom have 
     reasonably been exhausted, including the consultations 
     required in section 403.
       (6) Description of multilateral negotiations.--A 
     description of multilateral negotiations sought or carried 
     out, if appropriate and applicable.
       (b) Delay in Transmittal of Report for the Purpose of 
     Continuing Negotiations.--If, on or before the date that the 
     President would (but for this subsection) submit a proposal 
     under subsection (a) to Congress to impose any sanction under 
     paragraphs (9) through (16) of section 405(a) against a 
     foreign country--
       (1) negotiations are still taking place with the government 
     of that country, and
       (2) the President determines and certifies to Congress that 
     a single, additional period of time not to exceed 90 days is 
     necessary for such negotiations to continue,
     then the President shall not be required to submit the 
     proposal to Congress until the expiration of that period of 
     time.

     SEC. 405. DESCRIPTION OF EXECUTIVE MEASURES AND SANCTIONS.

       (a) Description of Measures and Sanctions.--Except as 
     provided in subsection (d), the Executive measures and 
     sanctions referred to in this subsection are the following:
       (1) A private demarche.
       (2) An official public demarche.
       (3) A public condemnation.
       (4) A public condemnation within one or more multilateral 
     fora.
       (5) The cancellation of one or more scientific exchanges.
       (6) The cancellation of one or more cultural exchanges.
       (7) The denial of one or more state visits.
       (8) The cancellation of one or more state visits.
       (9) The withdrawal, limitation, or suspension of United 
     States development assistance in accordance with the 
     provisions of section 116 of the Foreign Assistance Act of 
     1961.

[[Page S2669]]

       (10) Directing the Export-Import Bank of the United States, 
     the Overseas Private Investment Corporation, or the Trade and 
     Development Agency not to approve the issuance of any (or a 
     specified number of) guarantees, insurance, extensions of 
     credit, or participations in the extension of credit with 
     respect to the specific government, agency, instrumentality, 
     or official determined by the President to be responsible for 
     gross violations of the right to religious freedom.
       (11) The withdrawal, limitation, or suspension of United 
     States security assistance in accordance with the provisions 
     of section 502B of the Foreign Assistance Act of 1961.
       (12) The withdrawal, limitation, or suspension of 
     preferential tariff treatment accorded under--
       (A) title V of the Trade Act of 1974 (relating to the 
     Generalized System of Preferences);
       (B) the Caribbean Basin Economic Recovery Act;
       (C) the Andean Trade Preference Act; or
       (D) any other law providing preferential tariff treatment.
       (13) Consistent with section 701 of the International 
     Financial Institutions Act of 1977, directing the United 
     States executive directors of international financial 
     institutions to vote against loans primarily benefiting the 
     specific foreign government, agency, instrumentality, or 
     official determined by the President to be responsible for 
     such persecution.
       (14) Ordering the heads of the appropriate United States 
     agencies not to issue any (or a specified number of) specific 
     licenses and not to grant any other specific authority (or a 
     specified number of authorities) to export any goods or 
     technology to the specific foreign government, agency, 
     instrumentality, or official determined by the President to 
     be responsible for such persecution under--
       (A) the Export Administration Act of 1979;
       (B) the Arms Export Control Act;
       (C) the Atomic Energy Act of 1954; or
       (D) any other statute that requires the prior review and 
     approval of the United States Government as a condition for 
     the export or reexport of goods or services.
       (15) Prohibiting any United States financial institution 
     from making loans or providing credits totaling more than 
     $10,000,000 in any 12-month period to the specific foreign 
     government, agency, instrumentality, or official determined 
     by the President to be responsible for the violations.
       (16) Prohibiting the United States Government from 
     procuring, or entering into any contract for the procurement 
     of, any goods or services from the foreign government, 
     entities, or officials determined by the President to be 
     responsible for the violations.
       (b) Commensurate Action.--Except as provided in subsection 
     (d), the President may substitute any other action authorized 
     by law for any action described in paragraphs (1) through 
     (16) of subsection (a) if such action is commensurate in 
     effect to the action substituted and if the action would 
     further the policy of the United States set forth in section 
     2 of this Act. The President shall seek to take all 
     appropriate and feasible actions authorized by law to obtain 
     the cessation of the violations. In the case of the 
     development of commensurate action as a substitute for any 
     sanction described in paragraphs (9) through (16) of 
     subsection (a), the President shall conduct all consultations 
     described in section 403 prior to taking such action. If 
     commensurate action is taken, the President shall report such 
     action, together with an explanation for taking such action, 
     to the appropriate congressional committees.
       (c) Binding Agreements.--The President may negotiate and 
     enter into a binding agreement with a foreign government that 
     obligates such government to cease, or take substantial steps 
     to address and phase out, the act, policy, or practice 
     constituting the religious persecution. The entry into force 
     of a binding agreement for the cessation of the violations 
     shall be a primary objective for the President in responding 
     to a foreign government that engages in a consistent pattern 
     of gross violations of the right to religious freedom.
       (d) Exceptions.--Any action taken pursuant to subsection 
     (a) or (b) may not--
       (1) prohibit or restrict the provision of medicine, medical 
     equipment or supplies, food, or other humanitarian 
     assistance; or
       (2) impede any action taken by the United States Government 
     to enforce the right to maintain intellectual property 
     rights.

     SEC. 406. CONTRACT SANCTITY.

       The President shall not be required to apply or maintain 
     any sanction under this subtitle--
       (1) in the case of procurement of defense articles or 
     defense services--
       (A) under existing contracts or subcontracts, including the 
     exercise of options for production quantities to satisfy 
     requirements essential to the national security of the United 
     States;
       (B) if the President determines in writing that the person 
     or other entity to which the sanction would otherwise be 
     applied is a sole source supplier of the defense articles or 
     services, that the defense articles or services are 
     essential, and that alternative sources are not readily or 
     reasonably available; or
       (C) if the President determines in writing that such 
     articles or services are essential to the national security 
     under defense coproduction agreements; or
       (2) to products or services provided under contracts 
     entered into before the date on which the President publishes 
     his intention to impose the sanction.

     SEC. 407. PRESIDENTIAL WAIVER.

       The President may waive the requirement to take an action 
     under this subtitle with respect to a country, if--
       (1) the President determines and so reports to the 
     appropriate congressional committees that--
       (A) the respective foreign government has ceased or taken 
     substantial steps to cease the violations giving rise to the 
     imposition of the measure or sanction;
       (B) the exercise of such waiver authority would better 
     further the purposes of this Act; or
       (C) the national security of the United States requires the 
     exercise of such waiver authority; and
       (2) the requirements of congressional review under section 
     409 have been satisfied.

     SEC. 408. PUBLICATION IN FEDERAL REGISTER.

       The President shall cause to be published in the Federal 
     Register the following:
       (1) Determinations of violator governments, officials, and 
     entities.--Consistent with section 654(c) of the Foreign 
     Assistance Act of 1961, any determination that a government 
     has engaged in gross violations of the right to religious 
     freedom, together with, when applicable and possible, the 
     officials or entities determined to be responsible for the 
     violations. Such a determination shall include a notification 
     to all interested parties to provide consultation and submit 
     comments concerning sanctions that may be taken by the United 
     States in response to the violations.
       (2) Sanctions.--A description of any sanction that takes 
     effect pursuant to section 409, and the effective date of the 
     sanction. A description of the sanction may be withheld if 
     disclosure is deemed to jeopardize national security.
       (3) Delays in transmittal of sanction reports.--Any delay 
     in transmittal of a sanction report, as described in section 
     404(b).
       (4) Waivers.--Any waiver under section 407.

     SEC. 409. CONGRESSIONAL REVIEW.

       (a) In General.--
       (1) Proposals subject to congressional review.--Each of the 
     following proposals shall take effect 30 session days of 
     Congress after the President transmits the proposal to 
     Congress unless, within such period, Congress enacts a joint 
     resolution disapproving the sanction, waiver, or termination 
     of a sanction, as the case may be, in accordance with 
     subsection (b):
       (A) Any sanction proposed under section 404(a).
       (B) Any waiver proposed under section 407(2).
       (C) Any proposed termination of a sanction under section 
     410(2).
       (2) Submission of revised proposals to congress.--In the 
     event that Congress enacts a joint resolution of disapproval 
     under paragraph (1), the President shall, within 30 days of 
     the date of any override of the President's veto of that 
     resolution, revise the proposed sanction, waiver, or 
     termination of sanction and submit the revised proposal to 
     Congress for consideration in accordance with subsection (b).
       (b) Congressional Priority Procedures.--
       (1) Joint resolution defined.--
       (A) Disapproval resolutions for sanction proposals.--For 
     the purpose of subsection (a)(1)(A), the term ``joint 
     resolution'' means only a joint resolution introduced after 
     the date on which the report of the President under section 
     404 is received by Congress, the matter after the resolving 
     clause of which is as follows: ``That Congress disapproves 
     the sanction or sanctions proposed by the President in the 
     report transmitted under section 404(a) of the International 
     Religious Freedom Act of 1998 on ____.'', with the blank 
     filled in with the appropriate date.
       (B) Disapproval resolutions for presidential waivers.--For 
     the purpose of subsection (a)(1)(B), the term ``joint 
     resolution'' means only a joint resolution introduced after 
     the date on which the report of the President under section 
     407(1) is received by Congress, the matter after the 
     resolving clause of which is as follows: ``That Congress 
     disapproves the waiver proposed by the President in the 
     report transmitted under section 407(1) of the International 
     Religious Freedom Act of 1998 on ____.'', with the blank 
     filled in with the appropriate date.
       (C) Disapproval resolutions for proposals to terminate 
     sanctions.--For the purpose of subsection (a)(1)(C), the term 
     ``joint resolution'' means only a joint resolution introduced 
     after the date on which the certification of the President 
     under section 410(2) is received by Congress, the matter 
     after the resolving clause of which is as follows: ``That 
     Congress disapproves the termination of sanction or sanctions 
     proposed by the President in the certification transmitted 
     under section 410(2) of the International Religious Freedom 
     Act of 1998 on ____.'', with the blank filled in with the 
     appropriate date.
       (2) Definition.--In this section, the term ``session day'' 
     means a day on which either House of Congress is in session.
       (3) Referral to committee.--A resolution described in 
     paragraph (1) introduced in the House of Representatives 
     shall be referred to the Committee on International Relations 
     of the House of Representatives. A resolution described in 
     paragraph (1) introduced in the

[[Page S2670]]

     Senate shall be referred to the Committee on Foreign 
     Relations of the Senate. Such a resolution may not be 
     reported before the eighth day after its introduction.
       (4) Discharge from committee.--If the committee to which is 
     referred a resolution described in paragraph (1) has not 
     reported such resolution (or an identical resolution) at the 
     end of fifteen calendar days after its introduction, such 
     committee shall be discharged from further consideration of 
     such resolution and such resolution shall be placed on the 
     appropriate calendar of the House involved.
       (5) Floor consideration.--
       (A) Motion to proceed.--When the committee to which a 
     resolution is referred has reported, or has been deemed to be 
     discharged (under paragraph (4)) from further consideration 
     of, a resolution described in paragraph (1), notwithstanding 
     any rule or precedent of the Senate, including Rule 22, it is 
     at any time thereafter in order (even though a previous 
     motion to the same effect has been disagreed to) for any 
     Member of the respective House to move to proceed to the 
     consideration of the resolution, and all points of order 
     against the resolution (and against consideration of the 
     resolution) are waived. The motion is highly privileged in 
     the House of Representatives and is privileged in the Senate 
     and is not debatable. The motion is not subject to amendment, 
     or to a motion to postpone, or to a motion to proceed to the 
     consideration of other business. A motion to reconsider the 
     vote by which the motion is agreed to or disagreed to shall 
     not be in order. If a motion to proceed to the consideration 
     of the resolution is agreed to, the resolution shall remain 
     the unfinished business of the respective House until 
     disposed of.
       (B) Debate on the resolution.--Debate on the resolution, 
     and on all debatable motions and appeals in connection 
     therewith, shall be limited to not more than ten hours, which 
     shall be divided equally between those favoring and those 
     opposing the resolution. A motion further to limit debate is 
     in order and not debatable. An amendment to, or a motion to 
     postpone, or a motion to proceed to the consideration of 
     other business, or a motion to recommit the resolution is not 
     in order. A motion to reconsider the vote by which the 
     resolution is agreed to or disagreed to is not in order.
       (C) Vote on final passage.--Immediately following the 
     conclusion of the debate on a resolution described in 
     paragraph (1), and a single quorum call at the conclusion of 
     the debate if requested in accordance with the rules of the 
     appropriate House, the vote on final passage of the 
     resolution shall occur.
       (D) Appeals of rulings.--Appeals from the decisions of the 
     Chair relating to the application of the rules of the Senate 
     or the House of Representatives, as the case may be, to the 
     procedure relating to a resolution described in paragraph (1) 
     shall be decided without debate.
       (6) Treatment of other house's resolution.--If, before the 
     passage by one House of Congress of a resolution of that 
     House described in paragraph (1), that House receives from 
     the other House a resolution described in paragraph (1), then 
     the following procedures shall apply:
       (A) Referral of resolutions of sending house.--The 
     resolution of the sending House shall not be referred to a 
     committee in the receiving House.
       (B) Procedures in receiving house.--With respect to a 
     resolution of the House receiving the resolution--
       (i) the procedure in that House shall be the same as if no 
     resolution had been received from the sending House; but
       (ii) the vote on final passage shall be on the resolution 
     of the sending House.
       (C) Disposition of resolutions of receiving house.--Upon 
     disposition of the resolution received from the other House, 
     it shall no longer be in order to consider the resolution 
     originated in the receiving House.
       (7) Procedures after action by both the house and senate.--
     If the House receiving a resolution from the other House 
     after the receiving House has disposed of a resolution 
     originated in that House, the action of the receiving House 
     with regard to the disposition of the resolution originated 
     in that House shall be deemed to be the action of the 
     receiving House with regard to the resolution originated in 
     the other House.
       (8) Rules of the Senate and the House.--This subsection is 
     enacted by Congress--
       (A) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and as such it is 
     deemed a part of the rules of each House, respectively, but 
     applicable only with respect to the procedure to be followed 
     in that House in the case of a resolution described in 
     paragraph (1), and it supersedes other rules only to the 
     extent that it is inconsistent with such rules; and
       (B) with full recognition of the constitutional right of 
     either House to change the rules (so far as relating to the 
     procedure of that House) at any time, in the same manner and 
     to the same extent as in the case of any other rule of that 
     House.

     SEC. 410. TERMINATION OF SANCTIONS.

       Any sanction imposed under section 409 with respect to a 
     foreign country shall terminate on the earlier of the 
     following dates:
       (1) Termination date.--Within 2 years of the effective date 
     of the sanction unless expressly reauthorized by law.
       (2) Foreign government actions.--Upon the determination by 
     the President and certification to Congress that the foreign 
     government has ceased or taken substantial steps to cease the 
     gross violations of religious freedom, subject to the 
     congressional review procedures described in section 409.
                Subtitle II--Strengthening Existing Law

     SEC. 421. UNITED STATES ASSISTANCE.

       (a) Implementation of Prohibition on Economic Assistance.--
     Section 116(c) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2151n(c)) is amended--
       (1) in the text above paragraph (1), by inserting ``and in 
     consultation with the Ambassador at Large for Religious 
     Freedom'' after ``Labor''.
       (2) by striking ``and'' at the end of paragraph (1);
       (3) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (4) by adding at the end the following new paragraph:
       ``(3) whether the government--
       ``(A) has engaged in gross violations of the right to 
     freedom of religion; or
       ``(B) has failed to undertake serious and sustained efforts 
     to combat gross violations of the right to freedom of 
     religion, when such efforts could have been reasonably 
     undertaken.''.
       (b) Implementation of Prohibition on Military Assistance.--
     Section 502B(a) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2304(a)) is amended by adding at the end the following 
     new paragraph:
       ``(4) In determining whether the government of a country 
     engages in a consistent pattern of gross violations of 
     internationally recognized rights, the President shall give 
     particular consideration to whether the government--
       ``(A) has engaged in gross violations of the right to 
     freedom of religion; or
       ``(B) has failed to undertake serious and sustained efforts 
     to combat gross violations of the right to freedom of 
     religion, when such efforts could have been reasonably 
     undertaken.''.

     SEC. 422. MULTILATERAL ASSISTANCE.

       Section 701 of the International Financial Institutions Act 
     (22 U.S.C. 262d) is amended by adding at the end the 
     following new subsection:
       ``(g) In determining whether a country is in gross 
     violation of internationally recognized human rights 
     standards, as described in subsection (a), the President, in 
     consultation with the Ambassador at Large, shall give 
     particular consideration to whether a foreign government--
       ``(1) has engaged in gross violations of the right to 
     freedom of religion; or
       ``(2) has failed to undertake serious and sustained efforts 
     to combat gross violations of the right to freedom of 
     religion, when such efforts could have been reasonably 
     undertaken.''.

     SEC. 423. EXPORTS OF ITEMS RELATING TO RELIGIOUS PERSECUTION.

       (a) Mandatory Licensing.--Notwithstanding any other 
     provision of law, the Secretary of Commerce, with the 
     concurrence of the Secretary of State, the Ambassador at 
     Large, and the Special Adviser, shall include on the list of 
     crime control and detection instruments or equipment 
     controlled for export and reexport under section 6(n) of the 
     Export Administration Act of 1979 (22 U.S.C. App. 2405(n)), 
     or under any other provision of law, items that the Secretary 
     of State, in consultation with the Ambassador at Large and 
     the Special Adviser, determines are being used or are 
     intended for use directly and in significant measure to carry 
     out gross violations of the right to freedom of religion.
       (b) Licensing Ban.--The prohibition on the issuance of a 
     license for export of crime control and detection instruments 
     or equipment under section 502B(a)(2) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2304(a)(2)) shall apply to 
     the export and reexport of any item included pursuant to 
     subsection (a) on the list of crime control instruments.
                TITLE V--PROMOTION OF RELIGIOUS FREEDOM

     SEC. 501. ASSISTANCE FOR PROMOTING RELIGIOUS FREEDOM.

       (a) Findings.--Congress makes the following findings:
       (1) In many nations where severe violations of religious 
     freedom occur, there is not sufficient statutory legal 
     protection for religious minorities or there is not 
     sufficient cultural and social understanding of international 
     norms of religious freedom.
       (2) Accordingly, in its foreign assistance already being 
     disbursed, the United States should make a priority of 
     promoting and developing legal protections and cultural 
     respect for religious freedom.
       (b) Allocation of Funds for Increased Promotion of 
     Religious Freedoms.--Section 116(e) of the Foreign Assistance 
     Act of 1961 is amended by inserting ``and the right to free 
     religious belief and practice'' after ``adherence to civil 
     and political rights''.

     SEC. 502. INTERNATIONAL BROADCASTING.

       (a) Section 302(1) of the International Broadcasting Act of 
     1994 is amended by inserting ``and of conscience (including 
     freedom of religion)'' after ``freedom of opinion and 
     expression''.
       (b) Section 303(a) of the International Broadcasting Act of 
     1994 is amended--
       (1) by striking ``and'' at the end of paragraph (6);
       (2) by striking the period at the end of paragraph (7) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(8) promote respect for human rights, including freedom 
     of religion.''.

[[Page S2671]]

     SEC. 503. INTERNATIONAL EXCHANGES.

       Section 102(b) of the Mutual Educational and Cultural 
     Exchange Act of 1961 is amended--
       (1) by striking ``and'' after paragraph (10);
       (2) by striking the period at the end of paragraph (11) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(12) promoting respect for and guarantees of religious 
     freedom abroad by interchanges and visits between the United 
     States and other nations of religious leaders, scholars, and 
     religious and legal experts in the field of religious 
     freedom.''.

     SEC. 504. FOREIGN SERVICE AWARDS.

       (a) Performance Pay.--Section 405(d) of the Foreign Service 
     Act of 1980 is amended by inserting after the first sentence 
     the following: ``Such service in the promotion of 
     internationally recognized human rights, including the right 
     to religious freedom, shall serve as a basis for granting 
     awards under this section.''.
       (b) Foreign Service Awards.--Section 614 of the Foreign 
     Service Act of 1980 is amended by adding at the end the 
     following new sentence: ``Distinguished, meritorious service 
     in the promotion of internationally recognized human rights, 
     including the right to religious freedom, shall serve as a 
     basis for granting awards under this section.''.
            TITLE VI--REFUGEE, ASYLUM, AND CONSULAR MATTERS

     SEC. 601. USE OF ANNUAL REPORT.

       (a) Description of Training.--The Annual Report on 
     Religious Persecution shall include a description of training 
     described in subsection (b) on religious persecution provided 
     to immigration judges, consular, refugee, and asylum 
     officers.
       (b) Use of the Annual Report.--The Annual Report on 
     Religious Persecution, together with other relevant 
     documentation, shall serve as a resource for immigration 
     judges and consular, refugee, and asylum officers in cases 
     involving claims of persecution on the grounds of religion. 
     Absence of reference by the Annual Report on Religious 
     Persecution to conditions described by the alien shall not 
     constitute sole grounds for a denial of the alien's claim.

     SEC. 602. REFORM OF REFUGEE POLICY.

       (a) Training.--
       (1) In general.--The Attorney General, in consultation with 
     the Secretary of State, shall provide all United States 
     officials adjudicating refugee cases with the same training 
     as that provided to officers adjudicating asylum cases.
       (2) Content of training.--Such training shall include 
     country-specific conditions, instruction on the right to 
     religious freedom, methods of religious persecution, and 
     applicable distinctions within a country between the nature 
     of and treatment of various religious practices and 
     believers.
       (b) Training for Consular Officers.--(1) Section 708 of the 
     Foreign Service Act of 1980, as added by section 104 of this 
     Act, is further amended--
       (A) by inserting ``(a)'' before ``The Secretary of State''; 
     and
       (B) by adding at the end the following:
       ``(b) The Secretary of State shall provide sessions on 
     refugee law and adjudications and on religious persecution, 
     to each individual seeking a commission as a United States 
     consular officer.''.
       (2) Section 312(a) of the Foreign Service Act of 1980 is 
     amended by inserting after the first sentence the following: 
     ``In order to receive such a consular commission, a member of 
     the Service shall complete the training required under 
     section 708.''.
       (c) Guidelines for Refugee-Processing Posts.--
       (1) Guidelines for addressing hostile biases.--The Attorney 
     General and the Secretary of State shall develop and 
     implement guidelines that address potential hostile biases in 
     personnel of the Immigration and Naturalization Service that 
     are hired abroad and involved with duties which could 
     constitute an effective barrier to a refugee claim if such 
     personnel carries a hostile bias toward the claimant on the 
     grounds of religion, race, nationality, membership in a 
     particular social group or political opinion.
       (2) Guidelines for refugee-processing posts in establishing 
     agreements with joint voluntary agencies.--The Attorney 
     General and the Secretary of State shall develop guidelines 
     to ensure uniform procedures to the extent possible with 
     Joint Voluntary Agencies, and to ensure that the Joint 
     Voluntary Agencies process is enhanced and faulty preparation 
     of claims does not result in the failure of a genuine claim 
     to refugee status.
       (d) Annual Consultation.--In carrying out the 
     responsibilities of the Department of State under the 
     appropriate consultation requirement of section 207(e) of the 
     Immigration and Nationality Act (8 U.S.C. 1157(e)), the 
     Secretary of State shall specifically address religious 
     persecution in the report provided by the Department of 
     State, and by providing testimony by the Ambassador at Large. 
     The Secretary of State shall also provide religious 
     nongovernmental organizations and human rights 
     nongovernmental organizations the opportunity to testify.

     SEC. 603. REFORM OF ASYLUM POLICY.

       (a) Guidelines.--The Attorney General and the Secretary of 
     State shall develop guidelines to ensure that interpreters 
     with hostile biases, including personnel of airlines owned by 
     governments known to be involved in practices which would 
     meet the definition of persecution under international 
     refugee law, shall not in any manner be used to interpret 
     conversations between aliens and inspection or asylum 
     officers.
       (b) Training for Asylum Officers.--The Attorney General, in 
     consultation with the Ambassador-at-Large, shall provide 
     training to all officers adjudicating asylum cases on the 
     nature of religious persecution abroad, including country-
     specific conditions, instruction on the right to religious 
     freedom, methods of religious persecution, and applicable 
     distinctions within a country in the treatment of various 
     religious practices and believers.
       (c) Training for Immigration Judges.--The Executive Office 
     of Immigration Review of the Department of Justice shall 
     incorporate into its initial and ongoing training of 
     immigration judges training on the extent and nature of 
     religious persecution internationally, including country-
     specific conditions, and including use of the Annual Report 
     on Religious Persecution. Such training shall include 
     governmental and nongovernmental methods of persecution 
     employed, and differences in the treatment of religious 
     groups by such persecuting entities.

     SEC. 604. INADMISSIBILITY OF FOREIGN GOVERNMENT OFFICIALS WHO 
                   HAVE ENGAGED IN GROSS VIOLATIONS OF THE RIGHT 
                   TO RELIGIOUS FREEDOM.

       (a) Ineligibility for Visas or Admission.--Section 
     212(a)(2) of the Immigration and Nationality Act (8 U.S.C. 
     1182(a)(2)) is amended by adding at the end the following new 
     subparagraph:
       ``(G) Foreign government officials who have engaged in 
     gross violations of the right to religious freedom.--
       ``(i) In general.--Any alien who, while serving as a 
     foreign government official, directly engaged in gross 
     violations of the right to religious freedom, as defined in 
     section 3 of the International Religious Freedom Act of 1998, 
     and the spouse and children, if any, of the alien, are 
     inadmissible.
       ``(ii) Waiver.--

       ``(I) In general.--The Secretary of State may waive the 
     application of clause (i) if the Secretary determines that 
     the exclusion of the alien would jeopardize a compelling 
     United States foreign policy interest.
       ``(II) Nondelegation of authority.--The Secretary of State 
     may not delegate the authority to make a determination under 
     subclause (I).''.

       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to aliens seeking to enter the United States on 
     or after the date of enactment of this Act.
                  TITLE VII--MISCELLANEOUS PROVISIONS

     SEC. 701. BUSINESS CODES OF CONDUCT.

       (a) Congressional Finding.--Congress recognizes the 
     increasing importance of transnational corporations as global 
     actors, and their potential for providing positive leadership 
     in their host countries in the area of human rights.
       (b) Sense of Congress.--It is the sense of Congress that 
     transnational corporations operating in countries the 
     governments of which engage in gross violations of the right 
     to religious freedom, as identified in the Annual Report on 
     Religious Persecution, should adopt codes of conduct--
       (1) upholding the right to religious freedom of their 
     employees; and
       (2) ensuring that a worker's religious views and peaceful 
     practices of belief in no way affect, or be allowed to 
     affect, the status or terms of his or her employment.

     SEC. 702. INTERNATIONAL CRIMINAL COURT.

       It is the sense of Congress that in negotiating the 
     definitions of crimes to be included in the subject matter 
     jurisdiction of the International Criminal Court, the 
     President should pursue the inclusion in such jurisdiction of 
     gross violations of the right to religious freedom to the 
     extent such violations fall within the meaning in 
     international law of crimes against humanity or genocide.

  Mr. LIEBERMAN. Mr. President, I rise to join my distinguished 
colleague, Senator Nickles, the assistant majority leader, and my 
esteemed colleagues Senators Kempthorne, Mack, Hutchinson, Craig, and 
DeWine as a co-sponsor of The International Religious Freedom Act of 
1998.
  Freedom of religion is a bedrock principle for the American people, a 
cherished right that lies at the very foundation of our country. It is 
appropriate, and it is right, that we as Americans express our concern 
about abuses of that freedom as a cornerstone of our foreign policy. 
This is not a concern that is unique to Americans, for the freedom of 
religion is explicitly recognized by the Universal Declaration of Human 
Rights. Sadly, and tragically, that recognition has not served to 
prevent the assault on believers of a variety of religions simply for 
seeking to follow their faith.
  We must not be silent. The International Religious Freedom Act of 
1998 is a serious, thoughtful, and comprehensive approach to the 
problem of religious persecution. This bill employs a broad range of 
tools within the United States foreign policy apparatus for the most 
flexible, appropriate, and enduring response to violations of religious 
liberty.
  The bill is carefully crafted to do the following: promote religious 
freedom through both incentives and sanctions,

[[Page S2672]]

with the long-term goal of alleviating religious persecution rather 
than merely punishing governments; build on principles contained in 
U.S. and international human rights law, on negotiating principles of 
U.S. Trade law, and on ideas advocated by religious and human rights 
leaders; dispel the option of silence, with its Annual Report publicly 
addressing all forms of religious persecution; promote the conclusion 
of binding agreements with offending governments to cease the 
violations, allowing for reasonable negotiation to achieve this goal; 
and sanction gross violators, through an annual review and sanctions 
process.
  The issue of religious persecution is one that we must be concerned 
about, one that we must take action on. The International Religious 
freedom Act of 1998 is an effective means of doing so and I am honored 
to be an original co-sponsor of it. There are other excellent 
approaches to this critical international problem, including the 
legislation cosponsored by Congressman Wolf and Senator Spector. In the 
weeks ahead we will look forward to working with all of our colleagues 
on this issue, inviting and welcoming a collective approach that will 
result in our bringing the most effective legislation to pass.
                                 ______
                                 
      By Mr. CAMPBELL:
  S. 1870. A bill to amend the Indian Gaming Regulatory Act, and for 
other purposes; to the Committee on Indian Affairs.


          the indian gaming regulatory act amendments of 1998

  Mr. CAMPBELL. Mr. President, today I am pleased to introduce the 
Indian Gaming Regulatory Act Amendments of 1998 to reform the federal 
components of Indian gaming regulation.
  I wish to begin by acknowledging the work in this area by the two 
distinguished individuals who preceded me as the chairman of the Senate 
Indian Affairs Committee, Senators McCain and Inouye. This legislation 
builds upon their extraordinary efforts to listen to all sides of this 
debate and broker a fair and equitable compromise. I seek to continue 
this tradition by providing a starting point for negotiations among all 
of those with an interest in Indian gaming, and by addressing those 
areas that are most in need of immediate reform.
  This bill will revitalize the National Indian Gaming Commission, by 
ensuring that it has the authority to develop and impose a series of 
minimum federal standards on all Indian gaming operations. It will 
reform and restore the compact negotiation process by providing an 
alternative compact negotiation process in those instances where a 
state wishes to exercise its 11th Amendment immunity from lawsuits and 
its 10th Amendment right to decide for itself whether it wishes to 
regulate on-reservation gaming. Finally, this bill addresses the two 
issues that in my opinion are most in need of immediate reform. First, 
the bill applies the standard post-employment restrictions for former 
federal officials who are employed by any tribe that stood to benefit 
from any gaming-related decisions the officials made while they were 
federal employees. Second, the bill will prohibit the acquisition of 
off-reservation lands for gaming activities unless the tribe and the 
state agree to do so.
  Ten years ago the Congress enacted the Indian gaming legislation that 
many will agree needs to be updated. In 1988 most Indian gaming 
consisted of high stakes bingo and similar types of games. Since then, 
it has grown to become a billion dollar activity and has provided many 
tribes and surrounding communities with much-needed capital and 
employment opportunities.
  For those tribes lucky enough to be well situated geographically, 
gaming has proven successful. Where welfare rolls once bulged, tribes 
are employing thousands of people--both Indian as well as non-Indian. 
Once entirely reliant on federal transfer payments, many tribes are 
beginning to diversify their economies and provide jobs and hope to 
their members.
  For most tribes, however, gaming is not a viable development 
alternative. Indeed, only one-third of all federally-recognized tribes 
have any form of gaming and most of that is more like charitable bingo 
than Las Vegas or Atlantic City. On-line gaming, as well as competition 
from local and international operations, has created a very tight 
market. In Washington State, for example, as well as in other parts of 
the country, market saturation is leading some tribes to close their 
operations for good.
  Over the past ten years, the statute has only been significantly 
amended one time--in 1997 I introduced a measure to provide the federal 
National Indian Gaming Commission with the resources it needs to 
monitor and regulate certain Indian gaming operations. Today, a 
strengthened commission is beginning to fulfill its obligations under 
the statute and help maintain the integrity of Indian gaming 
nationwide.
  The lack of uniform standard operating procedures for Indian gaming 
continues to cause anxiety for many of those inside and outside of 
Indian country. Many Indian tribes, in cooperation with the states 
where gaming is located, have developed sophisticated gaming regulatory 
procedures and standards. Many tribes have put in place standards 
regarding the rules of play for their games, as well as financial and 
accounting standards governing those games. Not all tribal-state gaming 
compacts mandate such sophisticated regulatory frameworks.
  By setting threshold standards at the federal level, this bill will 
mean that Indian gaming customers throughout the nation can be assured 
that every Indian gaming establishment must comply with a federally 
established level of regulation, operation, and management, just as 
they are already assured that gaming proceeds may only be spent for 
certain purposes set out in the Act.
  When the Congress enacted the IGRA in 1988, states were invited, for 
the first time ever, to play a significant role in the regulation of 
activities that take place on Indian lands. The statute required tribes 
to seek to negotiate a gaming compact with a state before commencing 
any casino-style gaming. Though there were bumps along the way, this 
was a major concession by Indian tribes and one that worked reasonably 
well for 8 years, and which will continue to be available if it is 
chosen by both a state and a tribe.
  Under IGRA, before a tribe may commence casino-style gaming, it must 
seek to negotiate a gaming compact with the state where the gaming will 
occur. Up until 1996, if a federal court determined that the state was 
negotiating in bad faith or if the state decided simply not to 
negotiate, the tribe had the option of filing a lawsuit to bring about 
good faith negotiations.
  In 1996, the Supreme Court turned this process upside down when it 
handed down its decision in Seminole Tribe of Indians v. State of 
Florida. This decision said that a state may assert its Eleventh 
Amendment immunity from lawsuits to preclude tribes from suing it in 
order to conclude a gaming agreement. Also, some states have asserted 
that the IGRA may force them to regulate reservation-based gaming in 
violation of their 10th Amendment rights. My bill will allow tribes and 
states to continue to use the existing process to negotiate compacts if 
that is their desire.
  As I believe the Act should respect each state's sovereign right to 
absent itself from this process if it chooses to, we must also respect 
the Supreme Court's decision that Indian tribes have the sovereign 
right to offer gaming activities that do not violate the public policy 
of the state where those activities are offered. This approach is 
consistent with what the Congress intended in 1988.
  Finally, there are ongoing Congressional investigations of the so-
called ``Hudson Dog Track'' matter involving whether the Interior 
Department denied an application by certain Indian tribes to acquire 
off-reservation lands for gaming purposes because of campaign 
contributions by a rival group of tribes. Even before these allegations 
surfaced, I expressed strong concerns about the acquisition of off-
reservation lands for gaming purposes.
  The IGRA requires the Interior Secretary to consult with local 
officials, local communities, and nearby tribes in evaluating the 
tribe's application to take lands into trust. The Act also provides 
State governors with an absolute veto over such applications. In my 
opinion, federal laws and regulations already make it very difficult 
for the Secretary to take land into trust for a

[[Page S2673]]

tribe if it is located away from a tribe's reservation or previous 
homeland. As a result, few tribes apply to have off-reservation lands 
taken into trust, and even fewer are successful.
  The IGRA imposes additional requirements on such acquisitions if 
there is any possibility that the lands will be used for gaming 
purposes. As a result of these requirements, I am aware of only two or 
three such acquisitions. Yet the opposition to Indian gaming that 
results from the mere possibility of such acquisitions is significant. 
This opposition far exceeds that speculative possibility that the 
Secretary, a local community, and a state's governor will all concur 
with such an acquisition. Thus, my bill will preclude off-reservation 
acquisitions unless the tribe and the state reach agreement to allow 
those lands to be used for gaming purposes. This provision will 
therefore encourage tribal-state cooperation rather than tribal-state 
conflict when it comes to gaming matters.
  My bill will also remove the argument that those Indian groups that 
are laboring to achieve federal recognition as tribes are doing so only 
to develop gaming. Achieving federal recognition is difficult enough, I 
do not believe it should be further complicated by squabbles over 
gaming.
  My bill will eliminate any appearance that federal officials and 
employees who are responsible for making decisions about Indian gaming 
are ``cashing in'' on their activities when they leave government 
service. By closing an existing loophole, my bill will establish that 
those federal employees who have made decisions concerning a tribe's 
gaming activities are bound by the same policies, procedures, and 
criminal laws that prevent other federal employees from profiting from 
decisions they made when working for the government. But it also 
preserves those provisions in the Indian Self-Determination and 
Education Assistance Act, which have dramatically reduced the number of 
federal employees by encouraging their employment by the tribes that 
contract to provide federal services under self-governance compacts and 
self-determination act contracts.
  I believe this bill addresses the most pressing concerns raised by 
states, local governments, and Indian tribes. Like all attempts at 
compromise, few parties will be completely satisfied. The legislation I 
am introducing will both please and disappoint the states as well as 
the tribes. Nonetheless, as Chairman of the Committee on Indian 
Affairs, demonstrating a willingness to serve as an honest broker will, 
in my opinion, do more to foster genuine and lasting reform than simply 
becoming an advocate for one side or one point of view. Let there be no 
question of my commitment to ensure that Indian gaming be operated 
fairly and consistently with all relevant laws, and that the goals and 
objectives of the IGRA are fully achieved.
  As I have indicated, the Committee will address these and related 
issues in the coming weeks. By introducing this legislation, it is my 
hope that those with concerns with the regulation of Indian gaming work 
with me in the Committee to fully and fairly debate the issues before 
any actions are taken to amend the Act.
  Mr. President, 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:
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Indian Gaming Regulatory 
     Improvement Act of 1998''.

     SEC. 2. AMENDMENTS TO THE INDIAN GAMING REGULATORY ACT.

       The Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.) 
     is amended--
       (1) by striking the first section and inserting the 
     following new section:

     ``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       ``(a) Short Title.--This Act may be cited as the `Indian 
     Gaming Regulatory Act'.
       ``(b) Table of Contents.--The table of contents for this 
     Act is as follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Congressional findings.
``Sec. 3. Purposes.
``Sec. 4. Definitions.
``Sec. 5. National Indian Gaming Commission.
``Sec. 6. Powers and authority of the National Indian Gaming Commission 
              and Chairman.
``Sec. 7. Regulatory framework.
``Sec. 8. Negotiated rulemaking.
``Sec. 9. Requirements for the conduct of class I and class II gaming 
              on Indian lands.
``Sec. 10. Class III gaming on Indian lands.
``Sec. 11. Review of contracts.
``Sec. 12. Civil penalties.
``Sec. 13. Judicial review.
``Sec. 14. Commission funding.
``Sec. 15. Authorization of appropriations.
``Sec. 16. Application of Internal Revenue Code of 1986; access to 
              information by States and tribal governments.
``Sec. 17. Gaming proscribed on lands acquired in trust after the date 
              of enactment of this Act.
``Sec. 18. Dissemination of information.
``Sec. 19. Severability.
``Sec. 20. Criminal penalties.
``Sec. 21. Conforming amendment.'';
``Sec. 22. Commission staffing.''

       (2) by striking sections 2 and 3 and inserting the 
     following;

     ``SEC. 2. CONGRESSIONAL FINDINGS.

       ``The Congress finds that--
       ``(1) Indian tribes are--
       ``(A) engaged in the operation of gaming activities on 
     Indian lands as a means of generating tribal governmental 
     revenue; and
       ``(B) licensing those activities;
       ``(2) because of the unique political and legal 
     relationship between the United States and Indian tribes, 
     Congress has the responsibility of protecting tribal 
     resources and ensuring the continued viability of Indian 
     gaming activities conducted on Indian lands;
       ``(3) clear Federal standards and regulations for the 
     conduct of gaming on Indian lands will assist tribal 
     governments in assuring the integrity of gaming activities 
     conducted on Indian lands;
       ``(4) a principal goal of Federal Indian policy is to 
     promote tribal economic development, tribal self-sufficiency, 
     and strong Indian tribal governments;
       ``(5) Indian tribes have the exclusive right to regulate 
     gaming activity on Indian lands, if the gaming activity--
       ``(A) is not specifically prohibited by Federal law; and
       ``(B) is conducted within a State that does not, as a 
     matter of public policy, prohibit that gaming activity;
       ``(6) Congress has the authority to regulate the privilege 
     of doing business with Indian tribes in Indian country (as 
     defined in section 1151 of title 18, United States Code);
       ``(7) systems for the regulation of gaming activities on 
     Indian lands should meet or exceed federally established 
     minimum regulatory requirements;
       ``(8) the operation of gaming activities on Indian lands 
     has had a significant impact on commerce with foreign 
     nations, and among the several States, and with the Indian 
     tribes; and
       ``(9) the Constitution 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.

     ``SEC. 3. PURPOSES.

       ``The purposes of this Act are--
       ``(1) to ensure the right of Indian tribes to conduct 
     gaming activities on Indian lands in a manner consistent 
     with--
       ``(A) the inherent sovereign rights of Indian tribes; and
       ``(B) the decision of the Supreme Court in California et 
     al. v. Cabazon Band of Mission Indians et al. (480 U.S.C. 
     202, 107 S. Ct. 1083, 94 L. Ed. 2d 244 (1987)), involving the 
     Cabazon and Morongo bands of Mission Indians;
       ``(2) to provide a statutory basis for the conduct of 
     gaming activities on Indian lands as a means of promoting 
     tribal economic development, tribal self-sufficiency, and 
     strong Indian tribal governments;
       ``(3) to provide a statutory basis for the regulation of 
     gaming activities on Indian lands by an Indian tribe that is 
     adequate to shield those activities from organized crime and 
     other corrupting influences, to ensure that an Indian tribal 
     government is the primary beneficiary of the operation of 
     gaming activities, and to ensure that gaming is conducted 
     fairly and honestly by both the operator and players; and
       ``(4) to provide States with the opportunity to participate 
     in the regulation of certain gaming activities conducted on 
     Indian lands without compelling any action by a State with 
     respect to the regulation of that gaming.'';
       (3) in section 4--
       (A) by redesignating paragraphs (7) and (8) as paragraphs 
     (5) and (6), respectively;
       (B) by striking paragraphs (1) through (6) and inserting 
     the following new paragraphs:
       ``(1) Applicant.--The term `applicant' means any person who 
     applies for a license pursuant to this Act, including any 
     person who applies for a renewal of a license.
       ``(2) Attorney general.--The term `Attorney General' means 
     the Attorney General of the United States.
       ``(3) Chairman.--The term `Chairman' means the Chairman of 
     the Commission.
       ``(4) Class i gaming.--The term `class I gaming' means 
     social games played solely for prizes of minimal value or 
     traditional forms of Indian gaming engaged in by individuals 
     as a part of, or in connection with, tribal ceremonies or 
     celebrations.'';
       (C) by striking paragraphs (9) and (10); and
       (D) by adding after paragraph (6) (as redesignated by 
     subparagraph (A) of this paragraph) the following new 
     paragraphs:

[[Page S2674]]

       ``(7) Commission.--The term `Commission' means the National 
     Indian Gaming Regulatory Commission established under section 
     5.
       ``(8) Compact.--The term `compact' means an agreement 
     relating to the operation of class III gaming on Indian lands 
     that is entered into by an Indian tribe and a State and that 
     is approved by the Secretary.
       ``(9) Gaming operation.--The term `gaming operation' means 
     an entity that conducts class II or class III gaming on 
     Indian lands.
       ``(10) Indian lands.--The term `Indian lands' means--
       ``(A) all lands within the limits of any Indian 
     reservation; and
       ``(B) any lands the title to which is held in trust by the 
     United States for the benefit of any Indian tribe or 
     individual or held by any Indian tribe or individual subject 
     to restriction by the United States against alienation and 
     over which an Indian tribe exercises governmental power.
       ``(11) Indian tribe.--The term `Indian tribe' means any 
     Indian tribe, band, nation, or other organized group or 
     community of Indians that--
       ``(A) is recognized as eligible by the Secretary for the 
     special programs and services provided by the United States 
     to Indians because of their status as Indians; and
       ``(B) is recognized as possessing powers of self-
     government.
       ``(12) Management contract.--The term `management contract' 
     means any contract or collateral agreement between an Indian 
     tribe and a contractor, if that contract or agreement 
     provides for the management of all or part of a gaming 
     operation.
       ``(13) Management contractor.--The term `management 
     contractor' means any person entering into a management 
     contract with an Indian tribe or an agent of the Indian tribe 
     for the management of a gaming operation, including any 
     person with a financial interest in that contract.
       ``(14) Net revenues.--With respect to a gaming activity, 
     net revenues shall constitute--
       ``(A) the annual amount of money wagered; reduced by
       ``(B)(i) any amounts paid out during the year involved for 
     prizes awarded;
       ``(ii) the total operating expenses for the year involved 
     (excluding any management fees) associated with the gaming 
     activity; and
       ``(iii) an allowance for amortization of capital expenses 
     for structures.
       ``(15) Person.--The term `person' means--
       ``(A) an individual; or
       ``(B) a firm, corporation, association, organization, 
     partnership, trust, consortium, joint venture, or other 
     nongovernmental entity.
       ``(16) Secretary.--The term `Secretary' means the Secretary 
     of the Interior.'';
       (4) in section 5(b)(3), by striking ``At least two members 
     of the Commission shall be enrolled members of any Indian 
     tribe.'' and inserting ``No fewer than 2 members of the 
     Commission shall be individuals who--
       ``(A) are each enrolled as a member of an Indian tribe; and
       ``(B) have extensive experience or expertise in tribal 
     government.'';
       (5) by striking sections 6 & 7 and 9 through 16, and 
     redesignating section 8 as section 22 and inserting the 
     following:

     ``SEC. 6. POWERS AND AUTHORITY OF THE NATIONAL INDIAN GAMING 
                   COMMISSION AND CHAIRMAN.

       ``(a) General Powers of Commission.--
       ``(1) In general.--The Commission shall have the power--
       ``(A) to approve the annual budget of the Commission;
       ``(B) to promulgate regulations to carry out the duties of 
     the Commission under this Act in the same manner as an 
     independent establishment (as that term is used in section 
     104 of title 5, United States Code);
       ``(C) to establish a rate of fees and assessments, as 
     provided in section 14;
       ``(D) to conduct investigations, including background 
     investigations;
       ``(E) to issue a temporary order closing the operation of 
     gaming activities;
       ``(F) after a hearing, to make permanent a temporary order 
     closing the operation of gaming activities, as provided in 
     section 12;
       ``(G) to grant, deny, limit, condition, restrict, revoke, 
     or suspend any license issued under any licensing authority 
     conferred upon the Commission pursuant to this Act or fine 
     any person licensed pursuant to this Act for violation of any 
     of the conditions of licensure under this Act;
       ``(H) to inspect and examine all premises in which class II 
     or class III gaming is conducted on Indian lands;
       ``(I) to demand access to and 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;
       ``(J) to use the United States mails in the same manner and 
     under the same conditions as any department or agency of the 
     United States;
       ``(K) to procure supplies, services, and property by 
     contract in accordance with applicable Federal laws;
       ``(L) to enter into contracts with Federal, State, tribal, 
     and private entities for activities necessary to the 
     discharge of the duties of the Commission;
       ``(M) to serve, or cause to be served, process or notices 
     of the Commission 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 applicable rules of a 
     Federal, State, or tribal court;
       ``(N) to 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;
       ``(O) to conduct all administrative hearings pertaining to 
     civil violations of this Act (including any civil violation 
     of a regulation promulgated under this Act);
       ``(P) to collect all fees and assessments authorized by 
     this Act and the regulations promulgated pursuant to this 
     Act;
       ``(Q) to assess penalties for violations of the provisions 
     of this Act and the regulations promulgated pursuant to this 
     Act;
       ``(R) to provide training and technical assistance to 
     Indian tribes with respect to all aspects of the conduct and 
     regulation of gaming activities;
       ``(S) to monitor and, as specifically authorized by this 
     Act, regulate class II and class III gaming;
       ``(T) to approve all management contracts and gaming-
     related contracts; and
       ``(U) in addition to the authorities otherwise specified in 
     this Act, to delegate, by published order or rule, any of the 
     functions of the Commission (including functions with respect 
     to hearing, determining, ordering, certifying, reporting, or 
     otherwise acting on the part of the Commission concerning any 
     work, business, or matter) to a division of the Commission, 
     an individual member of the Commission, an administrative law 
     judge, or an employee of the Commission.
       ``(2) Statutory construction.--Nothing in this section may 
     be construed to authorize the delegation of the function of 
     rulemaking, as described in subchapter II of chapter 5 of 
     title 5, United States Code, with respect to general rules 
     (as distinguished from rules of particular applicability), or 
     the promulgation of any other rule.
       ``(b) Right To Review Delegated Functions.--
       ``(1) In general.--With respect to the delegation of any of 
     the functions of the Commission, 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 of the Commission, upon 
     the initiative of the Commission.
       ``(2) Vote needed for review.--The vote of 1 member of the 
     Commission shall be sufficient to bring an action referred to 
     in paragraph (1) before the Commission for review, and the 
     Commission shall ratify, revise, or reject the action under 
     review not later than the last day of the applicable period 
     specified in regulations promulgated by the Commission.
       ``(3) Failure to conduct review.--If the Commission 
     declines to exercise the right to that review or fails to 
     exercise that right within the applicable period specified in 
     regulations promulgated by the Commission, the action of any 
     such division of the Commission, individual member of the 
     Commission, administrative law judge, or employee shall, for 
     all purposes, including any appeal or review of that action, 
     be deemed an action of the Commission.
       ``(c) Minimum Requirements.--The Commission shall advise 
     the Secretary, as provided in section 8(a), with respect to 
     the establishment of minimum Federal standards--
       ``(1) for background investigations, licensing of persons, 
     and licensing of gaming operations associated with the 
     conduct or regulation of class II and class III gaming on 
     Indian lands by tribal governments; and
       ``(2) for the operation of class II and class III gaming 
     activities on Indian lands, including--
       ``(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 exits to 
     gaming facilities, and other critical areas of any gaming 
     facility;
       ``(B) procedures for the protection of the integrity of the 
     rules for the play of games and controls related to those 
     rules;
       ``(C) credit and debit collection controls;
       ``(D) controls over gambling devices and equipment; and
       ``(E) accounting and auditing.
       ``(d) Commission Access to Information.--
       ``(1) In general.--The Commission may secure from any 
     department or agency of the United States information 
     necessary to enable the Commission to carry out this Act. 
     Unless otherwise prohibited by law, upon request of the 
     Chairman, the head of that department or agency shall furnish 
     that information to the Commission.
       ``(2) Information transfer.--The Commission may secure from 
     any law enforcement agency or gaming regulatory agency of any 
     State, Indian tribe, or foreign nation information necessary 
     to enable the Commission to carry out this Act. Unless 
     otherwise prohibited by law, upon request of the Chairman, 
     the head of any State or tribal law enforcement agency shall 
     furnish that information to the Commission.
       ``(3) Privileged information.--Notwithstanding sections 552 
     and 552a of title 5, United States Code, the Commission shall 
     protect from disclosure information provided by Federal, 
     State, tribal, or international law enforcement or gaming 
     regulatory agencies.

[[Page S2675]]

       ``(4) Law enforcement agency.--For purposes of this 
     subsection, the Commission shall be considered to be a law 
     enforcement agency.
       ``(e) Investigations and Actions.--
       ``(1) In general.--
       ``(A) Possible violations.--The Commission may, as 
     specifically authorized by this Act, conduct such 
     investigations as the Commission considers necessary to 
     determine whether any person has violated, is violating, or 
     is conspiring to violate any provision of this Act (including 
     any rule or regulation promulgated under this Act). The 
     Commission may require or permit any person to file with the 
     Commission a statement in writing, under oath, or otherwise, 
     as the Commission may determine, concerning all relevant 
     facts and circumstances regarding the matter under 
     investigation by the Commission pursuant to this subsection.
       ``(B) Administrative investigations.--The Commission may, 
     as specifically authorized by this Act, investigate such 
     facts, conditions, practices, or matters as the Commission 
     considers necessary or proper to aid in--
       ``(i) the enforcement of any provision of this Act;
       ``(ii) issuing rules and regulations under this Act; or
       ``(iii) securing information to serve as a basis for 
     recommending further legislation concerning the matters to 
     which this Act relates.
       ``(2) Administrative authorities.--
       ``(A) In general.--
       ``(i) Administration of certain duties.--For the purpose of 
     any investigation or any other proceeding conducted under 
     this Act, an individual described in clause (ii) 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 that the Commission considers relevant or 
     material to the inquiry. The attendance of those witnesses 
     and the production of any such records may be required from 
     any place in the United States at any designated place of 
     hearing.
       ``(ii) Individuals described.--An individual described in 
     this clause is--

       ``(I) any member of the Commission who is designated by the 
     Commission to carry out duties specified in clause (i); or
       ``(II) any other officer of the Commission who is 
     designated by the Commission to carry out duties specified in 
     clause (i).

       ``(B) Requiring appearances or testimony.--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 that 
     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) Court orders.--Any court described in subparagraph 
     (B) may issue an order requiring that person to appear before 
     the Commission, a member of the Commission, or an 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 that 
     order of the court may be punished by that court as a 
     contempt of that court.
       ``(3) Enforcement.--
       ``(A) In general.--If the Commission determines that any 
     person is engaged, has engaged, or is conspiring to engage in 
     any act or practice constituting a violation of any provision 
     of this Act (including any rule or regulation promulgated 
     under this Act), the Commission may--
       ``(i) bring an action in the appropriate district court of 
     the United States or the United States District Court for the 
     District of Columbia to enjoin that act or practice, and upon 
     a proper showing, the court shall grant, without bond, a 
     permanent or temporary injunction or restraining order; or
       ``(ii) transmit such evidence as may be available 
     concerning that act or practice as may constitute a violation 
     of any Federal criminal law to the Attorney General, who may 
     institute the necessary criminal or civil proceedings.
       ``(B) Statutory construction.--
       ``(i) In general.--The authority of the Commission to 
     conduct investigations and take actions under subparagraph 
     (A) may not be construed to affect in any way the authority 
     of any other agency or department of the United States to 
     carry out statutory responsibilities of that agency or 
     department.
       ``(ii) Effect of transmittal by the commission.--The 
     transmittal by the Commission pursuant to subparagraph 
     (A)(ii) may not be construed to constitute a condition 
     precedent with respect to any action taken by any department 
     or agency referred to in clause (i).
       ``(4) Writs, injunctions, and orders.--Upon application of 
     the Commission, each district court 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 (including any rule or regulation 
     promulgated under this Act).
       ``(f) Powers of the Chairperson.--The Chairman shall have 
     such powers as may be delegated to the Chairman by the 
     Commission.

     ``SEC. 7. REGULATORY FRAMEWORK.

       ``(a) Class II Gaming.--For class II gaming, Indian tribes 
     shall retain the right of those tribes, in a manner that 
     meets or exceeds minimum Federal standards described in 
     section 6(c) (that are established by the Secretary under 
     section 8)--
       ``(1) to monitor and regulate that gaming;
       ``(2) to conduct background investigations; and
       ``(3) to establish and regulate internal control systems.
       ``(b) Class III Gaming Conducted Under a Compact.--For 
     class III gaming conducted under the authority of a compact 
     entered into pursuant to section 10, an Indian tribe or a 
     State, or both, as provided in a compact or by tribal 
     ordinance or resolution, shall, in a manner that meets or 
     exceeds minimum Federal standards described in section 6(c) 
     (that are established by the Secretary under section 8)--
       ``(1) monitor and regulate gaming;
       ``(2) conduct background investigations; and
       ``(3) establish and regulate internal control systems.
       ``(c) Violations of Minimum Federal Standards.--
       ``(1) Class ii gaming.--In any case in which an Indian 
     tribe that regulates or conducts class II gaming on Indian 
     lands substantially fails to meet minimum Federal standards 
     for that gaming, after providing the Indian tribe notice and 
     reasonable opportunity to cure violations and to be heard, 
     and after the exhaustion of other authorized remedies and 
     sanctions, the Commission shall have the authority to conduct 
     background investigations, issue licenses, and establish and 
     regulate internal control systems relating to class II gaming 
     conducted by the Indian tribe. That authority of the 
     Commission may be exclusive until such time as the regulatory 
     and internal control systems of the Indian tribe meet or 
     exceed the minimum Federal standards concerning regulatory, 
     licensing, or internal control requirements established by 
     the Secretary, in consultation with the Commission, for that 
     gaming.
       ``(2) Class iii gaming.--In any case in which an Indian 
     tribe or a State (or both) that regulates class III gaming on 
     Indian lands fails to meet or enforce minimum Federal 
     standards for class III gaming, after providing notice and 
     reasonable opportunity to cure violations and be heard, and 
     after the exhaustion of other authorized remedies and 
     sanctions, the Commission shall have the authority to conduct 
     background investigations, issue licenses, and establish and 
     regulate internal control systems relating to class III 
     gaming conducted by the Indian tribe. That authority of the 
     Commission may be exclusive until such time as the regulatory 
     or internal control systems of the Indian tribe or the State 
     (or both) meet or exceed the minimum Federal regulatory, 
     licensing, or internal control requirements established by 
     the Secretary, in consultation with the Commission, for that 
     gaming.

     ``SEC. 8. NEGOTIATED RULEMAKING.

       ``(a) In General.--Subject to subsection (b), not later 
     than 180 days after the date of enactment of the Indian 
     Gaming Regulatory Improvement Act of 1998, the Secretary 
     shall, in cooperation with Indian tribes, and in accordance 
     with the negotiated rulemaking procedures under subchapter 
     III of chapter 5 of title 5, United States Code, promulgate 
     minimum Federal standards relating to background 
     investigations, internal control systems, and licensing 
     standards (as described in section 6(c)).
       ``(b) Negotiated Rulemaking Committee.--The negotiated 
     rulemaking committee established under subchapter III of 
     chapter 5 of title 5, United States Code, to carry out 
     subsection (a) shall be established by the Secretary, in 
     consultation with the Attorney General and the Commission.
       ``(c) Factors for Consideration.--While the minimum Federal 
     standards established pursuant to this section may be 
     developed with due regard for existing industry standards, 
     the Secretary and the negotiated rulemaking committee 
     established under subsection (b), in promulgating standards 
     pursuant to this section, shall also consider--
       ``(1) the unique nature of tribal gaming as compared to 
     commercial gaming, other governmental gaming, and charitable 
     gaming;
       ``(2) the broad variations in the scope and size of tribal 
     gaming activity;
       ``(3) the inherent sovereign rights of Indian tribes with 
     respect to regulating their own affairs;
       ``(4) the findings and purposes set forth in sections 2 and 
     3;
       ``(5) the effectiveness and efficiency of a national 
     licensing program for vendors or management contractors; and
       ``(6) other matters that are not inconsistent with the 
     purposes of this Act.

     ``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 shall 
     be within the exclusive jurisdiction of the Indian tribes and 
     shall not be subject to the provisions of this Act.
       ``(b) Class II Gaming.--
       ``(1) In general.--Any class II gaming on Indian lands 
     shall be within the jurisdiction of the Indian tribes, but 
     shall be subject to the provisions of this Act.
       ``(2) Legal activities.--An Indian tribe may engage in, and 
     license and regulate, class II gaming on Indian lands within 
     the jurisdiction of that Indian tribe, if--
       ``(A) such Indian gaming is located within a State that 
     permits such gaming for any

[[Page S2676]]

     purpose by any person, organization, or entity (and such 
     gaming is not otherwise specifically prohibited on Indian 
     lands by Federal law); and
       ``(B) such Indian gaming meets or exceeds the requirements 
     of this section and the standards described in section 6(c) 
     (that are established by the Secretary under section 8).
       ``(3) Requirements for class ii gaming operations.--
       ``(A) In general.--The Commission shall ensure that, with 
     regard to any class II gaming operation on Indian lands--
       ``(i) a separate license is issued by the Indian tribe for 
     each place, facility, or location on Indian lands at which 
     that Indian gaming is conducted;
       ``(ii) the Indian tribe has or will have the sole 
     proprietary interest and responsibility for the conduct of 
     any class II gaming, unless the conditions of clause (ix) 
     apply;
       ``(iii) the net revenues from any class II gaming activity 
     are used only--

       ``(I) to fund tribal government operations or programs;
       ``(II) to provide for the general welfare of the Indian 
     tribe and the members of the Indian tribe;
       ``(III) to promote tribal economic development;
       ``(IV) to donate to charitable organizations;
       ``(V) to help fund operations of local government agencies;
       ``(VI) to comply with the provisions of section 14; or
       ``(VII) to make per capita payments to members of the 
     Indian tribe pursuant to clause (viii);

       ``(iv) the Indian tribe provides to the Commission annual 
     outside audit reports of the class II gaming operation of the 
     Indian tribe, which may be encompassed within existing 
     independent tribal audit systems;
       ``(v) each contract for supplies, services, or concessions 
     for a contract amount equal to more than $100,000 per year, 
     other than a contract for professional legal or accounting 
     services, relating to that gaming is subject to those 
     independent audit reports and any audit conducted by the 
     Commission;
       ``(vi) the construction and maintenance of a class II 
     gaming facility and the operation of class II gaming are 
     conducted in a manner that adequately protects the 
     environment and public health and safety;
       ``(vii) there is instituted an adequate system that--

       ``(I) ensures that--

       ``(aa) background investigations are conducted on primary 
     management officials, key employees, and persons having 
     material control, either directly or indirectly, in a 
     licensed class II gaming operation, and gaming-related 
     contractors associated with a licensed class II gaming 
     operation; and
       ``(bb) oversight of those officials and the management by 
     those officials is conducted on an ongoing basis; and

       ``(II) includes--

       ``(aa) tribal licenses for persons involved in class II 
     gaming operations, issued in accordance with the standards 
     described in section 6(c) (that are established by the 
     Secretary under section 8);
       ``(bb) a standard under which 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 or licensure; and
       ``(cc) notification by the Indian tribe to the Commission 
     of the results of that background investigation before the 
     issuance of any such license;
       ``(viii) net revenues from any class II gaming activities 
     conducted or licensed by any Indian tribal government are 
     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 clause (iii);
       ``(II) the Secretary determines that the plan is adequate, 
     particularly with respect to uses described in subclause (I) 
     or (III) of clause (iii);
       ``(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;
       ``(IV) the per capita payments to minors and other legally 
     incompetent persons are disbursed to the parents or legal 
     guardians of those minors or legally incompetent persons in 
     such amounts as may be necessary for the health, education, 
     or welfare of each such minor or legally incompetent person 
     under a plan approved by the Secretary and the governing body 
     of the Indian tribe; and
       ``(V) the per capita payments are subject to Federal income 
     taxation for individuals and Indian tribes withhold those 
     taxes when those payments are made;

       ``(ix) a separate license is issued by the Indian tribe for 
     any class II gaming operation owned by any person or entity 
     other than the Indian tribe and conducted on Indian lands, 
     that includes--

       ``(I) requirements set forth in clauses (v) through (vii) 
     (other than the requirements of clauses (vii)(II)(cc) and 
     (x)); and
       ``(II) requirements that are at least as restrictive as 
     those established by State law governing similar gaming 
     within the jurisdiction of the State within which those 
     Indian lands are located; and

       ``(x) no person or entity, other than the Indian tribe, is 
     eligible to receive a tribal license for a class II gaming 
     operation conducted on Indian lands within the jurisdiction 
     of the Indian tribe if that person or entity would not be 
     eligible to receive a State license to conduct the same 
     activity within the jurisdiction of the State.
       ``(B) Transition.--
       ``(i) In general.--Clauses (ii), (iii), and (ix) of 
     subparagraph (A) shall not bar the continued operation of a 
     class II gaming operation described in clause (ix) of that 
     subparagraph that was operating on September 1, 1986, if--

       ``(I) that gaming operation is licensed and regulated by an 
     Indian tribe;
       ``(II) income to the Indian tribe from that gaming is used 
     only for the purposes described in subparagraph (A)(iii);
       ``(III) not less than 60 percent of the net revenues from 
     that gaming operation is income to the licensing Indian 
     tribe; and
       ``(IV) the owner of that gaming operation pays an 
     appropriate assessment to the Commission pursuant to section 
     14 for the regulation of that gaming.

       ``(ii) Limitations on exemption.--The exemption from 
     application provided under clause (i) may not be transferred 
     to any person or entity and shall remain in effect only 
     during such period as the gaming operation remains within the 
     same nature and scope as that gaming operation was actually 
     operated on October 17, 1988.
       ``(C) List.--The Commission shall--
       ``(i) maintain a list of each gaming operation that is 
     subject to subparagraph (B); and
       ``(ii) publish that list in the Federal Register.
       ``(c) Petition for Certificate of Self-Regulation.--
       ``(1) In general.--Any Indian tribe that operates, directly 
     or with a management contract, a class II gaming activity may 
     petition the Commission for a certificate of self-regulation 
     if that Indian tribe--
       ``(A) has continuously conducted that gaming activity for a 
     period of not less than 3 years, including a period of not 
     less than 1 year that begins after the date of enactment of 
     the Indian Gaming Regulatory Improvement Act of 1998; and
       ``(B) has otherwise complied with the provisions of this 
     Act.
       ``(2) Issuance of certificate of self-regulation.--The 
     Commission shall issue a certificate of self-regulation under 
     this subsection if the Commission determines, on the basis of 
     available information, and after a hearing if requested by 
     the Indian tribe, that the Indian tribe has--
       ``(A) conducted its gaming activity in a manner that has--
       ``(i) resulted in an effective and honest accounting of all 
     revenues;
       ``(ii) resulted in a reputation for safe, fair, and honest 
     operation of the activity; and
       ``(iii) been generally free of evidence of criminal 
     activity;
       ``(B) adopted and implemented adequate systems for--
       ``(i) accounting for all revenues from the gaming activity;
       ``(ii) investigation, licensing, and monitoring of all 
     employees of the gaming activity; and
       ``(iii) investigation, enforcement, and prosecution of 
     violations of its gaming ordinance and regulations;
       ``(C) conducted the operation on a fiscally and 
     economically sound basis; and
       ``(D) paid all fees and assessments that the Indian tribe 
     is required to pay to the Commission under this Act.
       ``(3) Effect of certificate of self-regulation.--During the 
     period in which a certificate of self-regulation issued under 
     this subsection is in effect with respect to a gaming 
     activity conducted by an Indian tribe--
       ``(A) the Indian tribe shall--
       ``(i) submit an annual independent audit report as required 
     by subsection (b)(3)(A)(iv); and
       ``(ii) submit to the Commission a complete resume of each 
     employee hired and licensed by the Indian tribe subsequent to 
     the issuance of a certificate of self-regulation; and
       ``(B) the Commission may not assess a fee under section 15 
     on gaming operated by the Indian tribe pursuant to paragraph 
     (1) in excess of 0.25 percent of the net revenue from that 
     class II gaming activity.
       ``(4) Rescission.--The Commission may, for just cause and 
     after a reasonable opportunity for a hearing, rescind a 
     certificate of self-regulation issued under this subsection 
     by majority vote of the members of the Commission.
       ``(d) License Revocation.--If, after the issuance of any 
     license by an Indian tribe under this section, the Indian 
     tribe receives reliable information from the Commission 
     indicating that a licensee does not meet any standard 
     described in section 6(c) (that is established by the 
     Secretary under section 8), or any other applicable 
     regulation promulgated under this Act, the Indian tribe--
       ``(1) shall immediately suspend that license; and
       ``(2) after providing notice, holding a hearing, and making 
     findings of fact under procedures established pursuant to 
     applicable tribal law, may revoke that license.

     ``SEC. 10. CLASS III GAMING ON INDIAN LANDS.

       ``(a) Requirements for the Conduct of Class III Gaming on 
     Indian Lands.--
       ``(1) In general.--Class III gaming activities shall be 
     lawful on Indian lands only if those activities are--

[[Page S2677]]

       ``(A) authorized by a compact that--
       ``(i) is approved pursuant to tribal law by the governing 
     body of the Indian tribe having jurisdiction over those 
     lands;
       ``(ii) meets the requirements of this section 9(b)(3) for 
     the conduct of class II gaming activities; and
       ``(iii) is approved by the Secretary;
       ``(B) located in a State that permits such gaming for any 
     purpose by any person, organization or entity; and
       ``(C) conducted in conformance with a compact that--
       ``(i) is in effect; and
       ``(ii) is--

       ``(I) entered into by an Indian tribe and a State and 
     approved by the Secretary under paragraph (2); or
       ``(II) issued by the Secretary under paragraph (2).

       ``(2) Compact negotiations; approval.--
       ``(A) In general.--
       ``(i) Compact negotiations.--Any Indian tribe having 
     jurisdiction over the lands upon which a class III gaming 
     activity is to be conducted may request the State in which 
     those lands are located to enter into negotiations for the 
     purpose of entering into a compact with that State governing 
     the conduct of class III gaming activities.
       ``(ii) Requirements for request for negotiations.--A 
     request for negotiations under clause (i) shall be in writing 
     and shall specify each gaming activity that the Indian tribe 
     proposes for inclusion in the compact. Not later than 30 days 
     after receipt of that written request, the State shall 
     respond to the Indian tribe.
       ``(iii) Commencement of compact negotiations.--Compact 
     negotiations conducted under this paragraph shall commence 
     not later than 30 days after the date on which a response by 
     a State is due to the Indian tribe, and shall be completed 
     not later than 120 days after the initiation of compact 
     negotiations, unless the State and the Indian tribe agree to 
     a different period of time for the completion of compact 
     negotiations.
       ``(B) Negotiations.--
       ``(i) In general.--The Secretary shall, upon the request of 
     an Indian tribe described in subparagraph (A)(i) that has not 
     reached an agreement with a State concerning a compact 
     referred to in that subparagraph (or with respect to an 
     Indian tribe described in clause (ii)(I)(bb) a compact) 
     during the applicable period under clause (ii) of this 
     subparagraph, initiate a mediation process to--

       ``(I) conclude a compact referred to in subparagraph 
     (A)(i); or
       ``(II) if necessary, provide for the issuance of procedures 
     by the Secretary to govern the conduct of the gaming referred 
     to in that subparagraph.

       ``(ii) Applicable period.--

       ``(I) In general.--Subject to subclause (II), the 
     applicable period described in this paragraph is--

       ``(aa) in the case of an Indian tribe that makes a request 
     for compact negotiations under subparagraph (A), the 180-day 
     period beginning on the date on which that Indian tribe makes 
     the request; and
       ``(bb) in the case of an Indian tribe that makes a request 
     to renew a compact to govern class III gaming activity on 
     Indian lands of that Indian tribe within the State that the 
     Indian tribe entered into prior to the date of enactment of 
     the Indian Gaming Regulatory Improvement Act of 1998, during 
     the 60-day period beginning on the date of that request.

       ``(II) Extension.--An Indian tribe and a State may agree to 
     extend an applicable period under this paragraph beyond the 
     applicable termination date specified in item (aa) or (bb) of 
     subclause (I).

       ``(iii) Mediation.--

       ``(I) In general.--The Secretary shall initiate mediation 
     to conclude a compact governing the conduct of class III 
     gaming activities on Indian lands upon a showing by an Indian 
     tribe that, within the applicable period specified in clause 
     (ii), a State has failed--

       ``(aa) to respond to a request by an Indian tribe for 
     negotiations under this subparagraph; or
       ``(bb) to negotiate in good faith.

       ``(II) Effect of declining negotiations.--The Secretary 
     shall initiate mediation immediately after a State declines 
     to enter into negotiations under this subparagraph, without 
     regard to whether the otherwise applicable period specified 
     in clause (ii) has expired.
       ``(III) Copy of request.--An Indian tribe that requests 
     mediation under this clause shall provide the State that is 
     the subject of the mediation request a copy of the mediation 
     request submitted to the Secretary.
       ``(IV) Panel.--The Secretary, in consultation with the 
     Indian tribes and States, shall establish a list of 
     independent mediators, that the Secretary, in consultation 
     with the Indian tribes and the States, shall periodically 
     update.
       ``(V) Notification by state.--Not later than 10 days after 
     an Indian tribe makes a request to the Secretary for 
     mediation under subclause (I), the State that is the subject 
     of the mediation request shall notify the Secretary whether 
     the State elects to participate in the mediation process. If 
     the State elects to participate in the mediation, the 
     mediation shall be conducted in accordance with subclause 
     (VI). If the State declines to participate in the mediation 
     process, the Secretary shall issue procedures under clause 
     (iv).
       ``(VI) Mediation process.--

       ``(aa) In general.--Not later than 20 days after a State 
     elects under subclause (V) to participate in a mediation, the 
     Secretary shall submit to the Indian tribe and the State the 
     names of 3 mediators randomly selected by the Secretary from 
     the list of mediators established under subclause (IV).
       ``(bb) Selection of mediator.--Not later than 10 days after 
     the Secretary submits the mediators referred to in item (aa), 
     the Indian tribe and the State may elect to have the 
     Secretary remove a mediator from the mediators submitted. If 
     the parties referred to in the preceding sentences fail to 
     remove 2 mediators, the Secretary shall remove such names as 
     may be necessary to result in the removal of 2 mediators. The 
     remaining mediator shall conduct the mediation.
       ``(cc) Initial period of mediation.--The mediator shall, 
     during the 60-day period beginning on the date on which the 
     mediator is selected under item (bb) (or a longer period on 
     the agreement of the parties referred to in that item for an 
     extension of the period) attempt to achieve a compact.
       ``(dd) Last-best-offer.--If by the termination of the 
     period specified in item (cc), no agreement for concluding a 
     compact is achieved by the parties to the mediation, each 
     such party may, not later than 10 days after that date, 
     submit to the mediator an offer that represents the best 
     offer that the party intends to make for achieving an 
     agreement for concluding a compact (referred to in this item 
     as a `last-best-offer'). The mediator shall review a last-
     best-offer received under this item not later than 30 days 
     after the date of submission of the offer.
       ``(ee) Report by mediator.--Not later than the date 
     specified for the completion of a review of a last-best-offer 
     under item (dd), or in any case in which either party in a 
     mediation fails to make such an offer, the date that is 10 
     days after the termination of the initial period of mediation 
     under item (cc), the mediator shall prepare and submit to the 
     Secretary a report that includes the contentions of the 
     parties, the conclusions of the mediator concerning the 
     permissible scope of gaming on the Indian lands involved, and 
     recommendations for the operation and regulation of gaming on 
     the Indian lands in accordance with this Act.
       ``(ff) Final determinations.--Not later than 60 days after 
     receiving a report from a mediator under item (ee), the 
     Secretary shall make a final determination concerning the 
     operation and regulation of the class III gaming that is the 
     subject of the mediation.
       ``(iv) Procedures.--Subject to clause (v), the Secretary 
     shall issue procedures for the operation and regulation of 
     the class III gaming described in that item by the date that 
     is 180 days after the date specified in clause (iii)(V) or 
     upon the determination described in clause (iii)(iv)(ff).
       ``(v) Prohibition.--No compact negotiated, or procedures 
     issued, under this subparagraph shall require that a State 
     undertake any regulation of gaming on Indian lands unless--

       ``(I) the State affirmatively consents to regulate that 
     gaming; and
       ``(II) applicable State laws permit that regulatory 
     function.

       ``(C) Mandatory disapproval.--Notwithstanding any other 
     provision of this Act, the Secretary may not approve a 
     compact if the compact requires State regulation of Indian 
     gaming absent the consent of the State or the Indian tribe.
       ``(D) Effective date of compact of procedures.--Any compact 
     negotiated, or procedures issued, under this subsection shall 
     become effective upon the publication of the compact or 
     procedures in the Federal Register by the Secretary.
       ``(E) Effect of publication of compact.--Except for an 
     appeal conducted under subchapter II of chapter 5 of title 5, 
     United States Code, by an Indian tribe or a State associated 
     with the compact, the publication of a compact pursuant to 
     subparagraph (B) shall, for the purposes of this Act, be 
     conclusive evidence that the class III gaming subject to the 
     compact 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.
       ``(F) Duties of commission.--Consistent with the 
     requirements of the standards described in section 6(c) (that 
     are established by the Secretary under section 8) and the 
     requirements of section 7, the Commission shall monitor and, 
     if specifically authorized by those standards and section 7, 
     regulate and license class III gaming with respect to any 
     compact that is approved by the Secretary under this 
     subsection and published in the Federal Register.
       ``(3) Provisions of compacts.--
       ``(A) In general.--A compact negotiated under this 
     subsection may only include provisions relating to--
       ``(i) the application of the criminal and civil laws 
     (including regulations) of the Indian tribe or the State that 
     are directly related to, and necessary for, the licensing and 
     regulation of that gaming activity in a manner consistent 
     with the requirements of the standards described in section 
     6(c) (that are established by the Secretary under section 8) 
     and section 7;
       ``(ii) the allocation of criminal and civil jurisdiction 
     between the State and the Indian tribe necessary for the 
     enforcement of those laws (including regulations);
       ``(iii) the assessment by the State of the costs associated 
     with those activities in such amounts as are necessary to 
     defray the costs of regulating that activity;

[[Page S2678]]

       ``(iv) taxation by the Indian tribe of that activity in 
     amounts comparable to amounts assessed by the State for 
     comparable activities;
       ``(v) remedies for breach of compact provisions;
       ``(vi) standards for the operation of that activity and 
     maintenance of the gaming facility, including licensing, in a 
     manner consistent with the requirements of the standards 
     described in section 6(c) (that are established by the 
     Secretary under section 8) and section 7; and
       ``(vii) any other subject that is directly related to the 
     operation of gaming activities.
       ``(B) Statutory construction with respect to assessments; 
     prohibition.--
       ``(i) Statutory construction.--Except for any assessments 
     for services agreed to by an Indian tribe in compact 
     negotiations, nothing in this section may be construed as 
     conferring upon a State, or any political subdivision 
     thereof, the authority to impose any tax, fee, charge, or 
     other assessment upon an Indian tribe, an Indian gaming 
     operation or the value generated by the gaming operation, or 
     any person or entity authorized by an Indian tribe to engage 
     in a class III gaming activity in conformance with this Act.
       ``(ii) Assessment by states.--A State may assess the 
     assessments agreed to by an Indian tribe referred to in 
     clause (i) in a manner consistent with that clause.
       ``(4) Statutory construction with respect to certain rights 
     of indian tribes.--Nothing in this subsection impairs the 
     right of an Indian tribe to regulate class III gaming on the 
     Indian lands of the Indian tribe concurrently with a State 
     and the Commission, except to the extent that such regulation 
     is inconsistent with, or less stringent than, this Act or any 
     laws (including regulations) made applicable by any compact 
     entered into by the Indian tribe under this subsection that 
     is in effect.
       ``(5) Exemption.--The provisions of section 2 of the Act of 
     January 2, 1951 (commonly referred to as the `Gambling 
     Devices Transportation Act') (64 Stat. 1134, chapter 1194; 15 
     U.S.C. 1175) shall not apply to any class II gaming activity 
     or any gaming activity conducted pursuant to a compact 
     entered into after the date of enactment of this Act, but in 
     no event shall this paragraph be construed as invalidating 
     any exemption from the provisions of such section 2 for any 
     compact entered into prior to the date of enactment of this 
     Act.
       ``(b) Jurisdiction of United States District Court for the 
     District of Columbia.--The United States District Court for 
     the District of Columbia shall have jurisdiction over any 
     action initiated by the Secretary, the Commission, a State, 
     or an Indian tribe to enforce any provision of a compact 
     entered into under subsection (a) or to enjoin a class III 
     gaming activity located on Indian lands and conducted in 
     violation of any compact that is in effect and that was 
     entered into under subsection (a).
       ``(c) Approval of Compacts.--
       ``(1) In general.--The Secretary may approve any compact 
     between an Indian tribe and a State governing the conduct of 
     class III gaming on Indian lands of that Indian tribe entered 
     into under subsection (a).
       ``(2) Reasons for disapproval by secretary.--The Secretary 
     may disapprove a compact entered into under subsection (a) 
     only if that compact violates any--
       ``(A) provision of this Act or any regulation promulgated 
     by the Commission pursuant to this Act;
       ``(B) other provision of Federal law; or
       ``(C) trust obligation of the United States to Indians.
       ``(3) Effect of failure to act on compact.--If the 
     Secretary fails to approve or disapprove a compact entered 
     into under subsection (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 pursuant to 
     this Act.
       ``(4) Notification.--The Secretary shall publish in the 
     Federal Register notice of any compact that is approved, or 
     considered to have been approved, under this subsection.
       ``(d) Revocation of Ordinance.--
       ``(1) In general.--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. 
     That revocation shall render class III gaming illegal on the 
     Indian lands of that Indian tribe.
       ``(2) Publication of revocation.--An Indian tribe shall 
     submit any revocation ordinance or resolution described in 
     paragraph (1) to the Commission. The Commission shall publish 
     that ordinance or resolution in the Federal Register. The 
     revocation provided by that ordinance or resolution shall 
     take effect on the date of that publication.
       ``(3) Conditional operation.--Notwithstanding any other 
     provision of this subsection--
       ``(A) any person or entity operating a class III gaming 
     activity pursuant to this Act on the date on which an 
     ordinance or resolution described in paragraph (1) that 
     revokes authorization for that class III gaming activity is 
     published in the Federal Register may, during the 1-year 
     period beginning on the date on which that revocation, 
     ordinance, or resolution is published under paragraph (2), 
     continue to operate that activity in conformance with an 
     applicable compact entered into under subsection (a) that is 
     in effect; and
       ``(B) any civil action that arises before, and any crime 
     that is committed before, the termination of that 1-year 
     period shall not be affected by that revocation ordinance, or 
     resolution.
       ``(e) Certain Class III Gaming Activities.--
       ``(1) Compacts entered into before the date of enactment of 
     the indian gaming regulatory improvement act of 1998.--Class 
     III gaming activities that are authorized under a compact 
     approved or issued by the Secretary under the authority of 
     this Act prior to the date of enactment of the Indian Gaming 
     Regulatory Improvement Act of 1998 shall, during such period 
     as the compact is in effect, remain lawful for the purposes 
     of this Act, notwithstanding the Indian Gaming Regulatory 
     Improvement Act of 1998 and the amendments made by that Act 
     or any change in State law, other than a change in State law 
     that constitutes a change in the public policy of the State 
     with respect to permitting or prohibiting class III gaming in 
     the State.
       ``(2) Compact entered into after the date of enactment of 
     the indian gaming regulatory improvement act of 1998.--Any 
     compact entered into under subsection (a) after the date 
     specified in paragraph (1) shall remain lawful for the 
     purposes of this Act, notwithstanding any change in State 
     law, other than a change in State law that constitutes a 
     change in the public policy of the State with respect to with 
     respect to permitting or prohibiting class III gaming in the 
     State.

     ``SEC. 11. REVIEW OF CONTRACTS.

       ``(a) Contracts Included.--The Commission shall, in 
     accordance with this section, review and approve or 
     disapprove any management contract for the operation and 
     management of any gaming activity that an Indian tribe may 
     engage in under this Act.
       ``(b) Management Contract Requirements.--The Commission 
     shall approve any management contract between an Indian tribe 
     and a person licensed by an Indian tribe or the Commission 
     that is entered into pursuant to this Act only if the 
     Commission determines that the contract provides for--
       ``(1) adequate accounting procedures that are maintained, 
     and 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) a contract term of not to exceed 5 years, except 
     that, upon the request of an Indian tribe, the Commission may 
     authorize a contract term that exceeds 5 years but does not 
     exceed 7 years if the Commission is satisfied that the 
     capital investment required, and the income projections for, 
     the particular gaming activity require the additional time; 
     and
       ``(6) grounds and mechanisms for the termination of the 
     contract, but any such termination shall not require the 
     approval of the Commission.
       ``(c) Management Fee Based on Percentage of Net Revenues.--
       ``(1) Percentage fee.--The Commission may approve a 
     management contract that provides for a fee that is based on 
     a percentage of the net revenues of a tribal gaming activity 
     if the Commission determines that such percentage fee is 
     reasonable, taking into consideration surrounding 
     circumstances.
       ``(2) Fee amount.--Except as provided in paragraph (3), a 
     fee described in paragraph (1) shall not exceed an amount 
     equal to 30 percent of the net revenues described in that 
     paragraph.
       ``(3) Exception.--Upon the request of an Indian tribe, if 
     the Commission is satisfied that the capital investment 
     required, and income projections for, a tribal gaming 
     activity, necessitate a fee in excess of the amount specified 
     in paragraph (2), the Commission may approve a management 
     contract that provides for a fee described in paragraph (1) 
     in an amount in excess of the amount specified in paragraph 
     (2), but not to exceed 40 percent of the net revenues 
     described in paragraph (1).
       ``(d) Time Period for Review.--
       ``(1) In general.--Except as provided in paragraph (2), not 
     later than 90 days after the date on which a management 
     contract is submitted to the Commission for approval, the 
     Commission shall approve or disapprove that contract on the 
     merits of the contract.
       ``(2) Extension.--The Commission may extend the 90-day 
     period for an additional period of not more than 45 days if 
     the Commission notifies the Indian tribe in writing of the 
     reason for the extension of the period.
       ``(3) Action.--The Indian tribe may bring an action in the 
     United States District Court for the District of Columbia to 
     compel action by the Commission if a contract has not been 
     approved or disapproved by the termination date of an 
     applicable period under this subsection.

[[Page S2679]]

       ``(e) Contract Modifications and Void Contracts.--The 
     Commission, after providing notice and a hearing on the 
     record--
       ``(1) shall have the authority to require appropriate 
     contract modifications to ensure compliance with the 
     provisions of this Act; and
       ``(2) may declare invalid any contract regulated by the 
     Commission under this Act if the Commission determines that 
     any provision of this Act has been violated by the terms of 
     the contract.
       ``(f) Interests in Real Property.--No contract regulated by 
     this Act may transfer or, in any other manner, convey any 
     interest in land or other real property, unless--
       ``(1) specific statutory authority exists;
       ``(2) all necessary approvals for the transfer or 
     conveyance have been obtained; and
       ``(3) the transfer or conveyance is clearly specified in 
     the contract.
       ``(g) Authority of the Secretary.--The authority of the 
     Secretary under section 2103 of the Revised Statutes (25 
     U.S.C. 81) shall not extend to any contract or agreement that 
     is regulated pursuant to this Act.
       ``(h) Disapproval of Contracts.--The Commission may not 
     approve a management contract or other gaming-related 
     contract if the Commission determines that--
       ``(1) any person having a direct financial interest in, or 
     management responsibility for, that contract, and, in the 
     case of a corporation, any individual who serves on the board 
     of directors of that corporation, and any of the 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 that is a party to the contract;
       ``(B) has been 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--
       ``(A) has unduly interfered or influenced for its gain or 
     advantage any decision or process of tribal government 
     relating to the gaming activity; or
       ``(B) has attempted to interfere or influence a decision 
     pursuant to subparagraph (A);
       ``(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.

     ``SEC. 12. 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 
     any rule or regulation promulgated under this Act, or who 
     fails to carry out any act or causes the failure to carry out 
     any act that is required by any such provision of law shall 
     be subject to a civil penalty in an amount equal to not more 
     than $25,000 per day for each such violation.
       ``(b) Assessment and Collection.--
       ``(1) In general.--Each civil penalty assessed 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 the Commission refers civil penalty 
     claims to the Attorney General, the Commission may compromise 
     the civil penalty after affording the person charged with a 
     violation referred to in subsection (a), an opportunity to 
     present views and evidence in support of that action by the 
     Commission to establish that the alleged violation did not 
     occur.
       ``(2) Penalty amount.--In determining the amount of a civil 
     penalty assessed under this section, the Commission shall 
     take into account--
       ``(A) the nature, circumstances, extent, and gravity of the 
     violation committed;
       ``(B) with respect to the person found to have committed 
     that violation, the degree of culpability, any history of 
     prior violations, ability to pay, and the effect on ability 
     to continue to do business; and
       ``(C) such other matters as justice may require.
       ``(c) Temporary Closures.--
       ``(1) In general.--The Commission may order the temporary 
     closure of all or part of an Indian gaming operation for a 
     substantial violation of any provision of law referred to in 
     subsection (a).
       ``(2) Hearing on order of temporary closure.--
       ``(A) In general.--Not later than 10 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 on the record before the 
     Commission to determine whether that order should be made 
     permanent or dissolved.
       ``(B) Deadlines relating to hearing.--Not later than 30 
     days after a request for a hearing is made under subparagraph 
     (A), the Commission shall conduct that hearing. Not later 
     than 30 days after the termination of the hearing, the 
     Commission shall render a final decision on the closure.

     ``SEC. 13. JUDICIAL REVIEW.

       ``A decision made by the Commission pursuant to section 6, 
     7, 11, or 12 shall constitute a final agency decision for 
     purposes of appeal to the United States District Court for 
     the District of Columbia pursuant to chapter 7 of title 5, 
     United States Code.'';
       (6) by redesignating sections 18 and 19 as sections 14 and 
     15, respectively;
       (7) in section 14, as redesignated--
       (A) in subsection (a)--
       (i) by striking paragraphs (3) through (6);
       (ii) by redesignating paragraph (2) as paragraph (3);
       (iii) by striking ``(a)(1) The Commission'' and inserting 
     the following:
       ``(2) Minimum fees.--The Commission'';
       (iv) by inserting before paragraph (2) the following:
       ``(a) Annual Fees.--
       ``(1) Minimum regulatory fees.--In addition to assessing 
     fees pursuant to a schedule established under paragraph (2), 
     the Commission shall require each gaming operation that 
     conducts a class II or class III gaming activity that is 
     regulated by this Act to pay to the Commission, on a 
     quarterly basis, a minimum fee in an amount equal to $250.''; 
     and
       (v) in paragraph (3), as redesignated, by striking 
     subparagraphs (B) and (C) and inserting the following:
       ``(B) Graduated fee limitation.--
       ``(i) In general.--The aggregate amount of fees collected 
     under this paragraph shall not exceed--

       ``(I) $8,000,000 for fiscal year 1999;
       ``(II) $9,000,000 for fiscal year 2000; and
       ``(III) $11,000,000 for fiscal year 2001, and for each 
     fiscal year thereafter.

       ``(C) Factors for consideration.--
       ``(i) In general.--The aggregate amount of fees assessed 
     under this section shall be reasonably related to the costs 
     of services provided by the Commission to Indian tribes under 
     this Act (including the cost of issuing regulations necessary 
     to carry out this Act). In assessing and collecting fees 
     under this section, the Commission shall take into account 
     all of the duties of, and services provided by, the 
     Commission under this Act.
       ``(ii) Factors for consideration.--In determining the 
     amount of fees to be assessed against class II or class III 
     gaming activities regulated by this Act, the Commission shall 
     consider the extent of regulation of gaming activities by 
     States and Indian tribes and shall, if appropriate, reduce or 
     eliminate the fees authorized by this section.
       ``(iii) Consultation.--In establishing any schedule of fees 
     under this subsection, the Commission shall consult with 
     Indian tribes.
       ``(4) Trust fund.--
       ``(A) Establishment.--There is established in the Treasury 
     of the United States a fund to be known as the Indian Gaming 
     Trust Fund (referred to in this paragraph as the `Trust 
     Fund'), consisting of--
       ``(i) such amounts as are--

       ``(I) transferred to the Trust Fund under subparagraph 
     (B)(i); or
       ``(II) appropriated to the Trust Fund; and

       ``(ii) any interest earned on the investment of amounts in 
     the Trust Fund under subparagraph (C).
       ``(B) Transfer of amounts equivalent to fees.--
       ``(i) In general.--The Secretary of the Treasury shall 
     transfer to the Trust Fund an amount equal to the aggregate 
     amount of fees collected under this subsection.
       ``(ii) Transfers based on estimates.--The amounts required 
     to be transferred to the Trust Fund under clause (i) shall be 
     transferred at least quarterly from the general fund of the 
     Treasury to the Trust Fund on the basis of estimates made by 
     the Secretary of the Treasury. Proper adjustment shall be 
     made in amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.
       ``(C) Investments.--
       ``(i) In general.--It shall be the duty of the Secretary of 
     the Treasury to invest such portion of the Trust Fund as is 
     not, in the judgment of the Secretary of the Treasury, 
     required to meet current withdrawals. The Secretary of the 
     Treasury shall invest the amounts deposited under 
     subparagraph (A) only in interest-bearing obligations of the 
     United States or in obligations guaranteed as to both 
     principal and interest by the United States.
       ``(ii) Sale of obligations.--Any obligation acquired by the 
     Trust Fund, except special obligations issued exclusively to 
     the Trust Fund, may be sold by the Secretary of the Treasury 
     at the market price, and such special obligations may be 
     redeemed at par plus accrued interest.
       ``(iii) Credits to trust fund.--The interest on, and 
     proceeds from, the sale or redemption of, any obligations 
     held in the Trust Fund shall be credited to and form a part 
     of the Trust Fund.
       ``(D) Expenditures from trust fund.--
       ``(i) In general.--Amounts in the Trust Fund shall be 
     available, as provided in appropriations Acts, to the 
     Commission for carrying out the duties of the Commission 
     under this Act.
       ``(ii) Withdrawal and transfer of funds.--Upon request of 
     the Commission, the Secretary of the Treasury shall withdraw 
     amounts from the Trust Fund and transfer such amounts to the 
     Commission for use in accordance with clause (i).

[[Page S2680]]

       ``(E) Limitation on transfers and withdrawals.--Except as 
     provided in subparagraph (D)(ii), the Secretary of the 
     Treasury may not transfer or withdraw any amount deposited 
     under subparagraph (A).
       ``(5) Consequences of failure to pay fees.--Failure to pay 
     the fees imposed under the schedule established under 
     paragraph (2) shall, subject to regulations promulgated by 
     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) Credit.--To the extent that revenue derived from fees 
     imposed under the schedule established under paragraph (2) 
     are not expended or committed at the close of any fiscal 
     year, those surplus funds shall be credited to each gaming 
     activity on a pro rata basis against the fees imposed under 
     that schedule for the succeeding fiscal year.
       ``(7) Gross revenues.--For purposes of this section, gross 
     revenues shall constitute the annual total amount of money 
     wagered, reduced by--
       ``(A) any amounts paid out as prizes or paid for prizes 
     awarded; and
       ``(B) allowance for amortization of capital expenditures 
     for structures.''; and
       (B) by striking subsection (b) and inserting the following:
       ``(b) Reimbursement of Costs.--
       ``(1) Contents of budget.--For fiscal year 1999, and for 
     each fiscal year thereafter, the budget of the Commission may 
     include a request for appropriations, as authorized by 
     section 15, in an amount equal to the sum of--
       ``(A)(i) for fiscal year 1999, an estimate (determined by 
     the Commission) of the amount of funds to be derived from the 
     fees collected under subsection (a) for that fiscal year; or
       ``(ii) for each fiscal year thereafter, the amount of funds 
     derived from the fees collected under subsection (a) for the 
     fiscal year preceding the fiscal year for which the 
     appropriation request is made; and
       ``(B) $1,000,000.
       ``(2) Budget request of the department of the interior.--
     Each request for appropriations made under paragraph (1) 
     shall--
       ``(A) be subject to the approval of the Secretary; and
       ``(B) be part of a request made by the Secretary to the 
     President for inclusion in the annual budget request 
     submitted by the President to Congress under section 1105(a) 
     of title 31, United States Code.'';
       (8) in section 15, as redesignated, by striking ``section 
     18'' each place it appears and inserting ``section 14'';
       (9) by striking section 17 and inserting the following:

     ``SEC. 16. APPLICATION OF INTERNAL REVENUE CODE OF 1986; 
                   ACCESS TO INFORMATION BY STATES AND TRIBAL 
                   GOVERNMENTS.

       ``(a) Application of the Internal Revenue Code of 1986.--
       ``(1) In general.--The provisions of the Internal Revenue 
     Code of 1986 (including sections 1441, 3402(q), and 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 that is in effect, in the same 
     manner as those provisions apply to State gaming and wagering 
     operations. Any exemptions to States with respect to taxation 
     of those gaming or wagering operations shall be allowed to 
     Indian tribes.
       ``(2) Exemption.--The provisions of section 6050I of the 
     Internal Revenue Code of 1986 shall apply to an Indian gaming 
     establishment that is not designated by the Secretary of the 
     Treasury as a financial institution pursuant to chapter 53 of 
     title 31, United States Code.
       ``(3) Statutory construction.--This subsection shall apply 
     notwithstanding any other provision of law enacted before the 
     date of enactment of this Act unless that other provision of 
     law specifically cites this subsection.
       ``(b) Access to Information by State and Tribal 
     Governments.--Subject to section 6(d), upon the request of a 
     State or the governing body of an Indian tribe, the 
     Commission shall make available any law enforcement 
     information that it has obtained pursuant to such section, 
     unless otherwise prohibited by law, in order to enable the 
     State or the Indian tribe to carry out its responsibilities 
     under this Act or any compact approved by the Secretary.

     ``SEC. 17. GAMING PROSCRIBED ON LANDS ACQUIRED IN TRUST AFTER 
                   THE DATE OF ENACTMENT OF THIS ACT.

       ``(a) In General.--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) those 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 those lands are located in the 
     State of Oklahoma and--
       ``(A) are within the boundaries of the former reservation 
     of the Indian tribe, as defined by the Secretary; or
       ``(B) are contiguous to other land held in trust or 
     restricted status by the United States for the Indian tribe 
     in the State of Oklahoma.
       ``(b) Exemption.--Subsection (a) shall not apply to--
       ``(1) 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
       ``(2) 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 1 mile of the 
     intersection of State road numbered 27 (also known as Krome 
     Avenue) and the Tamiami Trail.'';
     ``or:
       (3) where the use of such lands for gaming purposes is 
     provided for in a tribal-state compact described in section 
     10(a)(1)(C)(ii)(I) or a tribal-state agreement specifically 
     providing for the use of such lands for gaming purposes.''
       (10) by striking section 20;
       (11) by redesignating sections 21 through 23 as sections 18 
     through 20, respectively; and
       (12) by redesignating section 24 as section 21.

     SEC. 3. LIMITATION ON LOBBYING.

       Section 104 of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450i) is amended by inserting after 
     subsection (j) the following:
       ``(k) Lobbying Limitation.--Notwithstanding subsection (j), 
     except as otherwise provided in sections 205 and 207 of title 
     18, United States Code, a former Federal officer or employee 
     of the United States shall not act as an agent or attorney 
     for, or appear on behalf of, a client in connection with any 
     specific matter or decision involving the Indian Gaming 
     Regulatory Act (25 U.S.C. 2701 et seq.) in any matter in 
     which the officer or employee of the United States had 
     personal and substantial involvement while an officer of the 
     United States.''.

     SEC. 4. DEFINITION OF FINANCIAL INSTITUTIONS.

       Section 5312(a)(2) of title 31, United States Code, is 
     amended--
       (1) by redesignating subparagraphs (Y) and (Z) as 
     subparagraphs (Z) and (AA), respectively; and
       (2) by inserting after subparagraph (X) the following new 
     subparagraph:
       ``(Y) an Indian gaming establishment;''.

     SEC. 5. CONFORMING AMENDMENTS.

       (a) Title 10.--Section 2323a(e)(1) of title 10, United 
     States Code, is amended by striking ``section 4(4) of the 
     Indian Gaming Regulatory Act (102 Stat. 2468; 25 U.S.C. 
     2703(4))'' and inserting ``section 4(12) of the Indian Gaming 
     Regulatory Act''.
       (b) Title 18.--Title 18, United States Code, is amended--
       (1) in section 1166--
       (A) in subsection (c)(2), by striking ``a Tribal-State 
     compact approved by the Secretary of the Interior under 
     section 11(d)(8) of the Indian Gaming Regulatory Act that is 
     in effect'' and inserting ``a compact approved by the 
     Secretary of the Interior under section 10(c) of the Indian 
     Gaming Regulatory Act that is in effect or pursuant to 
     procedures issued by the Secretary of the Interior under 
     section 10(a)(2)(B)(iv) of such Act''; and
       (B) in subsection (d), by striking ``a Tribal-State compact 
     approved by the Secretary of the Interior under section 
     11(d)(8) of the Indian Gaming Regulatory Act'' and inserting 
     ``a compact approved by the Secretary of the Interior under 
     section 10(c) of the Indian Gaming Regulatory Act or pursuant 
     to procedures issued by the Secretary of the Interior under 
     section 10(a)(2)(B)(iv) of such Act,'';
       (2) in section 1167, by striking ``pursuant to an ordinance 
     or resolution approved by the National Indian Gaming 
     Commission'' and inserting ``pursuant to an ordinance or 
     resolution that meets the applicable requirements under the 
     Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.)''; and
       (3) in section 1168, by striking ``pursuant to an ordinance 
     or resolution approved by the National Indian Gaming 
     Commission'' and inserting ``pursuant to an ordinance or 
     resolution that meets the applicable requirements under the 
     Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.)''.
       (c) Internal Revenue Code of 1986.--Section 
     168(j)(4)(A)(iv) of the Internal Revenue Code of 1986 is 
     amended by striking ``Indian Regulatory Act'' and inserting 
     ``Indian Gaming Regulatory Act''.
       (d) Title 28.--Title 28, United States Code, is amended--
       (1) in section 3701(2)--
       (A) by striking ``section 4(5) of the Indian Gaming 
     Regulatory Act (25 U.S.C. 2703(5))'' and inserting ``section 
     4(11) of the Indian Gaming Regulatory Act''; and
       (B) by striking ``section 4(4) of such Act (25 U.S.C. 
     2703(4))'' and inserting ``section 4(10) of such Act''; and
       (2) in section 3704(b), by striking ``section 4(4) of the 
     Indian Gaming Regulatory Act'' and inserting ``section 4(10) 
     of the Indian Gaming Regulatory Act''.
                                 ______
                                 
      By Mr. ROTH (for himself and Mr. Moynihan):
  S. 1871. A bill to provide that the exception for certain real estate 
investment trusts from the treatment of stapled entities shall apply 
only to existing property, and for other purposes; to the Committee on 
Finance.

[[Page S2681]]

               real estate investment trusts legislation

  Mr. ROTH. Mr. President, Senator Moynihan and I introduce a bill to 
limit the tax benefits of so-called ``stapled'' or ``paired-share'' 
Real Estate Investment Trusts (``stapled REITs''). Identical 
legislation is being introduced in the House of Representatives by 
Congressman Archer.
  In the Deficit Reduction Act of 1984 (``1984 Act''), Congress 
eliminated the tax benefits of the stapled REIT structure out of 
concern that it could effectively result in one level of tax on active 
corporate business income that would otherwise be subject to two levels 
of tax. Congress also believed that allowing a corporate business to be 
stapled to a REIT was inconsistent with the policy that led Congress to 
create REITs.
  As part of the 1984 Act provision, Congress provided grandfather 
relief to the small number of stapled REITs that were already in 
existence. Since 1984, however, almost all the grandfathered stapled 
REITs have been acquired by new owners. Some have entered into new 
lines of businesses, and most of the grandfathered REITs have used the 
stapled structure to engage in large-scale acquisitions of assets. Such 
unlimited relief from a general tax provision by a handful of taxpayers 
raises new questions not only of fairness, but of unfair competition, 
because the stapled REITs are in direct competition with other 
companies that cannot use the benefits of the stapled structure.
  This legislation, which is a refinement of the proposal contained in 
the Clinton Administration's Revenue Proposals for fiscal year 1999, 
takes a moderate and fair approach. The legislation essentially 
subjects to the grandfathered stapled REITs to rules similar to the 
1984 Act, but only to acquisitions of assets (or substantial 
improvements of existing assets) occurring after today. The legislation 
also provides transition relief for future acquisitions that are 
pursuant to a binding written contract, as well as acquisitions that 
already have been announced (or described in a filing with the SEC).
  Mr. President, I ask unanimous consent that additional material be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1871

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

     SECTION 1. TERMINATION OF EXCEPTION FOR CERTAIN REAL ESTATE 
                   INVESTMENT TRUSTS FROM THE TREATMENT OF STAPLED 
                   ENTITIES.

       (a) In General.--Notwithstanding paragraph (3) of section 
     136(c) of the Tax Reform Act of 1984 (relating to stapled 
     stock; stapled entities), the REIT gross income provisions 
     shall be applied by treating the activities and gross income 
     of members of the stapled REIT group properly allocable to 
     any nonqualified real property interest held by the exempt 
     REIT or any stapled entity which is a member of such group 
     (or treated under subsection (c) as held by such REIT or 
     stapled entity) as the activities and gross income of the 
     exempt REIT in the same manner as if the exempt REIT and such 
     group were 1 entity.
       (b) Nonqualified Real Property Interest.--For purposes of 
     this section--
       (1) In general.--The term ``nonqualified real property 
     interest'' means, with respect to any exempt REIT, any 
     interest in real property acquired after March 26, 1998, by 
     the exempt REIT or any stapled entity.
       (2) Exception for binding contracts, etc.--Such term shall 
     not include any interest in real property acquired after 
     March 26, 1998, by the exempt REIT or any stapled entity if--
       (A) the acquisition is pursuant to a written agreement 
     which was binding on such date and at all times thereafter on 
     such REIT or stapled entity, or
       (B) the acquisition is described on or before such date in 
     a public announcement or in a filing with the Securities and 
     Exchange Commission.
       (3) Improvements and leases.--
       (A) In general.--Except as otherwise provided in this 
     paragraph, the term ``nonqualified real property interest'' 
     shall not include--
       (i) any improvement to land owned or leased by the exempt 
     REIT or any member of the stapled REIT group, and
       (ii) any repair to, or improvement of, any improvement 
     owned or leased by the exempt REIT or any member of the 
     stapled REIT group,
     if such ownership or leasehold interest is a qualified real 
     property interest.
       (B) Leases.--Such term shall not include any lease of a 
     qualified real property interest.
       (C) Termination where change in use.--
       (i) In general.--Subparagraph (A) shall not apply to any 
     improvement placed in service after December 31, 1999, which 
     is part of a change in the use of the property to which such 
     improvement relates unless the cost of such improvement does 
     not exceed 200 percent of--

       (I) the cost of such property, or
       (II) if such property is substituted basis property (as 
     defined in section 7701(a)(42) of the Internal Revenue Code 
     of 1986), the fair market value of the property at the time 
     of acquisition.

       (ii) Binding contracts.--For purposes of clause (i), an 
     improvement shall be treated as placed in service before 
     January 1, 2000, if such improvement is placed in service 
     before January 1, 2004, pursuant to a binding contract in 
     effect on December 31, 1999, and at all times thereafter.
       (4) Treatment of entities which are not stapled, etc. on 
     march 26, 1998.--Notwithstanding any other provision of this 
     section, all interests in real property held by an exempt 
     REIT or any stapled entity with respect to such REIT (or 
     treated under subsection (c) as held by such REIT or stapled 
     entity) shall be treated as nonqualified real property 
     interests unless--
       (A) such stapled entity was a stapled entity with respect 
     to such REIT as of March 26, 1998, and at all times 
     thereafter, and
       (B) as of March 26, 1998, and at all times thereafter, such 
     REIT was a real estate investment trust.
       (5) Qualified real property interest.--The term ``qualified 
     real property interest'' means any interest in real property 
     other than a nonqualified real property interest.
       (c) Treatment of Property Held by 10-Percent 
     Subsidiaries.--For purposes of this section--
       (1) In general.--Any exempt REIT and any stapled entity 
     shall be treated as holding their proportionate shares of 
     each interest in real property held by any 10-percent 
     subsidiary entity of the exempt REIT or stapled entity, as 
     the case may be.
       (2) Property held by 10-percent subsidiaries treated as 
     nonqualified.--
       (A) In general.--Except as provided in subparagraph (B), 
     any interest in real property held by a 10-percent subsidiary 
     entity of an exempt REIT or stapled entity shall be treated 
     as a nonqualified real property interest.
       (B) Exception for interests in real property held on march 
     26, 1998, etc.--In the case of an entity which was a 10-
     percent subsidiary entity of an exempt REIT or stapled entity 
     on March 26, 1998, and at all times thereafter, an interest 
     in real property held by such subsidiary entity shall be 
     treated as a qualified real property interest if such 
     interest would be so treated if held directly by the exempt 
     REIT or the stapled entity.
       (3) Reduction in qualified real property interests if 
     increase in ownership of subsidiary.--If, after March 26, 
     1998, an exempt REIT or stapled entity increases its 
     ownership interest in a subsidiary entity to which paragraph 
     (2)(B) applies above its ownership interest in such 
     subsidiary entity as of such date, the additional portion of 
     each interest in real property which is treated as held by 
     the exempt REIT or stapled entity by reason of such increased 
     ownership shall be treated as a nonqualified real property 
     interest.
       (4) Special rules for determining ownership.--For purposes 
     of this subsection--
       (A) percentage ownership of an entity shall be determined 
     in accordance with subsection (e)(4),
       (B) interests in the entity which are acquired by the 
     exempt REIT or stapled entity in any acquisition described in 
     an agreement, announcement, or filing described in subsection 
     (b)(2) shall be treated as acquired on March 26, 1998, and
       (C) except as provided in guidance prescribed by the 
     Secretary, any change in proportionate ownership which is 
     attributable solely to fluctuations in the relative fair 
     market values of different classes of stock shall not be 
     taken into account.
       (d) Treatment of Property Secured by Mortgage Held by 
     Exempt REIT or Member of Stapled REIT Group.--
       (1) In general.--In the case of any nonqualified obligation 
     held by an exempt REIT or any member of the stapled REIT 
     group, the REIT gross income provisions shall be applied by 
     treating the exempt REIT as having impermissible tenant 
     service income equal to--
       (A) the interest income from such obligation which is 
     properly allocable to the property described in paragraph 
     (2), and
       (B) the income of any member of the stapled REIT group from 
     services described in paragraph (2) with respect to such 
     property.
     If the income referred to in subparagraph (A) or (B) is of a 
     10-percent subsidiary entity, only the portion of such income 
     which is properly allocable to the exempt REIT's or the 
     stapled entity's interest in the subsidiary entity shall be 
     taken into account.
       (2) Nonqualified obligation.--Except as otherwise provided 
     in this subsection, the term ``nonqualified obligation'' 
     means any obligation secured by a mortgage on an interest in 
     real property if the income of any member of the stapled REIT 
     group for services furnished with respect to such property 
     would be impermissible tenant service income were such 
     property held by the exempt REIT and such services furnished 
     by the exempt REIT.
       (3) Exception for certain market rate obligations.--Such 
     term shall not include any obligation--

[[Page S2682]]

       (A) payments under which would be treated as interest if 
     received by a REIT, and
       (B) the rate of interest on which does not exceed an arm's 
     length rate.
       (4) Exception for existing obligations.--Such term shall 
     not include any obligation--
       (A) which is secured on March 26, 1998, by an interest in 
     real property, and
       (B) which is held on such date by the exempt REIT or any 
     entity which is a member of the stapled REIT group on such 
     date and at all times thereafter,
     but only so long as such obligation is secured by such 
     interest. The preceding sentence shall not cease to apply by 
     reason of the refinancing of the obligation if (immediately 
     after the refinancing) the principal amount of the obligation 
     resulting from the refinancing does not exceed the principal 
     amount of the refinanced obligation (immediately before the 
     refinancing).
       (5) Treatment of entities which are not stapled, etc. on 
     march 26, 1998.--A rule similar to the rule of subsection 
     (b)(4) shall apply for purposes of this subsection.
       (6) Increase in amount of nonqualified obligations if 
     increase in ownership of subsidiary.--A rule similar to the 
     rule of subsection (c)(3) shall apply for purposes of this 
     subsection.
       (7) Coordination with subsection (a).--This subsection 
     shall not apply to the portion of any interest in real 
     property that the exempt REIT or stapled entity holds or is 
     treated as holding under this section without regard to this 
     subsection.
       (e) Definitions.--For purposes of this section--
       (1) REIT gross income provisions.--The term ``REIT gross 
     income provisions'' means--
       (A) paragraphs (2), (3), and (6) of section 856(c) of the 
     Internal Revenue Code of 1986, and
       (B) section 857(b)(5) of such Code.
       (2) Exempt reit.--The term ``exempt REIT'' means a real 
     estate investment trust to which section 269B of the Internal 
     Revenue Code of 1986 does not apply by reason of paragraph 
     (3) of section 136(c) of the Tax Reform Act of 1984.
       (3) Stapled reit group.--The term ``stapled REIT group'' 
     means, with respect to an exempt REIT, the group consisting 
     of--
       (A) all entities which are stapled entities with respect to 
     the exempt REIT, and
       (B) all entities which are 10-percent subsidiary entities 
     of the exempt REIT or any such stapled entity.
       (4) 10-percent subsidiary entity.--
       (A) In general.--The term ``10-percent subsidiary entity'' 
     means, with respect to any exempt REIT or stapled entity, any 
     entity in which the exempt REIT or stapled entity (as the 
     case may be) directly or indirectly holds at least a 10-
     percent interest.
       (B) Exception for certain c corporation subsidiaries of 
     reits.--A corporation which would, but for this subparagraph, 
     be treated as a 10-percent subsidiary of an exempt REIT shall 
     not be so treated if such corporation is taxable under 
     section 11 of the Internal Revenue Code of 1986.
       (C) 10-percent interest.--The term ``10-percent interest'' 
     means--
       (i) in the case of an interest in a corporation, ownership 
     of 10 percent (by vote or value) of the stock in such 
     corporation,
       (ii) in the case of an interest in a partnership, ownership 
     of 10 percent of the assets or net profits interest in the 
     partnership, and
       (iii) in any other case, ownership of 10 percent of the 
     beneficial interests in the entity.
       (5) Other definitions.--Terms used in this section which 
     are used in section 269B or section 856 of such Code shall 
     have the respective meanings given such terms by such 
     section.
       (f) Guidance.--The Secretary may prescribe such guidance as 
     may be necessary or appropriate to carry out the purposes of 
     this section, including guidance to prevent the avoidance of 
     such purposes and to prevent the double counting of income.
       (g) Effective Date.--This section shall apply to taxable 
     years ending after March 26, 1998.

                         Technical Explanation

       The tax benefits of the stapled real estate investment 
     trust (``REIT'') structure were curtailed for almost all 
     taxpayers by section 269B, which was enacted by the Deficit 
     Reduction Act of 1984 (``1984 Act''). The bill limits the tax 
     benefits of a few stapled REITs that continue to qualify 
     under the 1984 Act's grandfather rule.
       A REIT is an entity that receives most of its income from 
     passive real-estate related investments and that essentially 
     receives pass-through treatment for income that is 
     distributed to shareholders. In general, a REIT must derive 
     its income from passive sources and not engage in any active 
     trade or business. In a stapled REIT structure, both the 
     shares of a REIT and a C corporation may be traded, and in 
     most cases publicly traded, but are subject to a provision 
     that they may not be sold separately. Thus, the REIT and the 
     C corporation have identical ownership at all times.


                                overview

       Under the bill, rules similar to the rules of present law 
     treating a REIT and all stapled entities as a single entity 
     for purposes of determining REIT status (sec. 269B) would 
     apply to real property interests acquired after March 26, 
     1998, by the existing stapled REIT, or by a stapled entity, 
     or a subsidiary or partnership in which a 10-percent or 
     greater interest is owned by the existing stapled REIT or 
     stapled entity (together referred to as the ``REIT group''), 
     unless the real property is grandfathered under the rules 
     discussed below. Different rules would be applied to certain 
     mortgage interests acquired by the REIT group after March 26, 
     1998, where a member of the REIT group performs services with 
     respect to the property secured by the mortgage.


                             general rules

       The bill treats certain activities and gross income of a 
     REIT group with respect to real property interests held by 
     any member of the REIT group (and not grandfathered under the 
     rules described below) as activities and income of the REIT 
     for certain purposes. This treatment would apply for purposes 
     of certain provisions of the REIT rules that depend on the 
     REIT's gross income, including the requirement that 95 
     percent of a REIT's gross income be from passive sources (the 
     ``95-percent test'') and the requirement that 75 percent of a 
     REIT's gross income be from real estate sources (the ``75-
     percent test''). Thus, for example, where a stapled entity 
     earns gross income from operating a non-grandfathered real 
     property held by a member of the REIT group, such gross 
     income would be treated as income of the REIT, with the 
     result that either the 75-percent or 95-percent test might 
     not be met and REIT status might be lost.
       If a REIT or stapled entity owns, directly or indirectly, a 
     10-percent-or-greater interest in a subsidiary or partnership 
     that holds a real property interest, the above rules would 
     apply with respect to a proportionate part of the 
     subsidiary's or partnership's property, activities and gross 
     income. Thus, any real property acquired by such a subsidiary 
     or partnership that is not grandfathered under the rules 
     described below would be treated as held by the REIT in the 
     same proportion as the ownership interest in the entity. The 
     same proportion of the subsidiary's or partnership's gross 
     income from any real property interest (other than a 
     grandfathered property) held by it or another member of the 
     REIT group would be treated as income of the REIT. Similar 
     rules attributing the proportionate part of the 
     subsidiary's or partnership's real estate interests and 
     gross income would apply when a REIT or stapled entity 
     acquires a 10-percent-or-greater interest (or in the case 
     of a previously-owned entity, acquires an additional 
     interest) after March 26, 1998, with exceptions for 
     interests acquired pursuant to agreements or announcements 
     described below.


                        grandfathered properties

       Under the bill, there is an exception to the treatment of 
     activities and gross income of a stapled entity as activities 
     and gross income of the REIT for certain grandfathered 
     properties. Grandfathered properties generally are those 
     properties that had been acquired by a member of the REIT 
     group on or before March 26, 1998. In addition, grandfathered 
     properties include properties acquired by a member of the 
     REIT group after March 26, 1998, pursuant to a written 
     agreement which was binding on March 26, 1998, and all times 
     thereafter. Grandfathered properties also include certain 
     properties, the acquisition of which were described in a 
     public announcement or in a filing with the Securities and 
     Exchange Commission on or before March 26, 1998.
       In general, a property does not lose its status as a 
     grandfathered property by reason of a repair to, an 
     improvement of, or a lease of, a grandfathered property. On 
     the other hand, a property loses its status as a 
     grandfathered property under the bill to the extent that a 
     non-qualified expansion is made to an otherwise grandfathered 
     property. A non-qualified expansion is either (1) an 
     expansion beyond the boundaries of the land of the otherwise 
     grandfathered property or (2) an improvement of an otherwise 
     grandfathered property placed in service after December 31, 
     1999, which changes the use of the property and whose cost is 
     greater than 200 percent of (a) the undepreciated cost of the 
     property (prior to the improvement) or (b) in the case of 
     property acquired where there is a substituted basis, the 
     fair market value of the property on the date that the 
     property was acquired by the stapled entity or the REIT. A 
     non-qualified expansion could occur, for example, if a member 
     of the REIT group were to construct a building after December 
     31, 1999, on previously undeveloped raw land that had been 
     acquired on or before March 26, 1998. There is an exception 
     for improvements placed in service before January 1, 2004, 
     pursuant to a binding contract in effect on December 31, 
     1999, and at all times thereafter.
       If a stapled REIT is not stapled as of March 26, 1998, or 
     if it fails to qualify as a REIT as of such date or any time 
     thereafter, no properties of any member of the REIT group 
     would be treated as grandfathered properties, and thus the 
     general provisions of the bill described above would apply to 
     all properties held by the group.


                             mortgage rules

       Special rules would apply where a member of the REIT group 
     holds a mortgage (that is not an existing obligation under 
     the rules described below) that is secured by an interest in 
     real property, where a member of the REIT group engages in 
     certain activities with respect to that property. The 
     activities that would have this effect under the bill are 
     activities that would result in a type of income that is not 
     treated as counting toward the 75-percent and 95-percent 
     tests if they are performed by the REIT. In such cases, all 
     interest on the mortgage and all gross income received by a 
     member of the REIT

[[Page S2683]]

     group from the activity would be treated as income of the 
     REIT that does not count toward the 75-percent or 95-percent 
     tests, with the result that REIT status might be lost. In the 
     case of a 10-percent partnership or subsidiary, a 
     proportionate part of the entity's mortgages, interest and 
     gross income from activities would be subject to the above 
     rules.
       An exception to the above rules would be provided for 
     mortgages the interest on which does not exceed an arm's-
     length rate and which would be treated as interest for 
     purposes of the REIT rules (e.g., the 75-percent and 95-
     percent tests, above). An exception also would be available 
     for certain mortgages that are held on March 26, 1998, by an 
     entity that is a member of the REIT group. The exception for 
     existing mortgages would cease to apply if the mortgage is 
     refinanced and the principal amount is increased in such 
     refinancing.


                              other rules

       For a corporate subsidiary owned by a stapled entity, the 
     10-percent ownership test would be met if a stapled entity 
     owns, directly or indirectly, 10 percent or more of the 
     corporation's stock, by either vote or value. (The bill would 
     not apply to stapled REIT's ownership of a corporate 
     subsidiary, although a stapled REIT would be subject to the 
     normal restrictions on a REIT's ownership of stock in a 
     corporation.) For interests in partnerships and other pass-
     through entities, the ownership test would be met if either 
     the REIT or a stapled entity owns, directly or indirectly, a 
     10-percent or greater interest.
       The Secretary of the Treasury would be given authority to 
     prescribe such guidance as may be necessary or appropriate to 
     carry out the purposes of the provision, including guidance 
     to prevent the double counting of income and to prevent 
     transactions that would avoid the purposes of the provision.
                                 ______
                                 
      By Mr. NICKLES:
  S. 1872. A bill to prohibit new welfare for politicians; to the 
Committee on Commerce, Science, and Transportation.


            the new welfare for politicians prohibition act

  Mr. NICKLES. Mr. President, I rise today to introduce legislation 
that would prohibit the Federal Communications Commission (FCC) from 
establishing regulations that would compel broadcasters to offer free 
or reduced cost air time to political candidates.
  It is clear that this type of regulation would result in drastic 
change to current communications and campaign finance law and thus, 
exceed the regulatory authority of this agency. Absent a legislative 
directive from Congress, the FCC lacks the authority to require 
broadcasters to offer free or reduced-cost air time for political 
candidates.
  While in many areas of broadcast regulation, the FCC does possess 
broad authority to change its regulation to reflect what is within the 
public interest, that authority has always been specifically granted by 
an act of Congress. This broad authority does NOT extend to the 
regulation of political broadcasting.
  The Communications Act clearly mandates, with respect to candidate 
appearances on broadcasting stations, certain specific requirements for 
FCC to enforce on broadcasters for political candidates. The law 
requires broadcasters to provide candidates with equal opportunities, 
ensure that there is no censorship of political messages, and provide 
``reasonable access'' to federal candidates. As for media rates, the 
Act specifically states that when candidates buy air time, they will be 
accorded a stations' ``lowest unit charge'' for the same class and 
amount of time.
  It seems quite clear that Congress' inclusion of these specific 
provisions indicates that in the area of political 
broadcasting, especially for rates charged for advertising, the FCC 
does not have the authority to rewrite the Communications Act and 
impose a free political time requirement which is inconsistent with 
Congress' specific statement on this issue.

  Any attempt to affect campaign finance reform through overreaching 
FCC regulations rather than through the legislative process, regardless 
of good intentions, is wrong. Any changes or revisions to the campaign 
finance or communication laws should be made by the people through 
their elected representatives and not by non elected federal 
bureaucrats. New regulations from the FCC would further involve the 
government in protected political speech areas and create a patchwork 
of agency regulations without any consistent overall reform.
  Mr. President, during the 105th Congress this body has thoroughly 
debated campaign reform and free air time for political candidates. 
Clearly there is not enough support in this body to pass legislation 
that includes the free air time provisions. This legislative defeat 
does not give the FCC Chairman the authority, even with direction from 
the President, to issue regulations giving candidates free time and 
mandate or bribe the nation's broadcasters to abide by these 
regulations. Again, if this type of reform is to be implemented, it 
requires legislative action by Congress. It is not appropriate for a 
federal agency to mandate this comprehensive reform by regulatory 
action.
  The Constitution is very clear. Article I, Section 1 of the 
Constitution vests in Congress all power to ``make laws which shall be 
used necessary and proper for carrying into Execution the foregoing 
Powers * * *''. Nowhere in the Constitution is the Executive Branch 
vested with the power to make the law. The framers of the Constitution 
understood the threat to our freedom which could be posed by an all-
powerfull executive branch. This principle is as valid today as it was 
when they drafted the Constitution. Any proposed regulations by the FCC 
which would require broadcasters to give free or reduced-cost air time 
to federal political candidates raises serious constitutional concerns.
  This is not the first time that the Clinton administration has tried 
to bypass Congress and legislate by Executive order. They have 
attempted to do this on several occasions. And I think they have done 
so knowing full well they could not get their desired objective through 
Congress.
  Let me remind the FCC, that if this type of regulatory action is 
taken by this agency, I will lead the effort in the Senate to defeat 
the regulation. The Congressional Review Act, gives Congress the 
ability to disapprove regulations, when a simple majority believes that 
the regulation is inappropriate.
  Every member of this body, Democrats and Republicans, should reject 
this approach. We should uphold and protect this institution, the 
legislative branch, and the constitution.
  And so, Mr. President, I have warned the White House that I am 
willing to use any appropriate tools at our disposal to stop this 
egregious abuse of power. I will do what I can to stop the proposed FCC 
regulations on air time for political candidates. And I will do what I 
can to block any other attempts by this administration to legislate by 
executive action. It is my intention to use everything in my power to 
protect this institution. I am hopeful that my colleagues will join me 
in this effort.

                          ____________________