[Congressional Record Volume 144, Number 36 (Thursday, March 26, 1998)]
[Senate]
[Pages S2672-S2680]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      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''.
                                 ______