[Congressional Record Volume 147, Number 59 (Thursday, May 3, 2001)]
[Senate]
[Pages S4267-S4269]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CAMPBELL (for himself and Mr. Inouye):
  S. 832. A bill to amend the Indian Gaming Regulatory Act, and for 
other purposes; to the Committee on Indian Affairs.
  Mr. CAMPBELL. Mr. President, today I am pleased to introduce the 
Indian Gaming Regulatory Improvement Act of 2001 to make what I believe 
are necessary changes to the Indian Gaming Regulatory Act of 1988. I am 
very pleased to be joined by Senator Inouye in this regard.
  The IGRA was signed into law in 1988 with two purposes in mind: to 
provide for and continue the economic opportunities tribal gaming 
presents to Indian tribes; and to provide a regulatory framework which 
ensures the integrity of tribal gaming--integrity that benefits tribes 
as well as customers of tribal gaming operations.
  In 1988, tribal gaming was a relatively new activity and in 13 years 
tribal gaming annual gross revenues have grown from $500 million to $9 
billion. The IGRA requires these revenues to be spent by tribal 
governments for specific purposes including physical infrastructure, 
general welfare and the

[[Page S4268]]

betterment of Indian and surrounding non-Indian communities.
  Out of 561 federally recognized tribes, there are 212 tribes that 
conduct some form of gaming. The old saying that the best social 
welfare policy is a job is true when it comes to tribal gaming. The 
economic benefits for these tribes, their members and surrounding 
communities cannot be ignored. For these communities collectively, 
unemployment has dropped significantly and workers, both Non-Indian and 
Indian alike, employed by these operations enjoy benefits such as 
steady income and good paying jobs, health insurance and retirement 
benefits. Additionally, tribes who operate gaming have been able 
to complement scarce federal dollars to provide for housing, health 
care and education for their members and to generate hundreds of 
thousands of jobs for Indians and non-Indians nationwide.

  The legislation I am introducing today closely resembles a measure I 
introduced in the last Congress and is not intended to be a 
comprehensive attempt to address all gaming matters that have arisen in 
the past 13 years. Rather, this bill takes aim at 6 very specific 
items:
  1. With regard to gaming fees assessed against tribal operations, 
this bill will require the Federal National Indian Gaming Commission to 
levy fees that are reasonably related to the duties of and services 
provided by the Commission to tribes, and in certain instances to 
reduce the level of fees payable by those operations;
  2. The bill establishes a requirement that fees paid by tribes can 
only be utilized for the specific activities of the Commission mandated 
by the IGRA;
  3. It provides statutory authority for the Commission to establish, 
through a negotiated rule-making process, minimum standards for the 
conduct of tribal gaming, while still recognizing the primary 
responsibility of tribes to regulate gaming on tribal lands;
  4. The bill authorizes technical assistance to tribes for a number of 
purposes including strengthening tribal regulatory regimes; assessing 
the feasibility of non-gaming economic development activities on Indian 
lands; providing treatment services for problem gamblers; and for other 
purposes not inconsistent with the IGRA;
  5. It clarifies the current conflict between the IGRA and other 
Federal law with regard to the classification of certain games 
conducted by tribes; and
  6. Last, to bring the Commission in line with all other Federal 
agencies it specifically subjects the Commission to the reporting and 
strategic and long-term planning requirements similar to requirements 
contained in the Government Performance and Results Act of 1993 
(``GPRA'').
  While there are other matters that Indian tribes and others wish to 
address that are not included in this bill, I am hopeful that my 
colleagues will find this legislation to be reasonable and targeted to 
specific issues that demand our attention in this session of Congress.
  I ask that the text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 832

       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 2001''.

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

       The Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.) 
     is amended--
       (1) in section 4(7) (25 U.S.C. 2703(7)), by adding at the 
     end the following:
       ``(G) Notwithstanding any other provision of law, sections 
     1 through 7 of the Act of January 2, 1951 (commonly known as 
     the Gambling Devices Transportation Act (15 U.S.C. 1171-
     1177)) shall not apply to any gaming described in 
     subparagraph (A)(i) (class II gaming) where electronic, 
     computer, or other technologic aids are used in connection 
     with any such gaming.'';
       (2) in section 7 (25 U.S.C. 2706)--
       (A) in subsection (c)--
       (i) in paragraph (3), by striking ``and'' at the end 
     thereof;
       (ii) by redesignating paragraph (4) as paragraph (5); and
       (iii) by inserting after paragraph (3), the following:
       ``(4) the strategic plan for Commission activities.''; and
       (B) by adding at the end the following:
       ``(d) Strategic Plan.--
       ``(1) In general.--The strategic plan required under 
     subsection (c)(4) shall include--
       ``(A) a comprehensive mission statement covering the major 
     functions and operations of the Commission;
       ``(B) the general goals and objectives, including outcome-
     related goals and objectives, for the major functions and 
     operations of the Commission;
       ``(C) a description of how the general goals and objectives 
     are to be achieved, including a description of the 
     operational processes, skills and technology, and the human, 
     capital, information, and other resources required to meet 
     those goals and objectives;
       ``(D) a performance plan that shall be related to the 
     general goals and objectives of the strategic plan;
       ``(E) an identification of the key factors external to the 
     Commission and beyond its control that could significantly 
     affect the achievement of the general goals and objectives; 
     and
       ``(F) a description of the program evaluations used in 
     establishing or revising the general goals and objectives, 
     with a schedule for future program evaluations.
       ``(2) Term of plan.--The strategic plan shall cover a 
     period of not less than 5 fiscal years beginning with the 
     fiscal year in which it the plan is submitted. The strategic 
     plan shall be updated and revised at least every 4 years.
       ``(3) Performance plan.--The performance plan under 
     paragraph (1)(D) shall be consistent with the strategic plan. 
     In developing the performance plan, the Commission should be 
     consistent with the requirements of section 1115 of title 31, 
     United States Code (the Government Performance and Results 
     Act).
       ``(4) Consultation.--In developing the strategic plan, the 
     Commission shall consult with the Congress and tribal 
     governments, and shall solicit and consider the views and 
     suggestions of those entities that may be potentially 
     affected by or interested in such a plan.'';
       (3) in section 11(b)(2)(F)(i) (25 U.S.C. 2710(b)(2)(F)(i)), 
     by striking ``primary management'' and all that follows 
     through ``such officials'' and inserting ``tribal gaming 
     commissioners, key tribal gaming commission employees, and 
     primary management officials and key employees of the gaming 
     enterprise and that oversight of primary management officials 
     and key employees'';
       (4) in section 18(a) (25 U.S.C. 2717(a))--
       (A) in paragraph (1), by striking ``by each'' and all that 
     follows through the period and inserting ``pursuant to 
     section 22(a)'';
       (B) by striking paragraphs (2) and (3); and
       (C) by redesignating paragraphs (4) through (6) as 
     paragraphs (2) through (4), respectively;
       (5) by redesignating section 22 (25 U.S.C. 2721) as section 
     25; and
       (6) by inserting after section 21 (25 U.S.C. 2720) the 
     following:

     ``SEC. 22. FEE ASSESSMENTS.

       ``(a) Establishment of Schedule of Fees.--
       ``(1) In general.--Except as provided in this section, the 
     Commission shall establish a schedule of fees to be paid 
     annually to the Commission by each gaming operation that 
     conducts a class II or class III gaming activity that is 
     regulated by this Act.
       ``(2) Rates.--The rate of fees under the schedule 
     established under paragraph (1) that are imposed on the gross 
     revenues from each activity described in such paragraph shall 
     be as follows:
       ``(A) A fee of not more than 2.5 percent shall be imposed 
     on the first $1,500,000 of such gross revenues.
       ``(B) A fee of not more than 5 percent shall be imposed on 
     amounts in excess of the first $1,500,000 of such gross 
     revenues.
       ``(3) Total amount.--The total amount of all fees imposed 
     during any fiscal year under the schedule established under 
     paragraph (1) shall not exceed $8,000,000.
       ``(b) Commission Authorization.--
       ``(1) In general.--By a vote of not less than 2 members of 
     the Commission the Commission shall adopt the schedule of 
     fees provided for under this section. Such fees shall be 
     payable to the Commission on a quarterly basis.
       ``(2) Fees assessed for services.--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 the duties of, and services provided by, 
     the Commission under this Act.
       ``(3) Rulemaking.--The Commission shall promulgate 
     regulations as may be necessary to carry out this subsection.
       ``(4) Consultation.--In establishing a schedule of fees 
     under this section, the Commission shall consult with Indian 
     tribes.
       ``(c) Fee Reduction Program.--
       ``(1) In general.--In making a determination of the amount 
     of fees to be assessed for any class II or class III gaming 
     activity under the schedule of fees under this section, the 
     Commission may provide for a reduction in the amount of fees 
     that otherwise would be collected on the basis of the 
     following factors:
       ``(A) The extent of the regulation of the gaming activity 
     involved by a State or Indian tribe (or both).
       ``(B) The extent of self-regulating activities, as defined 
     by this Act, conducted by the Indian tribe.

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       ``(C) Other factors determined by the Commission, including
       ``(i) the unique nature of tribal gaming as compared to 
     commercial gaming, other governmental gaming, and charitable 
     gaming;
       ``(ii) the broad variations in the nature, scale, and size 
     of tribal gaming activity;
       ``(iii) the inherent sovereign rights of Indian tribes with 
     respect to regulating the affairs of Indian tribes;
       ``(iv) the findings and purposes under sections 2 and 3;
       ``(v) the amount of interest or investment income derived 
     from the Indian gaming regulation accounts; and
       ``(vi) any other matter that is consistent with the 
     purposes under section 3.
       ``(2) Rulemaking.--The Commission shall promulgate 
     regulations as may be necessary to carry out this subsection.
       ``(3) Consultation.--In establishing any fee reduction 
     program under this subsection, the Commission shall consult 
     with Indian tribes.
       ``(d) Indian Gaming Regulation Accounts.--
       ``(1) In general.--All fees and civil forfeitures collected 
     by the Commission pursuant to this Act shall be maintained in 
     separate, segregated accounts, and shall only be expended for 
     purposes set forth in this Act.
       ``(2) Investments.--It shall be the duty of the Commission 
     to invest such portion of the accounts maintained under 
     paragraph (1) as are not, in the judgment of the Commission, 
     required to meet immediate expenses. The Commission shall 
     invest the amounts deposited under this Act only in interest-
     bearing obligations of the United States or in obligations 
     guaranteed as to both principal and interest by the United 
     States.
       ``(3) Sale of obligations.--Any obligation acquired by the 
     accounts maintained under paragraph (1), except special 
     obligations issued exclusively to such accounts, may be sold 
     by the Commission at the market price, and such special 
     obligations may be redeemed at par plus accrued interest.
       ``(4) Credits to the indian gaming regulatory accounts.--
     The interest on, and proceeds from, the sale or redemption of 
     any obligations held in the accounts maintained under 
     paragraph (1) shall be credited to and form a part of such 
     accounts.

     ``SEC. 23. MINIMUM STANDARDS.

       ``(a) Class I Gaming.--Notwithstanding any other provision 
     of law, 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.--Effective on the date of enactment 
     of this section, an Indian tribe shall retain primary 
     jurisdiction to regulate class II gaming activities which, at 
     a minimum, shall be conducted in conformity with section 11 
     and regulations promulgated pursuant to subsection (d).
       ``(c) Class III Gaming.--Effective on the date of enactment 
     of this section, an Indian tribe shall retain primary 
     jurisdiction to regulate class III gaming activities 
     authorized under this Act. Any class III gaming operated by 
     an Indian tribe pursuant to this Act shall be conducted in 
     conformity with section 11 and regulations promulgated 
     pursuant to subsection (d).
       ``(d) Rulemaking.--
       ``(1) In general.--
       ``(A) Promulgation.--Not later than 180 days after the date 
     of enactment of the Indian Gaming Regulatory Improvement Act 
     of 2001, the Commission shall develop procedures under 
     subchapter III of chapter 5 of title 5, United States Code, 
     to negotiate and promulgate regulations relating to--
       ``(i) the monitoring and regulation of tribal gaming;
       ``(ii) the establishment and regulation of internal control 
     systems; and
       ``(iii) the conduct of background investigation.
       ``(B) Publication of proposed regulations.--Not later than 
     1 year after the date of enactment of the Indian Gaming 
     Regulatory Improvement Act of 2001, the Commission shall 
     publish in the Federal Register proposed regulations 
     developed by a negotiated rulemaking committee pursuant to 
     this section.
       ``(2) Committee.--A negotiated rulemaking committee 
     established pursuant to section 565 of title 5, United States 
     Code, to carry out this subsection shall be composed only of 
     Federal and Indian tribal government representatives, a 
     majority of whom shall be nominated by and be representative 
     of Indian tribes that conduct gaming pursuant to this Act.
       ``(e) Existing Regulations.--Regulations that establish 
     minimum internal control standards that are promulgated by 
     the Commission and in effect on the date of enactment of this 
     section shall, effective on the date that is 1 year after 
     such date of enactment, have no force or effect.

     ``SEC. 24. USE OF NATIONAL INDIAN GAMING COMMISSION CIVIL 
                   FINES.

       ``(a) In General.--Amounts collected by the Commission 
     pursuant to section 14 shall be deposited in a separate 
     Indian gaming regulation account as established under section 
     22(d). Funds in such accounts shall be available to the 
     Commission, as provided for in advance in appropriations 
     Acts, for carrying out this Act.
       ``(b) Use of Funds.--The Commission may provide grants and 
     technical assistance to Indian tribes from any funds secured 
     by the Commission pursuant to section 14, which funds shall 
     be made available only for the following purposes:
       ``(1) To provide technical training and other assistance to 
     Indian tribes to strengthen the regulatory integrity of 
     Indian gaming.
       ``(2) To provide assistance to Indian tribes to assess the 
     feasibility of non-gaming economic development activities on 
     Indian lands.
       ``(3) To provide assistance to Indian tribes to devise and 
     implement programs and treatment services for individuals 
     diagnosed as problem gamblers.
       ``(4) To provide other forms of assistance to Indian tribes 
     not inconsistent with the Indian Gaming Regulatory Act.
       ``(c) Source of Funds.--Amounts used to carry out 
     subsection (b) may only be drawn from funds--
       ``(1) collected by the Commission pursuant to section 14; 
     and
       ``(2) the use of which has been authorized in advance by an 
     appropriations Act.
       ``(d) Consultation.--In carrying out this section, the 
     Commission shall consult with Indian tribes and any other 
     appropriate tribal or Federal officials.
       ``(e) Regulations.--The Commission may promulgate such 
     regulations as may be necessary to carry out this section.''.
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