[Congressional Record Volume 151, Number 154 (Friday, November 18, 2005)]
[Senate]
[Pages S13389-S13393]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN:
  S. 2078. A bill to amend the Indian Gaming Regulatory Act to clarify 
the authority of the National Indian Gaming Commission to regulate 
class III gaming, to limit the lands eligible for gaming, and for other 
purposes; to the Committee on Indian Affairs.
  Mr. McCAIN. Mr. President, I am introducing today a bill to amend 
regulatory provisions of the Indian Gaming Regulatory Act (IGRA). The 
bill clarifies that the National Indian Gaming Commission (NIGC) has 
authority to promulgate and enforce Minimum Internal Control Standards 
as to Class III gaming; grants the NIGC Chairman authority to approve 
contracts, and expands contract approval to include contracts not only 
for management contracts but also for gaming operation development 
contracts and consulting services, as well as for any contract the fees 
for which are to be paid as a percentage of gaming revenue; tightens 
restrictions on off-reservation gaming;

[[Page S13390]]

gives the NIGC authority to issue complaints against any individual or 
entity, not just against tribes or management contractors, that violate 
IGRA or federal regulations; and requires all tribes to pay fees to the 
NIGC.
  When IGRA was enacted in 1988, Indian gaming was a $200 million 
dollar industry. Today, the industry earns $19 billion a year and is 
spread throughout the nation. The amendments reflect the need to re-
evaluate what constitutes appropriate regulation of this vastly changed 
enterprise. I have always been and continue to be a supporter of the 
rights of Indian tribes to conduct gaming, a right guaranteed by the 
Supreme Court in the California v. Cabazon decision and codified in 
IGRA, but I also continue to believe that effective regulation of these 
enterprises are critical to tribes' continued success.
  Ensuring that the NIGC is able to continue its oversight of Class ill 
gaming is necessary to this effective regulation. On August 24, 2005, 
the U.S. District Court for the District of Columbia issued its 
decision in Colorado River Indian Tribes v. NIGC (``CRIT''), ruling 
that the National Indian Gaming Commission (NIGC) did not have 
jurisdiction to issue Class ill Minimum Internal Controls Standards 
(MICS). These standards regulate day-to-day operations of gaming 
operations. Specifically, they provide rules that designate how cash is 
handled by the gaming operation, prescribe surveillance over game play, 
and provide auditing procedures.
  Until the Court's decision, the NIGC had been regulating Class ill 
gaming through MICS since 1999. The regulations applied both to Class 
II gaming--that is, bingo and games similar to bingo--and to Class III 
gaming--including slot machines and table games--which represents the 
largest source of revenue in Indian gaming. Following to CRIT decision 
this summer, however, some tribes have challenged NIGC's authority to 
issue or enforce the MICS. Although without NIGC authority, oversight 
of Class ill gaming may be provided by tribal-State compacts, States' 
roles in enforcement varies widely and many have left such regulation 
to NIGC. In a Nationwide industry, uniform federal minimum internal 
control standards are appropriate. This amendment makes clear that NIGC 
continues to have the authority it has exercised until now to issue and 
enforce MICS, including the ability to inspect facilities and audit 
premises in order to assure compliance.
  Protecting the integrity of Indian gaming also requires that the 
NIGC's authority to review manager contracts be expanded. IGRA 
originally identified only one kind of contract that was subject to 
NIGC approval: management contracts. History has shown, however, that 
in order to avoid NIGC review, some contracts have been fashioned as 
``consulting'' contracts or ``development'' contracts, i.e., something 
other than ``management'' contracts that require NIGC review. In these 
cases, tribes run the risk that contractors will enforce unfair 
contract terms, and tribes and patrons run the risk that the tribe will 
contract with unsuitable partners. This amendment extends NIGC approval 
to all significant gaming operation related contracts so that the 
Indian gaming industry remains, as far as possible, free from 
unscrupulous and unsuitable contractors.
  Related to protecting the integrity of Indian gaming is the issue of 
off-reservation gaming. When enacted in 1988, IGRA generally banned 
Indian gaming that was not located on reservations, however, in the 
interest of fairness, several exceptions to this ban were provided. 
Exploitation of these exceptions, not anticipated at the time IGRA was 
enacted, has led to a burgeoning practice by unscrupulous developers 
seeking to profit off Indian tribes desperate for economic development. 
Predictably, these ill-advised deals have invited a backlash against 
Indian gaming generally. These amendments to IGRA will put an end to 
the most troublesome of these proposals by eliminating the authority of 
the Secretary to take land into trust off-reservation pursuant to the 
so-called ``two-part determination'' provisions of Section 20.
  In addressing concerns about other exceptions in Section 20 for land 
claims, initial reservations and restored reservations, these 
amendments strike a balance by curbing potential abuses of these 
exceptions, while not unfairly penalizing those who lost their lands 
through no fault of their own, or even had them taken illegally--often 
by force. Thus, newly recognized and restored tribes may still obtain 
lands, and conduct gaming on them, but such lands must be in the area 
where the particular tribe has its most significant ties. This has been 
the case for most newly recognized and restored tribes, and surely is 
not unfair to impose on all similarly situated tribes. For tribes that 
successfully reclaim lands taken illegally and want to conduct gaming 
on them, these amendments will require congressional confirmation and 
the lands must be within the state where the tribe has or had its last 
reservation. This provision does not impair any tribe's legal rights to 
reclaim lands, but will discourage attempts by creative non-Indian 
developers to turn a tribe's legal rights into a form of extortion.
  Ensuring that penalties are appropriate and can be brought against 
the responsible party is another means of protecting the integrity of 
Indian gaming. To this end the bill clarifies that civil penalties can 
be imposed on any violator of IGRA, not just Indian tribes or 
management contractors.
  Finally, this bill will ensure fairness in the regulation of Indian 
gaming by assuring that all tribes bear their appropriate share of the 
cost of regulation so that the industry, as a whole, continues to 
prosper. I ask unanimous consent 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. 2078

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Indian Gaming Regulatory Act 
     Amendments of 2005''.

     SEC. 2. DEFINITIONS.

       Section 4 of the Indian Gaming Regulatory Act (25 U.S.C. 
     2703) is amended--
       (1) in paragraph (7)(E), by striking ``of the Indian Gaming 
     Regulatory Act (25 U.S.C. 2710(d)(3))''; and
       (2) by adding at the end the following:
       ``(11) Gaming-related contract.--The term `gaming-related 
     contract' means--
       ``(A) a contract or other agreement relating to the 
     management and operation of an Indian tribal gaming activity, 
     including a contract for services under which the gaming-
     related contractor--
       ``(i) exercises material control over the gaming activity 
     (or any part of the gaming activity); or
       ``(ii) advises or consults with a person that exercises 
     material control over the gaming activity (or any part of the 
     gaming activity);
       ``(B) an agreement relating to the development or 
     construction of a facility to be used for an Indian tribal 
     gaming activity (including a facility that is ancillary to 
     such an activity) the cost of which is greater than $250,000; 
     or
       ``(C) an agreement that provides for compensation or fees 
     based on a percentage of the net revenues of an Indian tribal 
     gaming activity.
       ``(12) Gaming-related contractor.--The term `gaming-related 
     contractor' means an entity or an individual, including an 
     individual who is an officer, or who serves on the board of 
     directors, of an entity, or a stockholder that directly or 
     indirectly holds at least 5 percent of the issued and 
     outstanding stock of an entity, that enters into a gaming-
     related contract with--
       ``(A) an Indian tribe; or
       ``(B) an agent of an Indian tribe.
       ``(13) Material control.--The term `material control', with 
     respect to a gaming activity, means the exercise of authority 
     or supervision over a matter that substantially affects a 
     financial or management aspect of an Indian tribal gaming 
     activity.''.

     SEC. 3. NATIONAL INDIAN GAMING COMMISSION.

       Section 5 of the Indian Gaming Regulatory Act (25 U.S.C. 
     2704) is amended--
       (1) in subsection (c)--
       (A) by striking ``(c) Vacancies'' and inserting the 
     following:
       ``(c) Vacancies.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     vacancy'';
       (B) by striking the second sentence and inserting the 
     following:
       ``(3) Expiration of term.--Unless a member has been removed 
     for cause under subsection (b)(6), the member may--
       ``(A) serve after the expiration of the term of office of 
     the member until a successor is appointed; or
       ``(B) be reappointed to serve on the Commission.''; and
       (C) by inserting after paragraph (1) (as designated by 
     subparagraph (A)) the following:
       ``(2) Vice chairman.--The Vice Chairman shall act as 
     Chairman in the absence or disability of the Chairman.''; and
       (2) in subsection (e), in the second sentence, by inserting 
     ``or disability'' after ``in the absence''.

[[Page S13391]]

     SEC. 4. POWERS OF THE CHAIRMAN.

       Section 6 of the Indian Gaming Regulatory Act (25 U.S.C. 
     2705) is amended--
       (1) in subsection (a)--
       (A) in paragraph (3), by striking ``and'' at the end;
       (B) by striking paragraph (4) and inserting the following:
       ``(4) approve gaming-related contracts for class II gaming 
     and class III gaming under section 12; and''; and
       (C) by adding at the end the following:
       ``(5) conduct a background investigation and make a 
     determination with respect to the suitability of a gaming-
     related contractor, as the Chairman determines to be 
     appropriate.''; and
       (2) by adding at the end the following:
       ``(c) Delegation of Authority.--
       ``(1) In general.--The Chairman may delegate any authority 
     under this section to any member of the Commission, as the 
     Chairman determines to be appropriate.
       ``(2) Requirement.--In carrying out an activity pursuant to 
     a delegation under paragraph (1), a member of the Commission 
     shall be subject to, and act in accordance with--
       ``(A) the general policies formally adopted by the 
     Commission; and
       ``(B) the regulatory decisions, findings, and 
     determinations of the Commission pursuant to Federal law.''.

     SEC. 5. POWERS OF THE COMMISSION.

       Section 7(b) of the Indian Gaming Regulatory Act (25 U.S.C. 
     2706(b)) is amended--
       (1) in paragraphs (1) and (4), by inserting ``and class III 
     gaming'' after ``class II gaming'' each place it appears;
       (2) in paragraph (2), by inserting ``or class III gaming'' 
     after ``class II gaming''; and
       (3) in paragraph (10), by inserting ``, including 
     regulations addressing minimum internal control standards for 
     class II gaming and class III gaming activities'' before the 
     period at the end.

     SEC. 6. COMMISSION STAFFING.

       (a) General Counsel.--Section 8(a) of the Indian Gaming 
     Regulatory Act (25 U.S.C. 2707(a)) is amended by striking 
     ``basic'' and all that follows through the end of the 
     subsection and inserting the following: ``pay payable for 
     level IV of the Executive Schedule under chapter 11 of title 
     2, United States Code, as adjusted by section 5318 of title 
     5, United States Code.''.
       (b) Other Staff.--Section 8(b) of the Indian Gaming 
     Regulatory Act (25 U.S.C. 2707(b)) is amended by striking 
     ``basic'' and all that follows through the end of the 
     subsection and inserting the following: ``pay payable for 
     level IV of the Executive Schedule under chapter 11 of title 
     2, United States Code, as adjusted by section 5318 of title 
     5, United States Code.''.
       (c) Temporary and Intermittent Services.--Section 8(c) of 
     the Indian Gaming Regulatory Act (25 U.S.C. 2707(c)) is 
     amended by striking ``basic'' and all that follows through 
     the end of the subsection and inserting the following: ``pay 
     payable for level IV of the Executive Schedule under chapter 
     11 of title 2, United States Code, as adjusted by section 
     5318 of title 5, United States Code.''.

     SEC. 7. TRIBAL GAMING ORDINANCES.

       Section 11 of the Indian Gaming Regulatory Act (25 U.S.C. 
     2710) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)(A), by striking ``, and'' and 
     inserting ``; and'';
       (B) in paragraph (2)(F)--
       (i) by striking clause (i) and inserting the following:
       ``(i) ensures that background investigations and ongoing 
     oversight activities are conducted with respect to--
       ``(I) tribal gaming commissioners and key tribal gaming 
     commission employees, as determined by the Chairman;
       ``(II) primary management officials and other key employees 
     of the gaming enterprise, as determined by the Chairman; and
       ``(III) any person that is a party to a gaming-related 
     contract; and''; and
       (ii) in clause (ii)(I), by striking ``primary'' and all 
     that follows through ``with'' and inserting ``the individuals 
     and entities described in clause (i), including'';
       (C) in paragraph (3)--
       (i) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (D) and (E), respectively; and
       (ii) by striking subparagraph (B) and inserting the 
     following:
       ``(B) the plan is approved by the Secretary after the 
     Secretary determines that--
       ``(i) the plan is consistent with the uses described in 
     paragraph (2)(B);
       ``(ii) the plan adequately addresses the purposes described 
     in clauses (i) and (iii) of paragraph (2)(B); and
       ``(iii) a per capita payment is a reasonable method of 
     providing for the general welfare of the Indian tribe and the 
     members of the Indian tribe;
       ``(C) the Secretary determines that the plan provides an 
     adequate mechanism for the monitoring and enforcement, by the 
     Secretary and the Chairman, of the compliance of the plan 
     (including any amendment, revision, or rescission of any part 
     of the plan);''; and
       (D) in paragraph (4)(B)(i)--
       (i) in subclause (I), by striking ``of the Act,'' and 
     inserting a semicolon;
       (ii) in subclause (II), by striking ``of this subsection'' 
     and inserting a semicolon;
       (iii) in subclause (III), by striking ``, and'' and 
     inserting ``; and''; and
       (iv) in subclause (IV), by striking ``National Indian 
     Gaming'';
       (2) in subsection (d)--
       (A) in paragraph (1)--
       (i) in subparagraph (A)--

       (I) in clause (i), by striking ``lands,'' and inserting 
     ``lands;'';
       (II) in clause (ii), by striking ``, and'' and inserting 
     ``; and''; and
       (III) in clause (iii), by striking the comma at the end and 
     inserting a semicolon; and

       (ii) in subparagraph (B), by striking ``, and'' and 
     inserting ``; and'';
       (B) in paragraph (2)--
       (i) in subparagraph (B)(i), by striking ``, or'' and 
     inserting ``; or''; and
       (ii) in subparagraph (D)(iii)(I), by striking ``, and'' and 
     inserting ``; and'';
       (C) in paragraph (7)(B)--
       (i) in clause (ii)(I), by striking ``, and'' and inserting 
     ``; and'';
       (ii) in clause (iii)(I), by striking ``, and'' and 
     inserting ``; and''; and
       (iii) in clause (vii)(I), by striking ``, and'' and 
     inserting ``; and'';
       (D) in paragraph (8)(B)--
       (i) in clause (i), by striking the comma at the end and 
     inserting a semicolon; and
       (ii) in clause (ii), by striking ``, or'' and inserting ``; 
     or''; and
       (E) by striking paragraph (9); and
       (3) by adding at the end the following:
       ``(f) Provision of Information to Chairman.--Immediately 
     after approving a plan (including any amendment, revision, or 
     recision of any part of a plan) under subsection (b)(3), the 
     Secretary shall provide to the Chairman--
       ``(1) a notice of the approval; and
       ``(2) any information used by the Secretary in approving 
     the plan.''.

     SEC. 8. GAMING-RELATED CONTRACTS.

       Section 12 of the Indian Gaming Regulatory Act (25 U.S.C. 
     2711) is amended to read as follows:

     ``SEC. 12. GAMING-RELATED CONTRACTS.

       ``(a) In General.--To be enforceable under this Act, a 
     gaming-related contract shall be--
       ``(1) in writing; and
       ``(2) approved by the Chairman under subsection (c).
       ``(b) Contract Requirements.--
       ``(1) In general.--A gaming-related contract under this Act 
     shall provide for the Indian tribe, at a minimum, provisions 
     relating to--
       ``(A) accounting and reporting procedures, including, as 
     appropriate, provisions relating to verifiable financial 
     reports;
       ``(B) the access required to ensure proper performance of 
     the gaming-related contract, including access to, with 
     respect to a gaming activity--
       ``(i) daily operations;
       ``(ii) real property;
       ``(iii) equipment; and
       ``(iv) any other tangible or intangible property used to 
     carry out the activity;
       ``(C) assurance of performance of each party to the gaming-
     related contract, including the provision of bonds under 
     subsection (d), as the Chairman determines to be necessary; 
     and
       ``(D) the reasons for, and method of, terminating the 
     gaming-related contract.
       ``(2) Term.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term of a gaming-related contract shall not exceed 5 
     years.
       ``(B) Exception.--Notwithstanding subparagraph (A), a 
     gaming-related contract may have a term of not to exceed 7 
     years if--
       ``(i) the Indian tribal party to the gaming-related 
     contract submits to the Chairman a request for such a term; 
     and
       ``(ii) the Chairman determines that the term is 
     appropriate, taking into consideration the circumstances of 
     the gaming-related contract.
       ``(3) Fees.--
       ``(A) In general.--Notwithstanding the payment terms of a 
     gaming-related contract, and except as provided in 
     subparagraph (B), the fee of a gaming-related contractor or 
     beneficiary of a gaming-related contract shall not exceed an 
     amount equal to 30 percent of the net revenues of the gaming 
     operation that is the subject of the gaming-related contract.
       ``(B) Exception.--The fee of a gaming-related contractor or 
     beneficiary of a gaming-related contract may be in an amount 
     equal to not more than 40 percent of the net revenues of the 
     gaming operation that is the subject of the gaming-related 
     contract if the Chairman determines that such a fee is 
     appropriate, taking into consideration the circumstances of 
     the gaming-related contract.
       ``(c) Approval by Chairman.--
       ``(1) Gaming-related contracts.--
       ``(A) In general.--An Indian tribe shall submit each 
     gaming-related contract of the tribe to the Chairman for 
     approval by not later than the earlier of--
       ``(i) the date that is 90 days after the date on which the 
     gaming-related contract is executed; or
       ``(ii) the date that is 90 days before the date on which 
     the gaming-related contract is scheduled to be completed.
       ``(B) Factors for consideration.--In determining whether to 
     approve a gaming-related contract under this subsection, the 
     Chairman may take into consideration any information relating 
     to the terms, parties, and beneficiaries of--
       ``(i) the gaming-related contract; and
       ``(ii) any other agreement relating to the Indian gaming 
     activity, as determined by the Chairman.
       ``(C) Deadline for determination.--

[[Page S13392]]

       ``(i) In general.--The Chairman shall approve or disapprove 
     a gaming-related contract under this subsection by not later 
     than 90 days after the date on which the Chairman makes a 
     determination regarding the suitability of each gaming-
     related contractor under paragraph (2).
       ``(ii) Expedited review.--

       ``(I) In general.--If each gaming-related contractor has 
     been determined by the Chairman to be suitable under 
     paragraph (2) on or before the date on which the gaming-
     related contract is submitted to the Chairman, the Chairman 
     shall approve or disapprove the gaming-related contract by 
     not later than 30 days after the date on which the gaming-
     related contract is submitted.
       ``(II) Failure to determine.--If the Chairman fails to make 
     a determination by the date described in subclause (I), a 
     gaming-related contract described in that subclause shall be 
     considered to be approved.
       ``(III) Amendments.--The Chairman may require the parties 
     to a gaming-related contract considered to be approved under 
     subclause (II) to amend the gaming-related contract, as the 
     Chairman considers to be appropriate to meet the requirements 
     under subsection (b).

       ``(iii) Early operation.--

       ``(I) In general.--On approval of the Chairman under 
     subclause (II), a gaming-related contract may be carried out 
     before the date on which the gaming-related contract is 
     approved by the Chairman under clause (i).
       ``(II) Approval by chairman.--The Chairman may approve the 
     early operation of a gaming-related contract under subclause 
     (I) if the Chairman determines that--

       ``(aa) adequate bonds have been provided under paragraph 
     (2)(G)(iii) and subsection (d); and
       ``(bb) the gaming-related contract will be amended as the 
     Chairman considers to be appropriate to meet the requirements 
     under subsection (b).
       ``(D) Requirements for disapproval.--The Chairman shall 
     disapprove a gaming-related contract under this subsection if 
     the Chairman determines that--
       ``(i) the gaming-related contract fails to meet any 
     requirement under subsection (b);
       ``(ii) a gaming-related contractor is unsuitable under 
     paragraph (2);
       ``(iii) a gaming-related contractor or beneficiary of the 
     gaming-related contract--

       ``(I) unduly interfered with or influenced, or attempted to 
     interfere with or influence, a decision or process of an 
     Indian tribal government relating to the gaming activity for 
     the benefit of the gaming-related contractor or beneficiary; 
     or
       ``(II) deliberately or substantially failed to comply 
     with--

       ``(aa) the gaming-related contract; or
       ``(bb) a tribal gaming ordinance or resolution adopted and 
     approved pursuant to this Act;
       ``(iv) the Indian tribe with jurisdiction over the Indian 
     lands on which the gaming activity is located will not 
     receive the primary benefit as sole proprietor of the gaming 
     activity, taking into consideration any agreement relating to 
     the gaming activity;
       ``(v) a trustee would disapprove the gaming-related 
     contract, in accordance with the duties of skill and 
     diligence of the trustee, because the compensation or fees 
     under the gaming-related contract do not bear a reasonable 
     relationship to the cost of the goods or the benefit of the 
     services provided under the gaming-related contract; or
       ``(vi) a person or an Indian tribe would violate this Act--

       ``(I) on approval of the gaming-related contract; or
       ``(II) in carrying out the gaming-related contract.

       ``(2) Gaming-related contractors.--
       ``(A) In general.--Not later than 90 days after the date on 
     which the Chairman receives a gaming-related contract, the 
     Chairman shall make a determination regarding the suitability 
     of each gaming-related contractor to carry out any gaming 
     activity that is the subject of the gaming-related contract.
       ``(B) Requirements.--The Chairman shall make a 
     determination under subparagraph (A) that a gaming-related 
     contractor is unsuitable if, as determined by the Chairman--
       ``(i) the gaming-related contractor--

       ``(I) is an elected member of the governing body of an 
     Indian tribe that is a party to the gaming-related contract;
       ``(II) has been convicted of--

       ``(aa) a felony; or
       ``(bb) any offense relating to gaming;

       ``(III)(aa) knowingly and willfully provided any materially 
     important false statement or other information to the 
     Commission or an Indian tribe that is a party to the gaming-
     related contract; or
       ``(bb) failed to respond to a request for information under 
     this Act;
       ``(IV) poses a threat to the public interest or the 
     effective regulation or conduct of gaming under this Act, 
     taking into consideration the behavior, criminal record, 
     reputation, habits, and associations of the gaming-related 
     contractor;
       ``(V) unduly interfered, or attempted to unduly interfere, 
     with any determination or governing process of the governing 
     body of an Indian tribe relating to a gaming activity, for 
     the benefit of the gaming-related contractor; or
       ``(VI) deliberately or substantially failed to comply with 
     the terms of--

       ``(aa) the gaming-related contract; or
       ``(bb) a tribal gaming ordinance or resolution approved and 
     adopted under this Act; or
       ``(ii) a trustee would determine that the gaming-related 
     contractor is unsuitable, in accordance with the duties of 
     skill and diligence of the trustee.
       ``(C) Failure to determine.--If the Chairman fails to make 
     a suitability determination with respect to a gaming-related 
     contractor by the date described in subparagraph (A), each 
     gaming-related contractor shall be considered to be suitable 
     to carry out the gaming activity that is the subject of the 
     applicable gaming-related contract.
       ``(D) Revocation.--At any time, based on a showing of good 
     cause, the Chairman may--
       ``(i) make a determination that a gaming-related contractor 
     is unsuitable under this subsection; or
       ``(ii) revoke a suitability determination under this 
     subsection.
       ``(E) Temporary suitability.--
       ``(i) In general.--For purposes of meeting a deadline under 
     paragraph (1)(C), the Chairman may determine that a gaming-
     related contractor is temporarily suitable if--

       ``(I) the Chairman determined the gaming-related contractor 
     to be suitable with respect to another gaming-related 
     contract being carried out on the date on which the Chairman 
     makes a determination under this paragraph; and
       ``(II) the gaming-related contractor has not otherwise been 
     determined to be unsuitable by the Chairman.

       ``(ii) Final determination.--The Chairman shall make a 
     suitability determination with respect to a gaming-related 
     contractor that is the subject of a temporary suitability 
     determination under clause (i) by the date described in 
     subparagraph (A), in accordance with subparagraph (F).
       ``(F) Updating determinations.--The Chairman, as the 
     Chairman determines to be appropriate, may limit an 
     investigation of the suitability of a gaming-related 
     contractor that--
       ``(i) has been determined to be suitable by the Chairman 
     with respect to another gaming-related contract being carried 
     out on the date on which the Chairman makes a determination 
     under this paragraph; and
       ``(ii) certifies to the Chairman that the information 
     provided during a preceding suitability determination has not 
     materially changed.
       ``(G) Responsibility of gaming-related contractor.--A 
     gaming-related contractor shall--
       ``(i) pay the costs of any investigation activity of the 
     Chairman in carrying out this paragraph;
       ``(ii) provide to the Chairman a notice of any change in 
     information provided during a preceding investigation on 
     discovery of the change; and
       ``(iii) during an investigation of suitability under this 
     paragraph, provide to the Chairman such bonds under 
     subsection (d) as the Chairman determines to be appropriate 
     to shield an Indian tribe from liability resulting from an 
     action of the gaming-related contractor.
       ``(H) Registry.--The Chairman shall establish and maintain 
     a registry of each suitability determination made under this 
     paragraph.
       ``(3) Additional reviews.--Notwithstanding an approval 
     under paragraph (1), or a determination of suitability under 
     paragraph (2), if the Chairman determines that a gaming-
     related contract, or any party to such a contract, is in 
     violation of this Act, the Chairman may--
       ``(A) suspend performance under the gaming-related 
     contract;
       ``(B) require the parties to amend the gaming-related 
     contract; or
       ``(C) revoke a determination of suitability under paragraph 
     (2)(D).
       ``(4) Termination.--Termination of a gaming-related 
     contract shall not require the approval of the Chairman.
       ``(d) Bonds.--
       ``(1) In general.--The Chairman may require a gaming-
     related contractor to provide to the Chairman a bond to 
     ensure the performance of the gaming-related contractor under 
     a gaming-related contract.
       ``(2) Regulations.--The Chairman, by regulation, shall 
     establish the amount of a bond required under this 
     subsection.
       ``(3) Method of payment.--A bond under this subsection may 
     be provided--
       ``(A) in cash or negotiable securities;
       ``(B) through a surety bond guaranteed by a guarantor 
     acceptable to the Chairman; or
       ``(C) through an irrevocable letter of credit issued by a 
     banking institution acceptable to the Chairman.
       ``(4) Use of bonds.--The Chairman shall use a bond provided 
     under this subsection to pay the costs of a failure of the 
     gaming-related contractor that provided the bond to perform 
     under a gaming-related contract.
       ``(e) Appeal of Determination.--
       ``(1) In general.--An Indian tribe or a gaming-related 
     contractor may submit to the Commission a request for an 
     appeal of a determination of the Chairman under subsection 
     (c) or (d).
       ``(2) Determination of commission.--
       ``(A) Hearings.--The Commission shall schedule a hearing 
     relating to an appeal under paragraph (1) by not later than 
     30 days after the date on which a request for the appeal is 
     received.
       ``(B) Deadline for determination.--The Commission shall 
     make a determination, by majority vote of the Commission, 
     relating to an appeal under this subsection by not later than 
     5 days after the date of the hearing relating to the appeal 
     under subparagraph (A).

[[Page S13393]]

       ``(C) Concurrence.--If the Commission concurs with a 
     determination of the Chairman under this subsection, the 
     determination shall be considered to be a final agency 
     action.
       ``(D) Dissent.--
       ``(i) In general.--If the Commission dissents from a 
     determination of the Chairman under this subsection, the 
     Chairman may--

       ``(I) rescind the determination of the Chairman; or
       ``(II) on a finding of immediate and irreparable harm to 
     the Indian tribe that is the subject of the determination, 
     maintain the determination.

       ``(ii) Final agency action.--A decision by the Chairman to 
     maintain a determination under clause (i)(II) shall be 
     considered to be a final agency action.
       ``(3) Appeal of commission determination.--An Indian tribe, 
     a gaming-related contractor, or a beneficiary of a gaming-
     related contract may appeal a determination of the Commission 
     under paragraph (2) to the United States District Court for 
     the District of Columbia.
       ``(f) Conveyance of Real Property.--No gaming-related 
     contract under this Act shall transfer or otherwise convey 
     any interest in land or other real property unless the 
     transfer or conveyance--
       ``(1) is authorized under law; and
       ``(2) is specifically described in the gaming-related 
     contract.
       ``(g) Contract Authority.--The authority of the Secretary 
     under section 2103 of the Revised Statutes (25 U.S.C. 81) 
     relating to contracts under this Act is transferred to the 
     Commission.
       ``(h) No Effect on Tribal Authority.--This section does not 
     expand, limit, or otherwise affect the authority of any 
     Indian tribe or any party to a Tribal-State compact to 
     investigate, license, or impose a fee on a gaming-related 
     contractor.''.

     SEC. 9. CIVIL PENALTIES.

       Section 14 of the Indian Gaming Regulatory Act (25 U.S.C. 
     2713) is amended--
       (1) by striking the section designation and heading and all 
     that follows through subsection (a) and inserting the 
     following:

     ``SEC. 14. CIVIL PENALTIES.

       ``(a) Penalties.--
       ``(1) Violation of act.--
       ``(A) In general.--An Indian tribe, individual, or entity 
     that violates any provision of this Act (including any 
     regulation of the Commission and any Indian tribal 
     regulation, ordinance, or resolution approved under section 
     11 or 13) in carrying out a gaming-related contract may be 
     subject to, as the Chairman determines to be appropriate--
       ``(i) an appropriate civil fine, in an amount not to exceed 
     $25,000 per violation per day; or
       ``(ii) an order of the Chairman for an accounting and 
     disgorgement, including interest.
       ``(B) Application to indian tribes.--An Indian tribe shall 
     not be subject to disgorgement under subparagraph (A)(ii) 
     unless the Chairman determines that the Indian tribe grossly 
     violated a provision of this Act.
       ``(2) Appeals.--The Chairman shall provide, by regulation, 
     an opportunity to appeal a determination relating to a 
     violation under paragraph (1).
       ``(3) Written complaints.--
       ``(A) In general.--If the Commission has reason to believe 
     that an Indian tribe or a party to a gaming-related contract 
     may be subject to a penalty under paragraph (1), the final 
     closure of an Indian gaming activity, or a modification or 
     termination order relating to the gaming-related contract, 
     the Chairman shall provide to the Indian tribe or party a 
     written complaint, including--
       ``(i) a description of any act or omission that is the 
     basis of the belief of the Commission; and
       ``(ii) a description of any action being considered by the 
     Commission relating to the act or omission.
       ``(B) Requirements.--A written complaint under subparagraph 
     (A)--
       ``(i) shall be written in common and concise language;
       ``(ii) shall identify any statutory or regulatory provision 
     relating to an alleged violation by the Indian tribe or 
     party; and
       ``(iii) shall not be written only in statutory or 
     regulatory language.'';
       (2) in subsection (b)--
       (A) by striking ``(b)(1) The Chairman'' and inserting the 
     following:
       ``(b) Temporary Closures.--
       ``(1) In general.--The Chairman'';
       (B) in paragraph (1)--
       (i) by striking ``Indian game'' and inserting ``Indian 
     gaming activity, or any part of such a gaming activity,''; 
     and
       (ii) by striking ``section 11 or 13 of this Act'' and 
     inserting ``section 11 or 13''; and
       (C) in paragraph (2)--
       (i) by striking ``(2) Not later than thirty'' and inserting 
     the following:
       ``(2) Hearings.--
       ``(A) In general.--Not later than 30'';
       (ii) in subparagraph (A) (as designating by clause (i))--

       (I) by striking ``management contractor'' and inserting 
     ``party to a gaming-related contract''; and
       (II) by striking ``permanent'' and inserting ``final''; and

       (iii) in the second sentence--

       (I) by striking ``Not later than sixty'' and inserting the 
     following:

       ``(B) Determination of commission.--Not later than 60''; 
     and

       (II) by striking ``permanent'' and inserting ``final'';

       (3) in subsection (c), by striking ``(c) A decision'' and 
     inserting the following:
       ``(c) Appeal of Final Determinations.--A determination''; 
     and
       (4) in subsection (d), by striking ``(d) Nothing'' and 
     inserting the following:
       ``(d) Effect on Regulatory Authority of Indian Tribes.--
     Nothing''.

     SEC. 10. GAMING ON LATER-ACQUIRED LAND.

       Section 20(b) of the Indian Gaming Regulatory Act (25 
     U.S.C. 2719(b)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking `` (A) the Secretary, 
     after consultation'' and inserting the following:
       ``(A)(i) before November 18, 2005, the Secretary reviewed, 
     or was in the process of reviewing, at the Central Office of 
     the Bureau of Indian Affairs, Washington, DC, the petition of 
     an Indian tribe to have land taken into trust for purposes of 
     gaming under this Act; and
       ``(ii) the Secretary, after consultation''; and
       (B) in subparagraph (B)--
       (i) in clause (i), by striking the comma at the end and 
     inserting the following: ``under Federal statutory law, if 
     the land is within a State in which is located--
       ``(I) the reservation of such Indian tribe; or
       ``(II) the last recognized reservation of such Indian 
     tribe;'';
       (ii) in clause (ii), by striking ``, or'' and inserting 
     ``if, as determined by the Secretary, the Indian tribe has a 
     temporal, cultural, and geographic nexus to the land; or''; 
     and
       (iii) in clause (iii), by inserting before the period at 
     the end the following: ``if, as determined by the Secretary, 
     the Indian tribe has a temporal, cultural, and geographic 
     nexus to the land''; and
       (2) by adding at the end the following:
       ``(4) Effect of subsection.--Notwithstanding any other 
     provision of this subsection, land that, before the date of 
     enactment of the Indian Gaming Regulatory Act Amendments of 
     2005, was determined by the Secretary or the Chairman to be 
     eligible to be used for purposes of gaming shall continue to 
     be eligible for those purposes.''.

     SEC. 11. CONFORMING AMENDMENT.

       (a) In General.--Section 123(a)(2) of the Department of the 
     Interior and Related Agencies Appropriations Act, 1998 
     (Public Law 105-83; 111 Stat. 1566) is amended--
       (1) in subparagraph (A), by adding ``and'' at the end;
       (2) in subparagraph (B), by striking ``; and'' and 
     inserting a period; and
       (3) by striking subparagraph (C).
       (b) Applicability.--Notwithstanding any other provision of 
     law, section 18(a) of the Indian Gaming Regulatory Act (25 
     U.S.C. 2717(a)) shall apply to all Indian tribes.
                                 ______