[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4787 Introduced in House (IH)]
103d CONGRESS
2d Session
H. R. 4787
To amend the Indian Gaming Regulatory Act, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 19, 1994
Mr. Torres introduced the following bill; which was referred to the
Committee on Natural Resources
_______________________________________________________________________
A BILL
To amend the Indian Gaming Regulatory Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCE.
(a) Short Title.--This Act may be cited as the ``Indian Gaming
Regulatory Act Amendments of 1994''.
(b) Reference.--Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Indian
Gaming Regulatory Act (25 U.S.C. 2701 et seq.).
SEC. 2. DEFINITIONS.
(a) Class II Gaming.--(1) Clause (i) of section 4(7)(A) (25 U.S.C.
2703(7)(A)) is amended--
(A) by striking ``(if played in the same location)''; and
(B) by striking ``bingo, and'' and inserting ``bingo
(whether or not electronic, computer, or other technologic aids
are used in connection therewith so long as the fundamental
characteristics of the game remain the same), and''.
(2) Clause (ii) of section 4(7)(A) (25 U.S.C. 2703(7)(A)) is
amended by striking ``that--'' and all that follows through ``such card
games.'' at the end thereof and inserting a period.
(3) Clause (ii) of section 4(7)(B) (25 U.S.C. 2703(7)(B)) is
amended by inserting ``, except electronic or technological aids used
in connection with class II games,'' after ``game of chance''.
(4) Subparagraph (C) of section 4(7) (25 U.S.C. 2703(7)) is amended
by striking ``Chairman'' and inserting ``Commission''.
(5) Paragraph (7) of section 4 (25 U.S.C. 2703) is amended by
striking subparagraphs (D), (E), and (F).
(6) Paragraph (8) of section 4 (25 U.S.C. 2703) is amended by
inserting at the end ``and means manufacturing and assembly of gaming
devices (defined as gambling devices by section 5 of the Act of January
2, 1951 (15 U.S.C. 1175)).''.
(b) Compact; Electronic Facsimile.--Section 4 of the Act (25 U.S.C.
2703) is amended by adding at the end the following new paragraphs:
``(11) The term `Compact' means the regulatory regime for
operating class III gaming entered into by a tribe and the
Secretary.
``(12) The term `electronic facsimile' means a copy of some
or all of the fundamental elements of a game, where the
electronic or electromechanical device alters the game rather
than simply electronically replicating the fundamental elements
of a game.''.
(c) Section 6 of Public Law 101-301.--Section 6 of Public Law 101-
301 (25 U.S.C. 2703 note; 104 Stat. 209) is repealed.
SEC. 3. POWERS OF THE CHAIRMAN.
Section 6(b) of the Act (25 U.S.C. 2705(b)) is amended to read as
follows:
``(b) Prior to taking any action set forth in subsection (a) of
this section, the Chairman shall, in good faith, consult with the Tribe
which has jurisdiction over the gaming activity in dispute and attempt
to resolve the dispute in a manner that avoids such actions. Only after
the Commission has concluded that cooperative resolution has been
adequately pursued and that further consultation would be futile, may
the Chairman take such actions.''.
SEC. 4. POWERS OF THE COMMISSION.
Section 7 (25 U.S.C. 2706) is amended--
(1) in subsection (a)(2), by inserting ``appropriate but
not punitive'' after ``collection of'';
(2) in subsections (b)--
(A) in paragraph (1), by inserting ``and class III
gaming, where a Compact so provides, where gaming is''
after ``class II gaming''; and
(B) in paragraph (2), by inserting ``and class III
gaming, where a Compact so provides, where gaming''
after ``class II gaming''; and
(3) by striking subsection (c).
SEC. 5. INTERIM AUTHORITY TO REGULATE GAMING.
Section 10 of the Act (25 U.S.C. 2709) is repealed.
SEC. 6. TRIBAL GAMING ORDINANCES.
(a) Class II Gaming.--Subsection (b) of section 11 (25 U.S.C. 2710)
is amended by amending subparagraph (A) of paragraph (4) to read as
follows:
``(A) A tribal ordinance or resolution may provide for the
licensing or regulation of Indian charitable class II gaming activities
on Indian lands up to the same level and scope as permitted by tribal
class II gaming. A tribal ordinance or resolution may provide for the
licensing or regulation of class II gaming activities owned by any
person or entity other than the Indian tribe and conducted on Indian
lands, only if the tribal licensing requirements include the
requirements described in the subclauses of subparagraph (B)(i) and are
at least as restrictive as those established by State law governing
similar gaming within the jurisdiction of the State within which such
Indian lands are located.''.
(b) Regulation of Class II Gaming.--Subsection (c)(3) of section 11
(25 U.S.C. 2710) is amended by inserting ``, whether by management
contract or otherwise,'' after ``class II gaming activity'' in the
matter preceding subparagraph (A).
(c) Class III Gaming.--Section 11(d) (25 U.S.C. 2710(d)) is
amended--
(1) in paragraph (1), by amending subparagraphs (B) and (C)
to read as follows:
``(B) located in a State where the requirements of
paragraphs (6)(A) and (B) are satisfied and the gaming activity
is eligible for inclusion in a Compact, and
``(C) conducted in conformance with a Compact that is in
effect.'';
(2) in paragraph (2)--
(A) by striking ``Tribal-State compact entered into
under paragraph (3) by the Indian tribe'' in
subparagraph (C) and inserting ``Compact'';
(B) by striking ``Tribal-State compact'' in
subparagraph (D)(iii)(I) and inserting ``Compact'';
(3) by amending paragraph (3) to read as follows:
``(3)(A)(i) Any Indian tribe having jurisdiction over the Indian
lands upon which a class III gaming activity is to be conducted shall
request the Secretary to enter into a Compact with the tribe. Such
request shall specify the gaming activity or activities to be governed
by the Compact.
``(ii) Negotiations between the tribe and the Secretary shall be
completed within 180 days, subject to the procedures required by
paragraph (5)(B) that the Secretary and the tribe shall utilize to
resolve disputes arising from negotiations.
``(iii) The Compact shall be effective upon publication in the
Federal Register by the Secretary.
``(iv) The Commission shall pursuant to section 7 of this Act
monitor class III gaming to the extent provided by each Compact as
published by the Secretary.
``(B) Any Compact entered into under subparagraph (A) may include
provisions relating to--
``(i) the adoption of any of the criminal and civil laws
and regulations of the Indian tribe, or with tribal consent, of
the State, that are directly related to, and necessary for, the
licensing and regulation of such activity;
``(ii) the assessment by the Secretary of such activities
in such amounts as are necessary to defray the costs of
regulating such activity;
``(iii) remedies for breach of contract;
``(iv) standards for the operation of such activity and
maintenance of the gaming facility, including licensing; and
``(v) any other subjects that are reasonably related to the
operation of gaming activities.''.
(4) by striking out paragraphs (4) and (5);
(5) by striking paragraph (8) and redesignating paragraph
(9) as paragraph (11); and
(6) by striking paragraphs (6) and (7) and inserting the
following:
``(4) The provisions of section 5 of the Act of January 2, 1951 (25
Stat. 1175), shall not apply to any gaming on Indian lands, or to
manufacturing and assembly of gaming devices on Indian lands.
``(5)(A) The United States district courts shall have jurisdiction
over--
``(i) any cause of action for a declaratory judgment
arising from the failure of an Indian tribe and the Secretary
to resolve disputes pursuant to paragraph (3) of this section,
``(ii) any cause of action initiated by United States or
Indian tribe to enjoin a class III gaming activity located on
Indian tribes and conducted in violation of any Compact entered
into under paragraph (3) that is in effect, and
``(iii) any cause of action initiated by the Secretary or a
tribe to enforce provisions of Compacts.
``(B) Notwithstanding any declaratory judgment action pending under
paragraph (6), a tribe and the Secretary may negotiate and proceed to
mediation under the Act on issues not subject to the declaratory
judgment action.
``(6)(A) No later than 120 days after the Tribe has notified the
Secretary its election to negotiate a Compact, or no later than such
longer period as may be extended in writing by the parties, either
party may initiate an action in Federal district court for a
declaration whether a gaming activity is subject to Compact negotiation
under this Act. In any such declaratory action, the court shall declare
that the gaming activity as a matter of Federal law shall be the
subject of negotiation if it finds that--
``(i) the gaming activity is not prohibited as a matter of
State criminal law and public policy; or
``(ii) if the gaming activity is subject to prosecution and
criminal sanction as a matter of State law, the gaming activity
meets one or more of the following criteria--
``(I) its principal characteristics are
substantially similar to principal characteristics of
gaming activities that are not subject to prosecution
and criminal sanction as a matter of State law;
``(II) State law permits the gaming activity
subject to regulation;
``(III) as a matter of State law some person,
organization, or entity within the State may engage in
the gaming activity for some purpose; and
``(IV) there is a pervasive pattern of
nonenforcement of the prohibition of such gaming.
``(B) The Compact also shall include such provisions which best
meet the objectives of this Act and are consistent with any declaratory
judgment issued pursuant to this paragraph.
``(7)(A) Subject to subparagraph (B), if the parties agree on a
Compact, the Secretary shall adopt such Compact and publish the Compact
in the Federal Register.
``(B) The Compact referred to in subparagraph (A) shall not be
approved by the Secretary--
``(i) unless it contains provisions relating to internal
controls of cash flow transactions, recordkeeping and
reporting, accounting, security, and licensing of employees;
and
``(ii) if the Compact does not violate--
``(I) any provisions of this Act;
``(II) any other provision of Federal law that does
not relate to jurisdiction over gaming on Indian
reservations; or
``(III) the trust obligations of the United States
to Indians.
``(8) Except for an appeal under chapter 7 of title 5, United
States Code, publication of a Compact pursuant to this subsection which
permits a class III gaming activity shall be conclusive that such class
III gaming is an activity subject to negotiations where the gaming is
to be conducted, in any matter under consideration by the Commission or
a Federal court.
``(9) If the parties do not agree on a Compact under this
subsection before the date that is 45 days after the expiration of the
180-day period with respect to the last Tribal Compact proposal during
the 180-day period, the Compact shall be considered approved, but only
to the extent that the Compact is consistent with the provisions of
this Act.
``(10) The Secretary shall publish in the Federal Register notice
of any Compact that has been approved, or considered to have been
approved, under this subsection. Failure of the Secretary to publish
pursuant to this subsection shall not affect the legality of the
compact, which shall be treated as if notice was timely and properly
published.'';
(7) in paragraph (11) (as so redesignated), by striking
``subsections (b), (c), (d), (f), (g), and (h) of''.
SEC. 7. REVIEW OF EXISTING ORDINANCES AND CONTRACTS.
(a) Management Contract.--Paragraph (3) of section 12(a) (25 U.S.C.
2711(a)) is amended by striking ``all collateral agreements to such
contract that relate to the gaming activity'' and inserting ``all other
agreements that comprise whole or partial consideration of the parties
entering into the management agreement''.
(b) Review.--Paragraph (1) of section 13(c) (25 U.S.C. 2712(c)) is
amended by striking ``all collateral agreements,'' and inserting ``all
related agreements involving the same parties, financing or leasing
agreements, or any agreement that pertains to significant management
functions or responsibilities,''.
SEC. 8. CIVIL PENALTIES.
(a) Date From Which Fines Run.--Paragraph (1) of section 14(a) (25
U.S.C. 2713(a)) is amended by adding at the end the following: ``Fines
imposed under this paragraph may not run from before the date of notice
of violation.''.
(b) Informal Dispute Resolution.--Paragraph (2) of section 14(a)
(25 U.S.C. 2713(a)) is amended by inserting ``an opportunity for
resolving disputes informally and'' after ``provide''.
SEC. 9. GAMING ON LANDS ACQUIRED AFTER DATE OF ENACTMENT.
(a) Repeal of Concurrence by Governor.--Subparagraph (A) of section
20(b)(1) (25 U.S.C. 2719(b)(1)) is amended by striking ``, but only''
and all that follows through ``determination''.
(b) Application of Internal Revenue Code.--Paragraph (1) of section
20(d) (25 U.S.C. 2719(d)) is amended--
(1) by inserting ``, and the exemption from Federal taxes
provided to the States with respect to any gaming activity,''
after ``wagering operations'' the first place it appears; and
(2) by striking ``or under a Tribal-State'' and all that
follows through ``effect,'' and inserting ``and the reporting
of cash transactions,''.
SEC. 10. CRIMINAL PENALTIES.
Subsections (c)(2) and (d) of section 1166 of title 18, United
States Code, are each amended by striking ``Tribal State compact'' and
inserting ``Compact''.
SEC. 11. APPLICABILITY OF FEDERAL LAWS TO CLASS III GAMING.
The Act (25 U.S.C. 2701 et seq.) is amended by adding at the end
the following:
``miscellaneous
``Sec. 25. (a) Class III gaming activities that are as a matter of
Federal law, lawfully in any jurisdiction on the date of the enactment
of this section, shall, notwithstanding the provisions of this Act,
remain lawful for purposes of section 11(d)(6) of this Act.
``(b) For purposes of Federal law, the laws in effect on the date
that a tribe notifies the Secretary (or prior to 1993, notified the
State) that it wishes to negotiate a Compact, shall be the basis for
determining the scope of gaming in section 11(d) of this Act for any
Compact, or for procedures in lieu of a compact.
``(c) For purposes of this Act, any change in State law which
occurs after the earlier of (1) a Tribe's request to the State for
negotiations of a Tribal-State Compact pursuant to this Act, or (2) the
Tribe's request to the Secretary for a Compact pursuant to this Act,
shall not have any affect upon the terms and conditions of the Compact,
or upon the obligations of any government entity pursuant to this Act.
``(d) Notwithstanding any provision of this Act, tribes with Indian
lands in the Eastern District of Washington shall be entitled to
conduct class III gaming activities without a Compact, as long as such
games are limited to the nature and scope of gaming activities in
effect on or prior to November 1, 1994, so long as such activities are
otherwise in compliance with this Act.
``(e) Notwithstanding any provision of this Act, tribes with Indian
lands in Wisconsin shall be entitled to conduct class III gaming
activities consistent with the decision of the Federal district court
in Lac du Flambeau Band of Lake Superior Chippewa v. State of
Wisconsin, 770 F. Supp. 480 (W.D. Wis. 1991).''.
SEC. 12. EFFECTIVE DATE.
(a) Tribal-State Compacts.--Notwithstanding any other provision of
this Act or an amendment made by this Act, all Tribal-State Compacts
approved by the Secretary of the Interior, and procedures for
governance in lieu of Compacts promulgated by the Secretary, under the
Indian Gaming Regulatory Act as in effect on the date before the date
of enactment of this Act, shall continue to be fully operative and
binding on the parties and shall not be subject to revision unless
agreed to by the parties.
(b) Pending Negotiations of Tribal-State Compacts.--Any tribe that
requested a State to negotiate a Tribal-State Compact prior to the
enactment of this Act and has not completed that process may request
the Secretary to enter into a Compact as specified under section
11(d)(3)(A) of the Indian Gaming Regulatory Act, as provided by the
amendments made by this Act.
(c) Class III Gaming Under Certain Department of the Interior
Regulations.--Notwithstanding any provision of the amendments made by
this Act, tribes operating class III gaming pursuant to regulations
promulgated by the Department of the Interior and in effect on or
before the date of enactment of this Act shall be entitled to conduct
class III gaming activities without the approval of a Compact,
consistent with such regulations.
(d) Definition.--For the purposes of this section, the term
``Tribal-State Compact'' has the same meaning given such term in the
Indian Gaming Regulatory Act, as such Act was in effect on the date
before the date of enactment of this Act.
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