108th CONGRESS
1st Session
S. 1529
To amend the Indian Gaming Regulatory Act to include provisions relating
to the payment and administration of gaming fees, and for other purposes.
IN THE SENATE OF THE UNITED STATES
July 31 (legislative day, JULY 21), 2003
Mr. CAMPBELL (for himself and Mr. INOUYE) introduced the following bill;
which was read twice and referred to the Committee on Indian Affairs
A BILL
To amend the Indian Gaming Regulatory Act to include provisions relating
to the payment and administration of gaming fees, 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.
This Act may be cited as the `Indian Gaming Regulatory Act Amendments of 2003'.
SEC. 2. PAYMENT AND ADMINISTRATION OF GAMING FEES.
(a) DEFINITIONS- Section 4(7) of the Indian Gaming Regulatory Act (25 U.S.C.
2703(7)) is amended by adding at the end the following:
`(G) TECHNOLOGICAL AIDS- 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 through 1177) shall not apply
to any gaming described in subparagraph (A)(i) for which an electronic
aid, computer, or other technological aid is used in connection with the
gaming.'.
(b) NATIONAL INDIAN GAMING COMMISSION- Section 5 of the Indian Gaming Regulatory
Act (25 U.S.C. 2704) is amended--
(1) by striking subsection (c) and inserting the following:
`(1) IN GENERAL- A vacancy on the Commission shall be filled in the same
manner as the original appointment.
`(2) SUCCESSORS- Unless a member of the Commission is removed for cause
under subsection (b)(6), the member may--
`(B) serve after the expiration of the term of the member until a successor
is appointed.'; and
(2) in subsection (e), in the last sentence, by inserting `or disability'
after `in the absence'.
(c) POWERS OF CHAIRMAN- Section 6 of the Indian Gaming Regulatory Act (25
U.S.C. 2705) is amended by adding at the end the following:
`(c) DELEGATION- The Chairman may delegate to an individual Commissioner any
of the authorities described in subsection (a).
`(d) APPLICABLE AUTHORITY- In carrying out any function under this section,
a Commissioner serving in the capacity of the Chairman shall be governed by--
`(1) such general policies as are formally adopted by the Commission; and
`(2) such regulatory decisions, findings, and determinations as are made
by the Commission.'.
(d) POWERS OF COMMISSION- Section 7 of the Indian Gaming Regulatory Act (25
U.S.C. 2706) is amended--
(1) in paragraphs (1), (2), and (4) of subsection (b), by striking `class
II gaming' each place it appears and inserting `class II gaming and class
III gaming';
(2) by redesignating subsection (c) as subsection (d);
(3) by inserting after subsection (b) the following:
`(1) IN GENERAL- The Commission shall develop a strategic plan for use in
carrying out activities of the Commission.
`(2) REQUIREMENTS- The strategic plan shall include--
`(A) a comprehensive mission statement describing the major functions
and operations of the Commission;
`(B) a description of the goals and objectives of the Commission;
`(C) a description of the means by which those 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 achieve those goals and objectives;
`(D) a performance plan for achievement of those goals and objectives
that is consistent with--
`(i) other components of the strategic plan; and
`(ii) section 1115 of title 31, United States Code;
`(E) an identification of the key factors that are external to, or beyond
the control of, the Commission that could significantly affect the achievement
of those goals and objectives; and
`(F) a description of the program evaluations used in establishing or
revising those goals and objectives, including a schedule for future program
evaluations.
`(A) PERIOD COVERED- The strategic plan shall cover a period of not less
than 5 fiscal years beginning with the fiscal year in which the plan is
submitted.
`(B) UPDATES AND REVISIONS- The strategic plan shall be updated and revised
biennially.'; and
(4) in subsection (d) (as redesignated by paragraph (2))--
(A) in paragraph (3), by striking `and' at the end;
(B) by redesignating paragraph (4) as paragraph (5); and
(C) by inserting after paragraph (3) the following:
`(4) the strategic plan for activities of the Commission described in subsection
(c); and'.
(e) COMMISSION STAFFING- Section 8 of the Indian Gaming Regulatory Act (25
U.S.C. 2707) is amended--
(1) in subsection (a), by striking `GS-18 of the General Schedule under
section 5332' and inserting `level IV of the Executive Schedule under section
5318';
(A) by striking `(b) The Chairman' and inserting the following:
`(1) IN GENERAL- The Chairman'; and
(B) by striking the last sentence and inserting the following:
`(A) IN GENERAL- Staff appointed under paragraph (1) shall be paid without
regard to the provision of chapter 51 and subchapter III of chapter 53,
of title 5, United States Code, relating to General Schedule pay rates.
`(B) MAXIMUM RATE OF PAY- The rate of pay for an individual appointed
under paragraph (1) shall not exceed the rate payable for level IV of
the Executive Schedule under section 5315 of title 5, United States Code.';
and
(3) by striking subsection (c) and inserting the following:
`(1) IN GENERAL- The Chairman may procure temporary and intermittent services
under section 3109 of title 5, United States Code.
`(2) MAXIMUM RATE OF PAY- The rate of pay for an individual for service
described in paragraph (1) shall not exceed the daily equivalent of the
maximum rate payable for level IV of the Executive Schedule under section
5318 of title 5, United States Code.'.
(f) TRIBAL GAMING ORDINANCES- Section 11 of the Indian Gaming Regulatory Act
(25 U.S.C. 2710) is amended--
(1) in subsection (b)(2)(F), by striking clause (i) and inserting the following:
`(I) background investigations are conducted on the tribal gaming commissioners,
key tribal gaming commission employees, and primary management officials
and key employees of the gaming enterprise; and
`(II) oversight of primary management officials and key employees is
conducted on an ongoing basis; and'; and
(i) by striking `(4) Except' and inserting the following:
`(A) IN GENERAL- Except for any assessments that may be agreed to under
paragraph (3)(C)(iii), nothing in this section confers on a State or political
subdivision of a State authority to impose any tax, fee, charge, or other
assessment on any Indian tribe or any other person or entity authorized
by an Indian tribe to engage in a class III activity. No State may refuse
to enter into the negotiations described in paragraph (3)(A) based on
the lack of authority in the State or a political subdivision of the State
to impose such a tax, fee, charge, or other assessment.
`(B) APPORTIONMENT OF REVENUES- The Secretary may not approve any Tribal-State
compact or other agreement that includes an apportionment of net revenues
with a State, local government, or other Indian tribes unless--
`(i) in the case of apportionment with other Indian tribes, the net
revenues are not distributable by the other Indian tribes to members
of the Indian tribes on a per capita basis;
`(ii) in the case of apportionment with local governments, the total
amount of net revenues exceeds the amounts necessary to meet the requirements
of clauses (i) and (ii) of subsection (b)(2)(B), but only to the extent
that the excess revenues reflect the actual costs incurred by affected
local governments as a result of the operation of gaming activities;
or
`(iii) in the case of apportionment with a State--
`(I) the total amount of net revenues--
`(aa) exceeds the amounts necessary to meet the requirements of clauses
(i) and (ii) of subsection (b)(2)(B) and clause (ii) of this subparagraph,
if applicable; and
`(bb) is in accordance with regulations promulgated by the Secretary
under subparagraph (C); and
`(II) a substantial economic benefit is rendered by the State to the
Indian tribe.
`(C) REGULATIONS- Not later than 90 days after the date of enactment of
this paragraph, the Secretary shall promulgate regulations to provide
guidance to Indian tribes and States on the scope of allowable assessments
negotiated under paragraph (3)(C)(iii) and the apportionment of revenues
negotiated in accordance with subparagraph (B).';
(B) in paragraph (7)(B)(vii), by inserting `not later than 90 days after
notification is made' after `the Secretary shall prescribe'; and
(C) by adding at the end the following:
`(10) EXTENSION OF TERM OF TRIBAL-STATE COMPACT- Any Tribal-State compact
approved by
the Secretary in accordance with paragraph (8) shall remain in effect for
up to 180 days after expiration of the Tribal-State compact if--
`(A) the Indian tribe certifies to the Secretary that the Indian tribe
requested a new compact not later than 90 days before expiration of the
compact; and
`(B) a new compact has not been agreed on.'.
(g) MANAGEMENT CONTRACTS- Section 12 of the Indian Gaming Regulatory Act (25
U.S.C. 2711) is amended--
(1) by striking the section heading and all that follows through `Subject'
in subsection (a)(1) and inserting the following:
`SEC. 12. MANAGEMENT CONTRACTS.
`(a) CLASS II GAMING AND CLASS III GAMING ACTIVITIES; INFORMATION ON OPERATORS-
`(1) GAMING ACTIVITIES- Subject'; and
(2) in subsection (a)(1), by striking `class II gaming activity that the
Indian tribe may engage in under section 11(b)(1) of this Act,' and inserting
`class II gaming activity in which the Indian tribe may engage under section
11(b)(1), or a class III gaming activity in which the Indian tribe may engage
under section 11(d),'.
(h) COMMISSION FUNDING- Section 18 of the Indian Gaming Regulatory Act (25
U.S.C. 2717) is amended--
(A) by striking paragraphs (1) through (3) and inserting the following:
`(A) IN GENERAL- Except as provided in this section, the Commission shall
establish a schedule of fees to be paid annually to the Commission, on
a quarterly basis, by each gaming operation that conducts a class II gaming
or class III gaming activity that is regulated, in whole or in part, by
this Act.
`(B) RATES- The rate of fees under the schedule established under subparagraph
(A) that are imposed on the gross revenues from each operation that conducts
a class II gaming or class III gaming activity described in that paragraph
shall be (as determined by the Commission)--
`(i) a progressive rate structure levied on the gross revenues in excess
of $1,500,000 from each operation that conducts a class II gaming or
class III gaming activity; or
`(ii) a flat fee levied on the gross revenues from each operation that
conducts a class II gaming or class III gaming activity.
`(C) TOTAL AMOUNT- The total amount of all fees imposed during any fiscal
year under the schedule established under subparagraph (A) shall not exceed--
`(i) $10,000,000 for each of fiscal years 2004 and 2005;
`(ii) $11,000,000 for each of fiscal years 2006 and 2007; and
`(iii) $12,000,000 for each of fiscal years 2008 and 2009.'; and
(B) by redesignating paragraphs (4) through (6) as paragraphs (2) through
(4), respectively;
(2) by redesignating subsection (b) as subsection (d);
(3) in paragraph (2) of subsection (d) (as redesignated by paragraph (2)),
by striking `section 19 of this Act' and inserting `section 28'; and
(4) by inserting after subsection (a) the following:
`(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.
`(2) FEES ASSESSED- 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) REGULATIONS- The Commission shall promulgate such regulations as are
necessary to carry out this subsection.
`(c) FEE REDUCTION PROGRAM-
`(1) IN GENERAL- In making a determination of the amount of fees to be assessed
for any class II gaming 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--
`(A) the extent and quality of regulation of the gaming activity provided
by a State or Indian tribe, or both, in accordance with an approved State-tribal
compact;
`(B) the extent and quality of self-regulating activities covered by this
Act that are conducted by an Indian tribe; and
`(C) other factors determined by the Commission, including--
`(i) the unique nature of tribal gaming as compared with 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 such regulations as are
necessary to carry out this subsection.'.
(i) ADDITIONAL AMENDMENTS- The Indian Gaming Regulatory Act is amended--
(1) by striking section 19 (25 U.S.C. 2718);
(2) by redesignating sections 20 through 24 (25 U.S.C. 2719 through 2723)
as sections 23 through 27, respectively;
(3) by inserting after section 18 (25 U.S.C. 2717) the following:
`SEC. 19. INDIAN GAMING REGULATION ACCOUNTS.
`(a) IN GENERAL- All fees and civil forfeitures collected by the Commission
in accordance with this Act shall--
`(1) be maintained in separate, segregated accounts; and
`(2) be expended only for purposes described in this Act.
`(1) IN GENERAL- The Commission shall invest such portion of the accounts
maintained under subsection (a) as are not, in the judgment of the Commission,
required to meet immediate expenses.
`(2) TYPES OF INVESTMENTS- Investments may be made only in interest-bearing
obligations of the United States guaranteed as to both principal and interest
by the United States.
`(c) SALE OF OBLIGATIONS- Any obligation acquired with funds in an account
maintained under subsection (a)(1) (except special obligations issued exclusively
to those accounts, which may be redeemed at par plus accrued interest) may
be sold by the Commission at the market price.
`(d) CREDITS TO INDIAN GAMING REGULATORY ACCOUNTS- The interest on, and proceeds
from, the sale or redemption of any obligation held in an account maintained
under subsection (a)(1) shall be credited to and form a part of the account.
`SEC. 20. MINIMUM STANDARDS.
`(a) CLASS I GAMING- Notwithstanding any other provision of law, class I gaming
on Indian land--
`(1) shall remain within the exclusive jurisdiction of the Indian tribe
having jurisdiction over the Indian land; and
`(2) shall not be subject to this Act.
`(1) IN GENERAL- Subject to paragraph (2), an Indian tribe shall retain
primary jurisdiction over regulation of class II gaming activities conducted
by the Indian tribe.
`(2) CONDUCT OF CLASS II GAMING- Any class II gaming activity shall be conducted
in accordance with--
`(B) regulations promulgated under subsection (d).
`(1) IN GENERAL- Subject to paragraph (2), an Indian tribe shall retain
primary jurisdiction over regulation of class III gaming activities conducted
by the Indian tribe.
`(2) CONDUCT OF CLASS III GAMING- Any class III gaming operated by an Indian
tribe under this Act shall be conducted in accordance with--
`(B) regulations promulgated under subsection (d).
`(A) PROMULGATION- Not later than 180 days after the date of enactment
of the Indian Gaming Regulatory Act Amendments of 2003, 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 Act Amendments of
2003, the Commission shall publish in the Federal Register proposed regulations
developed by a negotiated rulemaking committee in accordance with this
section.
`(2) COMMITTEE- A negotiated rulemaking committee established in accordance
with 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 in accordance with this Act.
`(e) ELIMINATION OF EXISTING REGULATIONS-
`(1) IN GENERAL- Except as provided in paragraph (2), as of the date that
is 1 year after the date of enactment of the Indian Gaming Regulatory Act
Amendments of 2003, regulations establishing minimum internal control standards
promulgated by the Commission that are in effect as of the date of enactment
of the Indian Gaming Regulatory Act Amendments of 2003 shall have no force
or effect.
`(2) EXCEPTION FOR AFFIRMATION OF EXISTING REGULATIONS- Notwithstanding
paragraph (1), if, before the date of enactment of the Indian Gaming Regulatory
Act Amendments of 2003, the Commission certifies to the Secretary of the
Interior that the Commission has promulgated regulations that establish
minimum internal control standards that meet the requirements of subsection
(d)(1)(A) and were developed in consultation with affected Indian tribes,
the regulations shall--
`(A) be considered to satisfy the requirements of paragraph (1); and
`(B) remain in full force and effect.
`SEC. 21. USE OF NATIONAL INDIAN GAMING COMMISSION CIVIL FINES.
`(a) ACCOUNT- Amounts collected by the Commission under section 14 shall--
`(1) be deposited in a separate Indian gaming regulation account established
under section 19(d)(1)(A); and
`(2) be available to the Commission, as provided for in advance in Acts
of appropriation, for use in carrying out this Act.
`(1) IN GENERAL- The Commission may provide grants and technical assistance
to Indian tribes using funds secured by the Commission under section 14.
`(2) USES- A grant or financial assistance provided under paragraph (1)
may be used only--
`(A) to provide technical training and other assistance to an Indian tribe
to strengthen the regulatory integrity of Indian gaming;
`(B) to provide assistance to an Indian tribe to assess the feasibility
of conducting nongaming economic development activities on Indian land;
`(C) to provide assistance to an Indian tribe to devise and implement
programs and treatment services for individuals diagnosed as problem gamblers;
or
`(D) to provide to an Indian tribe 1 or more other forms of assistance
that are not inconsistent with this Act.
`(c) SOURCE OF FUNDS- Amounts used to carry out subsection (b) may be derived
only from funds--
`(1) collected by the Commission under section 14; and
`(2) authorized for use in advance by an Act of appropriation.
`(d) REGULATIONS- The Commission may promulgate such regulations as are necessary
to carry out this section.
`SEC. 22. TRIBAL CONSULTATION.
`In carrying out this Act, the Secretary of the Interior, Secretary of the
Treasury, and Chairman of the Commission shall involve and consult with Indian
tribes to the maximum extent practicable, as appropriate, in a manner that
is consistent with the Federal trust and the government-to-government relationship
that exists between Indian tribes and the Federal Government.'; and
(4) by inserting after section 27 (as redesignated by paragraph (2)) the
following:
`SEC. 28. AUTHORIZATION OF APPROPRIATIONS.
`(a) IN GENERAL- Subject to section 18, there is authorized to be appropriated
to carry out this Act, for fiscal year 1998 and each fiscal year thereafter,
an amount equal to the amount of funds derived from the assessments authorized
by section 18(a).
`(b) ADDITIONAL AMOUNTS- Notwithstanding section 18, in addition to amounts
authorized to be appropriated by subsection (a), there are authorized to be
appropriated $2,000,000 to fund the operation of the Commission for fiscal
year 1998 and each fiscal year thereafter.'.
END
