S. 2078Senate109th Congress (2005-2007)In Committee

Indian Gaming Regulatory Act Amendments of 2006

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.

Also known as Indian Gaming Regulatory Act Amendments of 2005

Introduced November 18, 2005

Legislative Activity

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7 earlier actions
SenateIntro Referral Latest Action

Sponsor introductory remarks on measure. (CR S11686-11687)

December 8, 2006

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SenateIntro Referral

Introduced in Senate

November 18, 2005

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S13389-13390)

November 18, 2005

SenateIntro Referral

Read twice and referred to the Committee on Indian Affairs. (text of measure as introduced: CR S13390-13393)

November 18, 2005

SenateCommittee

Committee on Indian Affairs. Hearings held. Hearings printed: S.Hrg. 109-443.

March 8, 2006

SenateCommittee

Committee on Indian Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.

March 29, 2006

SenateCommittee

Committee on Indian Affairs. Reported by Senator McCain with an amendment in the nature of a substitute. With written report No. 109-261.

June 6, 2006

SenateCalendars

Placed on Senate Legislative Calendar under General Orders. Calendar No. 466.

June 6, 2006

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S11686-11687)

December 8, 2006

Amendments

1 amendment

Offered to this bill

Floor Debate

19 members

What members said about S. 2078 on the floor

10 Republicans9 Democrats
Jeff Bingaman
Sen. Jeff BingamanD-NM · Nov 18, 2005

Mr. President, I am pleased to be introducing the Indian Medicaid Health Act of 2005 with Senators Baucus, Dorgan, Murray, Cantwell and Johnson. This legislation addresses a number of technical but…

Hillary Rodham Clinton
Sen. Hillary Rodham ClintonD-NY · Nov 18, 2005

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record. Mr. President, I rise today to introduce legislation co-sponsored with Senator Harkin that would begin to…

Michael B. Enzi
Sen. Michael B. EnziR-WY · Nov 18, 2005

Mr. President, I am pleased today to announce the introduction of legislation designed to improve our workplace health and safety. The Senate Committee on Health, Education, Labor and Pensions, that…

Russell D. Feingold
Sen. Russell D. FeingoldD-WI · Nov 18, 2005

Mr. President, I am pleased to introduce legislation today that will promote openness and fair competition in the radio and concert industries. I have followed the changes in the radio and concert…

Trent Lott
Sen. Trent LottR-MS · Mar 8, 2006

Mr. President, I ask unanimous consent that the Committee on Armed Services be authorized to meet during the session of the Senate on March 8, 2006, at 2:30 p.m., to receive testimony on the…

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John McCain
Sen. John McCainR-AZ · Dec 8, 2006

The 109th Congress ends with many missed opportunities, and among them is the opportunity to enact necessary amendments to the Indian Gaming Regulatory Act, IGRA. IGRA has not been significantly…

Trent Lott
Sen. Trent LottR-MS · Mar 29, 2006

Mr. President, I ask unanimous consent that the Committee on Banking, Housing, and Urban Affairs be authorized to meet during the session of the Senate on March 29, 2006, at 10 a.m., to conduct a…

John F. Kerry
Sen. John F. KerryD-MA · Nov 18, 2005

Mr. President, today I introduce a bill requiring that the Congressional Medal of Honor be made out of 90 percent gold instead of gold-plated brass as is currently the case. The Congressional Medal…

George Allen
Sen. George AllenR-VA · Nov 18, 2005

Mr. President, I rise today to introduce a piece of legislation that is designed to honor the document allows us to all be here today. The document I am referring to is the Constitution of the United…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Nov 18, 2005

Mr. President, today I am pleased to introduce legislation that would preserve existing seats on the District of Columbia Superior Court. I am pleased to be joined in this effort by Senators…

Harry Reid
Sen. Harry ReidD-NV · Nov 18, 2005

Mr. President, I rise today to introduce the Nevada Mining Townsite Conveyance Act, which addresses an important public land issue in rural Nevada. As you may know, the Federal Government controls…

Olympia J. Snowe
Sen. Olympia J. SnoweR-ME · Nov 18, 2005

Mr. President, I rise today to introduce the Community and Rural Medical Residency Preservation Act of 2005, which will serve to ensure the continued viability of medical residency training programs…

Max Baucus
Sen. Max BaucusD-MT · Sep 29, 2006

Mr. President, I have filed an amendment to S. 2078, the proposed Indian Gaming Regulatory Act Amendments of 2006. The amendment would require the National Indian Gaming Commission, the NIGC, to…

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Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Nov 18, 2005

I am pleased to join with Senator Hatch in introducing the Assistant United States Attorney Retirement Benefit Equity Act of 2005. This bill was previously introduced in the 107th and 108th…

George V. Voinovich
Sen. George V. VoinovichR-OH · Nov 18, 2005

Mr. President, today I rise to introduce legislation to reauthorize the District of Columbia Tuition Assistance Grant (D.C. TAG) program for five additional years. This program has had a tremendously…

Norm Coleman
Sen. Norm ColemanR-MN · Mar 27, 2006

Mr. President, I would like to announce for the information of the Senate and the public that the Permanent Subcommittee on Investigations will hold two days of hearings on March 28 and 30, 2006,…

Conrad R. Burns
Sen. Conrad R. BurnsR-MT · Nov 18, 2005

Mr. President, I rise today in support of the Forests for Future Generations Act, because it addresses a very serious problem in our National Forests. I am not sure how many people in this body have…

Barack Obama
Sen. Barack ObamaD-IL · Nov 18, 2005

Mr. President, today I rise in support of Senator Clinton's bill which would provide tax credits of $1,000 to $3,000 to property owners who eliminate or contain lead-based paint hazards in homes…

Larry E. Craig
Sen. Larry E. CraigR-ID · Mar 27, 2006

Mr. President, the Subcommittee on Public Lands and Forests has previously announced a hearing to be held on Wednesday, March 29, 2006, at 2:30 p.m. in room SD-366 of the Dirksen Senate Office…

John McCain
Sen. John McCainR-AZ · Mar 27, 2006

Mr. President, I would like to announce that the Committee on Indian Affairs will meet on Tuesday, March 28, 2006, at 9:30 a.m. in room 485 of the Russell Senate Office Building to conduct a hearing…

John McCain
Sen. John McCainR-AZ · Nov 18, 2005

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…

John McCain
Sen. John McCainR-AZ · Nov 18, 2005

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…

John McCain
Sen. John McCainR-AZ · Mar 6, 2006

Mr. President, I would like to announce that the Committee on Indian Affairs will meet on Wednesday, March 8, 2006, at 9:30 a.m. in Room 485 of the Russell Senate Office Building to conduct a hearing…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Nov 18, 2005

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

2 versions available

Reading Mode
Latest
Reported to SenateIssued June 6, 2006

II

Calendar No. 466

109th CONGRESS

2d Session

S. 2078

[Report No. 109–261]

IN THE SENATE OF THE UNITED STATES

November 18, 2005

Mr. McCain introduced the following bill; which was read twice and referred to the Committee on Indian Affairs

June 6, 2006

Reported by Mr. McCain, with an amendment

Strike out all after the enacting clause and insert the part printed in italic

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.

1.

Short title

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

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.

.

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.

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.

.

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.

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..

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.

.

8.

Gaming-related contracts

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

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

(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).

(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.

.

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:

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

.

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.

.

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.

1.

Short title

This Act may be cited as the Indian Gaming Regulatory Act Amendments of 2006.

2.

Definitions

Section 4 of the Indian Gaming Regulatory Act (25 U.S.C. 2703) is amended—

(1)

by striking the section heading and all that follows through For purposes of this Act— and inserting the following:

4.

Definitions

In this Act:

;

(2)

in paragraph (7)(E), by striking of the Indian Gaming Regulatory Act (25 U.S.C. 2710(d)(3));

(3)

by redesignating paragraphs (3), (4), (5), (6), (7), (8), (9), and (10) as paragraphs (6), (12), (13), (3), (4), (5), (15), and (17), respectively, and moving the paragraphs so as to appear in numerical order;

(4)

by inserting after paragraph (6) (as redesignated by paragraph (3)) the following:

(7)

Consulting contract

The term consulting contract means any contract or subcontract between an Indian tribe and a gaming-related contractor, or between a gaming-related contractor and a subcontractor, that provides for advising or consulting with a person that exercises management over all or a significant part of a gaming operation, subject to such categorical exclusions as the Commission may establish, by regulation.

(8)

Development contract

The term development contract means any contract or subcontract between an Indian tribe and a gaming-related contractor, or between a gaming-related contractor and a subcontractor, that provides for the development or construction of a facility to be used for an Indian gaming activity, subject to such categorical exclusions as the Commission may establish, by regulation.

(9)

Financing contract

(A)

In general

The term financing contract means any contract or subcontract between an Indian tribe and a gaming-related contractor, or between a gaming-related contractor and a subcontractor—

(i)

that is not a management contract, a consulting contract, a development contract, or a participation contract;

(ii)

pursuant to which a gaming-related contractor or subcontractor provides services or property of any kind, or financing of any nature, to be used for an Indian gaming activity; and

(iii)

for compensation (including interest and fees), denominated in any manner—

(I)

of more than $250,000 during the term of the contract or subcontract (as periodically adjusted for inflation in accordance with rules adopted by the Commission); and

(II)

that is provided by—

(aa)

loan;

(bb)

lease; or

(cc)

deferred payments.

(B)

Exclusions

The term financing contract does not include—

(i)

a contract or agreement between an Indian tribe and—

(I)

a federally-chartered or State-chartered bank;

(II)

another Indian tribe;

(III)

another Indian tribe, or a State, pursuant to a Tribal-State compact; or

(IV)

an entity that is—

(aa)

regulated by the Securities and Exchange Commission; or

(bb)

wholly owned, directly or indirectly, by an entity that is regulated by the Securities and Exchange Commission;

(ii)

a contract or agreement that is subject to the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); or

(iii)

any other agreement or contract that the Commission, by regulation, determines should be categorically excluded from consideration as a financing contract.

(10)

Gaming-related contract

The term gaming-related contract means any management contract, consulting contract, development contract, financing contract, participation contract, or other agreement determined by the Commission pursuant to a rulemaking under section 7 to be subject to the requirements of section 12, and any collateral agreement related to any of the foregoing.

(11)

Gaming-related contractor

The term gaming-related contractor means an entity or person, 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.

;

(5)

by inserting after paragraph (13) (as redesignated by paragraph (3)) the following:

(14)

Management contract

(A)

In general

The term management contract means any contract or subcontract between an Indian tribe and a gaming-related contractor, or between a gaming-related contractor and a subcontractor, that provides for the management of all or a part of a gaming operation, subject to such categorical exclusions as the Commission may establish, by regulation.

(B)

Exclusion

The term management contract does not include a personal employment contract under which compensation is not based on a percentage of the revenues or profit increases of an Indian gaming activity or a prospective Indian gaming activity.

; and

(6)

by inserting after paragraph (15) (as redesignated by paragraph (3)) the following:

(16)

Participation contract

The term participation contract means any contract or subcontract between an Indian tribe and a gaming-related contractor, or between a gaming-related contractor and a subcontractor, under which compensation to the gaming-related contractor or subcontractor is based, in whole or in part, on a percentage of the revenues or profit increases of an Indian gaming activity or a prospective Indian gaming activity, subject to such categorical exclusions as the Commission may establish, by regulation.

.

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.

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.

.

5.

Powers of the Commission

(a)

In general

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)

by striking paragraph (10) and inserting the following:

(10)

shall promulgate such regulations and guidelines as the Commission determines to be appropriate to implement this Act, including—

(A)

regulations addressing minimum internal control standards for class II gaming and class III gaming activities; and

(B)

regulations determining categories of contracts for goods and services directly relating to tribal gaming activities that shall be—

(i)

considered to be gaming-related contracts; and

(ii)

subject to the requirements of section 12.

.

(b)

Reporting of tribal-level gaming revenues

Section 7 of the Indian Gaming Regulatory Act (25 U.S.C. 2706) is amended by adding at the end the following:

(c)

Reporting of tribal-level gaming revenues

Not less frequently than once each year—

(1)

the Commission shall submit to the Secretary a report describing the aggregate revenues of the tribal-level gaming activities of each Indian tribe; and

(2)

the Secretary, in consultation with affected Indian tribes, shall promulgate regulations under which information contained in a report under paragraph (1) regarding each Indian tribe shall be made available to the members of the Indian tribe, as the Secretary determines to be consistent with the purposes of this subsection.

.

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..

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)

persons that provide goods or services directly relating to the tribal gaming activity; and

; and

(ii)

in clause (ii)(I), by striking primary and all that follows through with and inserting the individuals and entities described in subclauses (II) and (III) of clause (i), including; and

(C)

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 State , and and inserting State; 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)

the plan, and any information used by the Secretary in approving the plan.

.

8.

Gaming-related contracts

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

12.

Gaming-related contracts

(a)

Approval by Chairman

(1)

Gaming-related contracts

To be enforceable and valid, a gaming-related contract must be approved by the Chairman under subsection (b).

(2)

Gaming-related contractors

Each gaming-related contractor shall be subject to a suitability determination by the Chairman under subsection (c).

(3)

Failure to approve

For any gaming-related contract that is not approved by the Chairman under subsection (b)—

(A)

the gaming-related contract shall be void ab initio; and

(B)

any party to the gaming-related contract shall be subject to such civil penalties as the Chairman determines to be appropriate under section 14.

(b)

Contract review

(1)

Minimum contract requirements

A gaming-related contract under this Act shall provide, 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—

(i)

the daily operations of the gaming activity;

(ii)

real property relating to the gaming activity;

(iii)

equipment associated with the gaming activity; and

(iv)

any other tangible or intangible property used to carry out the gaming activity;

(C)

assurances of performance by each party to the gaming-related contract, as the Chairman determines to be necessary;

(D)

the reasons for, and method of, termination of the gaming-related contract; and

(E)

such other provisions as the Chairman determines to be necessary to ensure that the Indian tribe will receive the primary benefit as the sole proprietor of the gaming activity.

(2)

Term

(A)

In general

Except as provided in subparagraph (B), the term of a gaming-related contract shall not exceed 5 years.

(B)

Exceptions

(i)

Extraordinary circumstances

Notwithstanding subparagraph (A), a gaming-related contract may have a term of not more than 7 years if the Chairman determines the term is appropriate, taking into consideration any extraordinary circumstances relating to the gaming-related contract.

(ii)

Financing contracts

The terms described in subparagraph (A) and clause (i) shall not apply to a financing contract.

(3)

Fees

(A)

In general

Except as provided in subparagraph (B), the fee provided pursuant to 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)

Exceptions

(i)

Extraordinary circumstances

The fee provided pursuant to a gaming-related contract may be in an amount equal to not more than 40 percent of 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 any extraordinary circumstances relating to the gaming-related contract.

(ii)

Financing contracts

The limitations described in subparagraph (A) and clause (i) shall not apply to a financing contract.

(4)

Requirements for disapproval

The Chairman shall disapprove a gaming-related contract under this subsection if the Chairman determines that—

(A)

the gaming-related contract fails to meet any requirement under paragraph (1), (2), or (3);

(B)

a gaming-related contractor that is a party to the gaming-related contract is unsuitable under subsection (c);

(C)

a gaming-related contractor or beneficiary of the gaming-related contract—

(i)

unduly interfered with or influenced a decision or process of tribal government relating to the gaming activity; or

(ii)

deliberately or substantially failed to comply with a tribal gaming ordinance or resolution;

(D)

the Indian tribe will not receive the primary benefit as the sole proprietor of the gaming activity;

(E)

a trustee would not approve the gaming-related contract because the compensation or fees do not bear a reasonable relationship to the cost of the goods or benefit of the services provided; or

(F)

a person or an Indian tribe would violate a provision of this Act—

(i)

on approval of the gaming-related contract; or

(ii)

in carrying out the gaming-related contract.

(5)

Timelines

(A)

Submission of gaming-related contracts

To be approved under this subsection, a gaming-related contract shall be submitted to the Chairman by the appropriate Indian tribe by not later than 30 days after the date on which the gaming-related contract is executed.

(B)

Determination of Chairman

(i)

In general

Subject to clause (ii), the Chairman shall approve or disapprove a management contract, a development contract, a participation contract, or other gaming-related contract designated by the Chairman under section 7 by not later than 90 days after the date on which such a contract is submitted under subparagraph (A).

(ii)

Financing contracts and consulting contracts

The Chairman shall approve or disapprove a financing contract or a consulting contract by not later than 30 days after the date on which such a contract is submitted under subparagraph (A).

(iii)

Extensions

The Chairman may extend a deadline under clause (i) or (ii) on approval of the Indian tribe that is party to the applicable contract.

(6)

Additional 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—

(A)

the gaming-related contract; and

(B)

any other agreement relating to the Indian gaming activity, as the Chairman determines to be appropriate.

(7)

Modifications

Notwithstanding an approval of a gaming-related contract under this subsection, or a determination of suitability of a gaming-related contractor under subsection (c), if the Chairman determines, based on information that was not disclosed at the time of the approval or determination, that a gaming-related contract violates this Act, or that a determination of suitability should not have been made, the Chairman, after providing notice and an opportunity for a hearing, may—

(A)

require any modification of the gaming-related contract that the Chairman determines to be necessary to comply with this Act;

(B)

suspend performance under the gaming-related contract;

(C)

revoke a determination of suitability under subsection (c); or

(D)

void the gaming-related contract.

(c)

Suitability determinations

(1)

In general

Subject to paragraph (4), a gaming-related contract shall not be approved under subsection (b) unless, on receipt of an application for a determination of suitability, the Chairman determines under this subsection that each applicable gaming-related contractor is suitable.

(2)

Standard

The Chairman, by regulation, shall establish a suitability standard under which a gaming-related contractor shall not be considered to be suitable under this subsection if, as determined by the Chairman—

(A)

the gaming-related contractor—

(i)

is an elected member of the governing body of an Indian tribe that is a party to an applicable gaming-related contract;

(ii)

at any time, was convicted of any felony or gaming offense; or

(iii)
(I)

has knowingly and willfully provided materially important false statements or information to the Commission or the Indian tribe under this Act; or

(II)

has refused to provide information requested by the Commission under this Act; or

(B)

the prior activities, criminal record (if any), reputation, habits, or associations of the gaming-related contractor—

(i)

pose a threat to—

(I)

the public interest; or

(II)

the effective regulation of gaming; or

(ii)

create or enhance the risk of unsuitable, unfair, or illegal practices, methods, or activities with respect to—

(I)

a gaming activity; or

(II)

the operation of a gaming facility.

(3)

Agreements with Indian tribes

In carrying out this subsection, the Chairman may enter into a contract with any Indian tribe—

(A)

to conduct a background investigation of a gaming-related contractor;

(B)

to assist in determining the suitability of a gaming-related contractor; or

(C)

to facilitate tribal licensing of a person that provides goods or services directly relating to the tribal gaming activity or a gaming-related contractor in accordance with the standard established under paragraph (2).

(4)

Alternative determinations and exclusions

The Commission, by regulation, may establish, as the Commission determines to be appropriate—

(A)

alternative methods of determining suitability; and

(B)

categorical exclusions for persons or entities that are subject to licensing or suitability determinations by—

(i)

a Federal, State, or tribal agency; or

(ii)

a professional association.

(5)

Registry

The Chairman shall establish and maintain a registry of—

(A)

each suitability determination made under this subsection; and

(B)

each suitability determination of an Indian tribe provided under section 11.

(6)

Responsibility of gaming-related contractor

A gaming-related contractor shall—

(A)

pay the costs of any investigation activity of the Chairman in carrying out this subsection; and

(B)

provide to the Chairman a notice of any change in information provided during an investigation on discovery of the change

(d)

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.

(e)

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.

(f)

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.

(g)

Appeals

The Chairman, by regulation, shall provide an opportunity for an appeal, conducted through a hearing before the Commission, of any determination of the Chairman under this section by not later than 30 days after the date on which the determination is made.

(h)

Emergency waivers

The Chairman may promulgate regulations providing for a waiver of any requirement under this section because of—

(1)

an emergency; or

(2)

an imminent threat to the public health or safety.

.

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:

14.

Civil penalties

(a)

Penalties

(1)

Violation of act

(A)

In general

Except as provided in subparagraph (B), 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) 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

Subparagraph (A)(ii) shall not apply to any Indian tribe.

(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

.

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 April 15, 2006, an Indian tribe has submitted to the Secretary a written request to have land deemed eligible for gaming under this subparagraph; 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)

by striking clause (ii) and inserting the following:

(ii)

the initial reservation of an Indian tribe acknowledged by the Secretary pursuant to the Federal acknowledgment process, if—

(I)

the Indian tribe has an historical and geographical nexus to the land, as determined by the Secretary; and

(II)

after consultation with the Indian tribe and appropriate local and tribal officials, and after providing for public notice and an opportunity to comment and a public hearing, the Secretary determines that a gaming establishment on the land—

(aa)

would be in the best interests of the Indian tribe and members of the tribe; and

(bb)

would not create significant, unmitigated impacts on the surrounding community; or

; and

(iii)

by striking clause (iii) and inserting the following:

(iii)

the restoration of land for an Indian tribe that is restored to Federal recognition, if—

(I)

the Indian tribe has an historical and geographical nexus to the land, as determined by the Secretary;

(II)

a temporal connection exists between the acquisition of the land and the date of recognition of the tribe, as determined by the Secretary; and

(III)

after consultation with the Indian tribe and appropriate local and tribal officials, and after providing for public notice and an opportunity to comment and a public hearing, the Secretary determines that a gaming establishment on the land—

(aa)

would be in the best interests of the Indian tribe and members of the tribe; and

(bb)

would not create significant, unmitigated impacts on the surrounding community.

; and

(2)

by adding at the end the following:

(4)

Effect of subsection

Nothing in this subsection affects the validity of any determination regarding the eligibility of land for gaming made by the Secretary or Chairman before the date of enactment of this paragraph.

.

11.

Consultation policy

The Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.) is amended by adding at the end the following:

25.

Consultation policy

In promulgating rules and regulations pursuant to this Act, the Commission shall establish and maintain a policy of consultation with Indian tribes in accordance with the Federal trust responsibility and the government-to-government relationship that exists between Indian tribes and the Federal Government.

.

12.

Implementation

The Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.) (as amended by section 11) is amended by adding at the end the following:

26.

Implementation

(a)

Rules and regulations

Not later than 2 years after the date of enactment of this section, the Commission, in consultation with Indian tribes, shall promulgate rules and regulations implementing new definitions, authorities, responsibilities, and restrictions in accordance with the Indian Gaming Regulatory Act Amendments of 2006.

(b)

Report

Not later than 1 year after the date of enactment of this section, the Commission shall submit to the Committee on Indian Affairs of the Senate and the Committee on Resources of the House of Representatives a report describing the status of the promulgation of rules and regulations pursuant to subsection (a).

(c)

Gaming-related contracts

(1)

Effective date

With respect to gaming-related contracts other than management contracts, section 12 shall not take effect until the date on which rules and regulations implementing that section are promulgated pursuant to subsection (a).

(2)

Effect on existing gaming-related contracts

Notwithstanding section 12, a gaming-related contract entered into before the date of enactment of this section that is not approved by the Chairman shall be valid.

(d)

Effect on existing regulations

Nothing in this section prohibits, limits, or restricts the Commission from—

(1)

applying any regulation in effect on the date of enactment of this section that is not inconsistent with this Act;

(2)

amending any regulation; or

(3)

adopting any new regulation.

.

13.

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.

June 6, 2006

Reported with an amendment