article: 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 (c) Section 6 of Public Law 101-301.--Section 6 of Public Law 101- 301 (25 U.S.C. 2703 note; 104 Stat. 209) is repealed.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.
summary: Indian Gaming Regulatory Act Amendments of 1994 - Amends the Indian Gaming Regulatory Act to include manufacturing and assembly of gaming devices within the definition of "class III gaming." Defines "Compact" as the class III gaming regulatory regime. Directs the Chairman of the National Indian Gaming Commission (Commission) to consult with an affected tribe before taking action authorized by such Act. Authorizes the Commission to monitor class III gaming where a Compact so provides. Authorizes class II tribal gaming ordinances to regulate non-Indian gaming activities on Indian lands to the same level as class III regulations permit. Sets forth Compact provisions. Applies the Federal tax exemption given to State gaming activities to Indian gaming activities. Applies Federal laws to class III gaming activities.