25 U.S.C. § 2710 : US Code - Section 2710: Tribal gaming ordinances

Search 25 U.S.C. § 2710 : US Code - Section 2710: Tribal gaming ordinances

(a) Jurisdiction over class I and class II gaming activity
(1) Class I gaming on Indian lands is within the exclusive
jurisdiction of the Indian tribes and shall not be subject to the
provisions of this chapter.
(2) Any class II gaming on Indian lands shall continue to be
within the jurisdiction of the Indian tribes, but shall be subject
to the provisions of this chapter.
(b) Regulation of class II gaming activity; net revenue allocation;
audits; contracts
(1) An Indian tribe may engage in, or license and regulate, class
II gaming on Indian lands within such tribe's jurisdiction, if -
(A) such Indian gaming is located within a State that permits
such gaming for any purpose by any person, organization or entity
(and such gaming is not otherwise specifically prohibited on
Indian lands by Federal law), and
(B) the governing body of the Indian tribe adopts an ordinance
or resolution which is approved by the Chairman.
A separate license issued by the Indian tribe shall be required for
each place, facility, or location on Indian lands at which class II
gaming is conducted.
(2) The Chairman shall approve any tribal ordinance or resolution
concerning the conduct, or regulation of class II gaming on the
Indian lands within the tribe's jurisdiction if such ordinance or
resolution provides that -
(A) except as provided in paragraph (4), the Indian tribe will
have the sole proprietary interest and responsibility for the
conduct of any gaming activity;
(B) net revenues from any tribal gaming are not to be used for
purposes other than -
(i) to fund tribal government operations or programs;
(ii) to provide for the general welfare of the Indian tribe
and its members;
(iii) to promote tribal economic development;
(iv) to donate to charitable organizations; or
(v) to help fund operations of local government agencies;
(C) annual outside audits of the gaming, which may be
encompassed within existing independent tribal audit systems,
will be provided by the Indian tribe to the Commission;
(D) all contracts for supplies, services, or concessions for a
contract amount in excess of $25,000 annually (except contracts
for professional legal or accounting services) relating to such
gaming shall be subject to such independent audits;
(E) the construction and maintenance of the gaming facility,
and the operation of that gaming is conducted in a manner which
adequately protects the environment and the public health and
safety; and
(F) there is an adequate system which -
(i) ensures that background investigations are conducted on
the primary management officials and key employees of the
gaming enterprise and that oversight of such officials and
their management is conducted on an ongoing basis; and
(ii) includes -
(I) tribal licenses for primary management officials and
key employees of the gaming enterprise with prompt
notification to the Commission of the issuance of such
licenses;
(II) a standard whereby any person whose prior activities,
criminal record, if any, or reputation, habits and
associations pose a threat to the public interest or to the
effective regulation of gaming, or create or enhance the
dangers of unsuitable, unfair, or illegal practices and
methods and activities in the conduct of gaming shall not be
eligible for employment; and
(III) notification by the Indian tribe to the Commission of
the results of such background check before the issuance of
any of such licenses.
(3) Net revenues from any class II gaming activities conducted or
licensed by any Indian tribe may be used to make per capita
payments to members of the Indian tribe only if -
(A) the Indian tribe has prepared a plan to allocate revenues
to uses authorized by paragraph (2)(B);
(B) the plan is approved by the Secretary as adequate,
particularly with respect to uses described in clause (i) or
(iii) of paragraph (2)(B);
(C) the interests of minors and other legally incompetent
persons who are entitled to receive any of the per capita
payments are protected and preserved and the per capita payments
are disbursed to the parents or legal guardian of such minors or
legal incompetents in such amounts as may be necessary for the
health, education, or welfare, of the minor or other legally
incompetent person under a plan approved by the Secretary and the
governing body of the Indian tribe; and
(D) the per capita payments are subject to Federal taxation and
tribes notify members of such tax liability when payments are
made.
(4)(A) 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. No person or entity,
other than the Indian tribe, shall be eligible to receive a tribal
license to own a class II gaming activity conducted on Indian lands
within the jurisdiction of the Indian tribe if such person or
entity would not be eligible to receive a State license to conduct
the same activity within the jurisdiction of the State.
(B)(i) The provisions of subparagraph (A) of this paragraph and
the provisions of subparagraphs (A) and (B) of paragraph (2) shall
not bar the continued operation of an individually owned class II
gaming operation that was operating on September 1, 1986, if -
(I) such gaming operation is licensed and regulated by an
Indian tribe pursuant to an ordinance reviewed and approved by
the Commission in accordance with section 2712 of this title,
(II) income to the Indian tribe from such gaming is used only
for the purposes described in paragraph (2)(B) of this
subsection,
(III) not less than 60 percent of the net revenues is income to
the Indian tribe, and
(IV) the owner of such gaming operation pays an appropriate
assessment to the National Indian Gaming Commission under section
2717(a)(1) of this title for regulation of such gaming.
(ii) The exemption from the application of this subsection
provided under this subparagraph may not be transferred to any
person or entity and shall remain in effect only so long as the
gaming activity remains within the same nature and scope as
operated on October 17, 1988.
(iii) Within sixty days of October 17, 1988, the Secretary shall
prepare a list of each individually owned gaming operation to which
clause (i) applies and shall publish such list in the Federal
Register.
(c) Issuance of gaming license; certificate of self-regulation
(1) The Commission may consult with appropriate law enforcement
officials concerning gaming licenses issued by an Indian tribe and
shall have thirty days to notify the Indian tribe of any objections
to issuance of such license.
(2) If, after the issuance of a gaming license by an Indian
tribe, reliable information is received from the Commission
indicating that a primary management official or key employee does
not meet the standard established under subsection
(b)(2)(F)(ii)(II) of this section, the Indian tribe shall suspend
such license and, after notice and hearing, may revoke such
license.
(3) Any Indian tribe which operates a class II gaming activity
and which -
(A) has continuously conducted such activity for a period of
not less than three years, including at least one year after
October 17, 1988; and
(B) has otherwise complied with the provisions of this section
(!1)
may petition the Commission for a certificate of self-regulation.
(4) The Commission shall issue a certificate of self-regulation
if it determines from available information, and after a hearing if
requested by the tribe, that the tribe has -
(A) conducted its gaming activity in a manner which -
(i) has resulted in an effective and honest accounting of all
revenues;
(ii) has resulted in a reputation for safe, fair, and honest
operation of the activity; and
(iii) has been generally free of evidence of criminal or
dishonest activity;
(B) adopted and is implementing adequate systems for -
(i) accounting for all revenues from the activity;
(ii) investigation, licensing, and monitoring of all
employees of the gaming activity; and
(iii) investigation, enforcement and prosecution of
violations of its gaming ordinance and regulations; and
(C) conducted the operation on a fiscally and economically
sound basis.
(5) During any year in which a tribe has a certificate for self-
regulation -
(A) the tribe shall not be subject to the provisions of
paragraphs (1), (2), (3), and (4) of section 2706(b) of this
title;
(B) the tribe shall continue to submit an annual independent
audit as required by subsection (b)(2)(C) of this section and
shall submit to the Commission a complete resume on all employees
hired and licensed by the tribe subsequent to the issuance of a
certificate of self-regulation; and
(C) the Commission may not assess a fee on such activity
pursuant to section 2717 of this title in excess of one quarter
of 1 per centum of the gross revenue.
(6) The Commission may, for just cause and after an opportunity
for a hearing, remove a certificate of self-regulation by majority
vote of its members.
(d) Class III gaming activities; authorization; revocation; Tribal-
State compact
(1) Class III gaming activities shall be lawful on Indian lands
only if such activities are -
(A) authorized by an ordinance or resolution that -
(i) is adopted by the governing body of the Indian tribe
having jurisdiction over such lands,
(ii) meets the requirements of subsection (b) of this
section, and
(iii) is approved by the Chairman,
(B) located in a State that permits such gaming for any purpose
by any person, organization, or entity, and
(C) conducted in conformance with a Tribal-State compact
entered into by the Indian tribe and the State under paragraph
(3) that is in effect.
(2)(A) If any Indian tribe proposes to engage in, or to authorize
any person or entity to engage in, a class III gaming activity on
Indian lands of the Indian tribe, the governing body of the Indian
tribe shall adopt and submit to the Chairman an ordinance or
resolution that meets the requirements of subsection (b) of this
section.
(B) The Chairman shall approve any ordinance or resolution
described in subparagraph (A), unless the Chairman specifically
determines that -
(i) the ordinance or resolution was not adopted in compliance
with the governing documents of the Indian tribe, or
(ii) the tribal governing body was significantly and unduly
influenced in the adoption of such ordinance or resolution by any
person identified in section 2711(e)(1)(D) of this title.
Upon the approval of such an ordinance or resolution, the Chairman
shall publish in the Federal Register such ordinance or resolution
and the order of approval.
(C) Effective with the publication under subparagraph (B) of an
ordinance or resolution adopted by the governing body of an Indian
tribe that has been approved by the Chairman under subparagraph
(B), class III gaming activity on the Indian lands of the Indian
tribe shall be fully subject to the terms and conditions of the
Tribal-State compact entered into under paragraph (3) by the Indian
tribe that is in effect.
(D)(i) The governing body of an Indian tribe, in its sole
discretion and without the approval of the Chairman, may adopt an
ordinance or resolution revoking any prior ordinance or resolution
that authorized class III gaming on the Indian lands of the Indian
tribe. Such revocation shall render class III gaming illegal on the
Indian lands of such Indian tribe.
(ii) The Indian tribe shall submit any revocation ordinance or
resolution described in clause (i) to the Chairman. The Chairman
shall publish such ordinance or resolution in the Federal Register
and the revocation provided by such ordinance or resolution shall
take effect on the date of such publication.
(iii) Notwithstanding any other provision of this subsection -
(I) any person or entity operating a class III gaming activity
pursuant to this paragraph on the date on which an ordinance or
resolution described in clause (i) that revokes authorization for
such class III gaming activity is published in the Federal
Register may, during the 1-year period beginning on the date on
which such revocation ordinance or resolution is published under
clause (ii), continue to operate such activity in conformance
with the Tribal-State compact entered into under paragraph (3)
that is in effect, and
(II) any civil action that arises before, and any crime that is
committed before, the close of such 1-year period shall not be
affected by such revocation ordinance or resolution.
(3)(A) Any Indian tribe having jurisdiction over the Indian lands
upon which a class III gaming activity is being conducted, or is to
be conducted, shall request the State in which such lands are
located to enter into negotiations for the purpose of entering into
a Tribal-State compact governing the conduct of gaming activities.
Upon receiving such a request, the State shall negotiate with the
Indian tribe in good faith to enter into such a compact.
(B) Any State and any Indian tribe may enter into a Tribal-State
compact governing gaming activities on the Indian lands of the
Indian tribe, but such compact shall take effect only when notice
of approval by the Secretary of such compact has been published by
the Secretary in the Federal Register.
(C) Any Tribal-State compact negotiated under subparagraph (A)
may include provisions relating to -
(i) the application of the criminal and civil laws and
regulations of the Indian tribe or the State that are directly
related to, and necessary for, the licensing and regulation of
such activity;
(ii) the allocation of criminal and civil jurisdiction between
the State and the Indian tribe necessary for the enforcement of
such laws and regulations;
(iii) the assessment by the State of such activities in such
amounts as are necessary to defray the costs of regulating such
activity;
(iv) taxation by the Indian tribe of such activity in amounts
comparable to amounts assessed by the State for comparable
activities;
(v) remedies for breach of contract;
(vi) standards for the operation of such activity and
maintenance of the gaming facility, including licensing; and
(vii) any other subjects that are directly related to the
operation of gaming activities.
(4) Except for any assessments that may be agreed to under
paragraph (3)(C)(iii) of this subsection, nothing in this section
shall be interpreted as conferring upon a State or any of its
political subdivisions authority to impose any tax, fee, charge, or
other assessment upon an Indian tribe or upon 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 upon the lack of authority in
such State, or its political subdivisions, to impose such a tax,
fee, charge, or other assessment.
(5) Nothing in this subsection shall impair the right of an
Indian tribe to regulate class III gaming on its Indian lands
concurrently with the State, except to the extent that such
regulation is inconsistent with, or less stringent than, the State
laws and regulations made applicable by any Tribal-State compact
entered into by the Indian tribe under paragraph (3) that is in
effect.
(6) The provisions of section 1175 of title 15 shall not apply to
any gaming conducted under a Tribal-State compact that -
(A) is entered into under paragraph (3) by a State in which
gambling devices are legal, and
(B) is in effect.
(7)(A) The United States district courts shall have jurisdiction
over -
(i) any cause of action initiated by an Indian tribe arising
from the failure of a State to enter into negotiations with the
Indian tribe for the purpose of entering into a Tribal-State
compact under paragraph (3) or to conduct such negotiations in
good faith,
(ii) any cause of action initiated by a State or Indian tribe
to enjoin a class III gaming activity located on Indian lands and
conducted in violation of any Tribal-State compact entered into
under paragraph (3) that is in effect, and
(iii) any cause of action initiated by the Secretary to enforce
the procedures prescribed under subparagraph (B)(vii).
(B)(i) An Indian tribe may initiate a cause of action described
in subparagraph (A)(i) only after the close of the 180-day period
beginning on the date on which the Indian tribe requested the State
to enter into negotiations under paragraph (3)(A).
(ii) In any action described in subparagraph (A)(i), upon the
introduction of evidence by an Indian tribe that -
(I) a Tribal-State compact has not been entered into under
paragraph (3), and
(II) the State did not respond to the request of the Indian
tribe to negotiate such a compact or did not respond to such
request in good faith,
the burden of proof shall be upon the State to prove that the State
has negotiated with the Indian tribe in good faith to conclude a
Tribal-State compact governing the conduct of gaming activities.
(iii) If, in any action described in subparagraph (A)(i), the
court finds that the State has failed to negotiate in good faith
with the Indian tribe to conclude a Tribal-State compact governing
the conduct of gaming activities, the court shall order the State
and the Indian Tribe (!2) to conclude such a compact within a 60-
day period. In determining in such an action whether a State has
negotiated in good faith, the court -
(I) may take into account the public interest, public safety,
criminality, financial integrity, and adverse economic impacts on
existing gaming activities, and
(II) shall consider any demand by the State for direct taxation
of the Indian tribe or of any Indian lands as evidence that the
State has not negotiated in good faith.
(iv) If a State and an Indian tribe fail to conclude a Tribal-
State compact governing the conduct of gaming activities on the
Indian lands subject to the jurisdiction of such Indian tribe
within the 60-day period provided in the order of a court issued
under clause (iii), the Indian tribe and the State shall each
submit to a mediator appointed by the court a proposed compact that
represents their last best offer for a compact. The mediator shall
select from the two proposed compacts the one which best comports
with the terms of this chapter and any other applicable Federal law
and with the findings and order of the court.
(v) The mediator appointed by the court under clause (iv) shall
submit to the State and the Indian tribe the compact selected by
the mediator under clause (iv).
(vi) If a State consents to a proposed compact during the 60-day
period beginning on the date on which the proposed compact is
submitted by the mediator to the State under clause (v), the
proposed compact shall be treated as a Tribal-State compact entered
into under paragraph (3).
(vii) If the State does not consent during the 60-day period
described in clause (vi) to a proposed compact submitted by a
mediator under clause (v), the mediator shall notify the Secretary
and the Secretary shall prescribe, in consultation with the Indian
tribe, procedures -
(I) which are consistent with the proposed compact selected by
the mediator under clause (iv), the provisions of this chapter,
and the relevant provisions of the laws of the State, and
(II) under which class III gaming may be conducted on the
Indian lands over which the Indian tribe has jurisdiction.
(8)(A) The Secretary is authorized to approve any Tribal-State
compact entered into between an Indian tribe and a State governing
gaming on Indian lands of such Indian tribe.
(B) The Secretary may disapprove a compact described in
subparagraph (A) only if such compact violates -
(i) any provision of this chapter,
(ii) any other provision of Federal law that does not relate to
jurisdiction over gaming on Indian lands, or
(iii) the trust obligations of the United States to Indians.
(C) If the Secretary does not approve or disapprove a compact
described in subparagraph (A) before the date that is 45 days after
the date on which the compact is submitted to the Secretary for
approval, the compact shall be considered to have been approved by
the Secretary, but only to the extent the compact is consistent
with the provisions of this chapter.
(D) The Secretary shall publish in the Federal Register notice of
any Tribal-State compact that is approved, or considered to have
been approved, under this paragraph.
(9) An Indian tribe may enter into a management contract for the
operation of a class III gaming activity if such contract has been
submitted to, and approved by, the Chairman. The Chairman's review
and approval of such contract shall be governed by the provisions
of subsections (b), (c), (d), (f), (g), and (h) of section 2711 of
this title.
(e) Approval of ordinances
For purposes of this section, by not later than the date that is
90 days after the date on which any tribal gaming ordinance or
resolution is submitted to the Chairman, the Chairman shall approve
such ordinance or resolution if it meets the requirements of this
section. Any such ordinance or resolution not acted upon at the end
of that 90-day period shall be considered to have been approved by
the Chairman, but only to the extent such ordinance or resolution
is consistent with the provisions of this chapter.