Washington Indian Gaming Association
National Legislation/Regulatory Update
*Last update 7/02/2007
Hearing- Senate Committee on Indian Affairs
HEARING on discussion draft legislation regarding the regulation of class III gaming
Thursday, June 28, 2007
9:30:00 AM EDT
SR - 485
Majority Statements Minority Statements
No Statements Posted No Statements Posted ________________________________________
MR. PHILIP HOGEN
Chairman, National Indian Gaming Commission
Washington, DC 20005
MR. DEAN SHELTON
Chairman, California Gambling Control Commission
THE HONORABLE MYRA PEARSON
Chairman, Great Plains Indian Gaming Association, Chairman, Spirit Lake Tribe
Ft. Totten, ND
Accompanied by: KURT LUGER, Executive Director, Great Plains Indian Gaming Association, Bismarck, ND
THE HONORABLE W. RON ALLEN
Chairman Washington Indian Gaming Association, Chairman, Jamestown S'Klallam Tribe
THE HONORABLE VALERIE WELSH-TAHBO
Councilmember, Colorado River Indian Tribes Tribal Council
MR. TRACY BURRIS
Related Files and Attachments
Commissioner, Chickasaw Nation Gaming Commission
discussion draft legislation regarding the regulation of Class III gaming (29.1 KBs)
H.R.1555-To impose a two year moratorium on the Class III compact approval by Secretary of DOI.
Sponsor: Rep. Rogers (R-MI).
3/15/07-Introduced Referred to House Resources
Summary: Two year moratorium on Class III compact approval by DOI to begin upon date of enactment. Identical to H.R.4677 introduced by Rep. Rogers in 109th, never received hearing.
H.R.1654-To amend IGRA to require Secretarial determination of tribal “best interest”, etc. prior to land taken into trust after 10/22/1998.
Sponsor: Rep. Lungren (R-CA).
3/22/07-Introduced Referred to House Resources
Summary: Would require the Secretary of the Interior to make a determination of whether taking land into trust for gaming purposes (Section 20 2-part determination) is in the tribe’s best interest and wouldn’t be detrimental to the surrounding community. Would require consultation with the tribe, state and local officials and nearby tribes prior to determination.
H.R.2046-Internet Gambling Regulation and Enforcement Act of 2007
Sponsor: Rep. Frank (D-MA).
4/26/07-Introduced Referred to Fin. Svcs. and Ener./Comm.
Summary: Would allow internet gambling only by licensed vendors. Licensing jurisdiction would be held by the Financial Crimes Enforcement Network (FinCen). The bill prohibits licensed internet gambling in states where it is prohibited (including Washington). Tribes may also prohibit internet gambling on Indian lands.
H.R.2562-To amend IGRA to limit casino expansion.
Sponsor: Rep. Dent (R-PA).
6/5/2007-Introduced Referred to House Resources
Summary: Would require approval of state Legislature in addition to Governor for tribal-state gaming compacts prior to approval by DOI.
B. Non-Gaming (relevant to gaming tribes)
H.Res.77-To establish the Committee on Indian Affairs in the House of Representatives
Sponsor: Rep. Rehberg (R-MT).
1/18/2007-Introduced Referred to House Rules
Summary: Would change the Rules of the House of Representatives to establish a Committee on Indian Affairs in the House.
S.84-To establish a United State Boxing Commission
Sponsor: Sen. McCain (R-AZ)
1/4/2007-Introduced Referred to House Comm/Science/Trans
2/13/2007-Ordered out of committee w/out amendment
3/1/2007-Placed on Senate Leg. Calendar
Summary: Establishes US Boxing Commission. Authorizes establishment of Tribal Boxing Commissions. Applies Act to states and tribes equally.
S.90-To modify FECA to apply to Indian tribes
Sponsor: Sen. Vitter (R-LA).
1/4/2007-Introduced Referred to Sen. Rules and Administration
Summary: Categorizes Indian Tribes as a corporation or shareholder of corporation for purposes of the Federal Election Campaign Act.
S.792-To amend the IRS Code and ERISA to apply tribal governments to definition of “Governmental Plan.”
Sponsor: Sen. Smith (R-OR).
3/7/2007-Introduced Referred to Health/Education/Labor and Pensions
Reintroduced and referred to Finance Committee
Summary: “Governmental Plan” definitions in both the tax code and ERISA will include tribal government, or a subdivision of a tribal government.
S.1129-Tribal Government Equality Act of 2007
Sponsor: Sen. Smith (R-OR).
4/17/07-Introduced Referred to Senate Finance
Summary: Would amend the Internal Revenue Code to include Indian tribal governments or subdivisions thereof in the definition of ‘governmental plan’ for purposes of employee benefits plans.
A. National Indian Gaming Commission
PRE-PUBLICATION proposed rule changes issued by NIGC on March 28, 2007. Comment accepted until May 15, 2007. Comment period extended to May 30, 2007.
1. Annual Fees-25 CFR part 514
Proposal presents simplified means of calculating annual fees to NIGC for Class II and III facilities without a determination of self-regulation (25 USC §2717(a)(2)(C). Fees are substantially reduced and required reporting drops to twice per year from quarterly. Depreciation rates are more flexible. The NIGC will have more restrictive fee announcement timelines and will only be able to modify annual fees “if considered necessary” after February 1 of each year.
2. Def. of “Net Revenue”-25 CFR §502.16
Proposal would change definition of net revenue to gross revenue minus prizes, gaming operating and non-operating expenses. Current definition is gross revenue minus gaming operating expenses.
3. Management Contracts-25 CFR parts 531, 535 and 537
Proposal has new requirement of including a “legal description” for some documents submitted with the management contract for approval. The new requirement appears to assist in a determination of whether the facility site is located on “Indian lands”. Increases fees for background checks by 150% for management contractors and 100% for others with a financial interest. Time requirement to submit management contracts for approval reduced from 60 days to 30 days.
4. Background Investigations-25 CFR parts 556 and 559
Proposal clarifies current language by adding that TGAs will use the information provided in background checks for key employees or primary management officials. Clarifies other provisions without adversely changing meaning.
5. Audit Standards-25 CFR parts 571.12 and 571.13
Entire “Subpart D” parts are replaced with more specific language which clarifies what type of audit is to be performed for what type of facilities.
6. Def. of “Person Having a Direct or Indirect Financial Interest in a Management Contract.”-25 CFR §502.17
Proposal would further reduce the threshold required for person with a financial interest in a management contract from 10% interest to 5% or in a privately-held corporation, the top 10 shareholders. Also adds to the definition those who may receive interest in a management contract via gift, grant, attribution, etc.
7. Facility Licensing Requirements-25 CFR part 522
See spreadsheet provided on proposed changes.
B. Office of Indian Gaming Management
Compact amendments “X-2” approved by DOI on May 18, 2007. Published in Federal Register on May 31, 2007.