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S1211aa....................................................by STATE AFFAIRS
INDIAN GAMING COMPACT - Amends and adds to existing law to provide that the
operation of tribal gaming devices on Indian lands pursuant to an
authorized Class III gaming compact is not gambling; to provide that a
tribal gaming device operated on Indian lands pursuant to a valid Class III
gaming compact is not a slot machine nor an electronic or electromechanical
imitation or simulation of any form of casino gambling; to provide
legislative findings; to provide for alternative state-tribal gaming
compacts; to define terms; to provide that the governor may enter into or
amend compacts with Indian tribes regarding the operation of tribal gaming
devices; to provide for certification by the Secretary of State; and to
provide for ratification and implementation provisions for the Coeur
d'Alene Tribe, the Kootenai Tribe and Nez Perce Tribe and the state of
Idaho compacts for Class III gaming.
03/06 Senate intro - 1st rdg - to printing
03/07 Rpt prt - to St Aff
03/13 Rpt out - rec d/p - to 2nd rdg
03/14 2nd rdg - to 3rd rdg
03/20 To 14th Ord
03/23 Rpt out amen - to engros
03/26 Rpt engros - 1st rdg - to 2nd rdg as amen
Rls susp - FAILED - 15-20-0
AYES--Boatright, Danielson, Darrington, Deide, Dunklin, Goedde,
Ingram, Keough, Lodge, Sandy, Sims, Sorensen, Stennett, Thorne,
Whitworth
NAYS--Andreason, Branch, Brandt, Bunderson, Burtenshaw, Cameron,
Davis, Frasure, Geddes, Hawkins, Ipsen, King-Barrutia, Lee, Noh,
Richardson, Risch, Schroeder, Stegner, Wheeler, Williams
Absent and excused-- None
Floor Sponsor -- Sorensen
Filed w/ Office of the Secretary of the Senate
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE SENATE
SENATE BILL NO. 1211
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO GAMING; AMENDING SECTION 18-3801, IDAHO CODE, TO PROVIDE THAT THE
3 OPERATION OF TRIBAL GAMING DEVICES ON INDIAN LANDS PURSUANT TO A CLASS III
4 GAMING COMPACT AUTHORIZED UNDER SECTION 67-429C, IDAHO CODE, IS NOT GAM-
5 BLING AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 18-3810, IDAHO
6 CODE, TO PROVIDE THAT A TRIBAL GAMING DEVICE OPERATED ON INDIAN LANDS PUR-
7 SUANT TO A VALID CLASS III GAMING COMPACT AUTHORIZED UNDER SECTION
8 67-429C, IDAHO CODE, IS NOT A SLOT MACHINE NOR AN ELECTRONIC OR ELECTROME-
9 CHANICAL IMITATION OR SIMULATION OF ANY FORM OF CASINO GAMBLING; AMENDING
10 CHAPTER 4, TITLE 67, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 67-429B,
11 IDAHO CODE, TO PROVIDE LEGISLATIVE FINDINGS AND INTENT REGARDING GAMING
12 AND GAMBLING; AMENDING CHAPTER 4, TITLE 67, IDAHO CODE, BY THE ADDITION OF
13 A NEW SECTION 67-429C, IDAHO CODE, TO PROVIDE FOR ALTERNATIVE STATE-TRIBAL
14 GAMING COMPACTS, TO DEFINE TERMS, TO PROVIDE THAT THE GOVERNOR MAY ENTER
15 INTO OR AMEND COMPACTS WITH INDIAN TRIBES REGARDING THE OPERATION OF
16 TRIBAL GAMING DEVICES WITHIN CERTAIN PARAMETERS AND TO PROVIDE FOR CERTI-
17 FICATION TO THE SECRETARY OF STATE; TO PROVIDE FOR RATIFICATION AND IMPLE-
18 MENTATION PROVISIONS FOR THE COEUR D'ALENE TRIBE, THE KOOTENAI TRIBE AND
19 THE NEZ PERCE TRIBE AND THE STATE OF IDAHO COMPACTS FOR CLASS III GAMING;
20 AND DECLARING AN EMERGENCY.
21 Be It Enacted by the Legislature of the State of Idaho:
22 SECTION 1. That Section 18-3801, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 18-3801. GAMBLING DEFINED. "Gambling" means risking any money, credit,
25 deposit or other thing of value for gain contingent in whole or in part upon
26 lot, chance, the operation of a gambling device or the happening or outcome of
27 an event, including a sporting event, the operation of casino gambling includ-
28 ing, but not limited to, blackjack, craps, roulette, poker, bacarrat baccarat
29 or keno, but does not include:
30 (1) Bona fide contests of skill, speed, strength or endurance in which
31 awards are made only to entrants or the owners of entrants; or
32 (2) Bona fide business transactions which are valid under the law of con-
33 tracts; or
34 (3) Games that award only additional play; or
35 (4) Merchant promotional contests and drawings conducted incidentally to
36 bona fide nongaming business operations, if prizes are awarded without consid-
37 eration being charged to participants; or
38 (5) The operation of tribal gaming devices on Indian lands pursuant to a
39 valid class III gaming compact authorized under section 67-429C, Idaho Code;
40 or
41 (6) Other acts or transactions now or hereafter expressly authorized by
42 law.
2
1 SECTION 2. That Section 18-3810, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 18-3810. SLOT MACHINES -- POSSESSION UNLAWFUL -- EXCEPTION. (1) Except as
4 otherwise provided in this section, it shall be a misdemeanor and punishable
5 as provided in section 18-3801, Idaho Code, for any person to use, possess,
6 operate, keep, sell, or maintain for use or operation or otherwise, anywhere
7 within the state of Idaho, any slot machine of any sort or kind whatsoever.
8 For purposes of this section, a tribal gaming device operated on Indian lands
9 pursuant to a valid class III gaming compact authorized under section 67-429C,
10 Idaho Code, is not a slot machine or an electronic or electromechanical imita-
11 tion or simulation of any form of casino gambling.
12 (2) The provisions of section 18-3804, Idaho Code, shall not apply to
13 antique slot machines. For the purpose of this section, an antique slot
14 machine is a slot machine manufactured prior to 1950, the operation of which
15 is exclusively mechanical in nature and is not aided in whole or in part by
16 any electronic means.
17 (3) Antique slot machines may be sold, possessed or located for purposes
18 of display only and not for operation.
19 (4) An antique slot machine may not be operated for any purpose.
20 SECTION 3. That Chapter 4, Title 67, Idaho Code, be and the same is
21 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
22 ignated as Section 67-429B, Idaho Code, and to read as follows:
23 67-429B. LEGISLATIVE FINDINGS AND INTENT. (1) The legislature finds:
24 (a) That gambling is contrary to public policy and is strictly prohibited
25 in the state of Idaho;
26 (b) That under section 20, article III, of the constitution of the state
27 of Idaho, the state of Idaho forbids any form of casino gambling includ-
28 ing, but not limited to, blackjack, craps, roulette, poker, baccarat, keno
29 and slot machines or any electronic or electromechanical imitation or sim-
30 ulation of any form of casino gambling;
31 (c) That under the Indian Gaming Regulatory Act, or IGRA, an Indian tribe
32 may engage in a class III gaming activity on tribal lands only if that
33 specific gaming activity is permitted under the laws of the state where
34 the tribal lands are located;
35 (d) That the state's governmental interests with respect to class III
36 gaming on Indian lands include the interplay of such gaming with the
37 state's public policy, safety, law and other interests, as well as impacts
38 on the state's regulatory system, including its economic interest in rais-
39 ing revenue for its citizens and in the continuation of economic develop-
40 ment which is supported by Indian gaming in Idaho;
41 (e) That Indian gaming provides positive financial impacts to the tribes
42 and the state and the tribes may utilize gaming generated financial
43 resources to fund programs that provide vital services to tribal citizens
44 and local Idaho communities; and
45 (f) This legislation is intended to provide a means by which tribal and
46 state governments can work together to realize their unique and individual
47 governmental objectives, while at the same time develop a regulatory and
48 jurisdictional pattern that will foster a consistency and uniformity in
49 regulating the conduct of gaming activities.
50 (2) It is the intent of the legislature in enacting section 67-429C,
51 Idaho Code, to further the following important interests:
52 (a) Restraining the expansion of gaming in Idaho in light of the state's
3
1 strong public policy prohibiting gambling;
2 (b) Prohibiting New Jersey and Nevada style casinos in the state of
3 Idaho;
4 (c) Securing for tribal governments the right to operate legally permis-
5 sible class III gaming under the IGRA to help the tribes reach the goal of
6 economic self-sufficiency;
7 (d) Establishing a process for resolving disputed matters between the
8 state and tribes; and
9 (e) Authorizing the governor to enter into state-tribal compacts consis-
10 tent with these purposes.
11 SECTION 4. That Chapter 4, Title 67, Idaho Code, be and the same is
12 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
13 ignated as Section 67-429C, Idaho Code, and to read as follows:
14 67-429C. ALTERNATIVE STATE-TRIBAL GAMING COMPACT PROVISIONS. (1) Defini-
15 tions.
16 (a) "Cash out ticket" means an electronically encoded paper ticket gener-
17 ated by game play that shall have legibly printed upon it the player's
18 game results and credits due, if any.
19 (b) "Cashier terminal" means an attendant terminal located remotely from
20 the tribal gaming devices (TGDs), which, in communication with the central
21 accounting server, verifies cash out tickets.
22 (c) "Central accounting server" or "CAS" means a central computer con-
23 nected to the TGDs and the cashier terminal programmed to track for each
24 TGD the amount of money a player has deposited in the TGD, the wager for
25 each game played, the player's total of winnings or losses, accounting and
26 tracking of all TGD activity and other functions unrelated to the playing
27 of the game.
28 (d) "Credit balance" means the number of credits available to a player
29 that may be used for additional game play or may be cashed out by the
30 player.
31 (e) "Game" means the process by which the player participates in the
32 activity offered by the TGD.
33 (f) "Game identifier" means the symbol, number or name which identifies
34 the particular TGD which the player played.
35 (g) "Game play" means the act of a player of a TGD to do the following:
36 (i) Insert currency or other representation of value into the TGD
37 to purchase credits to allow the player to participate in a game;
38 (ii) Select the number of credits to be wagered for each game;
39 (iii) Touch the display or panel of buttons to initiate the random
40 selection of number or symbols to determine game results, which are
41 displayed on the video screen or other electronic display; and
42 (iv) Choose to use the credit balance for additional play or to
43 receive a cash out ticket to be presented to the cashier terminal for
44 payment upon applicable verification procedures, such ticket to
45 remain valid for not less than one (1) and not more than three (3)
46 days.
47 (h) "Game results" means the number of credits remaining after the play
48 of each game.
49 (i) "Net gaming revenues" means gross revenues from the operation of
50 TGDs, less amounts paid out or paid for as prizes and total operating
51 expenses, excluding management fees.
52 (j) "Nevada or New Jersey style casino" means any gambling establishment
53 offering any game, or combination of the games including, but not limited
4
1 to, blackjack, craps, roulette, poker, baccarat, keno and slot machines,
2 as defined in paragraph (l) of this subsection, or any electronic or elec-
3 tromechanical simulation of such games.
4 (k) "Progressive" means a lottery game available to multiple players of
5 certain TGDs which the possible credits available for winning continues to
6 increase until one (1) player's TGD randomly selects the winning combina-
7 tion of numbers or symbols.
8 (l) "Slot machine" means a stand alone gambling device that may be acti-
9 vated by a handle or lever that dispenses coins or currency and may be
10 operated by a player and by reason of hazard or chance, upon the operation
11 thereof, may entitle the player to money or prizes of value, or any simi-
12 lar type gaming device that is not a lottery game or a TGD.
13 (m) "Total operating expenses" means all operating expenses reflected on
14 the audited statement of the tribes submitted annually to the national
15 Indian gaming commission. Management fees paid pursuant to a management
16 contract approved by the national Indian gaming commission and reported
17 for tax purposes to the state of Idaho may be included as total operating
18 expenses.
19 (n) "Tribal gaming device" or "TGD" means any single self-serve video
20 gaming terminal operated by a single player and, where applicable, con-
21 nected to the CAS, with video screen or other electronic display to show
22 the computer generated results of each game. A single terminal connected
23 to a server that provides "progressive" gaming activity to other terminals
24 shall constitute a single TGD. A TGD is not a slot machine nor an elec-
25 tronic or electromechanical imitation or simulation of any form of casino
26 gambling and shall perform only the following functions:
27 (i) Accept currency or other representative of value to qualify a
28 player to participate in one (1) or more games;
29 (ii) Dispense, at the player's request, a cash out ticket that has
30 printed upon it the game identifier and the player's credit balance;
31 (iii) Show on the video screen or other electronic display the
32 results of each game played;
33 (iv) Show on the video screen or other electronic display, in an
34 area separate from the game results, the player's credit balance;
35 (v) Select randomly, by computer, numbers or symbols to determine
36 game results; and
37 (vi) Maintain the integrity of the operations of the terminal.
38 (o) "Wager" means the amount of credits used by a player to play a game.
39 (2) Notwithstanding the provisions of section 67-429A, Idaho Code, the
40 governor may enter into, or amend, compacts with Indian tribes regarding the
41 operation of TGDs if all of the compacts contain the following conditions:
42 (a) Nevada and New Jersey style casinos are prohibited;
43 (b) No Indian gaming shall take place outside of Indian reservation
44 lands. No Indian gaming shall take place upon a lake, water body or navi-
45 gable river;
46 (c) Gaming offered is strictly limited to TGDs as defined in subsection
47 (1) of this section, Idaho state lottery games conducted pursuant to chap-
48 ter 74, title 67, Idaho Code, and pari-mutuel betting as permitted by
49 chapter 25, title 54, Idaho Code;
50 (d) The number of TGDs is limited for each tribe by a method established
51 by the governor that will allow for a determination of a finite number of
52 TGDs, based on the number of TGDs owned by each tribe as of January 1,
53 2001, with no more than a fifteen percent (15%) aggregate increase over a
54 ten (10) year period from the effective date of this section;
55 (e) Each tribe contributes quarterly an amount to the state to cover
5
1 estimated direct and indirect costs of monitoring compact compliance by
2 that tribe; and
3 (f) Each tribe agrees, pursuant to the Indian gaming regulatory act, 25
4 U.S.C. sections 2710(b)(2)(B)(iv) and 2710(d)(2)(A), to contribute annu-
5 ally an amount no less than five percent (5%) of the net gaming revenues
6 to the state of Idaho tribal educational and community opportunity fund.
7 (3) If all of the conditions set forth in subsection (2) of this section
8 have been met, the governor shall certify to the secretary of state that such
9 conditions have been met. Upon such certification, and upon the signing of
10 compacts which in the governor's judgment adequately protect the interests of
11 the state of Idaho, the provisions of this section allowing for operation of
12 TGDs shall be effective and such gaming shall be permitted gaming for Indian
13 tribes within the meaning of 25 U.S.C. section 2710(d)(1)(B). Nothing in this
14 section shall be construed to allow commercial or other operation of TGDs by
15 any government, subdivision thereof or any other person or entity other than
16 by Indian tribes on Indian lands after all conditions of this act have been
17 met.
18 SECTION 5. RATIFICATION AND IMPLEMENTATION PROVISIONS FOR THE COEUR
19 D'ALENE TRIBE, THE KOOTENAI TRIBE, THE NEZ PERCE TRIBE AND THE STATE OF IDAHO
20 COMPACTS FOR CLASS III GAMING. (1) The material terms of the Coeur d'Alene
21 Tribe, the Kootenai Tribe, the Nez Perce Tribe and the State of Idaho Compacts
22 for Class III Gaming, signed in 2001, are hereby ratified.
23 (2) As contemplated by the compacts, the governor is hereby authorized to
24 waive Eleventh Amendment immunity on behalf of the state of Idaho with regard
25 to issues arising under these compacts.
26 (3) The state is authorized to protect the confidentiality of records as
27 provided in the compacts.
28 SECTION 6. An emergency existing therefor, which emergency is hereby
29 declared to exist, this act shall be in full force and effect on and after its
30 passage and approval.
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
Moved by Sorensen
Seconded by Danielson
IN THE SENATE
SENATE AMENDMENTS TO S.B. NO. 1211
1 AMENDMENT TO SECTION 1
2 On page 1 of the printed bill, in line 38, following "lands" insert: ", as
3 defined in 25 U.S.C. sections 2703(4) and 2719,".
4 AMENDMENT TO SECTION 2
5 On page 2, in line 8, following "lands" insert: ", as defined in 25 U.S.C.
6 sections 2703(4) and 2719,".
7 AMENDMENTS TO SECTION 3
8 On page 2, in line 48, following "uniformity" insert: "throughout the
9 state of Idaho"; in line 49, following "activities" insert: "of all Indian
10 tribes engaged in class III gaming in Idaho"; and in line 52, following
11 "Restraining" insert: ", containing and limiting".
12 On page 3, delete line 2, and insert:
13 "(b) Prohibiting Nevada or New Jersey style casinos in the state of".
14 AMENDMENTS TO SECTION 4
15 On page 3, following line 48, insert:
16 "(i) "Indian lands" means Indian lands as defined in 25 U.S.C. section
17 2703(4), as well as lands which meet the requirements of 25 U.S.C. section
18 2719.";
19 in line 49, delete "(i)" and insert: "(j)"; in line 52, delete "(j)" and
20 insert: "(k)".
21 On page 4, in line 2, delete "as defined in paragraph (l) of this subsec-
22 tion,"; in line 4, delete "(k)" and insert: "(l)"; delete lines 8 through 12;
23 in line 20, following "player" insert: "for game play"; delete lines 24
24 through 26, and insert: "shall constitute a single TGD. A TGD shall not be
25 activated by handle or lever, shall not dispense coins or currency and shall
26 perform only the following functions:"; in line 39, delete "Notwithstanding
27 the provisions of" and insert: "Pursuant to"; in line 41, delete "all of"; and
28 also in line 41, following "contain" insert: "all of"; in line 42, delete
29 "and" and insert: "or"; in line 43, delete "reservation"; following line 49,
30 insert:
31 "(d) Automated teller machines shall not be located in any room or rooms
32 where class III gaming is conducted and shall be programmed so that they
33 will not accept cards issued by the state of Idaho to AFDC/TANF recipients
34 for access to AFDC/TANF benefits;";
35 in line 50, delete "(d)" and insert: "(e)"; and also in line 50, following
36 "is" insert: "absolutely"; delete lines 51 through 54, and insert: "by the
37 governor that will allow for a determination of a maximum number of TGDs to be
38 allocated to each tribe. The maximum number of TGDs owned by the Coeur d'
39 Alene, Kootenai and Nez Perce tribes shall be determined as of January 1,
40 2001, with no more than a fifteen percent (15%) cumulative increase for each
41 of those tribes over a ten (10) year period from the effective date of this
2
1 statute, after which no additional TGDs shall be allowed. For any other Indian
2 tribe conducting class III gaming, the maximum number of TGDs shall be deter-
3 mined through negotiations with the governor, but in no event shall the maxi-
4 mum number of TGDs exceed any single allocation to any single tribe named
5 above;";
6 in line 55, delete "(e)" and insert: "(f)".
7 On page 5, in line 3, delete "(f)" and insert: "(g)"; in line 13, follow-
8 ing "2710(d)(1)(B)." insert: "No TGDs shall be permitted within the meaning of
9 25 U.S.C. section 2710(d)(1)(B) for any Indian tribe pursuant to any future
10 negotiated or amended compact unless the conditions in subsection (2) of this
11 section are agreed to by the tribe."; in line 16, following "lands" insert:
12 "but only".
13 AMENDMENT TO SECTION 5
14 On page 5, in line 20, delete "The" and insert: "For purposes of section
15 67-429A, Idaho Code, the".
Moved by Brandt
Seconded by Frasure
IN THE SENATE
SENATE AMENDMENT TO S.B. NO. 1211
16 AMENDMENT TO SECTION 6
17 On page 5 of the printed bill, in line 30, following "approval" insert:
18 "and upon certification by the Secretary of State that he has received an
19 affidavit from the governing body of each Indian tribe subject to this act,
20 signed by the tribal chairman and all tribal council members, that the tribe
21 and the governing body of the Indian tribe renounce all claims over state lot-
22 tery winnings or state lottery proceeds that occur on that tribe's reserva-
23 tion and that the tribe and the governing body of the tribe shall not regulate
24 the state lottery and its operations in any form whatsoever in Idaho".
25 CORRECTION TO TITLE
26 On page 1, in line 20, delete "AND"; and also in line 20, following
27 "EMERGENCY" insert: "AND TO REQUIRE CERTIFICATION BY THE SECRETARY OF STATE
28 UPON CERTAIN CIRCUMSTANCES OCCURRING".
Moved by Bunderson
Seconded by Lee
IN THE SENATE
SENATE AMENDMENTS TO S.B. NO. 1211
29 AMENDMENTS TO SECTION 3
30 On page 2 of the printed bill, in line 42, delete "and the state"; and
31 also in line 42, delete "may" and insert: "shall"; and in line 43, following
32 "vital" insert: "employment, educational, health and societal".
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE SENATE
SENATE BILL NO. 1211, As Amended
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO GAMING; AMENDING SECTION 18-3801, IDAHO CODE, TO PROVIDE THAT THE
3 OPERATION OF TRIBAL GAMING DEVICES ON INDIAN LANDS PURSUANT TO A CLASS III
4 GAMING COMPACT AUTHORIZED UNDER SECTION 67-429C, IDAHO CODE, IS NOT GAM-
5 BLING AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 18-3810, IDAHO
6 CODE, TO PROVIDE THAT A TRIBAL GAMING DEVICE OPERATED ON INDIAN LANDS PUR-
7 SUANT TO A VALID CLASS III GAMING COMPACT AUTHORIZED UNDER SECTION
8 67-429C, IDAHO CODE, IS NOT A SLOT MACHINE NOR AN ELECTRONIC OR ELECTROME-
9 CHANICAL IMITATION OR SIMULATION OF ANY FORM OF CASINO GAMBLING; AMENDING
10 CHAPTER 4, TITLE 67, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 67-429B,
11 IDAHO CODE, TO PROVIDE LEGISLATIVE FINDINGS AND INTENT REGARDING GAMING
12 AND GAMBLING; AMENDING CHAPTER 4, TITLE 67, IDAHO CODE, BY THE ADDITION OF
13 A NEW SECTION 67-429C, IDAHO CODE, TO PROVIDE FOR ALTERNATIVE STATE-TRIBAL
14 GAMING COMPACTS, TO DEFINE TERMS, TO PROVIDE THAT THE GOVERNOR MAY ENTER
15 INTO OR AMEND COMPACTS WITH INDIAN TRIBES REGARDING THE OPERATION OF
16 TRIBAL GAMING DEVICES WITHIN CERTAIN PARAMETERS AND TO PROVIDE FOR CERTI-
17 FICATION TO THE SECRETARY OF STATE; TO PROVIDE FOR RATIFICATION AND IMPLE-
18 MENTATION PROVISIONS FOR THE COEUR D'ALENE TRIBE, THE KOOTENAI TRIBE AND
19 THE NEZ PERCE TRIBE AND THE STATE OF IDAHO COMPACTS FOR CLASS III GAMING;
20 DECLARING AN EMERGENCY AND TO REQUIRE CERTIFICATION BY THE SECRETARY OF
21 STATE UPON CERTAIN CIRCUMSTANCES OCCURRING.
22 Be It Enacted by the Legislature of the State of Idaho:
23 SECTION 1. That Section 18-3801, Idaho Code, be, and the same is hereby
24 amended to read as follows:
25 18-3801. GAMBLING DEFINED. "Gambling" means risking any money, credit,
26 deposit or other thing of value for gain contingent in whole or in part upon
27 lot, chance, the operation of a gambling device or the happening or outcome of
28 an event, including a sporting event, the operation of casino gambling includ-
29 ing, but not limited to, blackjack, craps, roulette, poker, bacarrat baccarat
30 or keno, but does not include:
31 (1) Bona fide contests of skill, speed, strength or endurance in which
32 awards are made only to entrants or the owners of entrants; or
33 (2) Bona fide business transactions which are valid under the law of con-
34 tracts; or
35 (3) Games that award only additional play; or
36 (4) Merchant promotional contests and drawings conducted incidentally to
37 bona fide nongaming business operations, if prizes are awarded without consid-
38 eration being charged to participants; or
39 (5) The operation of tribal gaming devices on Indian lands, as defined in
40 25 U.S.C. sections 2703(4) and 2719, pursuant to a valid class III gaming com-
41 pact authorized under section 67-429C, Idaho Code; or
42 (6) Other acts or transactions now or hereafter expressly authorized by
43 law.
2
1 SECTION 2. That Section 18-3810, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 18-3810. SLOT MACHINES -- POSSESSION UNLAWFUL -- EXCEPTION. (1) Except as
4 otherwise provided in this section, it shall be a misdemeanor and punishable
5 as provided in section 18-3801, Idaho Code, for any person to use, possess,
6 operate, keep, sell, or maintain for use or operation or otherwise, anywhere
7 within the state of Idaho, any slot machine of any sort or kind whatsoever.
8 For purposes of this section, a tribal gaming device operated on Indian lands,
9 as defined in 25 U.S.C. sections 2703(4) and 2719, pursuant to a valid class
10 III gaming compact authorized under section 67-429C, Idaho Code, is not a slot
11 machine or an electronic or electromechanical imitation or simulation of any
12 form of casino gambling.
13 (2) The provisions of section 18-3804, Idaho Code, shall not apply to
14 antique slot machines. For the purpose of this section, an antique slot
15 machine is a slot machine manufactured prior to 1950, the operation of which
16 is exclusively mechanical in nature and is not aided in whole or in part by
17 any electronic means.
18 (3) Antique slot machines may be sold, possessed or located for purposes
19 of display only and not for operation.
20 (4) An antique slot machine may not be operated for any purpose.
21 SECTION 3. That Chapter 4, Title 67, Idaho Code, be and the same is
22 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
23 ignated as Section 67-429B, Idaho Code, and to read as follows:
24 67-429B. LEGISLATIVE FINDINGS AND INTENT. (1) The legislature finds:
25 (a) That gambling is contrary to public policy and is strictly prohibited
26 in the state of Idaho;
27 (b) That under section 20, article III, of the constitution of the state
28 of Idaho, the state of Idaho forbids any form of casino gambling includ-
29 ing, but not limited to, blackjack, craps, roulette, poker, baccarat, keno
30 and slot machines or any electronic or electromechanical imitation or sim-
31 ulation of any form of casino gambling;
32 (c) That under the Indian Gaming Regulatory Act, or IGRA, an Indian tribe
33 may engage in a class III gaming activity on tribal lands only if that
34 specific gaming activity is permitted under the laws of the state where
35 the tribal lands are located;
36 (d) That the state's governmental interests with respect to class III
37 gaming on Indian lands include the interplay of such gaming with the
38 state's public policy, safety, law and other interests, as well as impacts
39 on the state's regulatory system, including its economic interest in rais-
40 ing revenue for its citizens and in the continuation of economic develop-
41 ment which is supported by Indian gaming in Idaho;
42 (e) That Indian gaming provides positive financial impacts to the tribes
43 and the tribes shall utilize gaming generated financial resources to fund
44 programs that provide vital employment, educational, health and societal
45 services to tribal citizens and local Idaho communities; and
46 (f) This legislation is intended to provide a means by which tribal and
47 state governments can work together to realize their unique and individual
48 governmental objectives, while at the same time develop a regulatory and
49 jurisdictional pattern that will foster a consistency and uniformity
50 throughout the state of Idaho in regulating the conduct of gaming activi-
51 ties of all Indian tribes engaged in class III gaming in Idaho.
52 (2) It is the intent of the legislature in enacting section 67-429C,
3
1 Idaho Code, to further the following important interests:
2 (a) Restraining, containing and limiting the expansion of gaming in Idaho
3 in light of the state's strong public policy prohibiting gambling;
4 (b) Prohibiting Nevada or New Jersey style casinos in the state of Idaho;
5 (c) Securing for tribal governments the right to operate legally permis-
6 sible class III gaming under the IGRA to help the tribes reach the goal of
7 economic self-sufficiency;
8 (d) Establishing a process for resolving disputed matters between the
9 state and tribes; and
10 (e) Authorizing the governor to enter into state-tribal compacts consis-
11 tent with these purposes.
12 SECTION 4. That Chapter 4, Title 67, Idaho Code, be and the same is
13 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
14 ignated as Section 67-429C, Idaho Code, and to read as follows:
15 67-429C. ALTERNATIVE STATE-TRIBAL GAMING COMPACT PROVISIONS. (1) Defini-
16 tions.
17 (a) "Cash out ticket" means an electronically encoded paper ticket gener-
18 ated by game play that shall have legibly printed upon it the player's
19 game results and credits due, if any.
20 (b) "Cashier terminal" means an attendant terminal located remotely from
21 the tribal gaming devices (TGDs), which, in communication with the central
22 accounting server, verifies cash out tickets.
23 (c) "Central accounting server" or "CAS" means a central computer con-
24 nected to the TGDs and the cashier terminal programmed to track for each
25 TGD the amount of money a player has deposited in the TGD, the wager for
26 each game played, the player's total of winnings or losses, accounting and
27 tracking of all TGD activity and other functions unrelated to the playing
28 of the game.
29 (d) "Credit balance" means the number of credits available to a player
30 that may be used for additional game play or may be cashed out by the
31 player.
32 (e) "Game" means the process by which the player participates in the
33 activity offered by the TGD.
34 (f) "Game identifier" means the symbol, number or name which identifies
35 the particular TGD which the player played.
36 (g) "Game play" means the act of a player of a TGD to do the following:
37 (i) Insert currency or other representation of value into the TGD
38 to purchase credits to allow the player to participate in a game;
39 (ii) Select the number of credits to be wagered for each game;
40 (iii) Touch the display or panel of buttons to initiate the random
41 selection of number or symbols to determine game results, which are
42 displayed on the video screen or other electronic display; and
43 (iv) Choose to use the credit balance for additional play or to
44 receive a cash out ticket to be presented to the cashier terminal for
45 payment upon applicable verification procedures, such ticket to
46 remain valid for not less than one (1) and not more than three (3)
47 days.
48 (h) "Game results" means the number of credits remaining after the play
49 of each game.
50 (i) "Indian lands" means Indian lands as defined in 25 U.S.C. section
51 2703(4), as well as lands which meet the requirements of 25 U.S.C. section
52 2719.
53 (j) "Net gaming revenues" means gross revenues from the operation of
4
1 TGDs, less amounts paid out or paid for as prizes and total operating
2 expenses, excluding management fees.
3 (k) "Nevada or New Jersey style casino" means any gambling establishment
4 offering any game, or combination of the games including, but not limited
5 to, blackjack, craps, roulette, poker, baccarat, keno and slot machines,
6 or any electronic or electromechanical simulation of such games.
7 (l) "Progressive" means a lottery game available to multiple players of
8 certain TGDs which the possible credits available for winning continues to
9 increase until one (1) player's TGD randomly selects the winning combina-
10 tion of numbers or symbols.
11 (m) "Total operating expenses" means all operating expenses reflected on
12 the audited statement of the tribes submitted annually to the national
13 Indian gaming commission. Management fees paid pursuant to a management
14 contract approved by the national Indian gaming commission and reported
15 for tax purposes to the state of Idaho may be included as total operating
16 expenses.
17 (n) "Tribal gaming device" or "TGD" means any single self-serve video
18 gaming terminal operated by a single player for game play and, where
19 applicable, connected to the CAS, with video screen or other electronic
20 display to show the computer generated results of each game. A single ter-
21 minal connected to a server that provides "progressive" gaming activity to
22 other terminals shall constitute a single TGD. A TGD shall not be acti-
23 vated by handle or lever, shall not dispense coins or currency and shall
24 perform only the following functions:
25 (i) Accept currency or other representative of value to qualify a
26 player to participate in one (1) or more games;
27 (ii) Dispense, at the player's request, a cash out ticket that has
28 printed upon it the game identifier and the player's credit balance;
29 (iii) Show on the video screen or other electronic display the
30 results of each game played;
31 (iv) Show on the video screen or other electronic display, in an
32 area separate from the game results, the player's credit balance;
33 (v) Select randomly, by computer, numbers or symbols to determine
34 game results; and
35 (vi) Maintain the integrity of the operations of the terminal.
36 (o) "Wager" means the amount of credits used by a player to play a game.
37 (2) Pursuant to section 67-429A, Idaho Code, the governor may enter into,
38 or amend, compacts with Indian tribes regarding the operation of TGDs if the
39 compacts contain all of the following conditions:
40 (a) Nevada or New Jersey style casinos are prohibited;
41 (b) No Indian gaming shall take place outside of Indian lands. No Indian
42 gaming shall take place upon a lake, water body or navigable river;
43 (c) Gaming offered is strictly limited to TGDs as defined in subsection
44 (1) of this section, Idaho state lottery games conducted pursuant to chap-
45 ter 74, title 67, Idaho Code, and pari-mutuel betting as permitted by
46 chapter 25, title 54, Idaho Code;
47 (d) Automated teller machines shall not be located in any room or rooms
48 where class III gaming is conducted and shall be programmed so that they
49 will not accept cards issued by the state of Idaho to AFDC/TANF recipients
50 for access to AFDC/TANF benefits;
51 (e) The number of TGDs is absolutely limited for each tribe by a method
52 established by the governor that will allow for a determination of a maxi-
53 mum number of TGDs to be allocated to each tribe. The maximum number of
54 TGDs owned by the Coeur d' Alene, Kootenai and Nez Perce tribes shall be
55 determined as of January 1, 2001, with no more than a fifteen percent
5
1 (15%) cumulative increase for each of those tribes over a ten (10) year
2 period from the effective date of this statute, after which no additional
3 TGDs shall be allowed. For any other Indian tribe conducting class III
4 gaming, the maximum number of TGDs shall be determined through negotia-
5 tions with the governor, but in no event shall the maximum number of TGDs
6 exceed any single allocation to any single tribe named above;
7 (f) Each tribe contributes quarterly an amount to the state to cover
8 estimated direct and indirect costs of monitoring compact compliance by
9 that tribe; and
10 (g) Each tribe agrees, pursuant to the Indian gaming regulatory act, 25
11 U.S.C. sections 2710(b)(2)(B)(iv) and 2710(d)(2)(A), to contribute annu-
12 ally an amount no less than five percent (5%) of the net gaming revenues
13 to the state of Idaho tribal educational and community opportunity fund.
14 (3) If all of the conditions set forth in subsection (2) of this section
15 have been met, the governor shall certify to the secretary of state that such
16 conditions have been met. Upon such certification, and upon the signing of
17 compacts which in the governor's judgment adequately protect the interests of
18 the state of Idaho, the provisions of this section allowing for operation of
19 TGDs shall be effective and such gaming shall be permitted gaming for Indian
20 tribes within the meaning of 25 U.S.C. section 2710(d)(1)(B). No TGDs shall be
21 permitted within the meaning of 25 U.S.C. section 2710(d)(1)(B) for any Indian
22 tribe pursuant to any future negotiated or amended compact unless the condi-
23 tions in subsection (2) of this section are agreed to by the tribe. Nothing in
24 this section shall be construed to allow commercial or other operation of TGDs
25 by any government, subdivision thereof or any other person or entity other
26 than by Indian tribes on Indian lands but only after all conditions of this
27 act have been met.
28 SECTION 5. RATIFICATION AND IMPLEMENTATION PROVISIONS FOR THE COEUR
29 D'ALENE TRIBE, THE KOOTENAI TRIBE, THE NEZ PERCE TRIBE AND THE STATE OF IDAHO
30 COMPACTS FOR CLASS III GAMING. (1) For purposes of section 67-429A, Idaho
31 Code, the material terms of the Coeur d'Alene Tribe, the Kootenai Tribe, the
32 Nez Perce Tribe and the State of Idaho Compacts for Class III Gaming, signed
33 in 2001, are hereby ratified.
34 (2) As contemplated by the compacts, the governor is hereby authorized to
35 waive Eleventh Amendment immunity on behalf of the state of Idaho with regard
36 to issues arising under these compacts.
37 (3) The state is authorized to protect the confidentiality of records as
38 provided in the compacts.
39 SECTION 6. An emergency existing therefor, which emergency is hereby
40 declared to exist, this act shall be in full force and effect on and after its
41 passage and approval and upon certification by the Secretary of State that he
42 has received an affidavit from the governing body of each Indian tribe subject
43 to this act, signed by the tribal chairman and all tribal council members,
44 that the tribe and the governing body of the Indian tribe renounce all claims
45 over state lottery winnings or state lottery proceeds that occur on that
46 tribe's reservation and that the tribe and the governing body of the tribe
47 shall not regulate the state lottery and its operations in any form whatsoever
48 in Idaho.
STATEMENT OF PURPOSE
RS 11224
This bill authorizes the Governor to amend the Coeur
d’Alene, Kootenai and Nez Perce Tribes and State of Idaho
compacts for Class III gaming provided certain conditions
are met, and provides a mechanism for resolution of legal
issues regarding Indian gaming. The bill also provides for
a change in statute to prohibit in Idaho the types of
gaming activity and casinos located in Nevada and New
Jersey while authorizing the use of tribal gaming devices,
as defined, by tribes with a valid Class III gaming
compact. This legislation would create a mechanism for
legal resolution of future differences that may arise under
these compacts, which is accomplished through waiver of the
state’s Eleventh Amendment immunity and tribal waiver of
tribal sovereign immunity. The bill also authorizes the
state to protect the confidentiality of tribal records.
FISCAL NOTE
Ongoing monitoring of Class III gaming is provided by the
Idaho State Lottery pursuant to I. C. Section 67-74 09 (6).
The tribes are required under this legislation to
contribute quarterly an amount to the state to cover the
estimated direct and indirect costs of monitoring compact
compliance. The Attorney General’s existing staff will
represent the State with respect to any legal proceedings
contemplated by the compacts.
CONTACT: Michael Bogert Office of the Governor
(208) 334-2100
S 1211