2001 Legislation
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SENATE BILL NO. 1211 – Indian gaming compact

SENATE BILL NO. 1211

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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

Bill Text


                                                                        
                                                                        
  ||||              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.

Amendment


                                                                        
                                                                        
  ||||              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".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ||||              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 / Fiscal Impact


                   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



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