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[Presiding.] Thank you, Mr. Fahrenkopf, for your testimony and the material that you are providing our Committee. Richard Hill is Chairman of the National Indian Gaming Association. You may proceed. TESTIMONY OF RICHARD G. HILL, CHAIRMAN, NATIONAL INDIAN GAMING ASSOCIATION Mr. HILL. Good morning. My name is Rick Hill, as stated, and I am the Chairman of the National Indian Gaming Association. We are comprised of 141 Indian Nations and also have 60 associate members associated with our organization. We appreciate the opportunity to offer testimony relative to S. 704 here on the Gaming Impact Study Commission Act. There is much confusion surrounding Indian gaming and NIGA has worked hard and spent a lot of time educating Congress and the new majority members and staff from square one on basic Indian legal rights. Donald Trump and Congressmen carrying his legislation and erroneous news reports have left a false and stereotypical impression of Indian gaming. All tribes are not rich. There are still tribes in dire need and these revenues on reservations are needed more than ever. I just want to say that tribes are governments. We have inherent sovereignty that preexists the United States. That is incorporated into the U.S. Constitution, as well as our people and our Nations have negotiated over 800 treaties, which are ratified by Congress. I am sad to say that over 800 of these treaties have been broken with no just compensation. So when people bring up the moral attitude about gaming, I think tribes have been reduced to gaming and I think it is a moral issue that we in this country have 800 broken treaties and agreements with the Federal Government. Also, the U.S. Supreme Court has decisions that date back to the origin of our country. The main item that relates to gaming and our sovereignty relates to a case called Cabazon, which relates to public policy in each jurisdiction per the scope of games to be negotiated in each given jurisdiction. Let me say again that tribes operate the governmental gaming and we are not commercial gaming. I think that is similar to States. Lotteries are, however, 36 percent of the gaming industry, of all gaming, and tribes are only 7 percent. It seems like there is more attention on us only being 7 percent over time, since 1988, especially than on the lion's share. Profits are limited to specific functions, allocations. Per IGRA, Section 11, to fund tribal government operations and programs, to provide for the general welfare of Indian tribes and its members, to promote economic development, and to donate to charitable causes, and to help fund operations of local agencies. Tribes are not governments. Tribes are not corporations, how some people are trying to wipe away 200 years of history, most recently trying to impose a tax, now calling us corporations and not referring to us as governments and trying to do away with 200 years of legislative-legal history and relationship with the Federal Government. I will say it again. Tribal gaming is not corporations. The demographics of the tribes, some of the things that we need to bring attention to, there were 550 federally-recognized tribes. Only 130 tribes do any form of Class III casino-style gaming and only a handful are really making significant revenues to really fund their governments and are really making a difference. There are two exceptions, the tribes making large per capita payments, and these are also taxable items under the law. This is a message, some of the McCarthyism scare tactics we continually try to battle in terms of what Donald Trump and a few Congressmen are carrying, that all tribes are rich and that there is not a level playing field. If we look at the social statistics and a lot of history and the economic conditions of Indian reservations, we would know that is certainly a scare tactic people are using. After 220 years of a failed government policy in terms of education, I mean, the schools are in deplorable conditions. We cannot hire the best teachers. The quality of education is not the best. The health care is just a disaster in Indian country, poor health facilities, poor health. The infant mortality rate is probably that of any third world country. Adult life expectancy is up to age 50 years old. Housing, as we know, is still substandard. The economics, high unemployment and high welfare costs on reservations. Low self-esteem and a lot of social problems still exist in Indian country. Tribes also live in desolate areas for economic growth by government design and removal programs and relocation programs and things over time, as opposed to Donald Trump, who lives in a palace. Gaming revenues has helped, however, and I think to the credit of a lot of tribes who have spent a lot of time negotiating these compacts with States since 1988 have overcome insurmountable odds in terms of people not willing to legitimately sit down and negotiate. However, to date, I think there are 130 tribes doing gaming in 27 jurisdictions, so I think it is remarkable that we could move in that direction, to really do what the law set out to do originally, to help promote self-sufficiency, economic development, and to build strong tribal government. I think that was the spirit of IGRA when it was originally passed. Also, I would like to say that the money that the tribes are using are to build homes, clinics, schools, day cares, sewer systems, water towers, and to me, that is a 100 percent offset to the Federal taxpayers' costs because I believe that was a trust responsibility of the Federal Government and still is a responsibility, but for tribes to build a school-my tribe, for example, had to build a school, a $60 million elementary school, but we probably would have been on the BIA waiting list forever to get new construction funds to build this school for our children, so we have been able to do things like that in a positive level with Indian governmental gaming. The money is also represent in the local communities at the local level, which benefits local economies. Goods and services are immediately purchased off the reservation that benefit a lot of small business people. There are benefits to States, the counties, small business people, and a lot of individuals. Indian gaming nationally has created over 290,000 direct and indirect jobs nationwide and approximately 85 percent of these are held by non-Indians. So in terms of the Federal budget reductions, |