BILL ANALYSIS                                                                                                                                                                                                    


          |SENATE RULES COMMITTEE            |                   AB 122|
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                                 THIRD READING

          Bill No:  AB 122
          Author:   Coto (D)
          Amended:  9/10/09 in Senate
          Vote:     27 - Urgency


           SUBJECT  :    Tribal gaming:  compact ratification

           SOURCE  :     Author

           DIGEST  :    This bill ratifies the tribal-state gaming  
          compact entered into between the State of California and  
          the Pinoleville Pomo Nation, executed on March 10, 2009.   
          This bill requires that related revenue contributions be  
          deposited into the General Fund, except as specified, and  
          also provides that, in deference to tribal sovereignty,  
          certain actions may not be deemed projects for purposes of  
          the California Environmental Quality Act.

           ANALYSIS  :    Existing law:

          1.Provides, under the Indian Gaming Regulatory Act, for the  
            negotiation and conclusion of compacts between federally  
            recognized Indian tribes and the state for the purpose of  
            conducting class III gaming activities on Indian lands  
            within a state as a means of promoting tribal economic  
            development, self-sufficiency, and strong tribal  



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          2.Authorizes the conduct of class III gaming activities to  
            the extent such activities are permitted by state law, a  
            gaming compact has been concluded by a federally  
            recognized tribe and the state, and the compact has been  
            approved by the Secretary of the Interior.  

          3.Limits the operation of class III gaming activities to  
            Indian lands acquired on or before October 17, 1988.   
            Provides for certain exceptions to conduct gaming  
            activities on Indian lands acquired after October 17,  

          4.Defines Indian lands to mean all lands within the limits  
            of any Indian reservation, and any lands title to which  
            is either held in trust by the United States for the  
            benefit of any Indian tribe or individual or held by any  
            Indian tribe or individual subject to restriction by the  
            United States against alienation and over which an Indian  
            tribe exercises governmental power.

          5.Requires the state to negotiate to conclude a compact in  
            good faith with an Indian tribe having jurisdiction over  
            the Indian lands upon which the class III gaming activity  
            is to be conducted.  Provides the United States district  
            courts with jurisdiction over any cause of action  
            initiated by a tribal government alleging that the state  
            failed to negotiate in good faith to conclude a compact.   
            Prescribes the remedy, mediation supervised by the  
            courts, if it is found that the state failed to negotiate  
            in good faith to conclude a compact.  

          6.Authorizes the Governor, under the California  
            Constitution, to negotiate and conclude compacts, subject  
            to ratification by the Legislature.  To date, 68 compacts  
            have been ratified.

          The Pinoleville Pomo Nation (Tribe) is a federally  
          recognized Indian tribe listed in the Federal Register as  
          the Pinoleville Pomo Nation, California (formerly the  
          Pinoleville Rancheria of Pomo Indians of California).  The  
          Tribe's reservation is the Pinoleville Rancheria.  The  
          rancheria occupies approximely 100 acres on the northern  


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          edge of Ukiah in Mendocino County.  The Tribe has a  
          membership of approximately 250 members.  The Tribe is  
          governed by an elected council of seven members.

          On March 23, 2009, the Governor and the Pinoleville Pomo  
          Nation signed a tribal-state gaming compact.  According to  
          the Governor's Office, "the compact follows a similar  
          blueprint of the compacts Governor Schwarzenegger has  
          previously negotiated in that it provides important  
          benefits to the state, protects both employees and patrons,  
          and provides for environmental protections."  Under the  
          terms of the compact, the Tribe may engage in Class III  
          Gaming only on eligible Indian lands at a single gaming  
          facility located within the boundaries of the Pinoleville  
          Rancheria, as those boundaries exist as of the execution  
          date of the Compact.

          The compact will run through December 31, 2030 and allow a  
          maximum of 900 slot machines.  Under the terms of the  
          compact, the Tribe will share 15 percent of annual net win  
          revenues with the state.  The non-monetary aspects of the  
          compact are similar to recent compacts.  (i.e., to enter  
          into arrangements to mitigate to the extent practicable the  
          off-reservation environmental impacts of its gaming  
          facility on local communities and local governments, and to  
          offer worker and consumer protections)

          This compact is intended to assist the Pinoleville Pomo  
          Nation in addressing the problems it is facing with the  
          high unemployment and poverty rates, as well as providing  
          health, housing, and educational needs for its members.

          Other provisions of the compact include:

          1. Patron protections:  The Tribe agrees to binding  
             arbitration before a retired judge for disputes over  
             patron injuries and gambling. 

          2. Environmental protections:  The Tribe must prepare an  
             environmental impact report and negotiate mitigation of  
             any off-reservation impacts with the County.

          3. Employee protections:  The Tribe has granted employees  
             the right to collectively bargain.  The Tribe has agreed  


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             to participate in the state's worker's compensation  
             system and unemployment insurance program, to comply  
             with federal and state occupational health and safety  
             standards, and to consent to the jurisdiction of the  
             state agencies and courts enforcing all of those  
             standards. The Tribe also has agreed to enhanced  
             employment discrimination provisions.

          4. Revenue Sharing Trust Fund:  The Tribe agrees to pay  
             into the Revenue Sharing Trust Fund when it operates  
             over 700 slot machines: 

              Number of Gaming Devices   Operated Annual Payment  
             0-700 Gaming Devices          $0
             701-900 Gaming Devices        $900 per Gaming Device

          5. Enhanced audit and compliance review procedures:  In  
             addition to providing for an annual independent audit,  
             the amended compact allows the state to conduct its own  
             annual audit and compact compliance review

          6. Inspection of slot machines:  Slot machines will have to  
             be tested, approved and certified by an independent  
             gaming test laboratory and the tribal gaming agency to  
             ensure that they are being operated according to  
             specified technical standards.  The CGCC would be  
             authorized to annually conduct up to four random  
             inspections of slot machines in operation to confirm  
             that the slot machines are operating in conformance with  
             these standards. 

          7. Minimum internal control standards (MICS):  The Tribe  
             must adopt and comply with standards that meet or exceed  
             the federal National Indian Gaming Commission standards.  
              The MICS are incorporated into the compact as an  
             appendix, which shall be updated periodically by the  
             California Gambling Control Commission and Tribal Gaming  
             Agency, to ensure the MICS keep up with changing  
             technology and industry standards. 

          8. Building and Safety Standards:  The casino must meet or  
             exceed the California Building Code and Public Safety  
             Code as applicable to Mendocino County. 


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          9. Problem Gambling:  The Tribe must train supervisors and  
             floor employees on identifying and managing problem  
             gambling, include a responsible gaming message in  
             advertising, provide signage and education materials at  
             conspicuous locations aimed at preventing problem  
             gambling, and adopt a code of conduct derived from the  
             American Gaming Association's code. 

          10.Labor Provisions:  If the Tribe employs 250 or more  
             persons in a tribal casino facility, then the provisions  
             of the Tribal Labor Relations Ordinance become  
             effective.  The Ordinance provides for a secret ballot  

          The compact is not effective until it is ratified in  
          accordance with state law, and notice of approval by the  
          U.S. Secretary of the Interior is published in  The Federal  
          Register  .  The Pinoleville Pomo Nation has ratified the  
          execution of the compact.  Upon all the necessary  
          approvals, the compact will be valid until December 31,  

          Intergovernmental Agreement and MOU:  The Tribe has not  
          entered into an enforceable written mitigation agreement  
          (Intergovernmental Agreement and MOU) with Mendocino County  
          that includes provisions for the mitigation of any  
          significant effect on the off-reservation environment, as  
          specified, as well as compensation for public services,  
          including law enforcement, fire protection, emergency  
          medical services, problem gambling programs, and  
          transportation improvements.  

          UNITE HERE Memorandum of Agreement:  On September 29, 2009,  
          the Pinoleville Pomo Nation negotiated a MOU with the Hotel  
          Employee and Restaurant Employee Union (UNITE HERE),  
          recognizing their ability to organize eligible employees of  
          the casino.  Otherwise, the compact has the same Tribal  
          Labor Relations Ordinance from the 1999 compacts.  

          Revenue Sharing Trust Fund:  The Tribe will continue to  
          receive the $1.1 annual payment from the Revenue Sharing  
          Trust Fund established in the 1999 compacts, if the tribe  
          operates less than 350 gaming devices.  A tribe operating  
          under 350 gaming devices is considered a "non-compact"  


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          tribe and is eligible for revenue payments from gaming  
          tribes under the 1999 compacts.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  12/15/09)

          Pinoleville Pomo Nation

          TSM:nl  12/15/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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