BILL ANALYSIS Ó
AB 1245
Page 1
ASSEMBLY THIRD READING
AB 1245 (V. Manuel Pérez)
As Amended June 25, 2013
Majority vote
SUMMARY : Ratifies a tribal-state gaming compact (Compact)
entered into between the State of California and the Ramona
Band of Cahuilla. Once effective (legislative ratification and
federal approval required), this Compact will be in full force
and effect for state law purposes until December 31, 2033.
Specifically, this bill ratifies:
The tribal-state gaming compact between the State of California
(State) and the Ramona Band of Cahuilla (Tribe), located in
Riverside County, California, which was executed on June 10,
2013, and allows the operation of up to 750 gaming devices and
banking or percentage card games.
The Compact makes it explicit that the Tribe shall not be
authorized to operate the game known as roulette, whether or
not played with or on a mechanical, electro-mechanical,
electrical, or video device, or cards, or any combination of
such devices, or the operation of any game that incorporates
the physical use of a die or dice. The Tribe will share up to
10% of their revenue with tribes that are not gaming or that
are otherwise not substantially benefitting from gaming, as
defined. The Compact requires regular audits of gaming
operations and other enforcement and public safety measures.
The Compact includes provisions to protect employees and
patrons as well as measures to protect the environment during
the construction and operation of gaming facilities. It also
funds local programs to mitigate the effect of gaming
activities and addresses gambling addiction issues.
EXISTING LAW :
1)Provides, under the federal Indian Gaming Regulatory Act
(IGRA), 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
governments. Existing law expressly authorizes a number of
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tribal-state gaming compacts between the State and specified
Indian tribes.
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, under IGRA, the operation of Class III gaming
activities to Indian lands acquired on or before October 17,
1988. Existing law also provides for certain exceptions to
conduct gaming activities on Indian lands acquired after
October 17, 1988.
4)Defines, under IGRA, 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, under IGRA, 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. Existing law also
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. Furthermore, existing law 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. In total, the State of
California has signed and ratified Tribal-State Gaming
Compacts with 70 Tribes. There are currently 59 casinos
operated by 58 Tribes.
FISCAL EFFECT : Unknown
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COMMENTS :
Background : As per the Compact's preamble, the Ramona Band of
Cahuilla's Reservation (Reservation) is located at the base of
Thomas Mountain, in Anza, California. The Reservation was
created by a February 10, 1893 Executive Order issued pursuant
to the Mission Indian Relief Act, 26 Stat. 712 (1891), lies
within the aboriginal territory of the Cahuilla Indians which
the Tribe has occupied continuously since time immemorial, and
currently consists of the original 560 acres that the 1893
Order reserved in federal trust for the exclusive use and
benefit of the Tribe and its members. The Reservation is
within the San Bernardino National Forest, surrounded
predominantly by U.S. Forest Service and U.S. Bureau of Land
Management lands, and has no electric utility service.
The membership consists of 13 tribal members of which
approximately seven live on the Reservation. The General
Council of the Ramona Band of Cahuilla is the governing body of
the Tribe with the power and authority to act on all government
and business matters. And, in accordance with custom and
tradition, the General Council also elects the Tribal Council
and the Tribal Chairperson.
The Compact provides that the Tribe may engage in Class III
Gaming only on eligible Indian lands held in trust for the
Tribe, at a single gaming facility located within the
boundaries of the Ramona Band of Cahuilla as those boundaries
exist as of the execution date of this Compact, as described.
Additionally, the State and the Tribe recognize that the
exclusive rights that the Tribe will enjoy under this Compact
create a unique opportunity for the Tribe to operate a Class
III gaming facility in an economic environment free of
competition from the operation of gaming devices and banked
card games on non-Indian lands in California and that this
unique economic environment is of great value to the Tribe.
In consideration of the exclusive rights enjoyed by the Tribe
to engage in the gaming activities and to operate up to 750
gaming devices and the other meaningful concessions offered by
the State in good faith negotiations, and pursuant to IGRA, the
Tribe has agreed to provide the State, on a
sovereign-to-sovereign basis, and to local jurisdictions, fair
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cost reimbursement and mitigation from revenues derived from
the gaming devices operated pursuant to this Compact on a
specified payment schedule.
The preamble states, that the Tribe and the State share an
interest in mitigating the off-reservation impacts of the
gaming facility, affording meaningful consumer and employee
protections in connection with the operations of the gaming
facility, fairly regulating the gaming activities conducted at
the gaming facility, and fostering a good-neighbor
relationship.
This Compact will afford the Tribe primary responsibility over
the regulation of its gaming facility and will enhance the
Tribe's economic development and self-sufficiency.
Furthermore, the State and the Tribe have concluded that this
Compact protects the interests of the Tribe and its members,
the surrounding community, and the California public, and will
promote and secure long-term stability, mutual respect and
mutual benefits.
Key Provisions of the Compact :
1)Requires the Tribe, prior to the commencement of a "project,"
as defined, to follow certain procedures and enter into
specified agreements (e.g., environmental and
intergovernmental) for such undertakings and services that
mitigate the impacts of the gaming facility on affected
jurisdictions (County).
2)On December 18, 2012, the Riverside County Board of
Supervisors approved a Memorandum of Understanding (MOU) with
the Tribe to address and mitigate significant effects to the
off-reservation environment which may occur as a result of a
gaming project on the Reservation. The Tribe has agreed to
work with the County regarding compensation for law
enforcement, fire protection, emergency medical services, and
other public services provided by the County as a result of
the Tribe's gaming facility.
3)Stipulates that the gaming operation or business operation
authorized under this compact shall be owned solely by the
Tribe and limits the Tribe to the operation of 750 gaming
devices on eligible Indian lands held in trust for the Tribe
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at a single gaming facility located within the boundaries of
the Reservation.
4)In addition to any Class II games, the Tribe is authorized to
operate gaming devices (slot machines), banking or percentage
card games, and any devices or games that are authorized
under state law to the California State Lottery. The Tribe
may not operate roulette games (table or mechanical) or any
game that incorporates the physical use of a die or dice.
The Tribe shall not engage in Class III Gaming that is not
expressly authorized in the compact.
5)Provides that the Tribe is not required to make payments to
the State Gaming Agency for deposit into the Revenue Sharing
Trust Fund (RSTF) or the Tribal Nation Grant Fund, if it
operates 350 or fewer gaming devices.
6)If the Tribe operates more than 350 gaming devices at any
time in a given calendar year it must pay 10% of its Net Win
from the operation of those devices in excess of 350 to the
State Gaming Agency for deposit into RSTF or the Tribal
Nation Grant Fund. The Compact outlines quarterly payment
terms, as specified.
7)Requires the Tribe to pay into the Special Distribution Fund
(SDF), on a pro rata basis, the actual and reasonable
regulatory costs the State incurs for the performance of all
its duties under this Compact. The Tribe's pro rata share
will be calculated using the following equation:
The maximum number of Gaming Devices operated in the
Gaming Facility for the previous fiscal year as
determined by the State Gaming Agency, divided by the
maximum number of Gaming Devices operated by all
federally recognized tribes in California pursuant to
tribal-state Class-III Gaming compacts during the
previous fiscal year, multiplied by Costs, equals the
Tribe's pro rata share.
8)Includes Eco-Resort Standards for development of a gaming
project consistent with the Tribe's desire to limit
environmental impacts through the use of green building
materials and renewable energy.
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Additional Provisions of the Compact :
Patron Protections - The Tribe agrees to binding arbitration
before a single arbitrator, who shall be a retired judge, for
disputes over patron injuries and gambling. Also, provides
that the Tribe agrees to waive sovereign immunity in order to
be compelled in federal or state court to abide by the
resolution of arbitration.
Environmental Protections - The Tribe must prepare a Tribal
Environmental Impact Report (TEIR) and negotiate mitigation of
any off-reservation impacts. The Tribe's failure to prepare an
adequate TEIR when required shall be deemed a breach of this
compact and furthermore shall be grounds for issuance of an
injunction or other appropriate equitable relief. Also,
provides for binding arbitration if an intergovernmental
agreement with the County of Riverside is not entered into
within 75 days of the submission of the final TEIR.
Employee Protections - The Tribe has agreed to participate in
the state's workers' compensation system and unemployment
insurance program and to consent to the jurisdiction of the
state agencies and courts enforcing all of those standards.
Enhanced Audit and Compliance Review Procedures - In addition
to providing for an annual independent audit, the Compact
allows the state to conduct its own annual audit and compact
compliance review.
Inspection and Testing of Gaming Devices - Gaming devices 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 State Gaming Agency would be authorized to
annually conduct up to four random inspections of slot machines
in operation to confirm that the gaming devices are operating
in conformance with these standards.
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 in this Compact as an appendix (Appendix C), which
shall be updated periodically by the State Gaming Agency and
Tribal Gaming Agency, to ensure the MICS keep up with changing
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technology and industry standards.
Problem Gambling - The Tribal Gaming Agency must establish a
program to mitigate pathological and problem gaming by
implementing measures that train supervisors and floor
employees on identifying and managing problem gambling.
Additionally, the Tribe must include a responsible gaming
message in advertising, provide signage and education materials
at conspicuous locations aimed at preventing problem gambling,
establish self-exclusion and involuntary exclusion programs,
and adopt a code of conduct derived from the American Gaming
Association's code.
Labor Relations - Provides that the gaming activities
authorized by this compact may only commence after the Tribe
has adopted an ordinance identical to the Tribal Labor
Relations Ordinance (TRLO), referenced as Appendix D of the
Compact, and the gaming activities may only continue as long as
the Tribe maintains the ordinance. If the Tribe employs 250 or
more persons in a tribal casino facility, then the provisions
of the TLRO become effective. The TLRO provides for a secret
ballot election.
Tobacco and Alcohol Provisions - The Tribe agrees to provide a
non-smoking area in the gaming facility that exists as of the
effective date of this Compact and to utilize a ventilation
system throughout the gaming facility that exhausts tobacco
smoke to the extent reasonably feasible and not to offer or
sell tobacco to anyone that is under 18 years of age. Makes it
explicit that the purchase, sale, and service of alcoholic
beverages shall be subject to state law.
Prohibitions Regarding Minors - The Tribe shall prohibit
persons under the age of 21 years from being present in any
room or area in which gaming activities are being conducted
unless the person is en route to a nongaming area of the gaming
facility, or is employed at the Gaming Facility in a capacity
other than as a gaming employee.
Exclusivity - In the event the exclusive right of Indian tribes
to operate Class III Gaming in California pursuant to Article
IV, Section 19(f) of the California Constitution is lost and
other non-Indian entities legally are able to engage in Class
III Gaming the Tribe shall have the right to terminate this
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Compact, in which case the Tribe will lose the right to operate
gaming devices and other Class III Gaming authorized by this
Compact; or continue under this Compact.
Effective Date - This Compact shall not be effective unless and
until it is ratified by the Legislature and notice of approval
or constructive approval is published in the Federal Register
as provided by IGRA. Once effective, this Compact shall be in
full force and effect for state law purposes until December 31,
2033. Also, if this Compact does not take effect by July 1,
2014, it shall be deemed null and void.
Additional Background Information :
Indian Gaming Regulatory Act : In 1988, Congress enacted the
Indian Gaming Regulatory Act (IGRA) to provide a statutory
basis for the operation and regulation of gaming on Indian
lands. IGRA provides that an Indian tribe may conduct gaming
activity on Indian lands if the activity "is not specifically
prohibited by federal law and is conducted within a State which
does not prohibit such gaming activity."
The statute divides gaming activities into three classes (Class
I, Class II, and Class III), each subject to different
regulations. Class III Gaming includes such things as slot
machines, casino games and banked card games such as black jack
and baccarat. Class III Gaming may only be conducted under
terms of a compact negotiated between an Indian tribe and a
state. Class II Gaming is defined to include bingo and card
games that are explicitly authorized by the laws of the state,
or that are not explicitly prohibited by the laws of the state
and are played at any location in the state, so long as the
card games are played in conformity with those laws and
regulations.
IGRA was enacted against a legal background in which Indian
tribes and individuals generally are exempt from state taxation
within their own territory. IGRA provides that with the
exception of assessments permitted under the statute, to defray
the state's costs of regulating gaming activity, IGRA shall not
be interpreted as conferring upon a state authority to impose
any tax, fee, charge, or other assessment upon an Indian tribe
to engage in Class III activity. Nor may a state refuse to
enter into negotiations based on the lack of authority to
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impose such a tax, fee, charge, or other assessment.
When a tribe requests negotiations for a Class III compact,
IGRA requires the state to negotiate with the Indian tribe in
good faith. IGRA provides a comprehensive process to prevent
an impasse in compact negotiations, which is triggered when a
tribe files suit alleging that the state has refused to
negotiate or has failed to negotiate in good faith.
Compact Negotiation and Ratification : The California State
Constitution, as amended by Proposition 1A of March 2000,
permits Indian tribes to conduct and operate slot machines,
lottery games, and banked and percentage card games on Indian
land. These gambling activities can only occur if: 1) the
Governor and an Indian tribe reach agreement on a compact, 2)
the Legislature approves the compact, and 3) the federal
government approves the compact.
The Governor is the designated state officer responsible for
negotiating and executing, on behalf of the State, tribal-state
gaming compacts with federally recognized Indian tribes located
within the State of California. Following completion of
negotiations, the Governor shall submit a copy of any executed
tribal-state compact to both houses of the Legislature for
ratification and shall submit a copy of the executed compact to
the Secretary of State and it then must be approved and
published in the Federal Register by the U.S. Secretary of the
Interior.
Related legislation : AB 277 (Hall) of the current legislative
session. Ratifies tribal-state gaming compacts entered into
between the State and the North Fork Rancheria Band of Mono
Indians of California, executed on August 31, 2012, and the
State of California and the Wiyot Tribe, executed on March 20,
2013. (Pending the Governor's signature)
SB 668 (Fuller) of the current legislative session. Ratifies
the tribal-state gaming compact entered into between the State
and the Fort Independence Indian Community of Paiute Indians,
executed on February 28, 2013. (Pending in the Senate)
Prior legislation : AB 1267 (Hall), Chapter 6, Statutes of
2013. Ratified the amendment to a tribal-state gaming compact
entered into between the State and the Shingle Springs Band of
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Miwok Indians, executed on November 15, 2012.
AB 517 (Hall), Chapter 12, Statutes of 2012. Ratified the
tribal-state gaming compact entered into between the State and
the Federated Indians of Graton Rancheria of Sonoma County,
executed on March 27, 2012.
AB 787 (Chesbro), Chapter 340, Statutes of 2012. Ratified the
amendment to the tribal-state gaming compact entered into
between the State and the Coyote Valley Band of Pomo Indians,
executed on July 25, 2012.
AB 1418 (Hall), Chapter 412, Statutes of 2011. Ratified a
revised tribal-state gaming compact between the State and
Pinoleville Pomo Nation, authorizing the Tribe to commence
Class III Gaming with up to 900 gaming devices, executed on
August 8, 2011. Required contributions to the SDF and the
RSTF, as specified, instead of requiring revenue contributions
to the General Fund.
AB 1020 (Chesbro), Chapter 27, Statutes of 2011. Ratified a
revised compact between the State and the Habematolel Pomo of
Upper Lake executed by Governor Brown on March 17, 2011.
Authorized the Tribe to operate up to 750 gaming devices with
up to 15% of the Net Win from those gaming devices be paid to
the SDF and RSTF, instead of requiring revenue contributions to
the General Fund.
AB 122 (Coto), Chapter 3, Statutes of 2010. Ratified the
tribal-state gaming compact entered into between the State and
the Pinoleville Pomo Nation executed by the Governor on March
10, 2009.
SB 106 (Wiggins), Chapter 37, Statutes of 2007. Ratified a new
compact between the State and the Yurok Tribe of the Yurok
Reservation.
SB 174 (Ducheny), Chapter 39, Statutes of 2007. Ratified the
first compact amendment to the compact between the State and
Sycuan Band of the Kumeyaay Nation.
SB 175 (Ducheny), Chapter 38, Statutes of 2007. Ratified the
first compact amendment to the compact between the State and
the Morongo Band of Mission Indians.
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SB 903 (Padilla), Chapter 40, Statutes of 2007. Ratified the
first compact amendment to the compact between the State and
the Pechanga Band of Luiseño Indians.
SB 941 (Padilla), Chapter 226, Statutes of 2007. Ratified the
first compact amendment to the compact between the State and
the San Manuel Band of Serrano Mission Indians.
SB 957 (Torlakson), Chapter 41, Statutes of 2007. Ratified the
first compact amendment to the compact between the State and
the Agua Caliente Band of Cahuilla Indians.
SB 470 (Ducheny), Chapter 527, Statutes of 2006. Ratified the
first amendment to the compact between the State and the
Quechan Tribe of the Fort Yuma Reservation.
SB 1117 (Burton), Chapter 856, Statutes of 2004. Ratified two
new and two amended compacts entered into between the State and
the following tribes: Coyote Valley Band of Pomo Indians (new
compact); Fort Mojave Indian Tribe (new compact); Buena Vista
Rancheria of Me-Wuk Indians (amended compact); and, Ewiiaapaayp
Band of Kumeyaay Indians (amended compact).
AB 687 (Núñez), Chapter 91, Statutes of 2004. Ratified
amendments to five compacts entered into between the State and
the following tribes: Pala Band of Mission Indians; Pauma Band
of Luiseno Mission Indians of the Pauma and Yuima Reservation;
Rumsey Band of Wintun Indians; United Auburn Indian
Communities; and, Viejas Group of Kumeyaay Indians. Provides
for the issuance of bonds in an amount not to exceed $1.5
billion by the California Infrastructure and Economic
Development Bank and requires the net proceeds of the sale of
the compact assets to be deposited in the Traffic Congestion
Relief Fund and the Transportation Deferred Investment Fund.
SB 930 (Burton), Chapter 802, Statutes of 2003. Ratified a
compact between the State and the Torres-Martinez Desert
Cahuilla Indians.
SB 411 (Ducheny), Chapter 790, Statutes of 2003. Ratified
compacts between the State and the La Posta Band of Diegueno
Mission Indians and the Santa Ysabel Band of Diegueno Mission
Indians in San Diego County.
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AB 1385 (Battin), Chapter 874, Statutes of 1999. Designated
the Governor as the state officer responsible for negotiating
and executing compacts between the State and federally
recognized Indian tribes located in the State. Ratifies 57
compacts and creates two special funds in the State Treasury
(SDF and RSTF) for the deposit of revenues derived from Indian
gaming and gaming device licensing fees.
SB 287 (Burton), Chapter 409, Statutes of 1998. Ratified 11
compacts negotiated between the State and Indian tribes that
permitted Class III gaming devices on tribal lands and
established a process for ratifying other compacts.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0001397