BILL ANALYSIS Ó
AB 1245
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ASSEMBLY THIRD READING
AB 1245 (V. Manuel Pérez)
As Amended July 3, 2013
2/3 vote. Urgency
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.
Contains an urgency clause allowing this bill to take effect
immediately upon enactment.
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
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development, self-sufficiency, and strong tribal governments.
Existing law expressly authorizes a number of 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
COMMENTS :
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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
cost reimbursement and mitigation from revenues derived from the
gaming devices operated pursuant to this Compact on a specified
payment schedule.
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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
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
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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.
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
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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
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,
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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
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
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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 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,
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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 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
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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.
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
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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.
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.
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Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0001416