BILL ANALYSIS                                                                                                                                                                                                    Ó


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                                    THIRD READING

          Bill No:  AB 1245
          Author:   V. Manuel Pérez (D)
          Amended:  7/3/13 in Assembly
          Vote:     27 - Urgency

           ASSEMBLY FLOOR  :  73-0, 8/8/13 - See last page for vote

           NOTE:  On August 20, 2013, the Senate Governmental Organization  
                 Committee held an informational hearing on tribal-state  
                 compact between the State of California and the Ramona  
                 Band of Cahuilla.

           SUBJECT  :    Tribal gaming:  compact ratification:  Ramona Band  
          of Cahuilla

           SOURCE  :     Ramona Band of Cahuilla

           DIGEST  :    This bill ratifies a tribal-state gaming compact  
          (Compact) between the State of California and the Ramona Band of  
          Cahuilla, executed on June 10, 2013.

           ANALYSIS  :    

          Existing law:

          1.Provides, under the 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,  


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            self-sufficiency, and strong tribal governments.  Expressly  
            authorizes a number of Compacts between the state and  
            specified Indian tribes.  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.
          2.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, 1988.

          3.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.

          4.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.  Furthermore, prescribes the  
            remedy, mediation supervised by the courts, if it is found  
            that the state failed to negotiate in good faith to conclude a  

          5.Authorizes the Governor, under the California Constitution, to  
            negotiate and conclude compacts, subject to ratification by  
            the Legislature.

          This bill ratifies a Compact between the State of California and  
          the Ramona Band of Cahuilla (Tribe), executed on June 10, 2013.   
          The Compact authorizes the Tribe to operate no more than 750  
          slot machines at a single facility located within the boundaries  
          of the Tribe as those boundaries exist as of the execution date  
          of this Compact.  The Tribe has agreed to share up to 10% of its  



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          revenue with tribes that are not gaming or that otherwise are  
          not substantially benefiting from gaming.  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 contains additional provisions to  
          encourage the use of ecology-resort building and operations  
          standards and use of clean energy sources on the Tribe's  
          reservation.  Furthermore, the Compact provides for the  
          regulation of gaming and slot machines in a manner similar to  
          other compacts entered into by the State and provides for an  
          annual independent audit and allows the State to conduct its own  
          audit.  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.

          The following indicate key provisions of the Compact:

           1.Scope of Class III gaming  .  Authorizes the Tribe to operate up  
            to 750 gaming devices, any banking or percentage card games,  
            and any devices or games that are authorized under state law  
            to the California Lottery, provided that the Tribe will not  
            offer such games through the use of the Internet unless others  
            in the State are permitted to do so under State and federal  
            law.  The Tribe is not precluded from offering Class II gaming  
            or off-track horse race wagering at the facility.   
            Additionally, the Compact does not authorize the operation of  
            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  

          2.Exclusivity  .  Provides that in the event the exclusive right  
            of Indian tribes to operate Class III gaming in California  
            pursuant to the California Constitution is lost and other  
            non-Indian entities 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 Class III gaming  
            authorized by this Compact; or continue under this Compact  
            with an entitlement to a reduction in its contributions to the  
            Special Distribution Fund, the Revenue Sharing Trust Fund, or  
            the Tribal Nation Grant Fund (TNGF), pending negotiations with  



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            the State for a new agreement.
          3.Special Distribution Fund (SDF)  .  The Tribe shall pay to the  
            State on a pro rata basis the actual and reasonable costs the  
            State incurs for the performance of all its duties under this  
            Compact, as established by the monies appropriated in the  
            annual Budget Act for the performance of their duties under  
            the Class III Gaming Compacts each fiscal year for the  
            California Gambling Control Commission, the Department of  
            Justice, the Office of the Governor and the Department of  
            Alcohol and Drug Programs, Office of Problem Gambling, or any  
            agency or agencies the State designates as a successor to  
            them.  The Tribe's pro rata share of the State's costs in any  
            given year this Compact is in effect shall 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."

           4.Revenue Sharing Trust Fund (RSTF)  .  The Tribe has agreed to  
            pay into the RSTF or the TNGF, for distribution to non-gaming  
            and limited-gaming tribes, an amount equal to 10% of the net  
            win, as defined, on every slot machine in operation over 350.   
            The Tribe does not make payments into the RSTF or the TNGF if  
            it operates 349 or fewer slot machines.
          5.Gaming facility mitigation  .  Before the commencement of any  
            activity occurring on Indian lands, a principal purpose of  
            which is to serve the gaming activities or gaming operation,  
            and which may cause either a direct physical change in the  
            off-reservation environment, or a reasonably foreseeable  
            indirect physical change in the off-reservation environment,  
            the Tribe must follow designated procedures, and enter into  
            agreements, required pursuant to the Compact, to mitigate  
            significant effects.  Specifically, the Tribe is required to  
            enter into agreements with the following:  (a) the County of  
            Riverside for law enforcement, fire protection, emergency  
            medical services and other services provided and (b) the  
            Department of Transportation to mitigate all traffic impacts  
            on the State highway system and for the Tribe to pay their  
            fair share of cumulative traffic impacts.



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           6.Ecology-resort standards  .  The Compact stipulates that the  
            Tribe must make good faith efforts to comply with eco-resort  
            standards set forth in Appendix E of the Compact that include  
            (a) minimizing impacts of development footprints (e.g.,  
            clustered-multi-story buildings, bird friendly building  
            design, native plant landscaping, limited outdoor lighting,  
            and no herbicide or pesticide use) and transportation impacts  
            (e.g., use of alternative fueled vehicles, limitation of  
            onsite parking facilities, free van or bus transport from  
            off-site locations for guests); (b) water neutrality (e.g.,  
            installation of water conserving fixtures, fittings and  
            appliances); (c) carbon neutrality (e.g., no wood burning  
            stoves, use of geothermal heating and generation of 100% of  
            thermal and electric energy onsite); (d) water runoff; (e)  
            waste reduction (e.g., mandatory recycling, composting of food  
            waste, recycling 100% of construction waste, and no single  
            serving plastic water or beverage containers); (f) LEED  
            (Leadership in Energy and Environmental Design) certified  
            buildings; (g) environmentally preferable purchasing policies;  
            and (h) local preference for food purchases.  The Compact  
            allows the Tribe to forgo SDF payments if the Governor  
            determines the Tribe is in compliance with the eco-resort  
            standards outlined above.

           7.Local intergovernmental agreements  .  On December 18, 2012, the  
            Riverside County Board of Supervisors approved a memorandum of  
            understanding 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.

          Other provisions of the Compact relate to patron protections;  
          environmental protections; employee protections; enhanced audit  
          and compliance review procedures; inspection/testing of slot  
          machines; Minimum Internal Control Standards; problem gambling;  
          labor relations; tobacco and alcohol; prohibitions regarding  
          minors; health and safety standards; emergency services  
          accessibility and possession of firearms; and arbitration rules.

          This bill provides that the Compact is not effective unless and  



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          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 unless the Tribe and the State  
          agree in writing to extend that date.


           The Ramona Band of Cahuilla is a federally recognized Indian  
          tribe listed in the Federal Register as the Ramona Band of  
          Cahuilla.  As per the Compact's preamble, the Ramona Band of  
          Cahuilla's Reservation is located at the base of Thomas  
          Mountain, in Anza, in the County of Riverside, 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 is completely "off grid."  Energy to each  
          of the homes and buildings on the Reservation is provided by  
          hybrid electrical systems consisting of solar and wind  
          generation designed and installed by the Tribe.

          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.
          Additionally, 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.

          Furthermore, the preamble points out that the Tribe has agreed  



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          to provide to the State, on a government-to-government basis, a  
          portion of the Tribe's revenues for fair reimbursement of the  
          cost of regulation and mitigation pertaining to the gaming  
          facility, for payments to non-gaming tribes, and for payments to  
          mitigate impacts of the gaming facility on the local community.

          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 public, and will promote and  
          secure long-term stability, mutual respect and mutual benefits.

          The preamble points out that 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.

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

           SUPPORT  :   (Verified  8/20/13)

          Ramona Band of Cahuilla (source)
          Ewiiaapaayp Band of Kumeyaay Indians
          Habematolel Pomo of Upper Lake
          Riverside County Board of Supervisors

           ASSEMBLY FLOOR  :  73-0, 8/8/13
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chesbro, Conway, Cooley, Daly,  
            Dickinson, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia,  
            Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Grove, Hagman,  
            Hall, Harkey, Roger Hernández, Holden, Jones, Jones-Sawyer,  
            Levine, Linder, Logue, Lowenthal, Maienschein, Mansoor,  
            Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi,  
            Nazarian, Nestande, Olsen, Patterson, Perea, V. Manuel Pérez,  
            Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting,  
            Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, John A.  



                                                                    AB 1245

          NO VOTE RECORDED:  Chávez, Dahle, Donnelly, Pan, Yamada,  
            Vacancy, Vacancy

          MW:ej  8/20/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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