BILL ANALYSIS Ó SB 1224 Page 1 SENATE THIRD READING SB 1224 (Correa) As Amended April 7, 2014 2/3 vote. Urgency SENATE VOTE :28-4 SUMMARY : Ratifies the tribal-state gaming compact (Compact) between the State of California and the Karuk Tribe (Tribe) executed on December 4, 2013, and allows the operation of up to 1,500 gaming devices at a single facility to be constructed on specified tribal trust property in Yreka, California; provides that, in deference to tribal sovereignty, certain actions are not deemed projects for purposes of the California Environmental Quality Act (CEQA); once effective (legislative ratification and federal approval required), this Compact will be in full force and effect for state law purposes until December 31, 2034; and 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 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 SB 1224 Page 2 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. FISCAL EFFECT : Unknown COMMENTS : On August 11, 2014, the Assembly Governmental Organization Committee held an informational hearing on the tribal-state compact between the State of California and the Karuk Tribe. Compact Summary: The Tribal-State Gaming Compact between the State of California and the Tribe, which has lands located in Siskiyou and Humboldt Counties, was executed on December 4, 2013. The Compact authorizes the Tribe to operate a maximum of 1,500 slot machines at a single facility to be constructed on specified tribal trust property in Yreka, California. The Tribe has agreed to pay the State its pro rata share of the costs the State incurs for the performance of its duties under the Compact as well as 10% of the casino's net win, if it operates more than 350 slot machines, to be shared 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 the gaming facility. Furthermore, the Compact provides for the regulation of gaming SB 1224 Page 3 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, 2034. Brief History and Background: As early as 1852, the Tribe was a federally recognized tribe as evidenced by a treaty with the United States and subsequent government-to-government interactions. However, for the three decades spanning the late 1940's through the late 1970's the Tribe lost its government-to-government relationship with the federal government by virtue of administrative termination. In 1978, the Department of the Interior undertook a comprehensive review of the Tribe's situation and a year later added the Tribe to the list of federally recognized tribes. The Tribe did not receive equitable or legal title to any aboriginal or ancestral lands to allow for social and economic development and in 1987 began purchasing lands (approximately 200 acres) within Yreka to provide for housing, economic development and other tribal purposes for its members. Those lands were subsequently accepted into trust for the Tribe by the United States Secretary of the Department of the Interior and in 2012 the National Indian Gaming Commission identified the 200 acres held in trust for the Karuk Tribe as "restored lands" and eligible under IGRA for gaming purposes. Today, the Karuk Tribe of California is comprised of three communities located in Orleans, Happy Camp, and Yreka. As per the Compact's preamble, the Karuk people are the second largest tribe in California with approximately 3,700 tribal members located in one of the most economically depressed regions of the State. The Tribe has successfully developed housing divisions, health clinics and Head Start programs in Orleans, Happy Camp, and Yreka, its three major population centers, and currently employs over 100 individuals in various administrative, educational, energy assistance, housing, child welfare, natural resources and economic development programs. The Tribe intends to develop its casino project in two phases. SB 1224 Page 4 Phase 1 consists of a 36,497 square-foot gaming facility in Yreka with a 13,800 square-foot gaming floor comprising approximately 500 gaming machines and 8 table games, a 100-seat restaurant, and on-site parking. Phase 2 will add an 80-room hotel, more parking, an additional 20,000 square-feet of gaming space along with 300 gaming machines and 8 table games. The project is expected to create 350 jobs in Siskiyou County which suffers an unemployment rate of over 10%. The Compact points out that the State recognizes the need for the Tribe to develop a gaming facility capable of generating sufficient revenue to service the debt associated with the high predevelopment and construction costs of the facility. Also, the Compact notes 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. Additionally, the Compact 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 Compact points out that the Tribe has agreed 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, for payments to non-gaming tribes, and for payments to mitigate impacts of the gaming facility on the local community. The parties also acknowledge that if the Tribe were required to pay a large share of its revenues following commencement of gaming activities, then the positive impact of the Tribe's investment would not be fully recognized, the tribe would not materially benefit, and the gaming facility would not be economically viable. The preamble states that 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. Also, the State and the Tribe have concluded that this Compact protects the interests of the Tribe and its SB 1224 Page 5 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 Scope of Class III Gaming Authorized: The Tribe is authorized to operate up to 1,500 gaming devices (slot machines), 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 dice. 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. 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 (CGCC), the California Department of Justice, the Office of the Governor and the California 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 SB 1224 Page 6 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." Revenue Sharing Trust Fund (RSTF): The Tribe has agreed to pay, on a quarterly basis, into the RSTF or the Tribal Nation Grant Fund (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. The Compact also provides that prior to making its quarterly payment to the RSTF; the Tribe may deduct $75 per member of the Tribe per quarter if the total gaming revenue is less than $20 million. If the deduction exceeds the amount that would otherwise be due, then the Tribe shall make no payment. If the total gaming revenue exceeds $21 million in a quarter but is less than $22 million, the Tribe may deduct $50 per tribal member. Should the total gaming revenue exceed $22 million in a quarter but is less than $23 million the Tribe may deduct $25 per member during that quarter. "Net-Win" is defined as a calculation of the net revenue from gaming devices within the facility. Specifically, it equals the total amount spent by customers in playing the device, less winnings paid out, less operating expenses (including the portion of the gaming operation's payments to a third-party wide-area progressive jackpot system provider that is contributed only to the progressive jackpot amount). Gaming Facility Mitigation and Local Intergovernmental Agreements: 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 which is attributable to the casino operation, 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: 1) the County of Siskiyou and the City of Yreka for law enforcement, fire protection, emergency medical services and other services provided and 2) the California Department of Transportation (Caltrans) to mitigate all traffic impacts on the SB 1224 Page 7 State highway system and for the Tribe to pay their fair share of cumulative traffic impacts. Additional Compact Components: 1)Patron Protections (injuries and gambling) - the Tribe (through its tribal gaming agency) must attempt to resolve patron disputes within three days of the play or operation of any game, including refusal to pay to a patron any alleged winnings from any gaming activities. If the patron is dissatisfied with the resolution, the dispute shall be resolved through binding arbitration before a single arbitrator, who shall be a retired judge, in accordance with the streamlined arbitration rules and procedures of JAMS (Judicial Arbitration and Mediation Services). 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. The Tribe has agreed to maintain commercial general liability insurance of no less than $10 million per occurrence for bodily injury, property damage, and personal injury. 2)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. A completed TEIR must be filed with the County of Siskiyou, the City of Yreka, the Department of Justice, the State Clearinghouse and the State Gaming Agency. Also, provides for binding arbitration if an intergovernmental agreement with the County of Siskiyou and the City of Yreka is not entered into within 75 days of the submission of the final TEIR. 3)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. The Tribe has also agreed to adopt and comply with standards no less stringent than federal and state employment discrimination laws. 4)Enhanced Audit and Compliance Review Procedures - in addition to providing for an annual independent audit, the Compact SB 1224 Page 8 allows the state to conduct its own annual audit and compact compliance review. 5)Inspection and Testing of Slot Machines - slot machines will have to be tested, approved and certified by an independent gaming test laboratory or state governmental gaming test laboratory to ensure that they are being operated according to specified technical standards. Also, requires the Tribal Gaming Agency to maintain adequate records that demonstrate compliance with software and hardware specifications. The State Gaming Agency 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. 6)Minimum Internal Control Standards (MICS) - the Tribe must adopt and comply with standards that meet or exceed the federal NIGC standards. The MICS are incorporated in this Compact as an appendix (Appendix D), 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. 7)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. 8)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 C 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. SB 1224 Page 9 The Tribe has entered into separate agreements with the Building and Construction Trades Council and UNITE HERE International Union. 9)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. 10)Tobacco and Alcohol Provisions - the Tribe agrees to provide a non-smoking area in the gaming facility 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 - the Alcoholic Beverage Control (ABC) Act. 11)Health and Safety Standards - the Tribe has agreed to adopt and comply with State public health standards for food and beverage handling and federal water quality and safe drinking standards applicable to California. 12)Building Codes and Fire Safety - the Tribe has agreed to meet or exceed the California Building Code and the Public Safety Code applicable to Siskiyou County and submit to fire safety inspections by the State, and to rectify deficiencies, lest be subject to court order prohibiting occupancy of the portion of the gaming facility with the deficiencies. 13)Emergency Services Accessibility and Possession of Firearms - the Tribe must make reasonable provisions for adequate emergency fire, medical, and related relief and disaster services for patrons and employees. Also, prohibits the possession of firearms by any person in the gaming facility at all times except for federal, state, or local law enforcement personnel, or tribal law enforcement or security personnel, as authorized. 14)Arbitration Rules - provides that arbitration shall be conducted before a single arbitrator in accordance with the Commercial Arbitration Rules of the American Arbitration SB 1224 Page 10 Association (Association) and shall be held in the federal judicial district in which the Tribe's Indian lands are situated and at a location selected by the arbitrator. Each side shall initially bear one-half the costs and expenses of the Association and the arbitrator but the arbitrator shall award the prevailing party its costs, including the costs of the Association and the arbitrator; however, the parties shall bear their own attorney fees. Additionally, for the purpose of actions or arbitrations brought and the enforcement of any judgment or award resulting therefrom, the State and the Tribe expressly waive their right to assert their sovereign immunity from suit and from enforcement of any ensuing judgment or arbitral award and to the arbitrator's jurisdiction and further consent to be sued in federal or state court. 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, 2034. 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. Additional Background Information California Proposition 1A, Gambling on Tribal Lands: California Proposition 1A, also known as the Gambling on Tribal Lands Amendment, was on the March 7, 2000, ballot in California, where it was approved (64.5% to 35.5%). Proposition 1A authorized the governor to negotiate compacts with federally recognized Indian tribes on Indian lands in California to operate slot machines, lotteries and banking and percentage card games, subject to legislative ratification. Proposition 1A was a legislatively-referred constitutional amendment, placed on the ballot by the California State Legislature as a proposed modification of the California Constitution Article IV, Section 19. Indian Gaming Regulatory Act: In 1988, Congress enacted 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 SB 1224 Page 11 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. 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 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 United States Secretary of the Interior. Rincon Decision: In 2004, the Rincon Band of Mission Indians sued the State of California in federal court after negotiations for a new gambling agreement with then-Governor Schwarzenegger SB 1224 Page 12 fell apart. The Tribe believed the Governor was violating federal law by insisting that tribes pay money into the state's general fund in exchange for more slot machines. In July 2011, the United States Supreme Court declined to review a Ninth Circuit Court's decision that ruled the state could not require the Rincon Band tribe to pay a percentage of slot machine revenue into California's General Fund for more gaming devices. The Ninth Circuit had affirmed a lower court decision that the new financial concessions were nothing more than a state tax on tribal casino revenues which is prohibited by IGRA. The court concluded that a "non-negotiable, mandatory payment of 10% of net win into the State treasury for unrestricted use yields public revenue and is [therefore] a tax and that the court was therefore required to consider the State's demand as evidence of bad faith under IGRA's statutes." The Rincon decision has changed the dynamics of tribal-state compact negotiations. This compact contains no revenue distributions into the General Fund. It does provide, and Rincon allows, for the tribe to make mitigation payments to local governments, revenue sharing with non-gaming tribes, and costs for regulation. Prior legislation: AB 1245 (V. Manuel Pérez), Chapter 462, Statutes of 2013. Ratified the tribal-state gaming compact entered into between the State of California and the Ramona Band of Cahuilla Indians located in Riverside County, executed on June 10, 2013. AB 277 (Hall), Chapter 277, Statutes of 2013. Ratified two new compacts entered into between the State of California and the following tribes: North Fork Rancheria, executed on August 31, 2012 and the Wiyot Tribe, executed on March 20, 2013. AB 1267 (Hall), Chapter 6, Statutes of 2013. Ratified the amended tribal-state gaming compact entered into between the State of California and the Shingle Springs Band of Miwok Indians, executed on November 15, 2012. SB 668 (Fuller), Chapter 67, Statutes of 2013. Ratified the tribal-state gaming compact entered into between the State of California and the Fort Independence Indian Community of Paiute Indians, executed on February 28, 2013. SB 1224 Page 13 AB 517 (Hall), Chapter 12, Statutes of 2012. Ratified the tribal-state gaming compact entered into between the State of California 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 of California and the Coyote Valley Band of Pomo Indians, executed on July 25, 2012. AB 1418 (Hall), Chapter 412, Statutes of 2011. Repealed those provisions ratifying the tribal-state gaming compact entered into between the State of California and Pinoleville Pomo Nation, executed on March 9, 2009, and instead ratified the tribal-state gaming compact entered into between the State and the Tribe, executed on August 8, 2011. AB 1020 (Chesbro), Chapter 27, Statutes of 2011. Repealed the ratification of the tribal-state gaming compact entered into between the State of California and the Habematolel Pomo of Upper Lake, executed on September 2, 2009, and instead ratified a new tribal-state gaming compact entered into between the State and the Tribe, executed on March 17, 2011. SB 89 (Budget and Fiscal Review Committee), Chapter 1, Statutes of 2010. Ratified the tribal-state gaming compact entered into between the State of California and the Habematolel Pomo of Upper Lake, executed on September 2, 2009. AB 122 (Coto), Chapter 3, Statutes of 2009. Ratified the tribal-state gaming compact entered into between the State of California and the Pinoleville Pomo Nation, executed on March 10, 2009. AB 3072 (Price), Chapter 334, Statutes of 2008. Ratified the first amendment to a tribal-state gaming compact entered into between the State of California and the Shingle Springs Band of Miwok Indians, executed on June 30, 2008. SB 106 (Wiggins), Chapter 37, Statutes of 2007. Ratified a new compact between the State of California and the Yurok Tribe of the Yurok Reservation. SB 174 (Ducheny), Chapter 39, Statutes of 2007. Ratified the SB 1224 Page 14 first compact amendment to the compact between the State of California and Sycuan. SB 175 (Ducheny), Chapter 38, Statutes of 2007. Ratified the first compact amendment to the compact between the State of California and Morongo. SB 903 (Padilla), Chapter 40, Statutes of 2007. Ratified the first compact amendment to the compact between the State of California and Pechanga. SB 941 (Padilla), Chapter 226, Statutes of 2007. Ratified the first compact amendment to the compact between the State of California and San Manuel. SB 957 (Torlakson), Chapter 41, Statutes of 2007. Ratified the first compact amendment to the compact between the State of California and Agua Caliente. 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 (Quechan). 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 (Nuñez), 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. Also, provided for the issuance of bonds in an amount not to exceed $1.5 billion by the California Infrastructure and Economic Development Bank and required 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 of California and the Torres-Martinez SB 1224 Page 15 Desert Cahuilla Indians. SB 411 (Ducheny), Chapter 790, Statutes of 2003. Ratified compacts between the State of California 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. Also, ratified 57 compacts and created two special funds in the State Treasury (SDF and RSTF), as specified. Proposition 5. Adopted by the People of California on November 3, 1998. Specified the terms and conditions of mandatory compacts between the State and tribal governments for class III gambling on Indian lands. Amended California law to allow slot machines and banked card games at tribal casinos. Provided for contributions to trust funds benefiting non-gaming tribes, statewide emergency medical care programs, and programs benefiting communities near tribes. Allowed tribes to retain a monopoly on authorized gambling. Proposition 5 was found to be unconstitutional because it amended a provision of the Government Code and did not amend the Constitution. SB 287 (Burton), Chapter 409, Statutes of 1998. Ratified 11 compacts negotiated between the State of California and Indian tribes that permitted Class III video gaming devices on tribal lands and established a process for ratifying other compacts. Analysis Prepared by : Eric Johnson / G.O. / (916) 319-2531 FN: 0004701