BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 291


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          291 (Atkins and Gonzalez)


          As Amended  August 3, 2016


          2/3 vote.  Urgency


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               (vote not relevant)




          Original Committee Reference:  G.O.


          SUMMARY:  Ratifies a Tribal-State Gaming Compact (Compact)  
          between the State of California (State) and the Barona Band of  
          Mission Indians (Tribe) which was executed on June 22, 2016. 


          The Senate amendments delete the Assembly version of this bill,  
          and instead:


          1)Ratify the Compact entered into between the State of  
            California and the Barona Band of Mission Indians executed on  
            June 22, 2016.


          2)The Compact supersedes the 1999 compact between the Tribe and  








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            the State of California.


          3)The Compact provides the Tribe may operate a maximum of 2,500  
            gaming devices.


          4)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 4.75% of its "gross gaming  
            revenue," to be shared with tribes that are not gaming or that  
            otherwise are not substantially benefiting from gaming.  


          5)The Compact provides a framework for the sharing of gaming  
            revenue with the County of San Diego and other local  
            jurisdictions.  Specifically, from its payments to the Revenue  
            Sharing Trust Fund (RSTF) or the Tribal Nation Grant Fund  
            (TNGF), the Tribe may take annual credits of up to 60% for  
            infrastructure improvements that in part benefit county  
            residents, fire, law enforcement, public transit, education,  
            tourism, youth programs and other services including  
            investments in renewable energy, water conservation or  
            recycling projects and payments to support capital  
            improvements or operating expenses for facilities that provide  
            health care services to tribal members and other members of  
            the local community. 


          6)The Compact:  a) provides a regulatory framework that respects  
            the role of the tribal gaming agency as the primary regulator  
            while also ensuring that state gaming regulators fulfill their  
            responsibilities; b) requires the Tribe to conduct its gaming  
            activities pursuant to an internal control system that  
            implements minimum internal controls that are no less  
            stringent than those in federal regulations; c) requires the  
            Tribe to adopt a Tribal Labor Relations Ordinance, as  
            specified; and, d) contains provisions to protect the health  
            and safety of patrons, guests, and employees.    


          7)Provide that, in deference to tribal sovereignty, certain  








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            actions are not deemed projects for purposes of the California  
            Environmental Quality Act (CEQA); and, stipulates, except as  
            expressly provided, that none of the provisions shall be  
            construed to exempt a city, county, or city and county, or the  
            Department of Transportation from CEQA requirements.


          8)Once effective (legislative ratification and federal approval  
            required), this Compact will be in full force and effect for  
            25 years following the effective date.


          9)Contain an urgency clause, allowing this bill to take effect  
            immediately upon enactment.


          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,  
            self-sufficiency, and strong tribal governments. 


          2)Authorizes expressly a number of tribal-state gaming compacts  
            between the State of California and specified Indian tribes. 


          3)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. 


          4)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. 








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          5)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 (U.S.) for the benefit of  
            any Indian tribe, or individual, or held by any Indian tribe  
            or individual subject to restriction by the U.S. against  
            alienation and over which an Indian tribe exercises  
            governmental power. 


          6)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 U.S. district courts with  
            jurisdiction over any cause of action initiated by a tribal  
            government alleging that the State failed to negotiate in good  
            faith to conclude a compact.  Prescribes the remedy, mediation  
            supervised by the courts, if it is found that the State failed  
            to negotiate in good faith to conclude a compact. 


          7)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, 2016, the Assembly Governmental  
          Organization Committee held an informational hearing on this  
          Compact between the State of California and the Barona Band of  
          Mission Indians.


          Brief History and Background:

          The Barona Band of Mission Indians is located in eastern San  
          Diego County, on an approximately 7,227-acre reservation, home  
          to a majority of the 549 enrolled members.  A seven-member  
          Tribal Council pursuant to custom and tradition governs the  








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          Tribe.  Tribal Council members are elected by the General  
          Council, which includes all qualified voters 18 years and older.  
           Elections are staggered and held every two years.  In 1999, the  
          Tribe entered into a tribal-state gaming compact with the State  
          of California which has provided it with extensive economic  
          opportunities, including a profitable casino. 

          The Barona Resort and Casino is a major economic force in  
          eastern San Diego County.  The Tribe employs approximately 3,000  
          individuals and offers 2,000 slot machines, 80 table games, a  
          15-table poker room, and 10 restaurants and eateries.   
          Additionally, the Tribe operates a 400-room resort hotel and a  
          full service day spa.  The resort also features an award winning  
          18 hole golf course, known as the Barona Creek Golf Club.

          The Tribe's efforts have brought substantial economic benefits  
          to the Tribe and the surrounding communities.  Under the  
          leadership and guidance of the Barona Tribal Council, the Tribe  
          has made significant investments in the reservation and the  
          surrounding community including roads, a water reclamation plant  
          and water recovery program, the Barona Fire Department, Tribal  
          Enforcement and contract Sheriff Deputy, the Barona Indian  
          Charter School, children's park, gas station and the Barona  
          Museum and Cultural Center.  The Tribe has also worked in  
          collaboration with San Diego County on a number of public safety  
          issues and infrastructure development projects during the term  
          of its existing compact.  Additionally, the Tribe has invested  
          significantly in the region through philanthropic contributions  
          to a plethora of local public and nonprofit organizations (e.g.,  
          cultural arts, educational programs, civic organizations, local  
          schools, pediatric centers, disaster relief centers, etc.). 

          Furthermore, the success of the Tribe's businesses has enabled  
          the Tribe to provide its members with medical, dental and vision  
          insurance, death benefits, senior meal delivery services,  
          education, housing and jobs.  The Tribe provides programs for  
          its tribal members, especially youth, to ensure healthy and  
          productive lives.  These include scholarships for all education  
          levels, tutoring, a youth center, daycare, preschool, full  
          service library, recreation center, organized sporting events,  
          and cultural activities for all ages. 









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          Key Components of the Compact:  

          Scope of Class III Gaming Authorized:  The Tribe is authorized  
          to operate up to 2,500 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,  
          provided that the Tribe will not offer such games through use of  
          the Internet unless others in the state not affiliated with or  
          licensed by the California State Lottery are permitted to do so  
          under state and federal law.  The Tribe shall not engage in  
          Class III Gaming that is not expressly authorized in the  
          Compact.

          Authorized Gaming Facility:  The Tribe may establish and operate  
          not more than one gaming facility and engage in Class III Gaming  
          only on eligible Indian lands held in trust for the Tribe,  
          located within the boundaries of the Tribe's reservation and  
          trust lands as those boundaries exist as of the execution date  
          of this Compact, as legally described in the Compact (Appendix  
          A).  

          Exclusivity:  If gaming devices are operated anywhere in this  
          state other than in tribe maintained facilities under compact,  
          and an entity thereafter legally offers gaming devices -- the  
          tribe may terminate the Compact (and thus any rights to conduct  
          Class III gaming), or continue under this Compact with an  
          entitlement to a reduction of the rates following the conclusion  
          of negotiations with the State.

          Payments to the Special Distribution Fund (SDF):  The Tribe  
          shall pay to the State, on a pro rata basis, the 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, the California Department of Public  
          Health Programs, Office of Problem Gambling, the State  
          Controller, the Department of Human Resources, and the Financial  
          Information System for California, 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  








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          effect may not be increased more than 5% per year, as defined.

          Payments to the RSTF or the TNGF:  If the Tribe operates more  
          than 350 gaming devices at any time in a given calendar year, it  
          shall thereafter, including in that calendar year, pay to the  
          CGCC, for deposit into the RSTF or the TNGF, four and three  
          quarters percent (4.75%) of its "gross gaming revenue" from the  
          operation of gaming devices in excess of 350.

          "Gross Gaming Revenue" is defined as the win from gaming  
          devices, which is the difference between gaming wins and losses  
          before deducting costs and expenses or deducting incentives or  
          adjusting for changes in progressive jackpot liability accruals.  
           Generally, the difference between patron wagers and the payouts  
          made on winning wagers. 

          Credits Applied to the RSTF or the TNGF:  The State agrees to  
          provide the Tribe with annual credits for up to 60% of the  
          payments otherwise due to be paid into the RSTF or TNGF for the  
          following: 

          1)Payments or the value of services provided to San Diego  
            County, local jurisdictions, school districts, charter  
            schools, and nonprofit and civic organizations operating  
            facilities or providing services within the County for fire,  
            law enforcement, emergency medical services, public transit,  
            education, tourism, recreation, youth athletics and other  
            services and infrastructure improvements intended to serve  
            off-reservation needs of County residents - such payments  
            shall be subject to approval by the State or Designated State  
            Agency and at least 20% of the annual credits must be utilized  
            for the above stated purposes; 
          2)Non-gaming related capital investments and economic  
            development projects by the Tribe that provide mutual benefits  
            to the Tribe and the State because, for instance, they have  
            particular cultural, social or environmental value, or  
            diversify the sources of revenue for the Tribe's general fund;  



          3)Payments to support operating expenses and capital  
            improvements for non-tribal governmental agencies or  








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            facilities operating within the County of San Diego;


          4)Investments in, and any funds paid to the State in connection  
            with, renewable energy projects that, in part, serve the  
            gaming facility, to include projects that incorporate charging  
            stations for electric or other zero-emission vehicles that are  
            available to patrons and employees of the gaming facility and  
            the tribe, its members and lineal descendants; 


          5)Payments to support capital improvements and operating  
            expenses for facilities within California that provide health  
            care services to tribal members, Indians, and non-Indians; 


          6)Investments by the Tribe for water treatment or conservation  
            projects and recycling projects; 


          7)Payments for providing general welfare benefits for, among  
            other things, educational, healthcare, burial assistance,  
            cultural or vocational purposes, to non-tribal members; and,


          Payments by the Tribe to reimburse the County for any loss of  
          sales tax revenue that would otherwise be due for retail sales  
          at the Tribe's gaming facility or transient occupancy tax at the  
          tribe's hotel if it was not located on Indian lands.  

          All excess authorized credits that cannot be applied in any one  
          year because they would exceed the 60% may be applied as an  
          annual credit in all following years that this Compact is in  
          effect, in the same percentages, until completely exhausted.

          Additional Compact Components:

          Gaming Ordinance and Regulations:  All gaming activities  
          conducted under this Compact shall, at a minimum, comply with 1)  
          a gaming ordinance duly adopted by the Tribe and approved in  
          accordance with IGRA, 2) all rules, regulations, procedures,  
          specifications, and standards duly adopted by the National  








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          Indian Gaming Commission (NIGC), the Tribal Gaming Agency, and  
          the State Gaming Agency, and 3) the provisions of this Compact,  
          as specified.

          Licensing Requirements and Procedures:  All persons in any way  
          connected with the gaming operation or gaming facility who are  
          required to be licensed or to submit to a background  
          investigation under IGRA, and any others required to be licensed  
          under this Compact, including, without limitation, all gaming  
          employees, gaming resource suppliers, financial sources, and any  
          other person having a significant influence over the gaming  
          operation, must be licensed by the Tribal Gaming Agency and  
          cannot have had any determination of suitability denied or  
          revoked by the CGCC.  In addition, every gaming employee must  
          obtain, and thereafter maintain current, a valid tribal gaming  
          license, as specified.

          Minimum Internal Control Standards (MICS):  The Compact requires  
          the Tribe to conduct its Gaming Activities pursuant to an  
          internal control system that implements MICS that are no less  
          stringent than specified MICS of the NIGC.  It requires gaming  
          to operate pursuant to a written internal control system that  
          reasonably assures that assets are safeguarded and  
          accountability over assets is maintained, liabilities are  
          properly recorded and contingent liabilities are properly  
          disclosed, financial records are accurate and reliable,  
          transactions are performed in accordance with the Tribe's  
          authorization.

          The Tribe is required to provide to the CGCC, upon written  
          request, a copy of the independent certified public accountant  
          agreed-upon procedures report conducted annually for submission  
          to the NIGC pursuant to federal law.  This report verifies that  
          the gaming operation is in compliance with the NIGC's minimum  
          internal control standards.

          Patron Disputes:  Provides that the Tribe (through its Tribal  
          Gaming Agency) must attempt to resolve patron disputes within  
          seven days of the play or operation of any game, including  
          refusal to pay to a patron any alleged winnings from any gaming  
          activities.  If a patron is dissatisfied with the resolution,  
          the Tribe shall inform the patron in writing within 15 days of  








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          the right to resolution of the dispute by the Tribal Gaming  
          Agency, and if dissatisfied with the resolution, the patron has  
          the right to seek resolution by binding arbitration before a  
          single arbitrator, who shall be a retired judge, in accordance  
          with the streamlined arbitration rules and procedures of  
          Judicial Arbitration and Mediation Services (JAMS).  The Tribal  
          Gaming Agency must conduct an appropriate investigation, provide  
          to the patron a copy of its procedures concerning patron  
          complaints, and render a decision in accordance with industry  
          practices.  The decision shall be issued within 60 days of the  
          patron's request.  The Tribe agrees to waive its sovereign  
          immunity in order to be compelled in federal or state court to  
          abide by the resolution of arbitration.  The cost and expenses  
          of arbitration shall be initially borne by the Tribe but the  
          arbitrator shall award to the prevailing party its costs and  
          expenses (but no attorney fees).  Any party dissatisfied with  
          the award of the arbitrator may at the party's election invoke  
          the JAMS Optional Arbitration Appeal Procedure; provided that  
          the party making such election must bear all costs and expenses  
          of JAMS and the arbitrators associated with the appeal  
          regardless of the outcome.

          Public and Workplace Liability:  The Tribe is required to obtain  
          and maintain a commercial general liability insurance policy  
          that provides coverage of no less than $10 million.  Also,  
          requires the Tribe to adopt a Tort Liability Ordinance  
          containing provisions that are the same as California tort law  
          to govern all claims of bodily injury, personal injury, or  
          property damage arising out of, connected with, or relating to  
          the casino.  The Tribe must consent to jurisdiction in the  
          Tribe's tribal court system, once a tribal court system is  
          established, or before a three-member tribal claims commission.   
          Any party dissatisfied with the award of the tribal venue may  
          invoke the JAMS Optional Arbitration Appeal Procedure.  The  
          appeal will be based solely on the record developed in the  
          tribal court or tribal claims commission proceedings.  Factual  
          determinations will not be set aside if supported by substantial  
          evidence.  The cost and expenses of arbitration shall be  
          initially borne equally by the parties but the JAMS arbitrator  
          shall award to the prevailing party its costs and expenses (but  
          no attorney fees).  The Tribe consents to the jurisdiction of  
          the tribal court, tribal claims commission, JAMS Optional Appeal  








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          Procedure and any action to enforce their judgments or the  
          obligations in this section. 

          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 or state governmental gaming test  
          laboratory to ensure they are being operated according to  
          specified technical standards.  In addition, 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 gaming devices in operation to confirm  
          that the slot machines are operating in conformance with these  
          standards.

          Compliance Enforcement:  It is the responsibility of the Tribal  
          Gaming Agency to conduct on-site gaming regulation and control  
          in order to enforce the terms of this Compact, IGRA, any  
          applicable NIGC and State Gaming Agency regulations, and the  
          tribal gaming ordinance with respect to gaming operation and  
          facility compliance, and to protect the integrity of the gaming  
          activities, the reputation of the Tribe and the gaming operation  
          for honesty and fairness, and the confidence of patrons that  
          tribal government gaming in California meets the highest  
          standards of regulation and internal controls.  To meet those  
          responsibilities, the tribal gaming agency shall adopt and  
          enforce regulations, procedures, and practices.

          Labor Provisions:  Rather than requiring side agreements between  
          the Tribe and labor organizations, the Compact incorporates  
          provisions of Tribal Labor Relations Ordinance (TLRO) that has  
                                                                    the support of labor entities.  The Compact provides that the  
          gaming activities authorized by this Compact may only commence  
          after the Tribe has adopted an ordinance identical to the TLRO  
          provided for in 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  








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          casino facility, then the provisions of the TLRO become  
          effective.  The TLRO provides for a secret ballot election.  The  
          new TLRO proscribed by this compact is modeled after the TLRO  
          first incorporated into the compact with the Santa Ynez Band of  
          Chumash Indians and reflects significant changes from the 1999  
          TLRO.  

          The TLRO provides for a neutrality agreement between the Tribe  
          and union if the union requests this.  If the union first offers  
          in writing not to engage in strikes, picketing, boycotts, attack  
          Web sites, or other economic activity at or in relation to the  
          tribal casino or related facility and issue and deliver a Notice  
          of Intent to Organize (NOIO) to the Tribe, then the Tribe must  
          not disparage or advocate opposition to the union.  The Tribe  
          may make factual representations to employees concerning  
          employment with the Tribe, but may not take actions or make  
          statements that could reasonably be interpreted as criticizing  
          the union or advocating against unionization.  During the 365  
          days after the Tribe received the NOIO, the union must collect  
          dated and signed authorization cards and complete the secret  
          ballot election.  Secret ballot elections shall be held at a  
          location or locations determined by the employer, but there must  
          be at least neutral location.  Employee may mail ballots so long  
          as received by Election Day.  Failure to complete the secret  
          ballot election within 365 day under the neutrality agreement  
          shall preclude the union from delivering another NOIO for a  
          period of 730 days

          Where there is a neutrality agreement, the TLRO provides for  
          resolution of collective bargaining impasse through interest  
          arbitration by the Federal Mediation and Conciliation Service  
          (FMCS).  The interest arbitration procedure is modeled on the  
          Mandatory Mediation and Conciliation provisions in the  
          Agricultural Labor Relations Act.  Other disputes are presented  
          to an arbitrator with expertise in labor law.  Appropriate  
          challenges to the arbitrator's decision may be presented in  
          court.

          Workers' Compensation:  The Tribe agrees to participate in the  
          state's workers' compensation program with respect to employees  
          at the casino.  All disputes arising from the workers'  
          compensation laws shall be heard by the State Workers'  








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          Compensation Appeals Board pursuant to the California Labor  
          Code.  The Tribe acknowledges the jurisdiction of the Board in  
          such manners.  Furthermore, the Tribe agrees that it will  
          participate in the state's unemployment compensation program for  
          providing benefits and unemployment compensation disability  
          benefits to employees at the casino.  The Tribe shall withhold  
          all taxes due to the state, except for Tribal members living on  
          the Tribe's reservation, and forward such amounts to the state. 

          Prohibitions Regarding Minors:  The Tribe shall prohibit persons  
          under the age of 18 years from being present in any room or area  
          in which gaming activities are being conducted unless the person  
          is en route to a non-gaming area of the gaming facility, or is  
          employed at the Gaming Facility in a capacity other than as a  
          gaming employee.

          Alcohol Provisions:  Makes it explicit that the purchase, sale,  
          and service of alcoholic beverages shall be subject to state law  
          - the Alcoholic Beverage Control (ABC) Act.

          Use and Sale of Tobacco:  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 under  
          state-of-the-art technology existing as of the date of the  
          construction or significant renovation of the gaming facility,  
          and further agrees not to offer or sell tobacco to anyone  
          younger than the minimum age specified in state law to legally  
          purchase tobacco products.

          Problem Gambling:  The gaming operation must establish a  
          program, approved by the Tribal Gaming Agency, to mitigate  
          pathological and problem gaming by implementing specified  
          measures. 

          Health and Safety Standards:  The Tribe has agreed to adopt and  
          comply with tribal health standards for food and beverage  
          handling that are no less stringent than State public health  
          standards.  In addition, the Tribe has agreed to comply with  
          federal water quality and safe drinking water standards  
          applicable in California.  The Tribe must also adopt and comply  
          with federal and state laws forbidding harassment, including  








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          sexual harassment, discrimination and retaliation.  Furthermore,  
          the Tribe must maintain a $3 million insurance policy for these  
          purposes and adopt an ordinance that includes a dispute  
          resolution process. 

          Emergency Services Accessibility:  The Tribe must make  
          reasonable provisions for adequate emergency fire, medical, and  
          related relief and disaster services for patrons and employees.

          Building Codes and Fire Safety:  In order to assure the  
          protection of the health and safety of all gaming facility  
          patrons, guests, and employees, the Tribe shall adopt or has  
          already adopted, and shall maintain throughout the term of this  
          Compact, an ordinance that requires any covered gaming facility  
          construction to meet or exceed the applicable codes.  Gaming  
          facility construction, expansion, improvement, modification or  
          renovation must also comply with the federal Americans with  
          Disabilities Act. 

          Amendment by Agreement:  The terms and conditions of this  
          Compact may be amended at any time by the mutual and written  
          agreement of both parties, provided that each party voluntarily  
          consents to such negotiations in writing.  Any amendments to  
          this Compact shall be deemed to supersede, supplant and  
          extinguish all previous understandings and agreements on the  
          subject.

          Effective Date:  This Compact shall not be effective unless and  
          until all of the following have occurred:  1) The Compact is  
          ratified by statute in accordance with state law and 2) Notice  
          of approval or constructive approval is published in the Federal  
          Register.  Once effective, this Compact shall be in full force  
          and effect for State law purposes until 25 years following the  
          effective date.

          Additional Background Information:

          Rincon Decision:  In 2004, the Rincon Band of Mission Indians  
          sued the State in federal court after negotiations for a new  
          gambling agreement with then-Governor Schwarzenegger fell apart.  
           The Tribe believed the Governor was violating federal law by  
          insisting that tribes pay money into the state's General Fund in  








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          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 in California.

          SDF:  Existing law creates the SDF in the State Treasury for the  
          receipt of revenue contributions made by tribal governments  
          pursuant to the terms of the 1999 model Tribal-State Gaming  
          compacts and authorizes the Legislature to appropriate money  
          from the SDF for the following purposes:  1) grants for programs  
          designed to address gambling addiction;  2) grants for the  
          support of state and local government agencies impacted by  
          tribal government gaming; 3) compensation for regulatory costs  
          incurred by CGCC and the DOJ in connection with the  
          implementation and administration of compacts; 4) payment of  
          shortfalls that may occur in the Indian Gaming RSTF; 5)  
          disbursements for the purpose of implementing the terms of  
          tribal labor relations ordinances promulgated in accordance with  
          the terms of the 1999 compacts; and, 6) any other purpose  
          specified by law.  The distribution formula "sunsets" on January  
          1, 2021.

          RSTF:  Existing law also creates in the State Treasury the RSTF  
          for the receipt and deposit of moneys derived from gaming device  
          license fees that are paid into the RSTF pursuant to the terms  
          of specified tribal-state gaming compacts for the purpose of  
          making distributions to non-compacted tribes (e.g.,  
          federally-recognized non-gaming and tribes that operate casinos  








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          with fewer than 350 slot machines).  Revenue in the RSTF is  
          available to CGCC, upon appropriation by the Legislature, for  
          making distributions of $1.1 million annually to non-compact  
          tribes.  The RSTF was created as part of the 1999 compacts,  
          which, in conjunction with the passage of Proposition 1A (2000),  
          created gaming compacts with approximately 60 California tribes.  
           Non-compact tribes are considered third-party beneficiaries of  
          the 1999 compacts.

          According to CGCC, which administers the RSTF, a revenue  
          shortfall of approximately $15.5 million is anticipated this  
          fiscal year.  According to the Department of Finance (DOF), the  
          SDF has sufficient funds in it for fiscal year 2016-2017 to  
          cover the RSTF shortfall.  However, DOF indicates that it  
          projects a $1.6 million SDF balance deficiency in fiscal year  
          2017-2018 assuming a $25 million transfer to the RSTF.  To cover  
          the anticipated shortfall in 2017-2018, approximately $1.6  
          million will need to be transferred from the General Fund in  
          order to ensure full RSTF payments are made to non-gaming and  
          limited-gaming tribes.  A similar amount was redirected in  
          2015-2016.  Recent compacts, including this one, have attempted  
          to alleviate the shortfall situation by requiring payments by  
          Tribes directly to the RSTF.  This model appears to be a  
          template for future compacts, as well.

          TNGF:  The TNGF was created in the Graton Rancheria compact [AB  
          517 (Hall), Chapter 12, Statutes of 2012], as a new destination  
          for gaming revenue for distribution of funds to non-gaming and  
          limited-gaming tribes, upon application of such tribes for  
          purposes related to effective self-governance, self-determined  
          community, and economic development.  The fund is designed to be  
          fluid and payments are intended to be made to non-gaming tribes  
          on a "need" basis, upon application by non-gaming tribes.  The  
          TNGF currently does not receive funding.

          Related legislation:   AB 629 (Gonzalez) of the current  
          legislative session.  Ratifies the tribal-state gaming compact  
          entered into between the State and the Pala Band of Mission  
          Indians, executed on May 6, 2016.

          SB 187 (Hall) of the current legislative session.  Ratifies the  
          tribal-state gaming compact entered into between the State and  








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          the Jamul Indian Village, executed August 8, 2016.  

          AB 2358 (Gonzalez) of the current legislative session.  Ratifies  
          the tribal-state gaming compact entered into between the State  
          and the Pechanga Band of Luiseno Indians, executed August 4,  
          2016.  

          AB 2915 (Committee on Governmental Organization) of the current  
          legislative session.  Ratifies the tribal-state gaming compact  
          entered into between the State and the Agua Caliente Band of  
          Cahuilla Indians, executed August 4, 2016.  

          AB 1977 (Wood) of the current legislative session.  Ratifies the  
          first amendment to the 2006 tribal-state gaming compact entered  
          into between the State and the Yurok Tribe, executed August 4,  
          2016.  

          SB 1426 (Hall) of the current legislative session.  Ratifies the  
          tribal-state gaming compact entered into between the State and  
          the Yocha Dehe Wintun Nation, executed on August 4, 2016.  

          AB 1282 (Gray) of the current legislative session.  Ratifies the  
          tribal-state gaming compact entered into between the State and  
          the Buena Vista Rancheria of Me-Wuk Indians, executed on June  
          28, 2016.  

          AB 1767 (Bigelow) of the current legislative session.  Ratifies  
          the first amendment to the 2015 tribal-state gaming compact  
          entered into between the State and the Jackson Rancheria Band of  
          Miwuk Indians, executed on June 22, 2016.  

          SB 404 (De León) of the current legislative session.  Ratifies  
          the tribal-state gaming compact entered into between the State  
          and the Viejas Band of Kumeyaay Indians, executed on June 22,  
          2016.  

          Prior legislation.  AB 795 (Atkins), Chapter 520, Statutes of  
          2015.  Ratified the tribal state gaming compact entered into  
          between the State and the Sycuan Band of Kumeyaay Nation,  
          executed on September 2, 2015. 

          AB 1540 (Gray), Chapter 531, Statutes of 2015.  Ratified the  








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          tribal-state gaming compact entered into between the State and  
          the Santa Ynez Band of Chumash Indians, executed on August 26,  
          2015. 

          AB 315 (Bigelow), Chapter 512, Statutes of 2015.  Ratified the  
          amended and restated tribal-state gaming compact entered into  
          between the State and the United Auburn Indian Community,  
          executed on August 14, 2015. 

          AB 475 (Bigelow), Chapter 8, Statutes of 2015.  Ratified the  
          tribal-state gaming compact entered into between the State and  
          Jackson Rancheria Band of Miwuk Indians, executed on February 1,  
          2015. 

          SB 1356 (De León), Chapter 314, Statutes of 2014.  Ratified the  
          amendment to the tribal-state gaming compact entered into  
          between the State and the Viejas Band of Kumeyaay Indians,  
          executed on August 12, 2014. 

          SB 1224 (Correa), Chapter 300, Statutes of 2014.  Ratified the  
          tribal-state gaming compact entered into between the State and  
          the Karuk Tribe, executed on December 4, 2013. 

          AB 1245 (V. Manuel Perez), Chapter 462, Statutes of 2013.   
          Ratified the tribal-state gaming compact entered into between  
          the State and the Ramona Band of Cahuilla Indians located in  
          Riverside County, executed on June 10, 2013. 

          AB 277 (Hall), Chapter 51, Statutes of 2013.  Ratified two new  
          compacts entered into between the State 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 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 and  
          the Fort Independence Indian Community of Paiute Indians,  
          executed on February 28, 2013.








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          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.  Repealed those  
          provisions ratifying the tribal-state gaming compact entered  
          into between the State and Pinoleville Pomo Nation, executed on  
          March 9, 2009, and instead ratified the tribal-state gaming  
          compact entered into between the State and the Pinoleville Pomo  
          Nation, 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 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 Habematolel Pomo of Upper Lake, 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 and the Habematolel Pomo of Upper Lake,  
          executed on September 2, 2009. 

          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 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 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 and the Yurok Tribe of the Yurok  








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          Reservation. 

          SB 174 (Ducheny), Chapter 38, Statutes of 2007.  Ratified the  
          first compact amendment to the compact between the State and  
          Sycuan. 

          SB 175 (Ducheny), Chapter 39, Statutes of 2007.  Ratified the  
          first compact amendment to the compact between the State and  
          Morongo. 

          SB 903 (Padilla), Chapter 40, Statutes of 2007.  Ratified the  
          first compact amendment to the compact between the State and  
          Pechanga. 

          SB 941 (Padilla), Chapter 226, Statutes of 2007.  Ratified the  
          first compact amendment to the compact between the State and San  
          Manuel. 

          SB 957 (Torlakson), Chapter 41, Statutes of 2007.  Ratified the  
          first compact amendment to the compact between the State 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.

          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.  

          SB 930 (Burton), Chapter 802, Statutes of 2003.  Ratified a  
          compact between the State and the Torres-Martinez Desert  








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          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. 

          Proposition 1A, adopted by the people of California on March 7,  
          2000.  Modified the prohibition against casinos and lotteries in  
          the California Constitution to authorize the Governor to  
          negotiate compacts, subject to legislative ratification, for the  
          operation of slot machines, lottery games, and banking and  
          percentage card games by federally recognized Indian tribes on  
          Indian lands in California, in accordance with federal law.   
          Authorized slot machines, lottery games, and banking and  
          percentage card games to be conducted and operated on Indian  
          lands subject to the compacts. 

          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. 

          SB 287 (Burton), Chapter 409, Statutes of 1998.  Ratified 11  
          compacts negotiated between the State 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:  
          0004363

















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