BILL ANALYSIS Ó
AB 466
Page 1
(Without Reference to File)
CONCURRENCE IN SENATE AMENDMENTS
AB
466 (Brown)
As Amended August 17, 2016
Majority vote
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|ASSEMBLY: | |(May 22, 2016) |SENATE: |39-0 |(August 23, |
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(vote not relevant)
Original Committee Reference: G.O.
SUMMARY: Ratifies the tribal-state gaming compact (Compact)
entered into between the State of California and the San Manuel
Band of Mission Indians (Tribe) executed on August 16, 2016.
Additionally, this bill provides that, in deference to tribal
sovereignty, certain 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
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requirements.
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 San Manuel Band of Mission Indians executed
on August 16, 2016.
2)The Compact supersedes an existing 2006 compact (SB 941
(Padilla), Chapter 226, Statutes of 2007) between the Tribe
and the State.
3)Allows the Tribe to establish and operate not more than two
gaming facilities 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
the Compact, as defined.
4)Provides the Tribe may operate a maximum of 7,500 gaming
devices (slot machines). If the Tribe chooses to open a
second facility, it may operate no more than 1,000 gaming
devices at that second facility.
5)Terms of the Compact regarding licensing, compliance
enforcement, mitigation of off-reservation impacts and
protections for patrons and employees are consistent with
recent compacts. Maintains the existing 1999 Tribal Relations
Labor Ordinance (TLRO).
6)Provides for an annual payment of $19 million into the Revenue
Sharing Trust Fund (RSTF) or the Tribal Nation Grant Fund
(TNGF), to be shared with tribes that are not gaming or that
otherwise are not substantially benefiting from gaming.
Establishes the San Manuel Community Credit Fund which
requires a $29 million annual payment by the Tribe to provide
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funding for, or make investments in projects that mutually
benefit the Tribe, County, local jurisdictions, and the State,
including $3 million for Native American education. The Tribe
will pay into the Special Distribution Fund (SDF) its pro rata
share of costs the State incurs for the performance of its
duties under the Compact plus additional amounts ($500,000 up
to a total of $3 million) to cover a portion of the share of
regulatory costs for smaller gaming tribes. Provisions of
this Compact establishing or amending existing revenue sharing
obligations of the Tribe, will take effect on July 1, 2017.
7)Provides that, in deference to tribal sovereignty, certain
actions are not deemed projects for purposes of the California
Environmental Quality Act (CEQA); and, stipulate, 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)Provides this Compact will be in full force and effect for 25
years following the effective date.
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
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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
exceptions to conduct gaming activities on Indian lands acquired
after October 17, 1988.
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 23, 2016, the Assembly Governmental
Organization Committee held an informational hearing on the
tribal gaming Compact entered into between the State of
California and the San Manuel Band of Mission Indians.
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Brief History and Background: The San Manuel Band of Mission
Indians is a federally recognized American Indian tribe located
near the city of Highland, California. San Manuel is one of
several clans of Serrano Indians, who are the indigenous people
of the San Bernardino highlands, passes, valleys and mountains
who share a common language and culture. The San Manuel
reservation was established in 1891 and recognized as a
sovereign nation with the right of self-government. The
reservation is named after Santos Manuel, a former tribal
leader, and consists of just over 900 acres of mostly
mountainous land. There are more than 200 tribal members
enrolled in the Tribe.
This will be the third compact between the Tribe and the State.
In 1999, the Tribe and the State entered into a compact to
enable the Tribe to achieve economic self-reliance, provide
essential services to its citizens, and build a strong tribal
government; to initiate a new era of tribal-state cooperation in
areas of mutual concern. On August 28, 2006, Governor
Schwarzenegger executed amendments to the 1999 gaming compact
between the State and the Tribe. The 2006 compact increased the
number of gaming devices the Tribe could operate from 2,000 to
7,500. The compact provided for annual payments of $45 million
to the state's General Fund from the Tribe's existing 2,000
gaming devices. It also required an annual payment of 15% of
the Net Win for additional gaming devices between 2,000 to 5,000
and 25% of the Net Win generated from the operation of gaming
devices from 5,000 to 7,500. The compact required the Tribe to
make an annual payment to the RSTF of $2 million annually.
There was no change to the Tribe's 1999 Tribal Labor Relations
Ordinance that provides for secret ballot elections. The 2006
compact is valid until 2030.
The San Manuel Indian Bingo & Casino, with more than 400,000
square-feet of overall space, includes more than 280,000
square-feet of gaming, which includes a Bingo Hall with more
than 1,400 seats; nearly 4,000 gaming devices; more than 80
Table Games; upwards of 40 Poker Tables; and a High Limit Room.
The Tribe states that it dedicates significant resources from
gaming to various philanthropic causes through its charitable
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donations to others in the community. Additionally, the Tribe
pays millions of dollars to local governments to improve roads,
support local municipalities, and fund emergency services.
Revenue from the San Manuel Indian Bingo and Casino is used to
maintain governmental operations, provide for the general
welfare of the Tribe and healthcare needs, supply infrastructure
needs such as roads, and to support continued economic
development. The Tribe is one of the largest employers in the
Inland Empire area with over 3,000 employees.
The Tribe states, "that it works diligently to ensure a solid
economic foundation for future generations by investing in
diverse and strategic economic ventures, both on and off the
reservation. Economic diversification creates ways for the
tribe to build a strong economy and contribute to job growth,
our surrounding communities, and the long-term self-reliance of
our members." For instance, the Tribe owns a commercial real
estate investment project near the reservation that includes a
hotel and conference center, restaurants, retail space, and
offices. In 2003, the Tribe collaborated with three other
tribes: the Viejas Band of Kumeyaay Indians, the Forest County
Potowatomi Community and the Oneida Tribe, both of Wisconsin, to
form Four Fires to complete a $43 million hotel project-a
13-story, 233-suite Residence Inn by Marriott, near the
Smithsonian's National Museum of the American Indian. Another
partnership, Three Fires (the same tribes minus the Forest
Potowatomi) built a Residence Inn by Marriott in Sacramento near
the state capital and purchased an office building in Washington
D.C. and commercial office buildings in other towns.
According to the Governor's office, this new Compact "affirms
the Tribe's commitment to the residents of San Bernardino County
and is intended to enable the tribal government to invest in
worthy causes, including fire, emergency medical services, law
enforcement, public transit, infrastructure improvements,
education, renewable energy, recycling or water conservation
projects, non-gaming-related economic development and health
care facilities. It also will make the tribe one of the largest
contributors to the RSTF, which distributes gaming revenue to
non-gaming and limited gaming tribes so that the economic
benefits of gaming reach all tribal governments within
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California."
The Compact's preamble states, the State and the Tribe have
concluded that this Compact protects the interests of the Tribe
and its members, the surrounding communities, and the California
public, and will promote and secure long-term stability, mutual
respect, and mutual benefits
Key Components of the Compact:
Authorized Gaming Facility: The Tribe may establish and operate
not more than two (2) gaming facilities 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. If
the Tribe chooses to open a second facility, it may operate no
more than 1,000 gaming devices at that second facility.
Scope of Class III Gaming Authorized: Authorizes the Tribe to
operate up to a total of 7,500 gaming devices (slot machines);
banking or percentage card games; 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; and, off-track wagering on horse
races in the gaming facility, as defined. The Tribe shall not
engage in Class III gaming that is not expressly authorized in
the Compact. Nothing shall be construed to preclude the Tribe
from offering class II gaming at the Tribe's gaming facility.
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,
the administration and implementation of tribal-state gaming
compacts, and funding for the Office of Problem Gambling, as
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determined by the monies appropriated in the annual Budget Act
each fiscal year to carry out those purposes, as defined.
The Tribe further agrees to pay an additional five hundred
thousand dollars ($500,000) into the SDF to ensure it remains
solvent. In the event the pro rata funding for the SDF
statewide has proven sufficient for three consecutive years, the
parties agree to meet and confer for the purpose of making an
appropriate reduction in the additional payment. In addition,
if the Tribe's pro rata share exceeds $3 million; the Tribe
shall pay the greater of its pro rata share or $3 million.
Payments to the RSTF or the TNGF: The Tribe agrees to pay $19
million annually to the California Gambling Control Commission
(CGCC) for deposit into the RSTF or the TNGF for the benefit of
non-gaming tribes and limited-gaming tribes.
San Manuel Community Credit Fund: Establishes the San Manuel
Community Credit Fund (SMCCF), which is managed by the Tribe to
make or provide funding for, or make investments in projects
that mutually benefit the Tribe, County, local jurisdictions,
and the State. The Tribe shall make quarterly payments into the
fund totaling $29 million per year. The SMCCF may be used for
the following purposes:
1)Payments by the Tribe to the County or local jurisdictions
operating facilities or providing services within the County
for fire, law enforcement, emergency medical services, public
transit, education, tourism, or other services and
infrastructure improvements intended to serve off-reservation
needs of County residents as well as those of the Tribe - such
payments shall be subject to approval by the County or local
jurisdiction receiving the funds;
2)Cost of services provided by the Tribe, or payments made to
the County, local jurisdictions, school districts, charter
schools, or non-profit or civic organizations operating
facilities or providing services within the County, for
cultural programs, fire services, emergency medical services,
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problem gambling programs, law enforcement, public transit,
education, tourism, youth athletics and other youth programs,
or other services or infrastructure improvements that in part
serve off-reservation needs of County residents;
3)To promote continued economic growth that benefits the Tribe
and the surrounding community through investments in
facilities, infrastructure, or other projects that generate
sustained job creation and ensure the financial longevity of
the Tribe, the Tribe may utilize up to 20% of the monies
deposited into the San Manuel Community Credit Fund annually
for the purpose of making payments to the principal amount on
its debt services which are secured by the assets of the
gaming operation;
4)Investments by the Tribe in, and any funds paid to the State
(not including direct or indirect state or federal funding) in
water treatment or conservation projects that, in part, serve
the Gaming Facility or any improvements incorporating water
conservation or treatment technology on real property owned by
the Tribe;
5)Non-gaming related capital investments and economic
development projects by the Tribe, on or off tribal trust
lands, that provide mutual benefits to the Tribe and the State
or to the Tribe and local political subdivisions because, for
instance, they have particular cultural, social, or
environmental value, create jobs, or diversify the sources of
revenue for the Tribe's general fund;
6)Investments in, and any funds paid to the State in connection
with, renewable energy projects that, in part, serve the
gaming facility, , to include facilities that incorporate
charging stations for electric or other zero-emission vehicles
that are available to tribal members, patrons, and employees
of the gaming facility or the Tribe;
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7)Payments (not including direct or indirect state or federal
funding) to support capital improvements and operating
expenses for facilities or programs within California that
provide health care services to tribal members, Indians, and
non-Indians;
8)Grants to Native Americans who are not members of the Tribe,
or grants to other federally-recognized tribes or other Native
American tribes regardless of their federal-recognition
status, for educational, cultural, or vocational purposes, or
for governmental or general welfare purposes or funds or
donations provided for the purpose of aiding federally
recognized tribes in the wake of natural or man-made
disasters;
9)Investments, loans, or other financial obligations including
actual payments used to secure loans, to or for the benefit of
other federally recognized tribes for any purpose, including
gaming;
10)Costs of recycling programs, and any improvements
incorporating recycling technology, that, in part, serve the
Gaming Facility, or other on or off-reservation needs within
the County; and
11)Contributions toward the enhancement of Native American
education in the State of California, which shall be in the
amount of no less than $3 million in contributions per year.
All excess authorized SMCCF monies that cannot be applied in any
one year under, may be applied as an annual credit in all
following years that this Compact is in effect, until completely
exhausted.
Effective Date of Revenue Contribution Provisions: The
provisions of this Compact establishing or amending existing
revenue sharing obligations of the Tribe, including payments to
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the SDF, the RSTF/TNGF, the SMCCF, and payments and
reimbursement to local government to mitigate significant
effects on the off-reservation environment will take effect on
July 1, 2017. Until that date, the revenue contributions set
forth in the 2006 amended compact will remain in effect.
Treatment of Credits Paid by the Tribe in an Economic Downturn:
In the event the Tribe's annual gross gaming revenue is less
than its gross gaming revenue for fiscal year 2009, the Tribe
shall no longer be required to pay the credit amounts into the
San Manuel Community Credit Fund, as identified.
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, as defined.
Off-Reservation Environmental and Economic Impacts: The Tribe
must prepare a Tribal Environmental Impact Report (TEIR) and
negotiate mitigation of any off-reservation impacts, including
an evaluation of energy consumption, prior to initiating the
development of a Project for a facility. The Compact provides
procedures regarding the 1) Notice of Preparation of Draft TEIR,
2) Notice of Completion of Draft TEIR, and 3) Issuance of Final
TEIR. The Tribe's failure to prepare an adequate TEIR when
required may warrant an injunction where appropriate. Before
commencement of a Project, and no later than the issuance of the
final TEIR, the Tribe shall negotiate an intergovernmental
agreement with the California Department of transportation
(Caltrans) if state roads are impacted. A completed TEIR must
be filed with the County, the Department of Justice, the CGCC,
and the State Clearinghouse.
Before commencement of a Project, and no later than the issuance
of the final TEIR, the Tribe shall offer to commence
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negotiations with the County to, amongst other things, provide
for the timely mitigation of any significant effect on the
off-reservation environment including provisions relating to
compensation for law enforcement, fire protection, emergency
medical services and any other public services to be provided by
the County to the Tribe as a consequence of the Project.
Cost Reimbursement and Mitigation to Local Governments: The
Tribe shall enter into agreements with local jurisdictions or
state agencies, as appropriate, for such undertakings and
services that mitigate the impacts of the gaming facility, as
defined, and thereby benefit the gaming facility, the Tribe, or
other affected jurisdictions. Copies of all such agreements
shall be provided to the State.
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
Indian Gaming Commission (NIGC), the Tribal Gaming Agency, and
the State Gaming Agency, and 3) the provisions of this Compact,
as specified.
Minimum Internal Control Standards (MICS): 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
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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.
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. The Tribe
must adopt a Tort Liability Ordinance stipulating that
California tort law governs claims. 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' Compensation Appeals Board pursuant to the California
Labor Code.
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. The Tribal Gaming Agency is
required to maintain adequate records that demonstrate
compliance with software and hardware specifications. The CGCC
will 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.
Labor Provisions: The new San Manuel compact maintains the
existing 1999 Tribal Labor Relations Ordinance (TLRO). A
collective bargaining agreement currently exists between the
Tribe and the Communications Workers of America (CWA). This
agreement governs the organizational and representational rights
of employees at the gaming facility. The Tribe has negotiated
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and entered into several renewals of that collective bargaining
agreement, including one that was recently renewed and is in
full force and effect. The parties agree that no change in the
TLRO is necessary to address employee rights at this time.
However, should the collective bargaining agreement not be
renewed, the TLRO included in the Compact as Appendix B shall be
adopted by the Tribe in place of the existing TLRO.
Workers' Compensation: 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, with
respect to persons, including nonresidents of California,
employed at the gaming operation or gaming facility, withhold
all amounts due to the State as provided in the California
Unemployment Insurance Code and, except for tribal members
living on the Tribe's reservation, as provided.
The Tribe agrees to participate in the State's workers'
compensation program with respect to employees at the gaming
operation and the gaming facility. All disputes arising from
the workers' compensation laws shall be heard by the State
Workers' Compensation Appeals Board pursuant to the California
Labor Code. The Tribe acknowledges the jurisdiction of the Board
in such manners. In lieu of participation in the State's
system, the Tribe may create and maintain a system through
self-insurance, which includes specified provisions, including
hearings before an independent tribunal.
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 non-gaming area of the gaming facility.
Use and Sale of Tobacco: The Tribe agrees to provide a
non-smoking area in the gaming facility and, consistent with the
Tribe's commitment to the well-being of its employees and
patrons, to incorporate ventilation, filtration, purification or
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other technologies throughout the gaming facility, where
reasonable and feasible after consideration of engineering,
economic and scientific factors, and further agrees not to offer
or sell tobacco to anyone under 21 years of age.
Alcohol Provisions: If the Tribe permits the consumption of
alcoholic beverages in the gaming facility, the Tribe shall
prohibit persons under the age of 21 years from purchasing,
consuming, or possessing alcoholic beverages. The Tribe shall
also prohibit persons under the age of 21 years from being
present in any room or area in which alcoholic beverages may be
consumed, except to the extent permitted by the Department of
Alcoholic Beverage Control, as specified.
Problem Gambling: The Tribe shall continue to maintain
safeguards against problem gambling, as defined
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 gaming facility
construction to meet or exceed the construction standards set
forth in the applicable codes. Gaming facility construction,
expansion, improvement, modification or renovation must also
comply with the federal Americans with Disabilities Act.
Health and Safety Standards: The Tribe must also adopt and
comply with tribal law that is consistent with federal and state
laws forbidding harassment, including sexual harassment,
discrimination and retaliation. In addition, the Tribe must
maintain an insurance policy for these purposes and adopt an
ordinance that includes a dispute resolution process.
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. The Tribe has
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also agreed to comply with federal water quality and safe
drinking water standards applicable in California.
Emergency Services Accessibility: The Tribe shall make
reasonable provisions for adequate emergency fire, medical, and
related relief and disaster services for patrons and employees
of the gaming facility.
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: Once effective (legislative ratification and
federal approval required), this Compact will be in full force
and effect for 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 came to a
standstill. 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 gaming devices.
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
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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 changed the dynamics of tribal-state compact
negotiations in California. While the compacts requiring these
payments stood, any new compacts or amendments of existing
compacts may no longer require General Fund contributions.
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
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,
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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 2358 (Waldron) of the current
legislative session. Would ratify the tribal-state gaming
compact entered into between the State and the Pechanga Band of
Luiseno Indians, executed August 4, 2016.
AB 629 (Gonzalez), of the current legislative session 2016.
Would ratify the tribal-state gaming compact entered into
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between the State and the Pala Band of Mission Indians, executed
on May 6, 2016.
SB 187 (Hall) of the current legislative session. Would ratify
the tribal-state gaming compact entered into between the State
and the Jamul Indian Village, executed August 8, 2016.
AB 2915 (E. Garcia) of the current legislative session.
Provides for the ratification of a new Tribal-State gaming
compact between the State and Agua Caliente Band of Cahuilla
Indians, executed on August 4, 2016.
AB 1977 (Wood) of the current legislative session. Would ratify
the first amendment to the 2006 tribal-state gaming compact
entered into between the State and the Yurok Tribe, executed
August 4, 2016.
SB 1313 (Hall) of the current legislative session. Would ratify
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. Would ratify
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. Would
ratify 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. Would
ratify the tribal-state gaming compact entered into between the
State and the Viejas Band of Kumeyaay Indians, executed on June
22, 2016.
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AB 291 (Atkins) of the current legislative session. Would
ratify the tribal-state gaming compact entered into between the
State and the Barona Band of Mission 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
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.
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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.
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
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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
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.
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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 Band of Mission Indians.
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
Cahuilla Indians.
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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:
0004894
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