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 -------------------------------------------------------------------- |ASSEMBLY: | |(May 22, 2016) |SENATE: |39-0 |(August 23, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- (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 AB 466 Page 2 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 AB 466 Page 3 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 AB 466 Page 4 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. AB 466 Page 5 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 AB 466 Page 6 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 AB 466 Page 7 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 AB 466 Page 8 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, AB 466 Page 9 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; AB 466 Page 10 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 AB 466 Page 11 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 AB 466 Page 12 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 AB 466 Page 13 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 AB 466 Page 14 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 AB 466 Page 15 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 AB 466 Page 16 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 AB 466 Page 17 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, AB 466 Page 18 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 AB 466 Page 19 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. AB 466 Page 20 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. AB 466 Page 21 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 AB 466 Page 22 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. AB 466 Page 23 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. AB 466 Page 24 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 AB 466 Page 25