BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 795


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          795 (Atkins)


          As Amended  September 4, 2015


          2/3 vote.  Urgency


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          |ASSEMBLY:  |      |(June 1, 2015) |SENATE: |40-0  |(September 9,    |
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                 (vote not relevant)      




          Original Committee Reference:  L. & E.


          SUMMARY:  Ratifies the tribal-state gaming compact (Compact)  
          entered into between the State of California (State) and the  
          Sycuan Band of the Kumeyaay Nation (Tribe) executed on September  
          2, 2015.  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  
          requirements.


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









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          1)Ratify a tribal-state gaming compact entered into in  
            accordance with the federal Indian Gaming Regulatory Act of  
            1988 (18 United States Code (U.S.C.) Sections 1166 to 1168,  
            inclusive, and 25 U.S.C. Section 2701 et seq.) between the  
            State and the Tribe, executed on September 2, 2015, is hereby  
            ratified.


          2)Authorize the Tribe to operate a maximum of 2,500 gaming  
            devices at no more than two gaming facilities, and only on  
            those Indian lands held in trust for the Tribe as of the  
            execution date of this Compact, as described.  


          3)Supersede a 1999 compact between the Tribe and the State.


          4)State once effective, this Compact shall be in full force and  
            effect for State law purposes for 25 years following the  
            effective date.


          5)Provide that, in deference to tribal sovereignty, certain  
            actions may not be deemed projects for purposes of the CEQA.


          6)Contain an urgency clause, allowing the provisions of this  
            bill to take effect immediately upon enactment.


          AS PASSED BY THE ASSEMBLY, this bill required the Department of  
          Industrial Relations (DIR) to submit a report to the Legislature  
          the amount of time it takes for wage claims to receive a  
          preliminary hearing date.


          FISCAL EFFECT:  Pursuant to the 1999 compact, the Tribe  
          currently pays $2.4 million annually into the Special  
          Distribution Fund (SDF) and $2.3 million annually into the  
          Revenue Sharing Trust Fund (RSTF).  Under this Compact, it is  
          estimated that the Tribe will pay approximately $1 million  








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          annually (its pro rata share) into the SDF and approximately  
          $10.1 million annually into the RSTF or the Tribal Nation Grant  
          Fund (TNGF).  Thus, the 60% credit referenced above will equate  
          to approximately $6.3 million per year.  Therefore, the net  
          annual increase to the RSTF, assuming the Tribe maximizes its  
          offsets, would be approximately $1.5 million annually.


          COMMENTS:  On September 9, 2015, the Assembly Governmental  
          Organization Committee held an informational hearing on this  
          tribal-state gaming compact between the State and the Tribe.


          Purpose of this bill:  This bill ratifies the Compact entered  
          into between the State and the Tribe executed on September 2,  
          2015 and supersedes the 1999 compact between the Tribe and the  
          State.  


          The Compact authorizes the Tribe to operate a maximum of 2,500  
          gaming devices (slot machines) at not more than two gaming  
          facilities, and only on those Indian lands held in trust for the  
          Tribe as of the execution date of this Compact, as described.   
          If the Tribe chooses to operate more than one gaming facility,  
          then one of the two gaming facilities shall have no more than  
          500 gaming devices and shall have a primary purpose other than  
          gaming authorized under the Indian Gaming Regulatory Act (IGRA).  
           Under the 1999 compact, the Tribe could not operate more than  
          2,000 gaming devices. 

          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" from  
          the operation of gaming devices in excess of 350, to be shared  
          with non-gaming and limited gaming tribes so that the economic  
          benefits of gaming reach tribal governments that have chosen to  
          not operate a casino.  

          The Compact provides a framework for the sharing of gaming  
          revenue with San Diego County, local jurisdictions, and other  
          stated purposes.  Specifically, the Tribe may take annual  
          credits of up to 60% (of the 4.75% of its Gross Gaming Revenue)  








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          for infrastructure improvements, fire prevention, law  
          enforcement, public transit, education, tourism and other  
          services including investments in renewable energy or water  
          conservation projects and non-gaming related economic  
          development and health care facilities that provide a mutual  
          benefit to the Tribe and the local community. 

          It should be noted that recent federal court decisions, such as  
          the Rincon decision (see below), have severely limited the  
          ability of the State to collect revenues for general purposes  
          from gaming tribes.  As a result, many of the gaming tribes that  
          had executed compacts with Governor Schwarzenegger which  
          provided direct contributions of gaming revenue to the State's  
          General Fund, have sought to renegotiate or amend those deals in  
          a way that is consistent with this federal court decision.

          According to the Governor's office, the terms of the new Compact  
          are consistent with provisions of more recent compacts related  
          to licensing, compliance enforcement and mitigation of  
          off-reservation gaming impacts but have been updated to reflect,  
          among other things, the evolving nature of financial markets, as  
          well as the professionalism of the Tribe's regulators and their  
          constructive relationship with state gaming regulators.

          The Governor's Office contends that the terms of the Compact  
          reflect a continued commitment by the Tribe to revenue sharing  
          with non-gaming and limited gaming tribes through the RSTF and  
          TNGF, so that the economic benefits of gaming reach tribal  
          governments that have not chosen to operate a tribal casino.

          Once effective (legislative ratification and federal approval  
          required), this Compact shall be in full force and effect until  
          December 31, 2040.

          Brief History and Background:

          The Sycuan Band of the Kumeyaay Nation is a federally recognized  
          tribe of Mission Indians from Southern California, near El Cajon  
          in San Diego County.  There are 220 members of the Tribe,  
          approximately 160 of whom are voting members (over 18 years  
          old).  A democratically elected, seven-member tribal council  
          governs the Tribe.  Members of the Sycuan Tribal Council  








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          determine and administer laws, conditions and regulations for  
          the benefit of the Tribe.

          The Tribe opened its first gambling facility, the Sycuan Bingo  
          Palace, on its reservation in 1983.  In 1999, the Tribe and the  
          State entered into a gaming compact, which enabled the Tribe,  
          through revenues generated by its gaming operation, to improve  
          the governance, environment, education, health, safety, and  
          general welfare of its citizens; and to promote a strong tribal  
          government, self-sufficiency, and to provide essential  
          government services to its citizens.  

          The Tribe operates one of the more successful tribal casinos in  
          California.  Under the current 1999 compact, the Tribe operates  
          2,000 Class III gaming devices and 58 table games (Blackjack,  
          Pai Gow, Sycuan-style craps, Poker).  The Tribe also has  
          off-track betting parlor for wagering on horse racing.  The  
          Sycuan Casino offers five different restaurants and a wide  
          variety of top quality musical and theatrical entertainment.   
          The Tribe's casino has become a premiere entertainment  
          destination in San Diego County. 

          The Tribe has a diversified business portfolio, including the  
          Sycuan Resort, which has a hotel, golf course and lighted tennis  
          facility.  The Tribe owns the downtown San Diego landmark US  
          GRANT Hotel and the Marina Gateway Hotel and Conference Center  
          in National City.  The Tribe has an extensive marketing and  
          advertising agreement with the San Diego Padres Major-League  
          Baseball team at PETCO Park, the team's home field.  The Tribe  
          is also an investor in the Hotel Solamar near the ballpark.  The  
          Tribe owns the UP Smoke Shop that is located on its reservation.  
           

          The Tribe has two wastewater treatment plants and "a sequential  
          batch reactor" used for their casino, administrative buildings,  
          and maintenance buildings.  They also own and operate a modular  
          treatment plant and a water treatment facility that controls  
          their nitrate levels.  In addition, the Tribe operates a small  
          medical clinic, dental office, a fire department and a tribal  
          police force.

          The Tribe employs 2,700 people at its casino, golf course,  








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          hotel, and other properties.

          In 2006, the State and Tribe negotiated amendments to the  
          Tribe's 1999 compact that provided for significant payments to  
          the State's General Fund.  Governor Schwarzenegger executed the  
          compact amendments and the Legislature ratified them.  However,  
          the 2006 compact amendments contained a provision requiring  
          ratification by the Tribe's General Council.  Subsequently, the  
          Council voted against ratifying the compact amendments  
          therefore, the agreement was invalid.  As a result, the Tribe's  
          gaming operation continues to be governed by the provisions of  
          the 1999 compact.   


          The Tribe states, "We are committed to improving the  
          environment, education status, and the health, safety and  
          general welfare of our members and the surrounding community."   
          The Tribe further declares, "The future of our Tribe's social  
          and economic advancement depends on promoting education of  
          Sycuan's future leaders.  Education is important for the  
          revitalization, retention, and maintenance of traditional  
          knowledge that was passed on to our Tribe through ancestors."  


          Scope of Gaming Authorized and Financial Terms:  


          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.  The  
          Tribe may not operate roulette games (table or mechanical) or  
          any game that incorporates the physical use of a die or dice.   
          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 two gaming facilities, and only on those Indian  
          lands located within the boundaries of the Tribe's reservation  
          as those boundaries exist as of the execution date of this  
          Compact, as legally described, and on which Class III Gaming may  








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          lawfully be conducted under IGRA. If the Tribe chooses to  
          operate more than one gaming facility, then one of the two  
          gaming facilities shall have no more than 500 gaming devices and  
          shall have a primary purpose other than gaming authorized under  
          IGRA.  


           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.  


          Special Distribution Fund:  The Tribe shall pay to the State on  
          a pro rata basis for costs the State incurs for the performance  
          of all its duties under this Compact as determined by the monies  
          appropriated in the annual Budget Act for the performance of  
          their duties under Class III Gaming compacts each fiscal year  
          for the California Gambling Control Commission (CGCC), the  
          California Department of Justice, the Office of the Governor and  
          the California Department of Alcohol and Drug Programs, Office  
          of Problem Gambling, or any agency or agencies the State  
          designates as a successor to them.  The Tribe estimates it will  
          pay approximately $1 million annually into the SDF under the  
          defined formula. 


          Payments to the Revenue Sharing Trust Fund or Tribal Nation  
          Grant Fund:  If the Tribe operates more than 350 gaming devices  
          at any time in a given calendar year, it shall thereafter,  
          including that calendar year, pay to the CGCC, for deposit into  
          the RSTF or the TNGF, 4.75% of its "Gross Gaming Revenue" from  
          the operation of gaming devices in excess of 350.  "Gross Gaming  
          Revenue" is defined to mean means the win from gaming  
          activities, 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.  The Tribe  








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          estimates that the total RSTF/TNGF annual contribution will be  
          approximately $10.1 million per year.


          Credits Applied to RSTF or the TNGF Payments:  The State agrees  
          to provide the Tribe with annual credits for up to 60% of the  
          payments otherwise due to the RSTF or TNGF for the following:   
          1) The costs of services provided by the Tribe or payments made  
          to the County, local jurisdictions, and non-profit and civic  
          organizations operating facilities or providing services within  
          the County for fire, emergency medical services, law  
          enforcement, public transit, education, tourism, and other  
          services and infrastructure improvements that in part serve  
          off-reservation needs of County residents.  Such payments shall  
          be subject to approval by the State or State designated agency.   
          At least 20% of the annual credits shall be utilized for this  
          purpose; 2) Non-gaming economic development investments that  
          benefit the State and the Tribe because of their cultural,  
          social, or environmental value or diversify the sources of  
          revenue for the Tribe's general fund; 3) Investments by the  
          Tribe and any funds paid to the State for renewable energy  
          projects, as defined; 4) Payments to support capital  
          improvements and operating expenses for facilities within  
          California that provide health care services to tribal members,  
          Indians, and non-Indians; and, 5) Investments by the Tribe for  
          water treatment and conservation projects.


          It is estimated that the 60% credit will equate up to  
          approximately $6.3 million per year.  The current contribution  
          by the Tribe to the RSTF under the 1999 compact is $2.3 million.  
           It is estimated that, even considering the 60% credit the Tribe  
          receives back for off-reservation infrastructure projects, the  
          net amount it will pay under this Compact to the RSTF/TNGF is  
          approximately $4.1 million per year, or nearly double what it is  
          currently paying under the 1999 compact.


          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.








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          Cost Reimbursement and Mitigation to Local Governments:  Before  
          the commencement of a project, and no later than the issuance of  
          the Final Tribal Environmental Impact Report (TEIR) to the  
          County, the Tribe shall offer to commence  
          government-to-government negotiations with the County, and upon  
          the County's acceptance of the Tribe's offer, shall negotiate  
          with the County on a government-to-government basis and shall  
          enter into enforceable written agreements with the County with  
          respect to:  1) Timely mitigation of any significant effect on  
          the off-reservation environment, as defined; 2) Compensation for  
          law enforcement, fire protection, emergency medical services and  
          any other public services to be provided by the County to the  
          Tribe for the purposes of the Tribe's gaming operation as a  
          consequence of the project; 3) Reasonable compensation for  
          programs designed to address gambling addiction; and 4)  
          Mitigation of any effect on public safety attributable to the  
          project, including any compensation to the County as a  
          consequence thereof.


          Quarterly Contribution Report:  At the time each quarterly  
          payment is due, the Tribe shall submit to the State a report,  
          prepared and certified by an authorized representative of the  
          gaming operation.  The report must include:  1) calculation of  
          the maximum number of gaming devices operated each day, 2) the  
          Gross Gaming Revenue calculation reflecting the quarterly gross  
          gaming revenue from the operation of all gaming devices in the  
          facility, 3) the amount due the SDF, 4) calculation of the  
          amount due to the RSTF/TNGF, and 5) the total amount of the  
          quarterly payment.


          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 during the term of this Compact as  
          defined, 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.









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          Additional Compact Components:


          1)Gaming Ordinance and Regulations - all gaming activities  
            conducted under this Compact shall, at a minimum, comply a)  
            with a gaming ordinance duly adopted by the Tribe and approved  
            in accordance with IGRA, b) with all rules, regulations,  
            procedures, specifications, and standards duly adopted by the  
            National Indian Gaming Commission (NIGC), the Tribal Gaming  
            Agency, and the CGCC, and c) with the provisions of this  
            Compact.
          2)Tribal Ownership, Management, and Control of Gaming Operation  
            - the gaming operation authorized under this Compact shall be  
            owned solely by the Tribe.


          3)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 CGCC.  Every gaming employee  
            shall obtain, and thereafter maintain current, a valid tribal  
            gaming license, as provided.  The parties intend that the  
            licensing process provided for in this Compact shall involve  
            cooperation between the Tribal Gaming Agency and CGCC, as  
            described.  


          4)Environmental Protections - the Tribe is required to prepare a  
            TEIR to measure off-reservation environmental impacts  
            including an evaluation of energy consumption prior to  
            initiating the development of a project for a facility.  The  
            Compact provides procedures regarding the following: a) Notice  








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            of Preparation of Draft TEIR; b) Notice of Completion of Draft  
            TEIR; and c) Issuance of Final TEIR.  A completed TEIR shall  
            be filed with San Diego County, the Department of Justice, and  
            the State Clearinghouse.  Projects that have commenced prior  
            to the effective date of this Compact, including the hotel  
            expansion project, will be subject to the relevant terms and  
            conditions of the Tribe's 1999 Compact then in effect.  The  
            Compact provides that existing mitigation agreements between  
            the Tribe and San Diego County regarding development at the  
            Tribe's other properties remain in effect and are not subject  
            to the TEIR provisions of this Compact.  If those agreements  
            expire and are not renegotiated (or negotiations fail), then  
            the TEIR provisions of the Compact become applicable to those  
            properties, as well.


          5)Employee Protections - the Tribe agrees that it will  
            participate in the State's workers' compensation program with  
            respect to employees employed at the gaming facility.   
            Disputes arising from the workers' compensation laws shall be  
            heard by the Workers' Compensation Appeals Board pursuant to  
            the California Labor Code and hereby consents to the  
            jurisdiction of the State Workers' Compensation Appeals Board  
            and the courts of the State of California for purposes of  
            enforcement.  Furthermore, the Tribe agrees that it will  
            participate in the State's program for providing unemployment  
            compensation benefits and unemployment compensation disability  
            benefits with respect to employees employed at the casino,  
            which participation shall include compliance with the  
            provisions of the California  Unemployment Insurance Code, and  
            the Tribe consents to the jurisdiction of the State agencies  
            charged with the enforcement of that Code and of the courts of  
                                                   the State of California for purposes of enforcement.


          6)Participation in State Statutory Programs Related to  
            Employment - as a matter of comity, with respect to persons,  
            including nonresidents of California, employed at the gaming  
            operation or gaming facility, the Tribe shall withhold all  
            taxes due to the State as provided in the California  
            Unemployment Insurance Code except for tribal members and  
            shall forward such amounts to the State.  The Tribe shall file  








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            with the Franchise Tax Board a copy of any information return  
            filed with                 the Secretary of the Treasury, as  
            provided in the California Revenue and Taxation Code and the  
            regulations, except those pertaining to tribal members living  
            on the Tribe's reservation.


          7)Cooperation with Tribal Gaming Agency - the CGCC shall meet  
            periodically with the Tribal Gaming Agency and cooperate in  
            all matters relating to the enforcement of the provisions of  
            this Compact and its Appendices.
          8)Audit and Compact Compliance Review - in addition to providing  
            for an annual independent audit, the Compact allows the state  
            to conduct its own annual audit and compact compliance review.  
             The Tribe shall provide to the CGCC, within 20 days of their  
            submission to the NIGC, copies of the audited financial  
            statements of Class III Gaming and management letter(s), if  
            any, provided to the NIGC.  


          9)Regulations for Operation, Management and Minimum Standards -  
            the Tribe shall conduct its  g  aming activities pursuant to an  
            internal control system that implements minimum internal  
            control standards for Class III Gaming that are no less  
            stringent than those contained in the MICS of the NIGC (25  
            Code of Federal Regulations Section 542), as specified.  This  
            requirement is met through compliance with the provisions, as  
            defined, or in the alternative by compliance with the  
            statewide uniform regulation CGCC-8, as it exists currently  
            and as it may hereafter be amended.  


          10)Inspection and Testing of Slot Machines - slot machines shall  
            be tested, approved and certified by an independent gaming  
            test laboratory or state governmental gaming test laboratory  
            to ensure that they are being operated according to specified  
            technical standards.  Also, requires the Tribal Gaming Agency  
            to maintain adequate records that demonstrate compliance with  
            software and hardware specifications.  The CGCC shall 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.  








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            The Tribal Gaming Agency shall prepare and maintain records of  
            its compliance while any gaming device is on the gaming floor  
            and for a period of one year after the gaming device is  
            removed from the gaming floor, and shall make those records  
            available for inspection by CGCC upon request.


          11)Patron Disputes - the Tribe must attempt to resolve patron  
            disputes filed within three days of the play or operation of a  
            Class III game, including refusal to pay any alleged winnings.  
             If a patron is dissatisfied with the resolution, the Tribe  
            shall inform the patron in writing with 15 days of the right  
            to resolution of the dispute by the Tribal Gaming Agency.  If  
            dissatisfied with the resolution, the patron has the right to  
            seek resolution either in the Sycuan Tribal Court or before a  
            three-member tribal claims commission consisting of a  
            representative of the tribal government and at least one  
            non-tribal commissioner.  The Tribal Gaming Agency shall  
            conduct an appropriate investigation, provide to the patron a  
            copy of its procedures concerning patron complaints, and  
            render a decision in accordance with industry practice.  The  
            decision shall be issued within 60 days of the patron's  
            request.  Any party dissatisfied with the award of the Sycuan  
            Tribal Court (STC) or the tribal claims commission may, at the  
            party's election, appeal the award to the Intertribal Court of  
            Southern California Court of Appeals, provided that the party  
            making the election must bear all costs and expenses  
            associated with the appeal regardless of the outcome.  The  
            Tribe agrees to wave its sovereign immunity in connection with  
            the jurisdiction of the STC, the tribal claims commission or  
            Intertribal Court of Southern California and in any suit in  
            state or federal court to enforce or execute a judgment based  
            upon the award of the tribal court, claims commission, or  
            appellate court.


          12)Labor Provisions - provides that the gaming activities  
            authorized by this Compact may only commence after the Tribe  
            has adopted an ordinance identical to the Tribal Labor  
            Relations Ordinance (TRLO), referenced as Appendix C of the  
            Compact, and the gaming activities may only continue as long  
            as the Tribe maintains the ordinance.  If the Tribe employs  








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            250 or more persons in a tribal casino facility, then the  
            provisions of the TLRO become effective.  The TLRO provides  
            for a secret ballot election.  The new TLRO proscribed by this  
            Compact is modeled after the Tribe's 1999 TLRO with several  
            modifications.  The new TLRO provides for union neutrality.   
            The Tribe will not oppose a union organization but can  
            advocate the benefits of working for the Tribe.  A labor union  
            must issue a Notice of Intent or Organize (NOIO).  For a  
            period of 365 days following delivery of a NOIO, the union  
            shall not engage in strikes, picketing, boycotts, attack  
            websites, or other economic activity at or in relation to the  
            tribal casino or related facility.  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.  Failure to complete the secret ballot election  
            within 365 days shall preclude the union from delivering  
            another NOIO for a period of two years (730 days).  After the  
            certification that 30% of the employees have expressed an  
            interest in the union, a notice of election shall be issued  
            and the election shall be concluded within 30 calendar days  
            thereafter.  Secret ballot elections shall be held at the  
            workplace and at least one neutral location.  Employees may  
            mail in ballots provided they are received by election day.   
            Mediation for any collective bargaining agreement impasse  
            shall be made in conjunction with the Federal Mediation and  
            Conciliation Service.  The mediation process is modeled on the  
            Agricultural Labor Relations Act and authorizes the mediator  
            to resolve the impasse.  According to the Administration, the  
            appeals procedures have been streamlined significantly in  
            comparison to the Tribe's 1999 TLRO.  Disputes are presented  
            to an arbitrator with expertise in labor law and appropriate  
            challenges to the arbitrator's decision may be presented to a  
            state superior court.


          13)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.









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          14)Program to Mitigate Problem Gambling - the gaming operation  
            shall establish a program, approved by the Tribal Gaming  
            Agency, to mitigate pathological and problem gambling.


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


          16)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 under 18 years  
            of age.  


          17)Possession of Firearms - the possession of firearms by any  
            person in the gaming facility is prohibited at all times,  
            except for federal, state, or local law enforcement personnel,  
            or tribal law enforcement or security personnel authorized by  
            tribal law and federal or state law to possess firearms at the  
            gaming facility.


          18)Health and Safety Standards - the Tribe has agreed to adopt  
            and comply with State public health standards for food and  
            beverage handling and federal water quality and safe drinking  
            standards applicable to California.  


          19)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  
            (California Building Code and the California Public Safety  








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            Code).  The Tribe shall also take all necessary steps to  
            reasonably ensure the ongoing availability of sufficient and  
            qualified fire suppression services to the gaming facility,  
            and to reasonably ensure that the gaming facility satisfies  
            all requirements of titles 19 and 24 of the California Code of  
            Regulations applicable to similar facilities in the County, as  
            defined. 


          20)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.


          21)Effective Date - the Compact shall not be effective unless  
            and until all of the following have occurred:  a) The Compact  
            is ratified by statute in accordance with state law; and b)  
            Notice of approval or constructive approval is published in  
            the Federal Register.  


          22)Term - once effective, this Compact shall be in full force  
            and effect until December 31, 2040.


          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  
          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  








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          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.


          Pauma Band of Luiseno Mission Indians Lawsuit:  In 2010, the  
          Pauma Band of Luiseno Mission Indians ceased payments to the  
          State and sued the State in federal court claiming that the  
          State acted in bad faith by misrepresenting significant  
          information relative to the number of gaming machines available  
          for licensure.  Prior to its 2004 amended compact, the Tribe was  
          paying approximately $315,000 a year to the state (into the SDF  
          and RSTF) under terms of its 1999 compact.  The payment rose to  
          $7.75 million a year (initially for securitizing the proposed  
          transportation bond and subsequently deposited directly into the  
          general fund) under the Tribe's 2004 amended compact.  In 2013,  
          the court sided with Pauma and, thus, the State no longer  
          receives payments from the Pauma Tribe.  The State has appealed  
          that decision.


          As noted above, the 2004 Pauma compact amendments were  
          negotiated at the same time as the current Tribe compact, both  
          of which were ratified by the same bill (AB 687 (Núñez), Chapter  
          91, Statutes of 2004).  Both compacts provided for fixed  
          payments to the state for securitizing transportation bonds.   
          The Rincon decision as well as the Pauma case, have limited some  
          of the state's options when negotiating and renegotiating  
          compact agreements.


          SDF:  Existing law creates the SDF in the State Treasury for the  
          receipt of revenue contributions made by tribal governments  








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          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,  
          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.


          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. 









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          Related legislation:  AB 1540 (Gray) of the current legislative  
          session.  Ratifies the tribal-state gaming compact entered into  
          between the State and the Santa Ynez Band of Mission Indians,  
          executed on August 26, 2015. 


          AB 315 (Bigelow) of the current legislative session.  Ratifies  
          the amended and restated tribal-state gaming compact entered  
          into between the State and the United Auburn Indian Community,  
          executed on August 14, 2015.


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


          SB 1356 (De León), Chapter 314, Statutes of 2014.  Ratified the  
          amended and restated tribal-state gaming compact 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 277 (Hall), Chapter 51, Statutes of 2013.  Ratified  
          tribal-state gaming compacts entered into between the State and  
          the North Fork Rancheria Band of Mono Indians of California,  
          executed on August 31, 2012, and the State of California and the  
          Wiyot Tribe, executed on March 20, 2013.


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









                                                                     AB 795


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          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 Tribe, executed  
          on August 8, 2011.  


          AB 1020 (Chesbro), Chapter 27, Statutes of 2011.  Repealed the  
          ratification of the tribal-state gaming compact entered into  
          between the State and the Habematolel Pomo of Upper Lake,  
          executed on September 2, 2009, and instead ratified a new  
          tribal-state gaming compact entered into between the State and  
          the Tribe, executed on March 17, 2011.  


          SB 89 (Budget and Fiscal Review Committee), Chapter 1, Statutes  








                                                                     AB 795


                                                                    Page  21


          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 2009.  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 of California and the Yurok Tribe of  
          the Yurok Reservation.


          SB 174 (Ducheny), Chapter 39, Statutes of 2007.  Ratified the  
          first compact amendment to the compact between the State of  
          California and Sycuan. 


          SB 175 (Ducheny), Chapter 38, Statutes of 2007.  Ratified the  
          first compact amendment to the compact between the State of  
          California and Morongo.


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


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


          SB 957 (Torlakson), Chapter 41, Statutes of 2007.  Ratified the  








                                                                     AB 795


                                                                    Page  22


          first compact amendment to the compact between the State of  
          California and Agua Caliente.


          SB 470 (Ducheny), Chapter 527, Statutes of 2006.  Ratified the  
          first amendment to the compact between the State and the Quechan  
          Tribe of the Fort Yuma Reservation (Quechan).


          SB 1117 (Burton), Chapter 856, Statutes of 2004.  Ratified two  
          new and two amended compacts entered into between the State and  
          the following tribes: Coyote Valley Band of Pomo Indians (new  
          compact); Fort Mojave Indian Tribe (new compact); Buena Vista  
          Rancheria of Me-Wuk Indians (amended compact); and, Ewiiaapaayp  
          Band of Kumeyaay Indians (amended compact).


          AB 687 (Nuñez), Chapter 91, Statutes of 2004.  Ratified  
          amendments to five compacts entered into between the State and  
          the following tribes: Pala Band of Mission Indians; Pauma Band  
          of Luiseno Mission Indians of the Pauma and Yuima Reservation;  
          Rumsey Band of Wintun Indians; United Auburn Indian Communities;  
          and, Viejas Group of Kumeyaay Indians.  


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


          SB 411 (Ducheny), Chapter 790, Statutes of 2003.  Ratified  
          compacts between the State of California and the La Posta Band  
          of Diegueno Mission Indians and the Santa Ysabel Band of  
          Diegueno Mission Indians in San Diego County.


          AB 1385 (Battin), Chapter 874, Statutes of 1999.  Designated the  
          Governor as the state officer responsible for negotiating and  
                                                   executing compacts between the state and federally recognized  
          Indian tribes located in the state.  Also, ratified 57 compacts  
          and created two special funds in the State Treasury (SDF and  
          RSTF), as specified. 








                                                                     AB 795


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          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:  
          0002337