BILL ANALYSIS Ó
AB 1282
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB
1282 (Gray)
As Amended August 8, 2016
2/3 vote. Urgency
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|ASSEMBLY: |78-0 |(May 14, 2015) |SENATE: |39-0 |(August 17, |
| | | | | |2016) |
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Original Committee Reference: G.O.
SUMMARY: Ratifies the tribal-state gaming compact (Compact)
entered into between the State of California (State) and the
Buena Vista Rancheria of Me-Wuk Indians (Tribe) executed on June
28, 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
requirements.
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Ratify the tribal-state gaming compact between the State of
California and the Buena Vista Rancheria of Me-Wuk Indians,
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which was executed on June 28, 2016.
2)Supersede the 2004 amended compact (SB 1117 (Burton), Chapter
856, Statutes of 2004) between the Tribe and the State of
California.
3)Authorize the Tribe to operate 2,000 gaming devices within the
boundaries of the Tribe's Reservation, as described (Appendix
A).
4)State the Tribe has agreed to pay the State its pro rata share
of costs the State incurs for the performance of its duties
under this Compact as well as 6% of its "Net Win," to be
shared with tribes that are not gaming or that otherwise are
not substantially benefiting from gaming.
5)Provide a framework for the sharing of gaming revenue with the
County and other local jurisdictions. Specifically, from its
payments to the Revenue Sharing Trust Fund (RSTF) or the
Tribal Nation Grant Fund (TNGF), the Tribe may take annual
credits of up to 60% for infrastructure improvements that in
part benefit county residents, fire, law enforcement, public
transit, education, tourism, and other services including
investments in renewable energy projects, water treatment or
conservation projects and payments to support capital
improvements and operating expenses for facilities within
California that provide health care services to tribal members
and other members of the local community.
6)This Compact: 1) provides a regulatory framework that respects
the role of the tribal gaming agency as the primary regulator
while also ensuring that state gaming regulators fulfill their
responsibilities; 2) requires the Tribe to conduct its gaming
activities pursuant to an internal control system that
implements minimum internal controls that are no less
stringent than those in federal regulations; 3) requires the
Tribe to adopt a Tribal Labor Relations Ordinance, as
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specified; and, 4) contains provisions to protect the health
and safety of patrons, guests, and employees.
7)Provide 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)Provide once effective, this Compact shall be in full force
and effect for 25 years following the effective date.
9)Contain an urgency clause, allowing this bill to take effect
immediately upon enactment.
EXISTING LAW:
1)Provides, under the Indian Gaming Regulatory Act (IGRA), for
the negotiation and conclusion of compacts between federally
recognized Indian tribes and the State for the purpose of
conducting Class III gaming activities on Indian lands within
a State as a means of promoting tribal economic development,
self-sufficiency, and strong tribal governments.
2)Authorizes expressly a number of tribal-state gaming compacts
between the State of California and specified Indian tribes.
3)Authorizes the conduct of Class III gaming activities to the
extent such activities are permitted by state law, a gaming
compact has been concluded by a federally recognized tribe and
the State, and the compact has been approved by the Secretary
of the Interior.
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4)Limits the operation of Class III gaming activities to Indian
lands acquired on or before October 17, 1988. Provides for
certain exceptions to conduct gaming activities on Indian
lands acquired after October 17, 1988.
5)Defines Indian lands to mean all lands within the limits of
any Indian reservation, and any lands title to which is either
held in trust by the United States (U.S.) for the benefit of
any Indian tribe, or individual, or held by any Indian tribe
or individual subject to restriction by the U.S. against
alienation and over which an Indian tribe exercises
governmental power.
6)Requires the State to negotiate to conclude a compact in good
faith with an Indian tribe having jurisdiction over the Indian
lands upon which the Class III gaming activity is to be
conducted. Provides the U.S. district courts with
jurisdiction over any cause of action initiated by a tribal
government alleging that the State failed to negotiate in good
faith to conclude a compact. Prescribes the remedy, mediation
supervised by the courts, if it is found that the State failed
to negotiate in good faith to conclude a compact.
7)Authorizes the Governor, under the California Constitution, to
negotiate and conclude compacts, subject to ratification by
the Legislature.
FISCAL EFFECT: Unknown
COMMENTS: On August 11, 2016, the Assembly Governmental
Organization Committee held an informational hearing on the
amended tribal gaming compact entered into between the State of
California and the Buena Vista Rancheria of Me-Wuk Indians.
Brief History and Background:
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The Buena Vista Rancheria of Me-Wuk Indians is a federally
recognized Indian tribe that occupies a 67.5-acre Indian
reservation, in Amador County. Me-Wuk Indians have occupied the
area known as Buena Vista since at least 1817, and the Tribe has
occupied the land constituting the Buena Vista Rancheria from as
early as 1905.
The Buena Vista Rancheria was purchased in 1927 by the United
States and held in trust for the Tribe. In 1958, Congress
adopted the California Rancheria Act, which rescinded the
federal recognition of several California Indian tribes,
including the Buena Vista Me-Wuk Tribe. The California Rancheria
Act (Act) also terminated the trust and reservation status of
several California Indian Rancherias, including the Buena Vista
Rancheria, and, pursuant to distribution plans established under
the Act, distributed the Rancherias lands in fee to two
individual Indians of the Tribe.
In 1979, the Indian residents of the Buena Vista Rancheria
joined Indians from 16 other California Rancherias in a class
action lawsuit in federal district court against the United
States and the various counties in which the Rancherias were
located to restore their recognition as Indians and tribes, and
to restore the federal Indian reservation status of their lands.
In 1983, in settlement of that litigation, the federal district
court entered as a stipulated judgment (Tillie Hardwick
decision) an order 1) restoring to federally-recognized status
the involved tribes, including the Buena Vista Me-Wuk Tribe, and
2) further restoring and confirming the involved individual
Indian plaintiffs as Indians, within the meaning of federal law.
In 1987, in further settlement of that same litigation, the
federal district court entered as a stipulated judgment an order
restoring the boundaries of the Buena Vista Rancheria.
In 2004, the BIA determined that only descendants of Louis and
Annie Oliver qualify for membership in the Tribe, and that
Rhonda Morningstar Pope and her children are the only
individuals eligible for membership in the Tribe because they
claim descendancy from the Oliver family.
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The Tribe originally entered into a compact with the State in
1999 and in 2004. The 2004 amended compact also grants the
Tribe exclusivity against Class III gaming from non-tribal
interests within a 63 mile radius of its gaming facility;
provided for revenue sharing contributions to non-gaming tribes
through the RSTF for every gaming device that the Tribe operates
over 350 devices; and, required the Tribe to reach agreements
with Amador County to mitigate environmental impacts and pay for
public services.
The tribe signed an agreement with Amador County in 2008 after
over two years of negotiations that would have required the
Tribe to pay a one-time $18 million payment as well as $8
million a year to offset the impacts of any new development
including the costs of law enforcement. The County decided to
not adhere to the deal, which would have restricted the new
casino to 950 slots. An independent arbitrator upheld the terms
of the proposed arrangement.
The Tribe has been involved in a legal battle that has gone on
for many years against local officials (Amador County) for the
right to construct a casino on its land about five miles south
of the town of Ione. The most recent case went to the US
District Court for the District of Columbia where, in March
2016, the Court ruled against the County's assertion that the
proposed site for the casino was not a legal reservation for a
gambling development. This Compact (Section 4.2) makes it
explicit that the Tribe may only engage in Class III gaming on
"eligible" Indian lands located within the boundaries of its
reservation. The District Court said that the land is eligible
for gaming - the County of Amador is appealing the decision.
According to information provided by the Tribe, Tribal
Chairwoman Rhonda L. Morningstar Pope took office in December of
2004 and since that time, the Tribe has built its governmental
infrastructure. The Tribe employs over 15 individuals that
perform essential governmental and administrative functions.
The Tribe operates a nonprofit child development center in
Sacramento that serves native and low-income families. The
Tribe oversees an Environmental Department that administers
various programs, including cultural resource management,
cultural repatriation, solid waste management, and Clean Water
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Act programs. The Tribe has revitalized and restored several
vital cultural components on its reservation, including a dance
arbor, riggings shacks, a sweat lodge, and an historic cemetery.
A new 4,000 square foot cultural center is expected to be
completed by the end of 2016.
The Tribe is committed to improving the environment, education
status, and the health, safety and general welfare of its
members and local residents.
Key Components of the Compact:
Scope of Class III Gaming Authorized: The Tribe may engage in
Class III Gaming at no more than one facility located within the
existing Indian lands deemed eligible for gaming under IGRA. The
Tribe is entitled to operate up to a total 2,000 gaming devices.
Payments to the Special Distribution Fund (SDF): The Tribe
shall pay to the State, on a pro rata basis, the costs the State
incurs for the performance of all its duties under this Compact,
as established by the monies appropriated in the annual Budget
Act for the performance of their duties under the Class III
Gaming Compacts each fiscal year for the California Gambling
Control Commission (CGCC), the California Department of Justice,
the Office of Problem Gambling, the State Controller, and any
other agency or agencies responsible for implementation and
administration of Class III gaming compacts.
Payments to the RSTF or the TNGF: If the Tribe operates more
than 350 gaming devices at any time in a given calendar year, it
shall thereafter, including in that calendar year, pay to the
CGCC, for deposit into the RSTF or the TNGF, 6% of its "Net Win"
from the operation of gaming devices in excess of 350.
"Net Win" is defined as the drop from gaming devices, plus the
redemption value of expired tickets, less fills, less payouts,
less that portion of the gaming operation's payments to a
third-party wide-area progressive jackpot system provider that
is contributed only to the progressive jackpot amount.
Credits Applied to the RSTF or the TNGF: The State agrees to
provide the Tribe with annual credits for up to 60% of the
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payments otherwise due to be paid into the RSTF or TNGF for the
following:
1)Payments to the County of Amador and local jurisdictions
operating facilities or providing services within the County
for improved fire, law enforcement, public transit, education,
tourism, and other services and infrastructure improvements
intended to serve off-reservation needs of County residents -
such payments shall be subject to approval by the County or
local jurisdiction in the County and at least 20% of the
annual credits must be utilized for the above stated purposes.
Specified annual payments by the Tribe made pursuant to an
agreement between the County and the Tribe and approved by
arbitration on June 11, 2008 and currently in effect are also
eligible credits and will be deemed to have the approval of
the County until termination of that agreement or its
replacement with an amended or new intergovernmental
agreement;
2)Payments by the Tribe for non-gaming related capital
investments and economic development projects by the Tribe on
tribal trust lands that the State agency agrees provides
mutual benefits to the Tribe and the State because, for
instance, they have particular cultural, social or
environmental value, or diversify the sources of revenue for
the Tribe's general fund;
3)Payments by the Tribe to support capital improvements and
operating expenses for facilities within California that
provides health care services to tribal members, Indians, and
non-Indians;
4)Investments and any funds paid by the Tribe to the State in
renewable energy projects that, in part, serve the gaming
facility, and in projects that incorporate charging stations
for electric or other zero emission vehicles that are
available to patrons and employees of the gaming facility;
5)Investments by the Tribe and any funds paid to the State for
water treatment or conservation projects that, in part, serve
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the gaming facility or any improvements incorporating water
conservation or treatment technology on real property owned by
the Tribe, or its members and lineal descendants; and
6)Payments by the Tribe to provide general welfare benefits for,
among other things, educational, healthcare, cultural, or
vocational purposes, to non-enrolled members of the Tribe and
other Native American in the community.
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.
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.
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.
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
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employees, gaming resource suppliers, financial sources, and any
other person having a significant influence over the gaming
operation, must be licensed by the Tribal Gaming Agency and
cannot have had any determination of suitability denied or
revoked by the CGCC. In addition, every gaming employee must
obtain, and thereafter maintain current, a valid tribal gaming
license, as specified.
Minimum Internal Control Standards (MICS): The Compact requires
the Tribe to conduct its Gaming Activities pursuant to an
internal control system that implements MICS that are no less
stringent than specified MICS of the NIGC. It requires gaming
to operate pursuant to a written internal control system that
reasonably assures that assets are safeguarded and
accountability over assets is maintained, liabilities are
properly recorded and contingent liabilities are properly
disclosed, financial records are accurate and reliable,
transactions are performed in accordance with the Tribe's
authorization.
The Tribe is required to provide to the CGCC, upon written
request, a copy of the independent certified public accountant
agreed-upon procedures report conducted annually for submission
to the NIGC pursuant to federal law. This report verifies that
the gaming operation is in compliance with the NIGC's minimum
internal control standards.
Patron Disputes: The Tribe must attempt to resolve patron
disputes within three days of the play or operation of any game,
including refusal to pay to a patron any alleged winnings from
any gaming activities. If a patron is dissatisfied with the
resolution, the Tribe shall inform the patron in writing within
15 days of the right to resolution of the dispute by the Tribal
Gaming Agency. 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. If dissatisfied
with the resolution, the patron has the right to seek resolution
either in the Tribe's tribal court system, once a tribal court
system is established, or through binding arbitration of the
dispute before a retired judge. Any party dissatisfied with the
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award of the tribal court or JAMS arbitrator may, at the party's
election, invoke the JAMS Optional Arbitration Appeal Procedure.
The cost and expense of arbitration shall initially be borne
equally by the Tribe and the patron but the JAMS arbitrator
shall award to the prevailing party its costs and expenses (but
no attorney fees). The Tribe agrees to wave its sovereign
immunity in connection with the jurisdiction of the tribal court
system or JAMS Streamlined Arbitration and JAMS Optional
Arbitration Appeal Procedure and in any action to enforce their
judgments or the obligations provided in this section.
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 must consent to
jurisdiction in the Tribe's tribal court system, once a tribal
court system is established, or before a three-member tribal
claims commission. Any party dissatisfied with the award of the
tribal venue may invoke the JAMS Optional Arbitration Appeal
Procedure, as specified.
Environmental Protections: The Tribe must prepare a Tribal
Environmental Impact Report (TEIR) and negotiate mitigation of
any off-reservation impacts 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 of Amador, the Department of Justice, the CGCC, and the
State Clearinghouse. In addition, before commencement of a
Project, and no later than the issuance of the final TEIR, the
Tribe shall offer to commence negotiations with the County of
Amador 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
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any other public services, to the extent such services are to be
provided by the County to the Tribe as a consequence of the
Project.
Intergovernmental Agreement: 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.
Enhanced Audit and Compliance Review Procedures: In addition to
providing for an annual independent audit, a copy of which must
be submitted to the CGCC, the Compact allows the state to
conduct its own annual audit and compact compliance review.
Inspection and Testing of Slot Machines: All gaming devices
must 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, prior to being placed in operation. The Tribal Gaming
Agency must maintain adequate records that demonstrate
compliance with software and hardware specifications. The CGCC
may inspect the Gaming Devices in operation at the Gaming
Facility on a random basis not to exceed four times annually to
confirm that the slot machines are operating in conformance with
these standards.
Enhanced Audit and Compliance Review Procedures: In addition to
providing for an annual independent audit, a copy of which must
be submitted to the CGCC, the Compact allows the state to
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conduct its own annual audit and compact compliance review.
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) provided for in Appendix C of the Compact, and
the gaming activities may only continue as long as the Tribe
maintains the ordinance. If the Tribe employs 250 or more
persons in a tribal casino facility, then the provisions of the
TLRO become effective. The TLRO provides for a secret ballot
election. The new TLRO proscribed by this compact is modeled
after the TLRO first incorporated into the compact with the
Santa Ynez Band of Chumash Indians and reflects significant
changes from the 1999 TLRO.
The TLRO provides for a neutrality agreement between the Tribe
and union if the union requests this. If the union first offers
in writing not to engage in strikes, picketing, boycotts, attack
Web sites, or other economic activity at or in relation to the
tribal casino or related facility and issue and deliver a Notice
of Intent to Organize (NOIO) to the Tribe, then the Tribe must
not disparage or advocate opposition to the union. The Tribe
may make factual representations to employees concerning
employment with the Tribe, but may not take actions or make
statements that could reasonably be interpreted as criticizing
the union or advocating against unionization. During the 365
days after the Tribe received the NOIO, the union must collect
dated and signed authorization cards and complete the secret
ballot election. Secret ballot elections shall be held at a
location or locations determined by the employer, but there must
be at least neutral location. Employee may mail ballots so long
as received by Election Day. Failure to complete the secret
ballot election within 365 day under the neutrality agreement
shall preclude the union from delivering another NOIO for a
period of 730 days
Where there is a neutrality agreement, the TLRO provides for
resolution of collective bargaining impasse through interest
arbitration by the Federal Mediation and Conciliation Service
(FMCS). The interest arbitration procedure is modeled on the
Mandatory Mediation and Conciliation provisions in the
Agricultural Labor Relations Act. Other disputes are presented
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to an arbitrator with expertise in labor law. Appropriate
challenges to the arbitrator's decision may be presented in
court.
Workers' Compensation: The Tribe agrees to participate in the
state's workers' compensation program with respect to employees
at the casino. All disputes arising from the workers'
compensation laws shall be heard by the State Workers'
Compensation Appeals Board pursuant to the California Labor
Code. 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. Furthermore, the Tribe agrees that it will
participate in the state's unemployment compensation program for
providing benefits and unemployment compensation disability
benefits to employees at the casino. The Tribe shall withhold
all taxes due to the state, except for Tribal members living on
the Tribe's reservation, and forward such amounts to the state.
Prohibitions Regarding Minors: The Tribe shall prohibit persons
under the age of 18 years from being present in any room or area
in which gaming activities are being conducted unless the person
is en route to a non-gaming area of the gaming facility, or is
employed at the Gaming Facility in a capacity other than as a
gaming employee.
Alcohol Provisions: Makes it explicit that the purchase, sale,
and service of alcoholic beverages shall be subject to the
Alcoholic Beverage Control Act. The Tribe shall prohibit
persons under the age of 21 years from purchasing, consuming, or
possessing alcoholic beverages.
Use and Sale of Tobacco: The Tribe agrees to provide a
non-smoking area in the gaming facility and to utilize a
ventilation system throughout the gaming facility that exhausts
tobacco smoke to the extent reasonably feasible under
state-of-the-art technology existing as of the date of the
construction or significant renovation of the gaming facility,
and further agrees not to offer or sell tobacco products,
including but not limited to smokeless tobacco products or
e-cigarettes, to anyone younger than the minimum age specified
in state law to legally purchase tobacco products.
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Problem Gambling: Requires the gaming operation to establish a
program, approved by the Tribal Gaming Agency, to mitigate
pathological and problem gaming by implementing specified
measures.
Health and Safety Standards: The Tribe has agreed to adopt and
comply with tribal health standards for food and beverage
handling that are no less stringent than State public health
standards. In addition, the Tribe has agreed to comply with
federal water quality and safe drinking water standards
applicable in California. The Tribe must adopt and comply with
federal and state laws forbidding harassment, including sexual
harassment, discrimination and retaliation. The Tribe must
maintain a $3,000,000 insurance policy for these purposes and
adopt an ordinance that includes a dispute resolution process.
Emergency Services Accessibility: The Tribe must make
reasonable provisions for adequate emergency fire, medical, and
related relief and disaster services for patrons and employees.
Building Codes and Fire Safety: Requires facilities to meet or
exceed the California Building Code and the Public Safety Code
applicable to Amador County. The Tribe must submit to fire
safety inspections by the State, and to rectify deficiencies,
lest be subject to court order prohibiting occupancy of the
portion of the gaming facility with the deficiencies.
Amendment by Agreement: The terms and conditions of this
Compact may be amended at any time by the mutual and written
agreement of both parties, provided that each party voluntarily
consents to such negotiations in writing. Any amendments to
this Compact shall be deemed to supersede, supplant and
extinguish all previous understandings and agreements on the
subject.
Effective Date: This Compact shall not be effective unless and
until all of the following have occurred: (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. Once effective, this Compact shall be in full force
and effect for State law purposes until twenty-five (25) years
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following the effective date (2041).
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
that the new financial concessions were nothing more than a
state tax on tribal casino revenues, which is prohibited by
IGRA. The court concluded that a "non-negotiable, mandatory
payment of 10% of net win into the State treasury for
unrestricted use yields public revenue and is [therefore] a tax
and that the court was therefore required to consider the
State's demand as evidence of bad faith under IGRA's statutes."
The Rincon decision has changed the dynamics of tribal-state
compact negotiations in California.
SDF: Existing law creates the SDF in the State Treasury for the
receipt of revenue contributions made by tribal governments
pursuant to the terms of the 1999 model Tribal-State Gaming
compacts and authorizes the Legislature to appropriate money
from the SDF for the following purposes: 1) grants for programs
designed to address gambling addiction; 2) grants for the
support of state and local government agencies impacted by
tribal government gaming; 3) compensation for regulatory costs
incurred by CGCC and the DOJ in connection with the
implementation and administration of compacts; 4) payment of
shortfalls that may occur in the Indian Gaming RSTF; 5)
disbursements for the purpose of implementing the terms of
tribal labor relations ordinances promulgated in accordance with
the terms of the 1999 compacts; and, 6) any other purpose
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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.
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
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TNGF currently does not receive funding.
Related legislation: AB 629 (Gonzalez) of the current
legislative session. Would ratify the tribal-state gaming
compact entered into between the State and the Pala Band of
Mission Indians, executed on May 6, 2016.
SB 187 (Hall) of the current legislative session. Would ratify
the tribal-state gaming compact entered into between the State
and the Jamul Indian Village, executed August 8, 2016.
AB 2915 (Eduardo 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 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.
AB 2358 (Gonzalez) 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.
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 291 (Atkins) of the current legislative session. Would
ratify the tribal-state gaming compact entered into between the
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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 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.
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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 Pinoleville Pomo
Nation, executed on August 8, 2011.
AB 1020 (Chesbro), Chapter 27, Statutes of 2011. Repealed the
ratification of the tribal-state gaming compact entered into
between the State and the Habematolel Pomo of Upper Lake,
executed on September 2, 2009, and instead ratified a new
tribal-state gaming compact entered into between the State and
the Habematolel Pomo of Upper Lake, executed on March 17, 2011.
SB 89 (Budget and Fiscal Review Committee), Chapter 1, Statutes
of 2010. Ratified the tribal-state gaming compact entered into
between the State and the Habematolel Pomo of Upper Lake,
executed on September 2, 2009.
AB 122 (Coto), Chapter 3, Statutes of 2010. Ratified the
tribal-state gaming compact entered into between the State and
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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.
SB 903 (Padilla), Chapter 40, Statutes of 2007. Ratified the
first compact amendment to the compact between the State and
Pechanga.
SB 941 (Padilla), Chapter 226, Statutes of 2007. Ratified the
first compact amendment to the compact between the State and San
Manuel.
SB 957 (Torlakson), Chapter 41, Statutes of 2007. Ratified the
first compact amendment to the compact between the State and
Agua Caliente.
SB 470 (Ducheny), Chapter 527, Statutes of 2006. Ratified the
first amendment to the compact between the State and the Quechan
Tribe of the Fort Yuma Reservation.
SB 1117 (Burton), Chapter 856, Statutes of 2004. Ratified two
new and two amended compacts entered into between the State and
the following tribes: Coyote Valley Band of Pomo Indians (new
compact); Fort Mojave Indian Tribe (new compact); Buena Vista
Rancheria of Me-Wuk Indians (amended compact); and, Ewiiaapaayp
Band of Kumeyaay Indians (amended compact).
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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.
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:
0004440
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