BILL ANALYSIS Ó AB 1282 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1282 (Gray) As Amended August 8, 2016 2/3 vote. Urgency -------------------------------------------------------------------- |ASSEMBLY: |78-0 |(May 14, 2015) |SENATE: |39-0 |(August 17, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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, AB 1282 Page 2 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 AB 1282 Page 3 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. AB 1282 Page 4 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: AB 1282 Page 5 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. AB 1282 Page 6 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 AB 1282 Page 7 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 AB 1282 Page 8 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 AB 1282 Page 9 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 AB 1282 Page 10 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 AB 1282 Page 11 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 AB 1282 Page 12 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 AB 1282 Page 13 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 AB 1282 Page 14 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. AB 1282 Page 15 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 AB 1282 Page 16 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 AB 1282 Page 17 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 AB 1282 Page 18 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 AB 1282 Page 19 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. AB 1282 Page 20 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 AB 1282 Page 21 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). AB 1282 Page 22 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 AB 1282 Page 23