BILL ANALYSIS                                                                                                                                                                                                    Ó



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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1282 (Gray)


          As Amended  August 8, 2016


          2/3 vote.  Urgency


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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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