BILL ANALYSIS Ó
AB 1540
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB
1540 (Gray)
As Amended August 31, 2015
2/3 vote. Urgency
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|ASSEMBLY: |78-0 |(May 14, 2015) |SENATE: |39-0 |(September 2, |
| | | | | |2015) |
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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
Santa Ynez Band of Mission Indians (Tribe) executed on August
26, 2015. Additionally, this bill provides that, in deference
to tribal sovereignty, certain actions are not deemed projects
for purposes of the California Environmental Quality Act (CEQA);
and, stipulates, except as expressly provided, that none of the
provisions shall be construed to exempt a city, county, or city
and county, or the Department of Transportation from CEQA
requirements.
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Ratify a tribal-state gaming compact entered into in
accordance with the federal Indian Gaming Regulatory Act
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(IGRA) of 1988 (18 United States Code (U.S.C.) Sections 1166
to 1168, inclusive, and 25 U.S.C. Section 2701 et seq.)
between the State and the Tribe, executed on August 26, 2015.
2)Authorize the Tribe to operate a maximum of 2,500 gaming
devices at no more than two gaming facilities, and only on
those Indian lands held in trust for the Tribe as of the
execution date of this Compact, as described.
3)Supersede a 1999 compact between the Tribe and the State.
4)State once effective, this Compact shall be in full force and
effect for State law purposes for 25 years following the
effective date.
5)Provide that, in deference to tribal sovereignty, certain
actions may not be deemed projects for purposes of the CEQA.
6)Contain an urgency clause, allowing this bill to take effect
immediately upon enactment.
AS PASSED BY THE ASSEMBLY, this bill would have repealed and
renumbers sections of the Government Code related to Indian
gaming into one stand-alone Title in the Government Code. Makes
other technical non-substantive changes.
FISCAL EFFECT: Pursuant to the 1999 compact, the Tribe
currently pays $5.8 million annually into the Special
Distribution Fund (SDF) to cover the State's regulatory costs
relating to tribal gaming, including problem gambling programs,
and $1.3 million annually into the Revenue Sharing Trust Fund
(RSTF) which is directed to non-gaming and limited gaming tribes
in California.
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Under this Compact, it is estimated that the Tribe will pay
approximately $1 million annually into the SDF and approximately
$12 million annually into the RSTF or the Tribal Nation Grant
Fund (TNGF). The Tribe's $12 million payment into the RSTF may
be offset by up to $7.2 million (the 60% credit referenced
below), as specified.
COMMENTS: On September 1, 2015, the Assembly Governmental
Organization Committee held an informational hearing on this
tribal-state gaming compact between the State and the Tribe.
Purpose of this bill: This bill ratifies the Compact entered
into between the State and the Tribe executed on August 26, 2015
and supersedes the 1999 compact between the Tribe and the State.
The Compact authorizes the Tribe to operate a maximum of 2,500
gaming devices (slot machines) at not more than two gaming
facilities, and only on those Indian lands held in trust for the
Tribe as of the execution date of this Compact, as described.
Under the 1999 compact, the Tribe could not operate more than
2,000 gaming devices. If the Tribe chooses to operate more than
one gaming facility, then one of the two gaming facilities shall
have no more than 500 gaming devices and shall have a primary
purpose other than gaming authorized under IGRA.
The Tribe has agreed to pay the State its pro rata share of the
costs the State incurs for the performance of its duties under
the Compact as well as approximately 6% of the casino's Net Win
from the operation of gaming devices in excess of 350 devices,
to be shared with non-gaming and limited gaming tribes so that
the economic benefits of gaming reach tribal governments that
have not chosen to operate a tribal casino.
The Compact provides a framework for the sharing of gaming
revenue with the County of Santa Barbara (County) and other
stated purposes. Specifically, the Tribe may take annual
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credits of up to 60% (of the 6% Net Win) for infrastructure
improvements and fire, law enforcement, public transit,
education, tourism and other services including investments in
renewable energy or water conservation projects and non-gaming
related economic development and health care facilities that
provide a mutual benefit to the Tribe and the local community.
Pursuant to the 1999 compact, the Tribe currently pays $5.8
million annually into the SDF and $1.3 million annually into the
RSTF. Under this Compact, it is estimated that the Tribe will
pay approximately $1 million annually (its pro rata share) into
the SDF and approximately $12 million annually into the RSTF or
the TNGF. Thus, the 60% credit referenced above will equate to
approximately $7.2 million per year.
It should be noted that recent federal court decisions, such as
the Rincon decision (see below), have severely limited the
ability of the State to collect revenues for general purposes
from gaming tribes. As a result, many of the gaming tribes that
had executed compacts with Governor Schwarzenegger which
provided direct contributions of gaming revenue to the State's
General Fund, have sought to renegotiate or amend those deals in
a way that is consistent with this federal court decision.
According to the Governor's office, the terms of the new Compact
are consistent with provisions of more recent compacts related
to licensing, compliance enforcement and mitigation of
off-reservation gaming impacts but have been updated to reflect,
among other things, the evolving nature of financial markets, as
well as the professionalism of the Tribe's regulators and their
constructive relationship with state gaming regulators.
The Governor's office contends, the terms of the Compact reflect
a continued commitment by the Tribe to revenue sharing with
non-gaming and limited gaming tribes through the RSTF and TNGF;
so that the economic benefits of gaming reach tribal governments
that have not chosen to operate a tribal casino.
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Once effective (legislative ratification and federal approval
required), this Compact shall be in full force and effect for
State law purposes for 25 years (2040).
Brief History of the Chumash Tribe and Background:
The Tribe is a federally recognized tribe in Santa Ynez,
California, in the County. The Tribe's reservation was
established on December 27, 1901 under authority of the Mission
Indian Relief Act. The residents of the Santa Ynez Reservation
are members of the Santa Ynez Band of Chumash Indians. The
Santa Ynez Band of Chumash Indians is the only federally
recognized Chumash tribe in the nation.
For many years, few tribal members lived on the reservation. It
was difficult to live a modern existence on the reservation
without running water or electricity. The Tribe began a housing
program in 1979 and more tribal members moved on to the
reservation - both lower and upper reservation. Today there are
249 residents on the Santa Ynez Reservation and 97 homes. The
Tribe is governed by a democratically elected, five-member
tribal council.
In 1999, the Tribe and the State entered into a Tribal-State
Compact, which enabled the Tribe, through revenues generated by
its gaming operation, to improve the governance, environment,
education, health, safety, and general welfare of its citizens;
and to promote a strong tribal government, self-sufficiency, and
to provide essential government services to its citizens.
The Tribe's Chumash Casino Resort is one of the most successful
casinos in California. Under the current 1999 compact terms,
the Tribe operates 2,000 Class III gaming devices and 38 table
games. The resort is a 190,000 square foot gaming complex with
a casino and a hotel with 106 guest rooms and other venues. In
October 2014, the Tribe began construction on a $100 million
casino and hotel expansion project-the largest renovation since
the resort opened in 2004. This project will help boost the
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local economy by creating new construction jobs and supporting
Santa Ynez Valley businesses. In the long term, the larger
hotel will create an estimated 250 new jobs and bring additional
tourism to the Santa Ynez Valley.
The Tribe's casino resort has become the premiere entertainment
destination in the County. More than 1,700 employees work at
the resort casino. In addition, the Tribe has a diversified
business portfolio - it owns or has ownership interests in a
variety of businesses both on and off the Santa Ynez Reservation
including three hotels nearby in Solvang; an office building in
Buellton that houses various tribal business functions; and, a
federally qualified health clinic.
According to the Tribe, revenue generated from the Chumash
Casino Resort has been used toward economic development
initiatives that have brought vital services to its members,
from health care and education to cultural and environmental
programs; and the Tribe is realizing their dream of building a
museum and cultural center. The Tribe is committed to improving
the environment, education status, and the health, safety and
general welfare of its members and local residents.
Scope of Gaming Authorized and Financial Terms:
Scope of Class III Gaming Authorized: The Tribe is authorized
to operate up to 2,500 gaming devices (slot machines), banking
or percentage card games, and any devices or games that are
authorized under state law to the California State Lottery. The
Tribe may not operate roulette games (table or mechanical) or
any game that incorporates the physical use of a die or dice.
The Tribe shall not engage in Class III Gaming that is not
expressly authorized in the Compact.
Authorized Gaming Facility: The Tribe may establish and operate
not more than two gaming facilities, and only on those Indian
lands located within the boundaries of the Tribe's reservation
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as those boundaries exist as of the execution date of this
Compact, as legally described, and on which Class III Gaming may
lawfully be conducted under IGRA. If the Tribe chooses to
operate more than one gaming facility, then one of the two
gaming facilities shall have no more than 500 gaming devices and
shall have a primary purpose other than gaming authorized under
IGRA.
Exclusivity: Provides that in the event the exclusive right of
Indian tribes to operate Class III gaming in California pursuant
to the California Constitution is lost and other non-Indian
entities are able to engage in Class III gaming the Tribe shall
have the right to terminate this Compact, in which case the
Tribe will lose the right to operate Class III gaming authorized
by this Compact; or continue under this Compact, as defined.
SDF: The Tribe shall pay to the State on a pro rata basis for
costs the State incurs for the performance of all its duties
under this Compact as determined by the monies appropriated in
the annual Budget Act for the performance of their duties under
Class III Gaming compacts each fiscal year for the California
Gambling Control Commission (CGCC), the California Department of
Justice (DOJ), the Office of the Governor and the California
Department of Alcohol and Drug Programs, Office of Problem
Gambling, or any agency or agencies the State designates as a
successor to them. The Tribe estimates it will pay
approximately $1 million annually into the SDF under the defined
formula.
Payments to the RSTF or TNGF: If the Tribe operates more than
350 gaming devices at any time in a given calendar year, it
shall pay to 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.
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Credits Applied to RSTF or the TNGF Payments: The State agrees
to provide the Tribe with annual credits for up to 60% of the
payments otherwise due to the RSTF or TNGF for the following:
1) Payments by the Tribe to the County and local jurisdictions
operating facilities or providing services within the County for
purposes of improved fire, law enforcement, public transit,
education, tourism, and other services and infrastructure
improvements intended to include serving off-reservation needs
of County residents, and not otherwise required by
off-reservation environmental and economic impacts. Such
payments shall be subject to approval by the State or State
designated agency. At least 20% of the annual credits shall be
utilized for this purpose; 2) Non-gaming economic development
investments that benefit the State and the Tribe because of
their cultural, social or environmental value and that provide
economic diversification for the Tribe; 3) Investments by the
Tribe and any funds paid to the State for renewable energy
projects, as defined; 4) Payments to support capital
improvements and operating expenses for facilities within
California that provide health care services to tribal members,
Indians, and non-Indians; 5) Investments by the Tribe for water
treatment and conservation projects; and, 6) General welfare
benefits provided by the Tribe for health-care, cultural or
vocational purposes to non-tribal members and Native Americans
in the community.
It is estimated that the 60% credit will equate up to
approximately $9.5 million per year. The current contribution
by the Tribe to the RSTF under the 1999 compact is $1.3 million.
It is estimated that, even considering the 60% credit the Tribe
receives back for off-reservation infrastructure projects, the
net amount it will pay under the new compact to the RSTF is
approximately $6.5 million per year, or five-times greater than
it is currently paying under the 1999 Compact.
All excess authorized credits that cannot be applied in any one
year because they would exceed the 60% may be applied as an
annual credit in all following years that this Compact is in
effect, in the same percentages, until completely exhausted.
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Cost Reimbursement and Mitigation to Local Governments: Before
the commencement of a project, and no later than the issuance of
the Final Tribal Environmental Impact Report (TEIR) to the
County, the Tribe shall offer to commence
government-to-government negotiations with the County, and upon
the County's acceptance of the Tribe's offer, shall negotiate
with the County on a government-to-government basis and shall
enter into enforceable written agreements with the County with
respect to: 1) Provisions providing for the timely mitigation
of any significant effect on the off-reservation environment, as
defined; 2) Provisions relating to compensation for law
enforcement, fire protection, emergency medical services and any
other public services to be provided by the County to the Tribe
for the purposes of the Tribe's gaming operation as a
consequence of the project; 3) Provisions providing for
reasonable compensation for programs designed to address
gambling addiction; and 4) Provisions providing for mitigation
of any effect on public safety attributable to the project,
including any compensation to the County as a consequence
thereof.
Quarterly Contribution Report: At the time each quarterly
payment is due, the Tribe shall submit to the State a report,
prepared and certified by an authorized representative of the
gaming operation. The report must include: 1) calculation of
the maximum number of gaming devices operated each day, 2) the
Net Win calculation, 3) the amount due the SDF, 4) calculation
of the amount due to the RSTF/TNGF, and 5) the total amount of
the quarterly payment.
Amendment by Agreement: The terms and conditions of this
Compact may be amended at any time by the mutual and written
agreement of both parties during the term of this Compact as
defined, provided that each party voluntarily consents to such
negotiations in writing. Any amendments to this Compact shall
be deemed to supersede, supplant and extinguish all previous
understandings and agreements on the subject.
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Additional Compact Components:
1)Gaming Ordinance and Regulations - all gaming activities
conducted under this Compact shall, at a minimum, comply a)
with a gaming ordinance duly adopted by the Tribe and approved
in accordance with IGRA, b) with all rules, regulations,
procedures, specifications, and standards duly adopted by the
National Indian Gaming Commission (NIGC), the Tribal Gaming
Agency, and the CGCC, and c) with the provisions of this
Compact.
2)Tribal Ownership, Management, and Control of Gaming Operation
- the gaming operation authorized under this Compact shall be
owned solely by the Tribe.
3)Licensing Requirements and Procedures - all persons in any way
connected with the gaming operation or gaming facility who are
required to be licensed or to submit to a background
investigation under IGRA, and any others required to be
licensed under this Compact, including, without limitation,
all gaming employees, gaming resource suppliers, financial
sources, and any other person having a significant influence
over the gaming operation, must be licensed by the Tribal
Gaming Agency and cannot have had any determination of
suitability denied or revoked by CGCC. Every gaming employee
shall obtain, and thereafter maintain current, a valid tribal
gaming license, as provided. The parties intend that the
licensing process provided for in this Compact shall involve
joint cooperation between the Tribal Gaming Agency and CGCC,
as described.
4)Environmental Protections - the Tribe must prepare a TEIR and
negotiate mitigation of any off-reservation impacts. The
Tribe's failure to prepare an adequate TEIR when required
shall be deemed a breach of this Compact and furthermore shall
be grounds for issuance of an injunction or other appropriate
equitable relief. A completed TEIR must be filed with the
County, the Department of Justice, the State Clearinghouse and
the State Gaming Agency. Also, projects that have commenced
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prior to the effective date of this Compact, including the
"hotel expansion project" will be subject to the relevant
terms and conditions of the Tribe's 1999 compact then in
effect.
5)Employee Protections - 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. The Tribe acknowledges the jurisdiction of the
Board in such manners. 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.
6)Cooperation with Tribal Gaming Agency - the CGCC shall meet
periodically with the Tribal Gaming Agency and cooperate in
all matters relating to the enforcement of the provisions of
this Compact and its Appendices.
7)Audit and Compact Compliance Review - in addition to providing
for an annual independent audit, the Compact allows the state
to conduct its own annual audit and compact compliance review.
8)Regulations for Operation, Management and Minimum Standards -
the Tribe shall conduct its g aming activities pursuant to an
internal control system that implements minimum internal
control standards for Class III Gaming that are no less
stringent than those contained in the Minimal Internal Control
Standards of the NIGC (25 Code of Federal Regulations Section
542), as specified. This requirement is met through
compliance with the provisions, as defined, or in the
alternative by compliance with the statewide uniform
regulation CGCC-8, as it exists currently and as it may
hereafter be amended.
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9)Inspection and Testing of Slot Machines - slot machines shall
be tested, approved and certified by an independent gaming
test laboratory or state governmental gaming test laboratory
to ensure that they are being operated according to specified
technical standards. Also, requires the Tribal Gaming Agency
to maintain adequate records that demonstrate compliance with
software and hardware specifications. CGCC shall be
authorized to annually conduct up to four random inspections
of slot machines in operation to confirm that the slot
machines are operating in conformance with these standards.
The Tribal Gaming Agency shall prepare and maintain records of
its compliance while any gaming device is on the gaming floor
and for a period of one year after the gaming device is
removed from the gaming floor, and shall make those records
available for inspection by CGCC upon request.
10)Patron Disputes - the Tribal Gaming Agency must attempt to
resolve patron disputes filed within three days of the play or
operation of a Class III game, including refusal to pay any
alleged winnings. If a patron is dissatisfied with the
resolution, the Tribe shall inform the patron in writing with
15 days of the right to resolution of the dispute by the
Tribal Gaming Agency. If dissatisfied with the resolution,
the patron has the right to seek resolution either in the
Tribe's tribal court system or through the tribal claims
commission. The Tribal Gaming Agency shall conduct an
appropriate investigation, provide to the patron a copy of its
procedures concerning patron complaints, and render a decision
in accordance with industry practice. The decision shall be
issued within 60 days of the patron's request. Any party
dissatisfied with the award of the tribal court or tribal
claims commission may, at the party's election, appeal to the
tribal appellate court or seek binding arbitration that shall
be settled by a retired judge, in accordance with the
streamlined arbitration rules and procedures of Judicial
Arbitration and Mediation Services (JAMS). The Tribe agrees
to wave its sovereign immunity in order to be compelled in
federal or state court to abide by the resolution of
arbitration. Currently, the Tribe has not established a
tribal court system or tribal claims commission. However, the
tribe is investigating the feasibility of creating such in the
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near future.
11)Labor Provisions - provides that the gaming activities
authorized by this Compact may only commence after the Tribe
has adopted an ordinance identical to the Tribal Labor
Relations Ordinance (TRLO), referenced as Appendix C of the
Compact, and the gaming activities may only continue as long
as the Tribe maintains the ordinance. If the Tribe employs
250 or more persons in a tribal casino facility, then the
provisions of the TLRO become effective. The TLRO provides
for a secret ballot election. The new TLRO proscribed by this
Compact is modeled after the Tribe's 1999 TLRO with several
modifications. The new TLRO provides for union neutrality.
The Tribe will not oppose a union organization but can
advocate the benefits of working for the Tribe. A labor union
must issue a Notice of Intent or Organize (NOIO). For a
period of 365 days following delivery of a NOIO, the union
shall not engage in strikes, picketing, boycotts, attack
websites, or other economic activity at or in relation to the
tribal casino or related facility. During the 365 days after
the Tribe received the NOIO, the union must collect dated and
signed authorization cards and complete the secret ballot
election. Failure to complete the secret ballot election
within 365 days shall preclude the union from delivering
another NOIO for a period of two years (730 days). After the
certification that 30% of the employees have expressed an
interest in the union, a notice of election shall be issued
and the election shall be concluded within 30 calendar days
thereafter. Secret ballot elections shall be held at the
workplace and at least one neutral location. Employees may
mail in ballots provided they are received by election day.
Mediation for any collective bargaining agreement impasse
shall be made in conjunction with the Federal Mediation and
Conciliation Service (FMCS). The mediation process is modeled
on the Agricultural Labor Relations Act and authorizes the
mediator to resolve the impasse. According to the
Administration, the appeals procedures have been streamlined
significantly in comparison to the Tribe's 1999 TLRO.
Disputes are presented to an arbitrator with expertise in
labor law and appropriate challenges to the arbitrator's
decision may be presented to a state superior court.
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12)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.
13)Program to Mitigate Problem Gambling - the gaming operation
shall establish a program, approved by the Tribal Gaming
Agency, to mitigate pathological and problem gambling.
14)Alcohol Provisions - makes it explicit that the purchase,
sale, and service of alcoholic beverages shall be subject to
state law - the Alcoholic Beverage Control Act.
15)Tobacco - the Tribe agrees to provide a non-smoking area in
the gaming facility and to utilize a ventilation system
throughout the gaming facility that exhausts tobacco smoke to
the extent reasonably feasible under state-of-the-art
technology existing as of the date of the construction or
significant renovation of the gaming facility, and further
agrees not to offer or sell tobacco to anyone under 18 years
of age.
16)Possession of Firearms - the possession of firearms by any
person in the gaming facility is prohibited at all times,
except for federal, state, or local law enforcement personnel,
or tribal law enforcement or security personnel authorized by
tribal law and federal or state law to possess firearms at the
gaming facility.
17)Health and Safety Standards - the Tribe has agreed to adopt
and comply with State public health standards for food and
beverage handling and federal water quality and safe drinking
standards applicable to California.
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18)Building Codes and Fire Safety - in order to assure the
protection of the health and safety of all gaming facility
patrons, guests, and employees, the Tribe shall adopt, or has
already adopted, and shall maintain throughout the term of
this Compact, an ordinance that requires any covered gaming
facility construction to meet or exceed the applicable codes
(California Building Code and the California Public Safety
Code). The Tribe shall also take all necessary steps to
reasonably ensure the ongoing availability of sufficient and
qualified fire suppression services to the gaming facility,
and to reasonably ensure that the gaming facility satisfies
all requirements of titles 19 and 24 of the California Code of
Regulations applicable to similar facilities in the County, as
defined.
19)Emergency Services Accessibility - the Tribe shall make
reasonable provisions for adequate emergency fire, medical,
and related relief and disaster services for patrons and
employees of the gaming facility.
20)Effective Date - the Compact shall not be effective unless
and until all of the following have occurred: a) The Compact
is ratified by statute in accordance with state law; and b)
Notice of approval or constructive approval is published in
the Federal Register. Once effective, this Compact shall be
in full force and effect for State law purposes for 20 years
following the effective date
21)Term - once effective shall be in full force and effect for
State law purposes for 25 years (December 31, 2040) following
the effective date.
Additional Background Information:
Rincon Decision: In 2004, the Rincon Band of Mission Indians
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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.
Pauma Band of Luiseno Mission Indians Lawsuit: In 2010, the
Pauma Band of Luiseno Mission Indians ceased payments to the
State and brought suit against the State in federal court
claiming that the State acted in bad faith by misrepresenting
significant information relative to the number of gaming
machines available for licensure. Prior to its 2004 amended
compact, the Tribe was paying approximately $315,000 a year to
the state (into the SDF and RSTF) under terms of its 1999
compact. The payment rose to $7.75 million a year (initially
for securitizing the proposed transportation bond and
subsequently deposited directly into the general fund) under the
tribe's 2004 amended compact. In 2013, the court sided with
Pauma and, thus, the state no longer receives payments from the
Pauma Tribe. The State has appealed that decision.
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As noted above, the 2004 Pauma compact amendments were
negotiated at the same time as the current Tribe compact, both
of which were ratified by the same bill (AB 687 (Núñez), Chapter
91, Statutes of 2004). Both compacts provided for fixed
payments to the state for securitizing transportation bonds.
The Rincon decision as well as the Pauma case, have limited some
of the state's options when negotiating and renegotiating
compact agreements.
SDF: Existing law creates the SDF in the State Treasury for the
receipt of revenue contributions made by tribal governments
pursuant to the terms of the 1999 model Tribal-State Gaming
Compacts and authorizes the Legislature to appropriate money
from the SDF for the following purposes: 1) grants for programs
designed to address gambling addiction; 2) grants for the
support of state and local government agencies impacted by
tribal government gaming; 3) compensation for regulatory costs
incurred by CGCC and the DOJ in connection with the
implementation and administration of compacts; 4) payment of
shortfalls that may occur in the Indian Gaming RSTF; 5)
disbursements for the purpose of implementing the terms of
tribal labor relations ordinances promulgated in accordance with
the terms of the 1999 compacts; and, 6) any other purpose
specified by law. The distribution formula "sunsets" on January
1, 2021.
RSTF: Existing law also creates in the State Treasury the RSTF
for the receipt and deposit of moneys derived from gaming device
license fees that are paid into the RSTF pursuant to the terms
of specified tribal-state gaming compacts for the purpose of
making distributions to non-compacted tribes (e.g.,
federally-recognized non-gaming and tribes that operate casinos
with fewer than 350 slot machines). Revenue in the RSTF is
available to CGCC, upon appropriation by the Legislature, for
making distributions of $1.1 million annually to non-compact
tribes. The RSTF was created as part of the 1999 compacts,
which, in conjunction with the passage of Proposition 1A (2000),
created gaming compacts with approximately 60 California tribes.
Non-compact tribes are considered third-party beneficiaries of
the 1999 compacts.
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TNGF: The TNGF was created in the Graton Rancheria compact [AB
517 (Hall), Chapter 12, Statutes of 2012], as a new destination
for gaming revenue for distribution of funds to non-gaming and
limited-gaming tribes, upon application of such tribes for
purposes related to effective self-governance, self-determined
community, and economic development. The fund is designed to be
fluid and payments are intended to be made to non-gaming tribes
on a "need" basis, upon application by non-gaming tribes. The
TNGF currently does not receive funding.
Related legislation: AB 315 (Bigelow) of the current
legislative session. Ratifies the amended and restated
tribal-state gaming compact entered into between the State and
the United Auburn Indian Community, executed on August 14, 2015.
Prior legislation: AB 475 (Bigelow), Chapter 8, Statutes of
2015. Ratified the tribal-state gaming compact entered into
between the State and the Jackson Rancheria Band of Miwuk
Indians, executed on February 1, 2015.
SB 1356 (De León), Chapter 314, Statutes of 2014. Ratified the
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 Pérez), 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.
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AB 277 (Hall), Chapter 51, Statutes of 2013. Ratified two new
compacts entered into between the State and the following
tribes: North Fork Rancheria, executed on August 31, 2012, and
the Wiyot Tribe, executed on March 20, 2013.
AB 1267 (Hall), Chapter 6, Statutes of 2013. Ratified the
amended tribal-state gaming compact entered into between the
State and the Shingle Springs Band of Miwok Indians, executed on
November 15, 2012.
SB 668 (Fuller), Chapter 67, Statutes of 2013. Ratified the
tribal-state gaming compact entered into between the State and
the Fort Independence Indian Community of Paiute Indians,
executed on February 28, 2013.
AB 517 (Hall), Chapter 12, Statutes of 2012. Ratified the
tribal-state gaming compact entered into between the State and
the Federated Indians of Graton Rancheria of Sonoma County,
executed on March 27, 2012.
AB 787 (Chesbro), Chapter 340, Statutes of 2012. Ratified the
amendment to the tribal-state gaming compact entered into
between the State and the Coyote Valley Band of Pomo Indians,
executed on July 25, 2012.
AB 1418 (Hall), Chapter 412, Statutes of 2011. Repealed those
provisions ratifying the tribal-state gaming compact entered
into between the State and Pinoleville Pomo Nation, executed on
March 9, 2009, and instead ratified the tribal-state gaming
compact entered into between the State and the Pinoleville Pomo
Nation, executed on August 8, 2011. Ratification of this
revised compact authorized the Tribe to operate up to 900 slot
machines with up to 15% of the casino's net win from the slots
will go to local communities and gambling mitigation and
regulation provisions, instead of requiring revenue
contributions be made to the General Fund as provided by the
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2009 compact.
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.
Ratification of this revised compact authorized the Habematolel
Pomo of Upper Lake to operate up to 750 slot machines with up to
15% of the net-win from those gaming devices being paid to the
SDF and the RSTF, instead of requiring revenue contributions be
made to the General Fund as provided by the 2009 compact.
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 2009. Ratified the
tribal-state gaming compact entered into between the State and
the Pinoleville Pomo Nation, executed on March 10, 2009.
AB 3072 (Price), Chapter 334, Statutes of 2008. Ratified the
first amendment to a tribal-state gaming compact entered into
between the State and the Shingle Springs Band of Miwok Indians,
executed on June 30, 2008.
SB 106 (Wiggins), Chapter 37, Statutes of 2007. Ratified a new
compact between the State 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.
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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 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. Also, provided for the
issuance of bonds in an amount not to exceed $1.5 billion by the
California Infrastructure and Economic Development Bank and
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required the net proceeds of the sale of the compact assets to
be deposited in the Traffic Congestion Relief Fund and the
Transportation Deferred Investment Fund.
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.
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Analysis Prepared by:
Eric Johnson / G.O. / (916) 319-2531 FN:
0002028