BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1767


                                                                    Page  1


          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1767 (Bigelow)


          As Amended  June 30, 2016


          2/3 vote.  Urgency


           -------------------------------------------------------------------- 
          |ASSEMBLY:  |      |(May 19, 2016) |SENATE: |39-0  |(August 17,      |
          |           |      |               |        |      |2016)            |
          |           |      |               |        |      |                 |
          |           |      |               |        |      |                 |
           -------------------------------------------------------------------- 
                 (vote not relevant)




          Original Committee Reference:  G.O.


          SUMMARY:  Ratifies the amended tribal-state gaming compact  
          (Amended Compact or Compact) entered into between the State of  
          California and the Jackson Rancheria Band of Miwuk Indians  
          (Tribe) executed on June 22, 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:









                                                                    AB 1767


                                                                    Page  2



          1)Ratify amendments to the Tribal-State Compact entered into  
            between the State of California and the Jackson Rancheria Band  
            of Miwuk Indians, executed June 22, 2016.


          2)Modifies provisions regarding the Tribe's payments to the  
            Revenue Sharing Trust Fund (RSTF) and Tribal Nation Grant Fund  
            (TGNF).  Specifically, the Amended Compact provides for a 6%  
            of net win, or equivalent, payment instead of 8%, into the  
            RSTF or the TNGF, and an annual credit for the Tribe of up to  
            60% instead of 40%, with no reference to a minimum payment for  
            900 gaming devices.  This Amended Compact also makes technical  
            clarifications about the use of credits, as specified.  All  
            other provisions of the existing compact remain intact.


          3)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.


          4)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. 








                                                                    AB 1767


                                                                    Page  3




          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. 


          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









                                                                    AB 1767


                                                                    Page  4



          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 Jackson Rancheria Band of Miwuk Indians.


          Brief Overview of the Tribe/Compact:  The Jackson Rancheria has  
          been a federally recognized band of Miwuk Indians since 1895 and  
          occupies over 1,400 acres of land near the city of Jackson in  
          Amador County.  According to information provided by the Tribe,  
          the Jackson Rancheria is a small tribe (18-voting members) that  
          is deeply involved in the community and economic life of the  
          County.  The Tribe is a responsible steward of its tribal lands,  
          which encompass a diverse ecosystem in the Sierra foothills. 


          In 1991, with backing from investors, Jackson Indian Bingo  
          opened its doors.  Following the passage of Proposition 5, the  
          Tribal Government Gaming and Economic Self-Sufficiency Act, in  
          1998, Jackson was one of 57 tribes that signed compacts with the  
          State of California to operate Class III gaming.  


          Over the years the metal building that housed the first Bingo  
          Hall has grown into a casino complex (Jackson Rancheria Casino  
          Resort) that includes multiple restaurants, a Hotel, RV Park,  
          General Store & Gas Station, and the first LEED certified  
          building in the county.  The Tribe has also built new homes for  
          its residents, a medical and dental clinic, water and sewage  
          treatment plants, an auto mechanic shop, childcare center for  
          employees' children, and an off-reservation apartment complex.   
          The Jackson Rancheria Casino Resort is now the largest employer  
          in the County, has spent, and donated tens of millions of  
          dollars into the local economy.


          In June 2015, the Tribe was the first of a significant number of  
          California tribes that had not previously amended or  
          renegotiated their 1999 compacts to enter into a new Class III  
          gaming compact with the State.  According to the Tribe, the  
          ratified Compact (AB 475 (Bigelow), Chapter 8, Statutes of 2015)  








                                                                    AB 1767


                                                                    Page  5


          represented a significant improvement over the 1999 Compact.   
          The Tribe states that this newly Amended Compact will further  
          secure the long-term viability of the casino and the Tribe's  
          ability to continue to contribute to the State of California. 


          The amendments in this Compact modify a specific section of last  
          year's agreement, which was approved by the Secretary of the  
          Interior on October 16, 2015 by bringing revenue contribution  
          amounts in line with more recently executed and ratified  
          Tribal-State compacts.  Those compacts provided that a tribe pay  
          6.0% of its "Net Win" from its operation of gaming devices in  
          excess of 350 to the RSTF or TNGF rather than 8.0% as Jackson  
          pays under its 2015 Compact.  In addition, this Compact extends  
          incentives for the Tribe to work directly with city, county, and  
          other local governing bodies by rebating back to the Tribe up to  
          60% of its RSTF payments rather than 40% under the existing 2015  
          Compact provisions for projects undertaken by the Tribe designed  
          to mitigate the impact of the casino on the surrounding  
          communities.


          The Compact provides that its terms may be amended at any time  
          by mutual agreement of the parties.


          Specific Compact Details:  


          Amends provisions relating to the RSTF and TNGF:  The Tribe will  
          contribute approximately 6% of its "Net Win" from gaming devices  
          to the RSTF and TNGF, which benefit non-gaming or limited gaming  
          tribes in California, in excess of 350 (currently, Jackson  
          operates 1,650 Class III gaming devices).  The Tribe may take  
          credits for up to 60% of its payments to the RSTF and TNGF for  
          the following: 


          1)Payments to Amador County and local jurisdictions for purposes  
            of improved fire, law enforcement, public transit, education,  
            tourism, and other services and infrastructure improvements  
            intended to serve off-reservation needs of County residents;








                                                                    AB 1767


                                                                    Page  6


          2)Payments to reimburse Amador County for any loss of specified  
            sales tax revenues to the County that would otherwise be due  
            if the gaming facility and hotel were not located on Indian  
            lands;


          3)Non-gaming related capital investments and economic  
            development projects by the Tribe on tribal trust lands that  
            provide mutual benefits to the Tribe and the State because,  
            for instance, they have cultural, social, or environmental  
            value or diversify the sources of revenue for the Tribe's  
            general fund;


          4)Investments in renewable energy projects.


          5)Payments to support capital improvements or operating expenses  
            for facilities that provide health care services to tribal  
            members and other members of the community.


          Deletes provision from 2015 Compact:  During any quarter in  
          which the Tribe operates less than 900 gaming devices, the Tribe  
          shall pay to the California Gambling Control Commission (CGCC)  
          the sum paid in the most recent quarter in which it operated at  
          least 900 gaming devices in order to ensure the solvency of the  
          RSTF.


          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  








                                                                    AB 1767


                                                                    Page  7


          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  
          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  








                                                                    AB 1767


                                                                    Page  8


          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  
          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.








                                                                    AB 1767


                                                                    Page  9




          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 1282 (Gray) of the current legislative session.  Would ratify  
          the tribal-state gaming compact entered into between the State  
          and the Buena Vista Rancheria of Me-Wuk Indians, executed on  
          June 28, 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 1767


                                                                    Page  10


          AB 291 (Atkins) of the current legislative session.  Would  
          ratify the tribal-state gaming compact entered into between the  
          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.   








                                                                    AB 1767


                                                                    Page  11


          Ratified the tribal-state gaming compact entered into between  
          the State and the Ramona Band of Cahuilla Indians located in  
          Riverside County, executed on June 10, 2013. 


          AB 277 (Hall), Chapter 51, Statutes of 2013.  Ratified two new  
          compacts entered into between the State and the following  
          tribes:  North Fork Rancheria, executed on August 31, 2012, and  
          the Wiyot Tribe, executed on March 20, 2013. 


          AB 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 1767


                                                                    Page  12



          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  
          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. 










                                                                    AB 1767


                                                                    Page  13


          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.  


          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  








                                                                    AB 1767


                                                                    Page  14


          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:  
          0004422
















                                                                    AB 1767


                                                                    Page  15