BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 1977|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: AB 1977
Author: Wood (D), et al.
Amended: 8/9/16 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
NOTE: On August 9, 2016, the Senate Committee on Governmental
Organization held an informational hearing on the amended
tribal gaming compact entered into between the State of
California and the Yurok Tribe.
SUBJECT: Tribal gaming: compact amendment ratification
SOURCE: Author
DIGEST: This bill ratifies the amended tribal-state gaming
compact (Amended Compact) entered into between the State of
California and the Yurok Tribe (hereafter "Tribe") executed on
August 4, 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.
ANALYSIS:
Existing law:
AB 1977
Page 2
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.
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 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
AB 1977
Page 3
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.
This bill ratifies the Amended Compact entered into between the
State of California and the Yurok Tribe on August 4, 2016. The
Amended Compact conforms the workers' compensation provisions of
the Tribe's 2006 compact to those of more recent compacts. All
other provisions of the existing compact remain intact.
In 2006, the Tribe entered into a tribal-state compact (SB 106,
Wiggins, Chapter 37, Statutes of 2007) that authorized it to
operate one gaming facility at a future site and an additional
one at an ancillary facility (a fuel mart), both of which are
located within its existing reservation in Del Norte County.
The 2006 compact authorized the Tribe to operate no more than 99
gaming devices (slot machines) and specified that no more than
20 of the devices may be operated at the ancillary gaming
facility.
Under terms of the 2006 compact, the Tribe agreed to pay into
the State General Fund an annual fee, as specified, based on a
percentage of its net win from its operation of gaming devices.
Also, the 2006 compact provided that as long as the Tribe's
membership remained at least 4,000 members it could deduct from
the amount to be paid to the State certain payments made
pursuant to intergovernmental agreements with Del Norte County
and Humboldt County.
Additionally, the 2006 compact contained other provisions
relating to: exclusivity; licensing requirements and procedures
for employees and gaming suppliers; testing and inspection of
AB 1977
Page 4
gaming devices; rules and regulations for the operation and
management of the gaming facility; off-reservation environmental
impacts; public and workplace health and safety; and labor
provisions.
Furthermore, the 2006 compact required the Tribe to participate
in the State's workers' compensation program with respect to
employees employed at the gaming facility. The 2006 compact
provides that its terms may be amended upon written agreement of
both parties. The parties recently agreed in writing to
negotiate regarding amending the 2006 compact's provisions
pertaining to mandatory participation in the State's workers'
compensation program.
The Amended Compact's preamble notes that the State and the
Tribe share an interest in creating a framework within which the
gaming facility can operate successfully to generate revenue for
essential government programs for tribal members while also
ensuring that other interests, including an efficient and
effective system to address the appropriate costs arising from
employees who are injured or become sick while performing
work-related duties, are also furthered.
BRIEF HISTORY AND BACKGROUND OF THE YUROK TRIBE
According to information provided by the Tribe, the Yurok Tribe
is the largest tribe in California with over 6,100 tribal
members encompassing a reservation of approximately 57,000
acres. The Tribe is a natural resource tribe with federally
reserved rights to the water and fish of the Klamath River. The
Yurok Reservation is located in the most isolated region of
Northwest California, consisting of lands one mile on each side
of the lower 44 miles of the Klamath River from just above the
confluence of the Trinity River at Weitchpec to the mouth of the
river as it flows into the Pacific Ocean. Reservation lands
include parts of Humboldt and Del Norte Counties, two of the
largest land based counties in the state of California.
AB 1977
Page 5
Following ratification of its 2006 tribal-state gaming compact,
the Tribe opened the Redwood Hotel Casino in 2014 which consists
of two separate entities, the Redwood Holiday Inn Express and
the Redwood Casino. The Redwood Holiday Inn Express is a
60-room hotel complete with exercise room and pool. The Redwood
Casino, located in Klamath, CA, currently hosts 96 Class III
machines and includes the Abalone Bar and Grill - a 50-seat
restaurant and sports bar. The development of the Redwood Hotel
Casino is only a portion of a broader Master Plan for the
down-river Yurok community, which also includes the Yurok
Justice Center, the Yurok Visitor Center, the Klamath Gateway
Project, a new wastewater treatment center, and provisions for
increased public safety presence by Del Norte County deputized
Yurok police officers.
PROVISIONS OF THIS AMENDED COMPACT
Workers' Compensation. Terms of the 2006 compact provide that:
(a) the Tribe agrees to participate in the State's workers'
compensation program with respect to employees at the casino and
all disputes arising from the workers' compensation laws shall
be heard by the State Workers' Compensation Appeals Board
pursuant to the California Labor Code; (b) the Tribe
acknowledges the jurisdiction of the Board and the courts of the
State of California in such manners; (c) 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; and, (d) 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.
This Amended Compact repeals the above-referenced provisions,
recasts them, as specified, and additionally, provides that in
lieu of participation in the State's workers' compensation
system, the Tribe may create and maintain a system through
self-insurance, which includes specified provisions, including
hearings before an independent tribunal. The changes reflect
AB 1977
Page 6
conformity with more recent compacts
ADDITIONAL BACKGROUND INFORMATION
Indian Gaming Regulatory Act (IGRA)
In 1988, Congress enacted the Indian Gaming Regulatory Act
(IGRA) to provide a statutory basis for the operation and
regulation of gaming on Indian lands. IGRA provides that an
Indian tribe may conduct gaming activity on Indian lands if the
activity "is not specifically prohibited by federal law and is
conducted within a State which does not prohibit such gaming
activity."
IGRA distinguishes between three classes of gaming (Class I,
Class II, and Class III) and provides for different forms of
regulation for each class. Class I gaming includes "social
games" for minor prizes or "traditional forms of Indian gaming."
Class II gaming is defined to include bingo and card games that
are explicitly authorized by the laws of the state, or that are
not explicitly prohibited by the laws of the state and are
played at any location in the State, so long as the card games
are played in conformity with those laws and regulations. Class
III gaming includes such things as slot machines, casino games
and banked card games such as black jack and baccarat. Class
III gaming may only be conducted under terms of a compact
negotiated between an Indian tribe and a State.
IGRA was enacted against a legal background in which Indian
tribes and individuals generally are exempt from state taxation
within their own territory. IGRA provides that with the
exception of assessments permitted under the statute, to defray
the State's costs of regulating gaming activity, IGRA shall not
be interpreted as conferring upon a State authority to impose
any tax, fee, charge, or other assessment upon an Indian tribe
to engage in Class III activity. Nor may a State refuse to
enter into negotiations based on the lack of authority to impose
AB 1977
Page 7
such a tax, fee, charge, or other assessment.
When a tribe requests negotiations for a Class III compact, IGRA
requires the State to negotiate with the Indian tribe in good
faith. IGRA provides a comprehensive process to prevent an
impasse in compact negotiations, which is triggered when a tribe
files suit alleging that the State has refused to negotiate or
has failed to negotiate in good faith.
Before 2000, the California Constitution prohibited Class III
gaming. In 2000, California voters approved Proposition 1A
which had been proposed by the Governor and passed by the
Legislature. Proposition 1A amended the California Constitution
to permit the State to negotiate compacts with federally
recognized Indian tribes for certain Class III gaming
activities. Because non-Indian parties were still forbidden
from operating gaming facilities, Proposition 1A granted Indian
tribes a "constitutionally protected monopoly on most types of
Class III games in California."
Prior Legislation
AB 795 (Atkins, Chapter 520, Statutes of 2015) ratified the
tribal-state gaming compact entered into between the State of
California 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 of
California 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 of California and the United Auburn Indian
Community, executed on August 14, 2015.
AB 1977
Page 8
AB 475 (Bigelow, Chapter 8, Statutes of 2015) ratified the
tribal-state gaming compact entered into between the State of
California 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 of California 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 of
California and the Karuk Tribe, executed on December 4, 2013.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
SUPPORT: (Verified8/15/16)
Agua Caliente Band of Cahuilla Indians
Barona Band of Mission Indians
California Labor Federation
Jamul Indian Village
Pechanga Band of Luiseno Indians
Teamsters
UNITE HERE, AFL-CIO
Viejas Band of Kumeyaay Indians
Yocha Dehe Wintun Nation
Yurok Tribe
OPPOSITION: (Verified8/15/16)
AB 1977
Page 9
None received
Prepared by:Arthur Terzakis / G.O. / (916) 651-1530
8/15/16 20:27:00
**** END ****