BILL ANALYSIS Ó AB 1977 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1977 (Wood) As Amended August 9, 2016 2/3 vote. Urgency -------------------------------------------------------------------- |ASSEMBLY: | |(May 9, 2016) |SENATE: |39-0 |(August 17, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- (vote not relevant) Original Committee Reference: HEALTH SUMMARY: Ratifies the amended tribal-state gaming compact (Amended Compact) entered into between the State of California (State) and the Yurok Tribe (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. The Senate amendments delete the Assembly version of this bill, and instead: AB 1977 Page 2 1)Ratify the First Amendment to the Tribal-State Gaming Compact between the State of California and the Yurok Tribe (Tribe), executed on August 4, 2016. 2)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. 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. 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 AB 1977 Page 3 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 COMMENTS: The Amended Compact conforms the workers' compensation AB 1977 Page 4 provisions of the Tribe's existing 2006 compact (SB 106 (Wiggins), Chapter 37, Statutes of 2007) to those of more recent compacts. All other provisions of the existing 2006 compact remain intact. The 2006 compact allowed the Tribe to operate no more than 99 gaming devices (slot machines) and specified that no more than 20 may be operated at an ancillary gaming facility (Pem-Mey Fuel Mart). 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. As long as the Tribe's membership is at least 4,000 members, it may deduct from the amount to be paid to the State the payments made pursuant to its Intergovernmental Agreements with Del Norte County and Humboldt County. The 2006 compact contained other provisions relating to: exclusivity; licensing; off-reservation environmental impacts; intergovernmental agreements; public and workplace health safety and liability; and labor provisions. The 2006 compact will be in effect until December 31, 2025. 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 Governor's office states, Section 15.1 of the 2006 compact stated that it may be amended upon written agreement of both parties, This year, the parties agreed in writing to negotiate relating to amending the 2006 compact's provision regarding mandatory participation in the state workers' compensation program. The Governor's office states, 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. AB 1977 Page 5 Brief Overview of the Tribe: The Yurok Tribe is a federally recognized Indian tribe listed in the Federal Register as the Yurok Tribe of the Yurok Reservation, California. The Tribe's reservation lands include parts of Humboldt and Del Norte Counties, two of the largest land based counties in the state. The Tribe's current reservation was established in 1988, when the United States Congress enacted the Hoopa-Yurok Settlement Act. The Tribe is the largest tribe in the state 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 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. The 2006 compact was intended to assist Yurok in addressing the problems it was facing with high unemployment and poverty rates, as well as provide for its infrastructure needs relating to electricity, water, sewage and transportation. Following the ratification of its 2006 compact, the Tribe opened the Redwood Hotel Casino, located in Klamath, California in 2014 which consists of two separate entities, the Redwood Holiday Inn Express and Redwood Casino. The Redwood Holiday Inn Express is a 60-room hotel complete with exercise room and pool. Currently, the Redwood Casino currently maintains 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 one part of a broader Master Plan for the Tribe, 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. In addition to its gaming operation, the Tribe receives $1.1 million annually from the Revenue Sharing Trust Fund (RSTF). Pursuant to existing law, any tribe operating under 350 gaming devices is considered a limited-gaming tribe and is eligible for revenue payments from the RSTF. AB 1977 Page 6 Provisions of the Amended Compact: Workers' Compensation: Terms of the 2006 compact provide that: 1) 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; 2) the Tribe acknowledges the jurisdiction of the Board and the courts of the State of California in such manners; 3) 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, 4) 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. The Amended Compact repeals the above-referenced provisions, recasts them, as defined, 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 that includes specified provisions, including hearings before an independent tribunal. The amendments contained in this Compact conform to more recent compacts that have been negotiated by the Governor Brown relating to workers' compensation. Additional Background Information: Article IV, section 19, subdivision (e) of the California Constitution: Permits Indian tribes to conduct and operate slot AB 1977 Page 7 machines, lottery games, and banked and percentage card games on Indian land if 1) the Governor and an Indian tribe reach agreement on a compact; 2) the Legislature approves the compact; and 3) the federal government approves the compact. Related legislation: AB 629 (Gonzalez) of the current legislative session. Ratifies the tribal-state gaming compact entered into between the State and the Pala Band of Mission Indians, executed on May 6, 2016. AB 2358 (Gonzalez) of the current legislative session. Ratifies the tribal-state gaming compact entered into between the State and the Pechanga Band of Luiseno Indians, executed August 4, 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. SB 187 (Hall) of the current legislative session. Ratifies the tribal-state gaming compact entered into between the State and the Jamul Indian Village, executed August 8, 2016. SB 1313 (Hall) of the current legislative session. Ratifies 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. Ratifies 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 1767 (Bigelow) of the current legislative session. Ratifies the first amendment to the 2015 tribal-state gaming compact AB 1977 Page 8 entered into between the State and the Jackson Rancheria Band of Miwuk Indians, executed on June 22, 2016. SB 404 (De León) of the current legislative session. Ratifies 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. Ratifies 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 AB 1977 Page 9 between the State and the Viejas Band of Kumeyaay Indians, executed on August 12, 2014. SB 1224 (Correa), Chapter 300, Statutes of 2014. Ratified the tribal-state gaming compact entered into between the State and the Karuk Tribe, executed on December 4, 2013. AB 1245 (V. Manuel Perez), Chapter 462, Statutes of 2013. Ratified the tribal-state gaming compact entered into between the State and the Ramona Band of Cahuilla Indians located in Riverside County, executed on June 10, 2013. AB 277 (Hall), Chapter 51, Statutes of 2013. Ratified two new compacts entered into between the State and the following tribes: North Fork Rancheria, executed on August 31, 2012, and the Wiyot Tribe, executed on March 20, 2013. AB 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, AB 1977 Page 10 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 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. AB 1977 Page 11 SB 174 (Ducheny), Chapter 38, Statutes of 2007. Ratified the first compact amendment to the compact between the State and Sycuan. SB 175 (Ducheny), Chapter 39, Statutes of 2007. Ratified the first compact amendment to the compact between the State and Morongo. SB 903 (Padilla), Chapter 40, Statutes of 2007. Ratified the first compact amendment to the compact between the State and Pechanga. SB 941 (Padilla), Chapter 226, Statutes of 2007. Ratified the first compact amendment to the compact between the State and San Manuel. SB 957 (Torlakson), Chapter 41, Statutes of 2007. Ratified the first compact amendment to the compact between the State and Agua Caliente. SB 470 (Ducheny), Chapter 527, Statutes of 2006. Ratified the first amendment to the compact between the State and the Quechan Tribe of the Fort Yuma Reservation. SB 1117 (Burton), Chapter 856, Statutes of 2004. Ratified two new and two amended compacts entered into between the State and the following tribes: Coyote Valley Band of Pomo Indians (new compact); Fort Mojave Indian Tribe (new compact); Buena Vista Rancheria of Me-Wuk Indians (amended compact); and, Ewiiaapaayp Band of Kumeyaay Indians (amended compact). AB 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; AB 1977 Page 12 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: AB 1977 Page 13 Eric Johnson / G.O. / (916) 319-2531 FN: 0004505