BILL ANALYSIS                                                                                                                                                                                                    Ó



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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1977 (Wood)


          As Amended  August 9, 2016


          2/3 vote.  Urgency


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                 (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:









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          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  








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            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  








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          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.










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          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.








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          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  








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          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  








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          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  








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          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,  








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          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. 










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          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;  








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          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:                                             








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                          Eric Johnson / G.O. / (916) 319-2531  FN:  
          0004505