BILL ANALYSIS Ó
SB 187
Page 1
SENATE THIRD READING
SB
187 (Hall)
As Amended August 18, 2016
2/3 vote. Urgency
SENATE VOTE: (Vote not relevant)
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+-----------------------+---------------------|
|Governmental |20-0 |Gray, Linder, | |
|Organization | |Achadjian, Alejo, | |
| | |Bigelow, Campos, | |
| | |Cooley, Cooper, Daly, | |
| | |Cristina Garcia, | |
| | |Eduardo Garcia, | |
| | |Gipson, | |
| | | | |
| | | | |
| | |Jones-Sawyer, Levine, | |
| | |Mayes, Perea, Salas, | |
| | |Steinorth, Waldron, | |
| | |Wilk | |
| | | | |
| | | | |
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SB 187
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SUMMARY: Ratifies the Tribal-State Gaming Compact (Compact)
between the State of California (State) and the Jamul Indian
Village (Tribe) which was executed on August 8, 2016.
Specifically this bill:
1)Ratifies a Tribal-State Class III gaming compact pursuant to
the Indian Gaming Regulatory Act of 1988 (IGRA), between the
Jamul Indian Village of California, a federally recognized
Indian tribe listed in the Federal Register, and the State of
California. The Compact was executed on August 8, 2016.
2)Supersedes the existing 1999 compact between the Tribe and the
State of California.
3)Provides the Tribe may operate a maximum of 2,500 gaming
devices (slot machines).
4)Allows the Tribe to stablish and operate not more than two
gaming facilities and engage in Class III gaming only on
eligible Indian lands held in trust for the Tribe, located
within the boundaries of the Tribe's reservation and trust
lands as those boundaries exist as of the execution date of
this Compact, as legally described in the Compact (Appendix
A).
5)Provides the Tribe has agreed to pay the State its pro rata
share of costs the State incurs for the performance of its
duties under the Compact as well as four and three quarters
percent (4.75%) of its "gross gaming revenue," to be shared
with tribes that are not gaming or that otherwise are not
substantially benefiting from gaming. In addition, the
Compact provides a framework for the sharing of gaming revenue
with the County of San Diego and other local jurisdictions.
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6)Provides from its payments to the Revenue Sharing Trust Fund
(RSTF) or the Tribal Nation Grant Fund (TNGF), the Tribe may
take annual credits of up to 60% for infrastructure
improvements that in part benefit county residents, fire, law
enforcement, public transit, education, tourism, and other
services including investments in renewable energy and
conservation projects, as specified.
7)Provides in recognition of the predevelopment expenses
incurred by the Tribe, the needs of the Tribe's citizens and
the existence of a binding and enforceable intergovernmental
agreement with the County of San Diego, providing for
mitigation and other investments in the local community (e.g.,
fire equipment and personnel, road improvements), this Compact
defers the Tribe's contributions to the RSTF/TNGF for the
first eight years.
8)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.
9)Provides this Compact will be in full force and effect for 25
years following the effective date.
10)Contain an urgency clause, allowing this bill to take effect
immediately upon enactment.
EXISTING LAW:
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1)Provides, under the 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
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
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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.
Brief History and Background: According to information provided
by the Jamul Indian Tribe, tribal members trace their roots
12,000 years back to a time of independence and
self-sufficiency. A part of the Kumeyaay people, their
ancestors hunted, fished and raised their families in present
day San Diego County and northern Mexico. After decades of work
by elders to engage with the federal government in a meaningful
way, the Tribe was formally recognized by the United States as
an Indian tribe in 1981. The Tribe is located in eastern San
Diego County, on a six-acre reservation and is governed by a
five-member Executive Committee pursuant to a constitution duly
approved on July 7, 1981 and amended on August 31, 1996.
Executive Committee members are elected by the General Council,
which includes all qualified voters 18 years and older, and
elections are held every two years in June.
In 1999, the Tribe entered into a tribal-state gaming compact
with the State of California and a year later attempted to
exercise its rights under the 1999 compact to develop a hotel
and operate a gaming facility on a 101-acre site contiguous to
the Tribe's reservation once in trust and deemed eligible for
gaming. After several years and spending over $80 million in
pre-development costs, the Tribe decided to reconsider its plans
on the proposed 101-acre site in an effort to address local
concerns. In 2012, the Tribe presented a new proposal for a
scaled-back gaming facility that would be located on the Tribe's
reservation, would not require the acquisition of additional
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land, and therefore, withdrew its fee-to-trust application for
the 101-acre site. The Tribe's new proposal incorporated input
from the local community including reducing the height and
footprint of the gaming facility and removing the hotel, all at
a significantly increased cost to the Tribe.
Today, together with their developer, lender, and manager of the
casino, Penn National Gaming, the Tribe is set to open the $400
million Hollywood Casino Jamul in early September 2016. The
casino is expected to employ approximately 1,000 permanent
workers, and will include a three-story gaming and entertainment
facility featuring slot machines, live table games, multiple
restaurants, bars and lounges and an enclosed below grade
parking structure with approximately 1,800 spaces. The Tribe
notes that it has used primarily union labor during construction
of the casino - employing thousands of workers. Additionally,
the Tribe has in place a Labor Peace and Recognition Agreement
with UNITE HERE, International Union and Local 30, dated July
2016.
To date, the Tribe has committed over $20 million to improve
State Highway 94 and has agreed to make annual payments of $2.5
million to the County of San Diego for fire service and to fund
training, personnel, and new fire trucks. The Tribe also
entered into an Intergovernmental Agreement dated May 16, 2016
with the County of San Diego and committed to pay over $3.7
million to improve the County roadways.
Despite the Tribe's good faith efforts, there have been over
forty administrative appeals, lawsuits, and appeals have been
filed against (or involving) the Tribe, all of which have been
favorably decided to allow the Tribe to exercise its legal
rights to develop, construct and operate a gaming facility.
This new Compact will allow the Tribe to transition into
self-sufficiency in light of the substantial pre-development
costs and delay.
The Tribe states that it looks forward to being able to invest
in projects benefiting youth in the area and is already
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contributing to Noah Homes - a program designed to support
people with disabilities. The Tribe also provides various
community programs for tribal members to ensure healthy and
productive lives. One such program, Acorns to Oaks, is focused
on the prevention of teen pregnancy, alcohol and drug use, and
to educate the next generation of Tribal leaders on their
heritage and culture. In addition, the Tribe provides
scholarships for school age youth and it looks forward to
providing additional tribal programs once the casino opens,
including healthcare services and development of cultural
resources.
Key Provisions of the Compact:
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,
provided that the Tribe will not offer such games through use of
the Internet unless others in the state not affiliated with or
licensed by the California State Lottery are permitted to do so
under state and federal law. 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 engage in Class III
gaming only on eligible Indian lands held in trust for the
Tribe, located within the boundaries of the Tribe's reservation
and trust lands as those boundaries exist as of the execution
date of this Compact, as legally described in the Compact
(Appendix A).
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
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by this Compact; or continue under this Compact, as defined.
Payments to the RSTF or the TNGF: If the Tribe operates more
than 350 gaming devices at any time in a given calendar year, it
shall thereafter, including in that calendar year, pay to the
CGCC, for deposit into the RSTF or the TNGF, 4.75% of its "gross
gaming revenue" from the operation of gaming devices in excess
of 350.
"Gross Gaming Revenue" is defined as the win from gaming
devices, which is the difference between gaming wins and losses
before deducting costs and expenses or deducting incentives or
adjusting for changes in progressive jackpot liability accruals.
Generally, the difference between patron wagers and the payouts
made on winning wagers.
In recognition of the predevelopment expenses incurred by the
Tribe, the needs of the Tribe's citizens and the existence of a
binding and enforceable intergovernmental agreement with the
County, providing for mitigation and other investments in the
local community, the Compact defers the Tribe's contributions to
the RSTF/TNGF for the first eight years.
Credits Applied to the RSTF or the TNGF: The State agrees to
provide the Tribe with annual credits for up to 60% of the
payments otherwise due to be paid into the RSTF or TNGF for the
following:
1)Cost of services provided by the Tribe or payments by the
Tribe to the County, state agency, local jurisdictions and
non-profit and civic organizations operating facilities or
providing services within the County for fire, law
enforcement, emergency medical services, public transit, road
improvements, education, tourism, and other services and
infrastructure improvements intended to serve off-reservation
needs of local residents or the environment. Such payments
shall be subject to approval by the State and at least 20% of
the annual credits must be utilized for the above stated
purposes;
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2)Non-gaming related capital investments and economic
development projects by the Tribe on or off tribal trust lands
that provide mutual benefits to the Tribe and the State
because, for instance, they have particular cultural, social
or environmental value, or diversify the sources of revenue
for the Tribe's general fund;
3)Payments to support operating expenses and capital
improvements for non-tribal governmental agencies or
facilities operating within the County;
4)Investments by the Tribe and any funds paid to the State in
connection with, renewable energy projects that, in part,
serve the gaming facility, to include projects that
incorporate charging stations for electric or other
zero-emission vehicles that are available to patrons and
employees of the gaming facility and the Tribe, its members
and lineal descendants;
5)Investments by the Tribe and any funds paid to the State for
water treatment or conservation projects;
6)Cost and payments to support capital improvements, the
purchase of property, and operating expenses for facilities
within California that provide health care services to tribal
members, Indians, and non-Indians;
7)Costs and payments made to support the preservation of
historical buildings, landmarks or objects within California
that have cultural significance to the Tribe and for providing
general welfare benefits for, among other things, educational,
healthcare, cultural or vocational purposes, to other Native
Americans in the community; and,
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8)Costs associated with improving the protection of wildlife and
habitat, increasing tourism, establishing or improving
highways, roadways, hiking trails, walkways and bike lanes,
and other beautification efforts in the community. These
costs include but are not limited to:
a) Payment of $100,000 to the California Department of Fish
and Wildlife (CDFW) to conduct environmental studies of
wildlife within thirty days of this Compact's effective
date; and
b) Payment of $2 million to CDFW to conduct wildlife
mitigation activities to be paid commencing in year three
of this Compact, as specified.
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.
Payments to the Special Distribution Fund: The Tribe shall pay
to the State, on a pro rata basis, the costs the State incurs
for the performance of all its duties under this Compact, as
established by the monies appropriated in the annual Budget Act
for the performance of their duties under the Class III Gaming
Compacts each fiscal year for the California Gambling Control
Commission (CGCC), the California Department of Justice, the
Office of Problem Gambling, and State designated agencies in
connection with the implementation and administration of Class
III gaming compacts, as defined.
Additional Compact Components:
Gaming Ordinance and Regulations: All gaming activities
conducted under this Compact shall, at a minimum, comply with 1)
a gaming ordinance duly adopted by the Tribe and approved in
accordance with IGRA, 2) all rules, regulations, procedures,
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specifications, and standards duly adopted by the National
Indian Gaming Commission (NIGC), the Tribal Gaming Agency, and
the State Gaming Agency, and 3) the provisions of this Compact,
as specified.
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 the CGCC. In addition, every gaming employee must
obtain, and thereafter maintain current, a valid tribal gaming
license, as specified.
Minimum Internal Control Standards: Requires the Tribe to
conduct its Gaming Activities pursuant to an internal control
system that implements MICS that are no less stringent than
specified MICS of the NIGC. It requires gaming to operate
pursuant to a written internal control system that reasonably
assures that assets are safeguarded and accountability over
assets is maintained, liabilities are properly recorded and
contingent liabilities are properly disclosed, financial records
are accurate and reliable, transactions are performed in
accordance with the Tribe's authorization. The Tribe is
required to provide to the CGCC, upon written request, a copy of
the independent certified public accountant agreed-upon
procedures report conducted annually for submission to the NIGC
pursuant to federal law. This report verifies that the gaming
operation is in compliance with the NIGC's minimum internal
control standards.
Patron Disputes: A patron who makes an oral or written
complaint to personnel of the gaming operation over the play or
operation of any game within five days of the play or operation
at issue shall be notified in writing of the patron's right to
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request in writing, within five days of the gaming operation's
written notification to the patron of that right, resolution of
the dispute by the Tribal Gaming Agency or through a
three-member tribal claims commission consisting of a
representative of the tribal government and at least one
non-tribal commissioner. The decision shall be issued within 30
days of the patron's request. If dissatisfied with the
resolution, or no decision is rendered within 60 days of
submission, the patron may seek resolution either in the Tribe's
tribal court system, once a tribal court system is established,
or before a three-member tribal claims commission. Any party
dissatisfied with the award of the arbitrator may at the party's
election invoke the JAMS Optional Arbitration Appeal Procedure.
The cost and expenses of arbitration shall be initially borne
equally by the Tribe and the patron but the JAMS arbitrator
shall award to the prevailing party its costs and expenses (but
no attorney fees). The Tribe consents to the jurisdiction of
the tribal court, tribal claims commission, JAMS Optional Appeal
Procedure and any action to enforce their judgments or the
obligations, as defined.
Public and Workplace Liability: Requires the Tribe to obtain
and maintain a commercial general liability insurance policy
which provides coverage of no less than $10 million and adopt a
Tort Liability Ordinance stipulating that California tort law
governs claims. Also, provides that California tort law shall
apply to specified claims if the Tribe fails to adopt a Tort
Liability Ordinance.
Environmental Protections: The Tribe must prepare a Tribal
Environmental Impact Report (TEIR) and negotiate mitigation of
any off-reservation impacts, including an evaluation of energy
efficiency, prior to initiating the development of a project for
a facility. The Compact provides procedures regarding the 1)
Notice of Preparation of Draft TEIR, 2) Notice of Completion of
Draft TEIR, and 3) Issuance of Final TEIR. The Tribe's failure
to prepare an adequate TEIR when required may warrant an
injunction where appropriate. Before commencement of a Project,
and no later than the issuance of the final TEIR, the Tribe
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shall negotiate an intergovernmental agreement with the
California Department of Transportation if state roads are
impacted. A binding agreement must also be negotiated with San
Diego County to, amongst other things, provide for the timely
mitigation of any significant effect on the off-reservation
environment. This includes 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 as a consequence of the project.
Health and Safety Standards: The Tribe has agreed to comply
with federal water quality and safe drinking water standards
applicable in California. The Tribe must also adopt and comply
with federal and state laws forbidding harassment, including
sexual harassment, discrimination and retaliation. In addition,
the Tribe must maintain a $3 million insurance policy for these
purposes and adopt an ordinance that includes a dispute
resolution process. The Tribe has agreed to adopt and comply
with tribal health standards for food and beverage handling that
are no less stringent than State public health standards.
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. Gaming
facility construction, expansion, improvement, modification or
renovation must also comply with the federal Americans with
Disabilities Act.
Emergency Services Accessibility: The Tribe must make
reasonable provisions for adequate emergency fire, medical, and
related relief and disaster services for patrons and employees.
Enhanced Audit and Compliance Review Procedures: In addition to
providing for an annual independent audit, the Compact allows
the state to conduct its own annual audit and compact compliance
review.
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Inspection and Testing of Slot Machines: Gaming devices will
have to be tested, approved and certified by an independent
gaming test laboratory or state governmental gaming test
laboratory to ensure 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. The State Gaming
Agency would 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.
Labor Provisions: Rather than requiring side agreements between
the Tribe and labor organizations, the Compact incorporates
provisions of Tribal Labor Relations Ordinance (TLRO) that has
the support of labor entities. The Compact provides that the
gaming activities authorized by this Compact may only commence
after the Tribe has adopted an ordinance identical to the TLRO
provided for in 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 TLRO
first incorporated into the 2015 compact with the Santa Ynez
Band of Chumash Indians and reflects significant changes from
the 1999 TLRO.
The TLRO provides for a neutrality agreement between the Tribe
and union if the union requests this. If the union first offers
in writing not to engage in strikes, picketing, boycotts, attack
websites, or other economic activity at or in relation to the
tribal casino or related facility and issue and deliver a Notice
of Intent to Organize (NOIO) to the Tribe, then the Tribe must
not disparage or advocate opposition to the union. The Tribe
may make factual representations to employees concerning
employment with the Tribe, but may not take actions or make
statements that could reasonably be interpreted as criticizing
the union or advocating against unionization. During the 365
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days after the Tribe received the NOIO, the union must collect
dated and signed authorization cards and complete the secret
ballot election. Secret ballot elections shall be held at a
location or locations determined by the employer, but there must
be at least neutral location. Employee may mail ballots so long
as received by Election Day. Failure to complete the secret
ballot election within 365 day under the neutrality agreement
shall preclude the union from delivering another NOIO for a
period of 730 days
Where there is a neutrality agreement, the TLRO provides for
resolution of collective bargaining impasse through interest
arbitration by the Federal Mediation and Conciliation Service
(FMCS). The interest arbitration procedure is modeled on the
Mandatory Mediation and Conciliation provisions in the
Agricultural Labor Relations Act. Other disputes are presented
to an arbitrator with expertise in labor law. Appropriate
challenges to the arbitrator's decision may be presented in
court.
Workers' Compensation: 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, as specified. In lieu of participation in the State's
system, the Tribe may create and maintain a system through
self-insurance, which includes specified provisions, including
hearings before an independent tribunal. 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.
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.
Prohibitions Regarding Minors: Prohibits persons under the age
of 21 years from being present in any room or area in which
gaming activities are being conducted unless the person is en
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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.
Problem Gambling: The Tribe through its Tribal Gaming Agency
must establish a program, approved by the Tribal Gaming Agency,
to mitigate pathological and problem gaming by implementing
specified measures.
Alcohol Provisions: Makes it explicit that the purchase, sale,
and service of alcoholic beverages shall be subject to state
law.
Tobacco Provisions: 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 products, including but not limited to
smokeless tobacco products or e-cigarettes, to anyone younger
than the minimum age specified in state law to legally purchase
tobacco products.
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, 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.
Effective Date: The Compact shall not be effective unless and
until all of the following have occurred: 1) The Compact is
ratified by statute in accordance with state law and 2) Notice
of approval or constructive approval is published in the Federal
Register. Once effective, this Compact shall be in full force
and effect for 25 years following the effective date.
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Additional Background Information:
Terms of the Tribe's 2006 Amended Compact: The Tribe's 2006
amended compact authorized no more than 7,500 gaming devices.
The amended compact required an annual flat payment of $42.5
million to the State's general fund, plus an annual payment of
15% of the net win generated from the operation of between
2,000-5,000 gaming devices. The amended compact also required
an annual $2 million payment into the RSTF. The compact is
valid through 2030.
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 came to a
standstill. 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.
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
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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.
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
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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. 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.
AB 1977 (Wood) of the current legislative session. Ratifies 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. Ratifies the
tribal-state gaming compact entered into between the State and
the Yocha Dehe Wintun Nation, executed on August 4, 2016.
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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
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.
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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.
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.
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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.
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
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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.
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
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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:
0004376
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