BILL ANALYSIS Ó
SB 1313
Page 1
SENATE THIRD READING
SB
1313 (Hall)
As Introduced August 18, 2016
2/3 vote. Urgency
SENATE VOTE: 37-0
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+-----------------------+---------------------|
|Governmental |17-0 |Gray, Bigelow, Bonta, | |
|Organization | |Cooley, Cooper, Daly, | |
| | |Gallagher, Cristina | |
| | |Garcia, Eduardo | |
| | |Garcia, Gipson, | |
| | |Jones-Sawyer, Levine, | |
| | |Linder, Salas, | |
| | |Steinorth, Waldron, | |
| | |Wilk | |
| | | | |
|----------------+-----+-----------------------+---------------------|
|Appropriations |19-0 |Gonzalez, Bigelow, | |
| | |Bloom, Bonilla, Bonta, | |
| | |Calderon, Daly, | |
| | |Eggman, Gallagher, | |
| | | | |
| | | | |
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| | |Eduardo Garcia, | |
| | |Holden, Jones, | |
| | |Obernolte, Quirk, | |
| | |Santiago, Wagner, | |
| | |Weber, Wood, Chu | |
| | | | |
| | | | |
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SUMMARY: Ratifies the Tribal-State Class III gaming compact
(Compact) between the State of California (State) and the Yocha
Dehe Wintun Nation (Tribe) which was executed on August 4, 2016.
Specifically, this bill:
1)Ratifies the Tribal-State Class III gaming compact entered
into between the State of California and the Yocha Dehe Wintun
Nation (Tribe) executed on August 4, 2016.
2)Supersedes the existing 2004 compact between the Tribe and the
State of California.
3)Allows the Tribe to operate a maximum of 3,500 gaming devices
(slot machines) on eligible Indian lands held in trust for the
Tribe, located within the boundaries of the Tribe's
reservation, as described, in Appendix A of the Compact.
4)Provides the Tribe will pay to the State its pro rata share of
costs the State incurs for the performance of its duties under
the Compact plus an additional amount of $1.6 million, not to
exceed $3 million, to insure the Special Distribution Fund
(SDF) remains solvent and to cover a portion of the regulatory
costs for small gaming tribes. The Tribe has also agreed to
pay $18 million annually into the Revenue Sharing Trust Fund
(RSTF) or the Tribal Nation Grant Fund (TNGF), to be shared
with tribes that are not gaming or that otherwise are not
substantially benefiting from gaming. The Tribe may take an
annual credit of up to $9 million (out of the $18 million) for
various investments and infrastructure improvements that in
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part benefit county residents, landless northern California
tribes, disenrolled Indians, fire, law enforcement, emergency
medical services, public transit, education, tourism, and for
facilities that provide health care services to tribal members
and other members of the local community.
5)Provides the Tribe will pay the State annually, a revenue
contribution of $15 million and permits the Tribe to take an
annual credit of up to $9 million (out of the $15 million) for
the Tribe's payments covering state or local government
services, mitigation of the gaming operation's impacts, and
economic development or revitalization. The Compact states
that $4.5 million (out of the $9 million credit) of the amount
the Tribe annually pays the County under an existing
intergovernmental agreement (which expires on Dec. 31, 2020)
qualifies for a credit under this provision. The credit will
continue to apply in the event the parties extend or
renegotiate the existing intergovernmental agreement such that
payment obligations exist under the agreement beyond its 2020
term.
6)Provides for an additional credit of up to $6 million (out the
$15 million) for projects, initiatives or investments that
mitigate the impacts of gaming or provide benefits to the
State or tribes in California. The Tribe may also deposit
annually up to $2 million of that $6 million into a
scholarship fund created by the Tribe and the State
(California Native American Education and Scholarship Fund) to
provide scholarships for undergraduate, graduate and
professional education that benefit students of non-gaming or
limited-gaming tribes located in California.
7)The Compact: a) provides a regulatory framework that respects
the role of the tribal gaming agency as the primary regulator
while also ensuring that state gaming regulators fulfill their
responsibilities; b) requires the Tribe to conduct its gaming
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activities pursuant to an internal control system that
implements minimum internal controls that are no less
stringent than those in federal regulations; c) Maintains the
Tribe's existing 1999 Tribal Labor Relations Ordinance (TLRO);
and, d) contains provisions to protect the health and safety
of patrons, guests, and employees.
8)Provides 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)States once effective (legislative ratification and federal
approval required), this Compact shall be in full force and
effect for State law purposes for 25 years (2041).
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. This bill is keyed non-fiscal by the
Legislative Counsel.
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COMMENTS: On August 15, 2016, the Assembly Governmental
Organization Committee held an informational hearing on the
contents of the Compact entered into between the State of
California and the Yocha Dehe Wintun Nation.
Brief History and Overview: The Yocha Dehe Wintun Nation is a
federally recognized Indian tribe located in northern Yolo
County, about 45 miles northwest of Sacramento. Yocha Dehe
means "home by the spring water" in the Tribe's native Patwin
language, and literally describes the lands upon which its
people live, and have lived, since time immemorial.
The Tribe's relationship with the United States began in the
1900's when its people were relocated to a barren, non-irrigable
parcel in Rumsey, the town for which their government, and
reservation, was once named, and thereafter, to a small parcel
of land, in the Capay Valley, where they managed to cultivate
small amounts of food, but nonetheless lived in poverty,
depending on the United States government for survival.
In 1985, the Tribe opened its first facility, a bingo hall,
which generated money to help support its government and provide
for the health and welfare of its struggling people. In 1988,
with the enactment of the Indian Gaming Regulatory Act and
Proposition 1A in 2000, the Tribe was able to pursue and offer
broader forms of gaming (Class III gaming compact).
In 1999, the Tribe and the State entered into a Tribal-State
Class III gaming compact, which they amended in 2004. The
Tribe's 2004 amended compact, among other things, eliminated the
cap on the number of slot machines that could be operated by the
Tribe and required the Tribe to make annual payments to the
State of $25 million until 2030 which was in addition to a $2
million annual payment into the RSTF, as well as, a graduated
scale of progressively higher annual fees for additional slot
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machines above the existing limit of 2,000 slot machines,
reaching up to $25,000 per additional machine (4,500 machines
and above). The fees represented approximately 15% of the net
win of the additional machines on average.
The Compact's preamble states that through revenues generated by
its gaming operation, the Tribe has been able to strengthen its
government and achieve economic independence, by providing
education and health care to its people; protecting its
traditions and values through cultural preservation, including
the revitalization of its language; and preserving the cultural
resources and sacred sites in the linguistic and cultural
territory with which the Tribe and its sister Patwin-speaking
tribes are historically connected.
The Tribe owns and operates the Cache Creek Casino Resort, which
opened in 2004 and employs approximately 2,300 people, making it
the largest private employer in Yolo County, and a major
economic contributor in the region. The Casino and Resort,
located on State Highway 16 in Brooks, offers more than 2,000
slot machines, 122 table games, hotel rooms and suites, spa,
restaurants, gift shop, mini mart, headliner concerts, an
18-hole golf course and other amenities.
The Tribe has 1,120 total acres of trust land but manages more
than 13,000 acres of land, approximately 1,500 acres of which
are farmed with 14 crops. In addition, more than 500 Angus
cattle graze on the Tribe's reservation. The Tribe has
constructed a custom crush olive mill that serves not only the
Tribe, but also area farmers in the production of olive oil.
The Tribe notes that its Fire Department recently received
international accreditation for the second time and remains the
only Indian fire department to ever earn such accreditation.
The Tribe currently provides nearly $6 million annually to Yolo
County through an memorandum of understanding (MOU). Since
2000, the Tribe has contributed more than $25 million dollars to
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local partners in the community through their philanthropic
Community Fund.
The Compact's preamble declares that the Tribe and State are
hopeful this new Compact will enable the Tribe to redirect
Compact payments for good and worthy causes, providing, as an
example, needed funding, economic development and infrastructure
for tribal and non-tribal governments; scholarships for Native
American people, and funding for schools dedicated to Native
American education; capital to help local governments establish
the machinery needed to protect cultural resources threatened by
development; and housing and health care benefits for those in
need.
The Compact's preamble further states that the State and the
Tribe have therefore concluded that this Compact protects the
interests of the Tribe and its citizens, the surrounding
community, and the California public, and will promote and
secure long-term stability, mutual respect, and mutual benefits.
Key Components of 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).
Scope of Class III Gaming Authorized: Authorizes the Tribe to
operate a maximum of 3,500 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,
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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.
Credits Applied to the RSTF or the TNGF: From its payments to
the RSTF or the TNGF, the Tribe may take annual credits for up
to $9 million (out of the $18 million) for the following
purposes:
1)Payments by the Tribe to the County or local jurisdictions
operating facilities or providing services within the County
for fire, law enforcement, emergency medical services, public
transit, education, tourism, or other services and
infrastructure improvements intended to serve off-reservation
needs of County residents as well as those of the Tribe - such
payments shall be subject to approval by a special entity
comprised of County, tribe and community representatives;
2)Payments to reimburse Yolo County for any loss of property tax
revenues;
3)Payments to support operating expenses and capital
improvements for non-tribal governmental agencies or
facilities operating within the Counties of Colusa, Lake,
Napa, Sacramento, Sonoma, Solano, Sutter, or Yolo;
4)Non-gaming related capital investments and expenditure and
economic development projects by the Tribe that provide mutual
benefits to the Tribe and the State because, for instance,
they have particular cultural, social or environmental value,
or because they diversify the sources of revenue for the
Tribe's general fund;
5)Payments to support capital improvements and operating
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expenses for facilities within California that provide health
care services to tribal citizens, Indians, and non-Indians;
6)Investments or expenditures to preserve, revitalize, or
enhance the Tribe's cultural values, practices and traditions,
as well as, payments to any non-profit institutions providing
education to Native American people, including the California
Tribal College;
7)Investments in, and any funds paid to the State in connection
with, energy projects that, in part, serve the gaming
facility, the County, or the local community. Allowable
projects include projects that incorporate charging stations
for electric or other zero-emission vehicles that are
available to the Tribe's citizens, patrons and employees of
the gaming facility, or non-tribal members of the public;
8)Payments for providing healthcare benefits, education or job
training to persons who have been disenrolled from an Indian
tribe in California; and,
9)Grants to Indians of Patwin or Wintun descent who are not
enrolled citizens of the Tribe, for educational, cultural or
vocational purposes, or to landless federally-recognized
tribes from northern California, or federally-recognized
tribes with Indian lands within the Counties of Colusa, Lake,
Napa, Sacramento, Sonoma, Solano, Sutter, or Yolo, for
economic development.
All excess authorized credits that cannot be applied in any one
year may be applied as an annual credit in all following years
that this Compact is in effect, up to a total of $9 million,
until completely exhausted.
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Additional Revenue Contribution, Local Community Credit Fund and
California Native American Education and Scholarship Fund: The
Tribe shall pay to the State annually a revenue contribution of
$15 million and provides that the Tribe may take an annual
credit of up to $9 million (out of the $15 million) for the
Tribe's payments covering state or local government services,
mitigation of the gaming operation's impacts, and financing
infrastructure projects and economic development or
revitalization, including, but not limited to, construction,
repair, maintenance and improvements of structures, operations
and facilities, on non-Indian lands in counties within the
Tribe's ancestral territory (Colusa, Lake, Napa, Solano, Yolo
counties) that benefit the Tribe, its gaming operation, and/or
the governments and non-tribal communities within these
counties. The Tribe may also take $4.5 million in credits for
its annual payments to Yolo County under the parties' existing
and any subsequent MOUs.
Furthermore, the Compact provides that the Tribe may take
additional credits totaling up to $6 million (out of the $15
million) for projects, initiatives or investments the parties
agree on which mitigate the impacts of gaming or provide
benefits to the State or tribes in California. The Tribe may
also deposit annually up to $2 million of that $6 million for
deposit into a scholarship fund created by the Tribe and the
State (California Native American Education and Scholarship
Fund) to provide scholarships for undergraduate, graduate and
professional education that benefit students of non-gaming or
limited-gaming tribes located in California.
Payments to the RSTF or the TNGF: The Tribe agrees to pay $18
million annually to the California Gambling Control Commission
(CGCC) for deposit into the RSTF or the TNGF.
Payments to the Special Distribution Fund: The Tribe shall pay
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to the State, on a pro rata basis, the costs the State incurs
for the performance of all its duties under this Compact, the
administration and implementation of tribal-state gaming
compacts, and funding for the Office of Problem Gambling, as
determined by the monies appropriated in the annual Budget Act
each fiscal year to carry out those purposes. The Tribe's pro
rata share of the State's costs in any given year this Compact
is in effect may not be increased more than 5% per year, as
specified.
Additionally, the Tribe further will pay $1.6 million into the
SDF to ensure it remains solvent. In the event the pro rata
funding for the SDF statewide has proven sufficient for three
consecutive years, the parties agree to meet and confer for the
purpose of making an appropriate reduction in the additional
payment. The Tribe's payment into the SDF is capped at $3
million unless the Tribe's pro rata share exceeds that amount,
as defined.
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 nullified by the enactment,
amendment, or repeal of a state statute or constitutional
provision or the conclusive and dispositive judicial
construction of a statute or the state Constitution by a
California appellate court after the effective date of this
Compact, that gaming devices may lawfully be operated by
non-Indian entities, the Tribe shall have the right to: 1)
terminate this Compact, in which case the Tribe will lose the
right to operate Class III gaming authorized by this Compact or
2) continue under this Compact with entitlement to a reduction
of the rates specified below following conclusion of
negotiations, to provide for a) compensation to the State for
the costs of regulation, as defined; b) reasonable payments to
local governments impacted by tribal government gaming; c)
grants for programs designed to address gambling addiction; and,
d) such assessments as may be permissible at such time under
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federal law.
Off-Reservation Environmental and Economic Impacts: Provides
the Tribe must prepare a Tribal Environmental Impact Report
(TEIR) and negotiate mitigation of any off-reservation impacts,
including an evaluation of energy consumption, 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.
Intergovernmental Agreement: Before the commencement of a
project, and no later than the issuance of the Final TEIR to the
County, the Tribe shall offer to commence negotiations with the
County, and upon the County's acceptance of the Tribe's offer,
shall negotiate with the County and shall enter into an
enforceable written agreement regarding the timely mitigation of
any significant effect on the off-reservation environment
including provisions relating to traffic impacts, compensation
for law enforcement, fire protection, emergency medical
services, and any other public services to be provided by the
County to the Tribe, as specified.
The Tribe and Yolo County have an existing intergovernmental
agreement that expires on December 31, 2020.
Additional Compact Components:
Gaming Ordinance and Regulations: All gaming activities 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, specifications, and standards duly
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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: Provides 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. Furthermore, every gaming employee must
obtain, and thereafter maintain current, a valid tribal gaming
license, as specified.
Minimum Internal Control Standards (MICS): The Tribe must
conduct its gaming activities pursuant to an internal control
system that implements MICS that are no less stringent than
those contained in the MICS of the federal NIGC standards, as
specified. The Tribe is required to provide 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 MICS.
Public and Workplace Liability: Requires the Tribe to obtain
and maintain a commercial general liability insurance policy
that provides coverage of no less than $10 million. In
addition, requires the Tribe to adopt a Tort Liability Ordinance
containing provisions that are the same as California tort law
to govern all claims of bodily injury, personal injury, or
property damage arising out of, connected with, or relating to
the casino. The Tribe must consent to jurisdiction in the
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Tribe's tribal court system, if a tribal court system is
established, before a three-member tribal claims commission, or
by arbitration before a single arbitrator who shall be retired
judge, in accordance with the Comprehensive Arbitration Rules
and Procedures of JAMS. Any party dissatisfied with the award
of the tribal court, claims commission, or JAMS arbitration, may
at the party's election invoke the JAMS Optional Arbitration
Appeal Procedure. The JAMS appeal will take place in the County
and shall use one arbitrator, agreed upon by the parties, and
shall not be a de novo review, but shall be based solely on the
record developed in the tribal court, claims commission, or JAMS
arbitrator proceedings. The Tribe consents to the jurisdiction
of the tribal court, claims commission, JAMS arbitration and
JAMS appeal.
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.
Inspection and Testing of Gaming Devices: Gaming devices will
need 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. 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: Provides that the gaming activities
authorized by this Compact must continue under the Tribal Labor
Relations Ordinance (TLRO) previously adopted by the Tribe and
referenced as Appendix C of this Compact. This Compact
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acknowledges that the parties may amend the existing TLRO.
UNITE-HERE has represented workers at the Cache Creek Casino for
an extended period.
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. The Tribe acknowledges the jurisdiction of the Board in
such manners. 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: The Compact 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 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.
Use and Sale of Tobacco: The Tribe agrees to provide a
non-smoking area in the gaming facility and to maintain
ventilation, filtration, purification or other technologies in
the gaming facility, where reasonably feasible after
consideration of engineering, economic and scientific factors,
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
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in state law to legally purchase tobacco products.
Alcohol Provisions: Makes it explicit that the purchase, sale,
and service of alcoholic beverages shall be subject to state law
- the Alcoholic Beverage Control Act.
Program to Mitigate Problem Gambling: The gaming operation
shall establish a program, approved by the Tribal Gaming Agency,
to mitigate pathological and problem gambling.
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.
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.
Emergency Services Accessibility: The Tribe must make
reasonable provisions for adequate emergency fire, medical, and
related relief and disaster services for patrons and employees.
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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: Once executed, ratified, and approved by U.S.
Department of Interior (and listed in the Federal Register),
this Compact shall be in full force and effect for 25 years
following the effective date (2041).
Additional Background Information:
Rincon Decision: In 2004, the Rincon Band of Mission Indians
sued the State in federal court after negotiations for a new
gambling agreement with then-Governor Schwarzenegger 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
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State's demand as evidence of bad faith under IGRA's statutes."
The Rincon decision has changed the dynamics of tribal-state
compact negotiations in California.
SDF: Existing law creates the SDF in the State Treasury for the
receipt of revenue contributions made by tribal governments
pursuant to the terms of the 1999 model Tribal-State Gaming
compacts and authorizes the Legislature to appropriate money
from the SDF for the following purposes: 1) grants for programs
designed to address gambling addiction; 2) grants for the
support of state and local government agencies impacted by
tribal government gaming; 3) compensation for regulatory costs
incurred by CGCC and the DOJ in connection with the
implementation and administration of compacts; 4) payment of
shortfalls that may occur in the Indian Gaming RSTF; 5)
disbursements for the purpose of implementing the terms of
tribal labor relations ordinances promulgated in accordance with
the terms of the 1999 compacts; and, 6) any other purpose
specified by law. The distribution formula "sunsets" on January
1, 2021.
RSTF: Existing law also creates in the State Treasury the RSTF
for the receipt and deposit of moneys derived from gaming device
license fees that are paid into the RSTF pursuant to the terms
of specified tribal-state gaming compacts for the purpose of
making distributions to non-compacted tribes (e.g.,
federally-recognized non-gaming and tribes that operate casinos
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
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the 1999 compacts.
According to CGCC, which administers the RSTF, a revenue
shortfall of approximately $15.5 million is anticipated this
fiscal year. According to the Department of Finance (DOF), the
SDF has sufficient funds in it for fiscal year 2016-2017 to
cover the RSTF shortfall. However, DOF indicates that it
projects a $1.6 million SDF balance deficiency in fiscal year
2017-2018 assuming a $25 million transfer to the RSTF. To cover
the anticipated shortfall in 2017-2018, approximately $1.6
million will need to be transferred from the General Fund in
order to ensure full RSTF payments are made to non-gaming and
limited-gaming tribes. A similar amount was redirected in
2015-2016. Recent compacts, including this one, have attempted
to alleviate the shortfall situation by requiring payments by
Tribes directly to the RSTF. This model appears to be a
template for future compacts, as well.
TNGF: The TNGF was created in the Graton Rancheria compact (AB
517 (Hall), Chapter 12, Statutes of 2012), as a new destination
for gaming revenue for distribution of funds to non-gaming and
limited-gaming tribes, upon application of such tribes for
purposes related to effective self-governance, self-determined
community, and economic development. The fund is designed to be
fluid and payments are intended to be made to non-gaming tribes
on a "need" basis, upon application by non-gaming tribes. The
TNGF currently does not receive funding.
Related legislation: AB 629 (Gonzalez) of the current
legislative session. Ratifies the tribal-state gaming compact
entered into between the State and the Pala Band of Mission
Indians, executed on May 6, 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.
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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.
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 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
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between the State and the Sycuan Band of Kumeyaay Nation,
executed on September 2, 2015.
AB 1540 (Gray), Chapter 531, Statutes of 2015. Ratified the
tribal-state gaming compact entered into between the State and
the Santa Ynez Band of Chumash Indians, executed on August 26,
2015.
AB 315 (Bigelow), Chapter 512, Statutes of 2015. Ratified the
amended and restated tribal-state gaming compact entered into
between the State and the United Auburn Indian Community,
executed on August 14, 2015.
AB 475 (Bigelow), Chapter 8, Statutes of 2015. Ratified the
tribal-state gaming compact entered into between the State and
Jackson Rancheria Band of Miwuk Indians, executed on February 1,
2015.
SB 1356 (De León), Chapter 314, Statutes of 2014. Ratified the
amendment to the tribal-state gaming compact entered into
between the State and the Viejas Band of Kumeyaay Indians,
executed on August 12, 2014.
SB 1224 (Correa), Chapter 300, Statutes of 2014. Ratified the
tribal-state gaming compact entered into between the State and
the Karuk Tribe, executed on December 4, 2013.
AB 1245 (V. Manuel Perez), Chapter 462, Statutes of 2013.
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.
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AB 277 (Hall), Chapter 51, Statutes of 2013. Ratified two new
compacts entered into between the State and the following
tribes: North Fork Rancheria, executed on August 31, 2012, and
the Wiyot Tribe, executed on March 20, 2013.
AB 1267 (Hall), Chapter 6, Statutes of 2013. Ratified the
amended tribal-state gaming compact entered into between the
State and the Shingle Springs Band of Miwok Indians, executed on
November 15, 2012.
SB 668 (Fuller), Chapter 67, Statutes of 2013. Ratified the
tribal-state gaming compact entered into between the State and
the Fort Independence Indian Community of Paiute Indians,
executed on February 28, 2013.
AB 517 (Hall), Chapter 12, Statutes of 2012. Ratified the
tribal-state gaming compact entered into between the State and
the Federated Indians of Graton Rancheria of Sonoma County,
executed on March 27, 2012.
AB 787 (Chesbro), Chapter 340, Statutes of 2012. Ratified the
amendment to the tribal-state gaming compact entered into
between the State and the Coyote Valley Band of Pomo Indians,
executed on July 25, 2012.
AB 1418 (Hall), Chapter 412, Statutes of 2011. Repealed those
provisions ratifying the tribal-state gaming compact entered
into between the State and Pinoleville Pomo Nation, executed on
March 9, 2009, and instead ratified the tribal-state gaming
compact entered into between the State and the Pinoleville Pomo
Nation, executed on August 8, 2011.
AB 1020 (Chesbro), Chapter 27, Statutes of 2011. Repealed the
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ratification of the tribal-state gaming compact entered into
between the State and the Habematolel Pomo of Upper Lake,
executed on September 2, 2009, and instead ratified a new
tribal-state gaming compact entered into between the State and
the Habematolel Pomo of Upper Lake, executed on March 17, 2011.
SB 89 (Budget and Fiscal Review Committee), Chapter 1, Statutes
of 2010. Ratified the tribal-state gaming compact entered into
between the State and the Habematolel Pomo of Upper Lake,
executed on September 2, 2009.
AB 122 (Coto), Chapter 3, Statutes of 2010. Ratified the
tribal-state gaming compact entered into between the State and
the Pinoleville Pomo Nation, executed on March 10, 2009.
AB 3072 (Price), Chapter 334, Statutes of 2008. Ratified the
first amendment to a tribal-state gaming compact entered into
between the State and the Shingle Springs Band of Miwok Indians,
executed on June 30, 2008.
SB 106 (Wiggins), Chapter 37, Statutes of 2007. Ratified a new
compact between the State and the Yurok Tribe of the Yurok
Reservation.
SB 174 (Ducheny), Chapter 38, Statutes of 2007. Ratified the
first compact amendment to the compact between the State and
Sycuan.
SB 175 (Ducheny), Chapter 39, Statutes of 2007. Ratified the
first compact amendment to the compact between the State and
Morongo.
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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
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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:
Eric Johnson / G.O. / (916) 319-2531 FN:
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