BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 3072|
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THIRD READING
Bill No: AB 3072
Author: Price (D), et al
Amended: 8/7/08 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SUBJECT : Tribal gaming: compact ratification: Shingle
Springs Band
of Miwok Indians
SOURCE : Author
DIGEST : This bill ratifies the first amendment to a
tribal-state gaming compact entered into between the State
of California and the Shingle Springs Band of Miwok
Indians, executed on June 30, 2008. This bill also
requires that related revenue contributions be deposited
into the General Fund, except as specified, and provides
that, in deference to tribal sovereignty, certain actions
may not be deemed projects for purposes of the California
Environmental Quality Act.
Senate Floor Amendments of 8/7/08 (1) delete the prior
version which established a stand-alone article with the
Government Code for tribal-state gaming compacts and,
instead, add provisions which will ratify the first
amendment to the tribal-state gaming compact concluded
between the State of California and the Shingle Springs
Band of Miwok Indians, (2) add an urgency clause, and (3)
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add Senators Perata and Battin as co-authors.
ANALYSIS : Existing federal law, the Indian Gaming
Regulatory Act of 1988, provides for the negotiation and
execution of compacts for the purpose of authorizing class
III gaming on Indian lands within a state.
Existing law, the California Constitution, authorizes the
Governor to negotiate and conclude compacts, subject to
ratification by the Legislature.
Existing law ratifies 67 compacts between the State of
California and specified Indian tribes.
Shingle Springs Agreements
1. El Dorado County
A. In September 2006, the Tribe entered into a
Memorandum of Understanding (MOU) with El Dorado
County for $192 million over 20 years. The Tribe
will also pay the County an additional $100,000 for
each 100 slot machines over the first 2,000.
B. Each year, the Tribe will pay $5.2 million to the
County to fund the construction of new high occupancy
vehicle (HOV) lanes on Highway 50 from El Dorado
Hills to Shingle Springs.
C. Each year, the Tribe will pay the County $500,000
for law enforcement to purchase police vehicles and
hire additional officers. An advance payment of
$250,000 has been paid.
2. El Dorado Irrigation District (EID)
A. In May 2008, the Tribe negotiated an MOU with EID
for the delivery of water to the Rancheria. Under
the environmental documents approved by the agencies
and upheld by the courts, the Tribe has the option to
truck in water for its casino and hotel operation or,
alternatively, to secure it via pipeline from the
irrigation district. The Tribe prefers to obtain
water by pipe, as opposed to by truck, because the
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trucking would involve 40 truck trips per day.
B. The parties agree that EID shall provide water
service to the Rancheria at a maximum rate of 95
gallons per minute, with a total average volume of
135,000 gallons per day.
C. The Tribe shall pay, a Facility Connection Charge
(FCC) for water service. The FCC is based on a
local formula that presently amounts to
$3,709,605.50, which the Tribe has already paid. The
FCC is a condition precedent to the delivery of water
to the Tribe.
3. El Dorado Fire District
A. In July 2008, the Tribe negotiated an MOU with the
El Dorado County Fire District for fire protection
services.
B. The Tribe will pay the Fire District $450,000 for
fire protection services, with annual increases.
4. El Dorado Emergency Services
A. In July 2008, the Tribe negotiated an Agreement
with the El Dorado County Emergency Services
Authority to provide emergency services on the
Rancheria.
B. The Tribe will pay El Dorado County Emergency
Services Authority $450,000 for providing emergency
medical services to the Rancheria, with annual
increases.
5. UNITE HERE Labor Agreement
A labor agreement was negotiated with UNITE HERE
International Union in July 2008.
Background
On June 30, 2008, the Governor and the Tribe concluded the
first set of amendments to the compact that was concluded
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in 1999.
The amendments to the Shingle Springs' compact provide that
the compact shall remain in full force and effect until
December 31, 2029. The amended compact allows the Tribe to
operate a maximum of 5,000 slot machines at one gaming
facility within the boundaries of the Shingle Springs
Rancheria as those boundaries existed as of January 1,
2007. Under the terms of the amended compact, the Tribe
will share revenues with the state based on a sliding scale
percentage of net win from the operation of slot machines,
ranging from 20 percent to 25 percent. The Tribe may
deduct payments it makes for the construction of HOV lanes
on Highway 50 from its payments to the state. The
Governor's Office estimates that the Tribe's annual
contribution to the state will be approximately $38 million
in the 2008-09 fiscal year, and approximately $76 million
in outlying fiscal years.
In addition to the contributions to the state, the Tribe
agrees to pay an annual payment of $4.6 million to the
Indian Gaming Revenue Sharing Trust Fund (RSTF). The
amended compact authorizes the California Gambling Control
Commission (CGCC) to direct a portion of the revenue
received by the state to the RSTF, if necessary, to ensure
that each eligible recipient tribe receives its annual
disbursement of $1.1 million.
According to the Governor's Office, other provisions of the
amended compact include:
1. The Tribe will prepare an environmental impact report to
assess the potential environmental effects of new and
expanded gaming facilities, and detail how environmental
impacts will be mitigated.
2. In addition to providing for an annual independent
audit, the amended compact allows the state to conduct
its own annual audit and compact compliance review.
3. The amended compact includes comprehensive provisions
relating to employment discrimination and minimum
internal control standards.
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4. The amended compact provides that all disputes with
employees, patrons and the county may be resolved
through binding arbitration. California tort law will
govern any personal injury or third-party property
damage claims, and the tribe will provide liability
coverage.
5. Any new construction must meet or exceed the building
and safety codes of both the county and the state.
6. The Tribe will adopt an extensive problem gambling
program and will comply with all earnings withholding
orders for spousal and child support.
The casino is expected to create approximately 1,750 jobs.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/11/08)
--
OPPOSITION : (Verified 8/11/08)
California Coalition Against Gambling Expansion
TSM:mw 8/11/08 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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