BILL ANALYSIS
AB 3072
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 3072 (Governmental Organization Committee)
As Amended August 7, 2008
2/3 vote. Urgency
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|ASSEMBLY: | |(May 1, 2008) |SENATE: |31-8 |(August 14, |
| | | | | |2008) |
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(vote not relevant)
Original Committee Reference: G.O.
SUMMARY : 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.
The Senate amendments delete the Assembly version of this bill
and instead incorporate the provisions described in the SUMMARY
above.
EXISTING FEDERAL LAW [Indian Gaming Regulatory Act (IGRA)],
establishes a statutory basis for the operation of gaming by
Indian tribes as a means of promoting tribal economic
development, self-sufficiency, and strong tribal governments.
IGRA further provides that specified gaming activities are
lawful on the lands of federally-recognized Indian tribes if
such activities are: a) authorized by an approved tribal
ordinance; b) located in a state that permits such gaming for
any purpose by and person, organization, or entity; and, c)
conducted in conformity with a gaming compact entered into
between the Indian tribe and the State and approved by the
United States Secretary of Interior.
EXISTING STATE LAW specifies within the California Constitution
the Governor is authorized to negotiate and conclude compacts,
subject to ratification by the Legislature, for the operation of
slot machines and banking and percentage card games by federally
recognized Indian tribes on Indian lands in California in
accordance with federal law.
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AS PASSED BY THE ASSEMBLY , this bill established a stand-alone
article chapter within the Government Code for Tribal-State
gaming compacts (compacts).
FISCAL EFFECT : Unknown
COMMENTS: The Shingle Springs Band of Miwok Indians is an
approximately 500 member federally recognized tribe located on a
160-acre rancheria in El Dorado County. The Tribe has a 1999
tribal-state gaming compact but never constructed a casino
pursuant to the terms of its 1999 compact. On June 30, 2008,
the Governor and the Tribe concluded the first set of amendments
to the compact that was concluded 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% to 25%. 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 fiscal year (FY) 2008-09, and
approximately $76 million in outlying FYs.
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. The casino is
expected to create approximately 1,750 jobs.
The 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.
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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)Slot machines will have to be tested, approved and certified
by an independent gaming test laboratory and the tribal gaming
agency to ensure that they are being operated according to
specified technical standards. The CGCC 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.
4)In recognition of the Tribe's agreement to make the payments
specified in this compact, the State agrees to not authorize
any entity other than a federally recognized tribe to engage
in Class III gaming within this Tribe's core geographic area
(100-mile radius of the casino). If the State authorizes
another non-tribal entity to engage in gaming activities
within this Tribe's core geographic area, the Tribe is
relieved of its obligation to make payments to the State
except for compensation to the State for regulatory costs if
it operates less than 2,000 slot machines. If the tribe
elects to operate more than 2,000 slot machines, it must pay
the state 15% of the Net Win attributable to the operation of
those machines.
5)The amended compact includes comprehensive provisions relating
to employment discrimination and minimum internal control
standards.
6)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.
7)Any new construction must meet or exceed the building and
safety codes of both the county and the state.
8)The Tribe will adopt an extensive problem-gambling program and
will comply with all earnings withholding orders for spousal
and child support.
9)The amended compact is not effective until the amendment is
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ratified in accordance with state law, and notice of approval
by the US Secretary of the Interior is published in the
Federal Register. On 7/23/08, the Shingle Springs Tribal
Council ratified the execution of the compact amendments.
Upon all the necessary approvals, the compact as amended will
be valid until 12/31/2029.
10)The Tribe has entered into an enforceable written mitigation
agreement (Intergovernmental Agreement and MOU) with El Dorado
County that includes provisions for the mitigation of any
significant effect on the off-reservation environment, as
specified, as well as compensation for public services,
including law enforcement, fire protection, emergency medical
services, problem gambling programs, and transportation
improvements. Any party may demand binding arbitration with
respect to disputes over mitigation or compensation on which
the parties cannot reach agreement. The Tribe agrees to waive
its right to assert sovereign immunity so that arbitration
awards are deemed part of the Intergovernmental Agreement and
to allow the federal or state courts to enforce the party's
obligation to arbitrate and any award rendered in the
arbitration.
UNITE HERE Labor Agreement : An enforceable card-check agreement
outside of the compact has been agreed to by the tribe and the
Hotel Employee and Restaurant Employee Union. Otherwise, the
compact has the same Tribal Labor Relations Ordinance from the
1999 compacts.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0007127