BILL ANALYSIS
AB 3072
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 3072 (Price)
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)
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|COMMITTEE VOTE: |11-0 |(August 20, 2008) |RECOMMENDATION: | concur |
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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
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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.
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 :
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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)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.
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9)The amended compact is not effective until the amendment is
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: 0007394