BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 122|
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THIRD READING
Bill No: AB 122
Author: Coto (D)
Amended: 9/10/09 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SUBJECT : Tribal gaming: compact ratification
SOURCE : Author
DIGEST : This bill ratifies the tribal-state gaming
compact entered into between the State of California and
the Pinoleville Pomo Nation, executed on March 10, 2009.
This bill requires that related revenue contributions be
deposited into the General Fund, except as specified, and
also provides that, in deference to tribal sovereignty,
certain actions may not be deemed projects for purposes of
the California Environmental Quality Act.
ANALYSIS : Existing law:
1.Provides, under the Indian Gaming Regulatory Act, 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.
CONTINUED
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2.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.
3.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.
4.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 for the
benefit of any Indian tribe or individual or held by any
Indian tribe or individual subject to restriction by the
United States against alienation and over which an Indian
tribe exercises governmental power.
5.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 United States 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.
6.Authorizes the Governor, under the California
Constitution, to negotiate and conclude compacts, subject
to ratification by the Legislature. To date, 68 compacts
have been ratified.
Comments
The Pinoleville Pomo Nation (Tribe) is a federally
recognized Indian tribe listed in the Federal Register as
the Pinoleville Pomo Nation, California (formerly the
Pinoleville Rancheria of Pomo Indians of California). The
Tribe's reservation is the Pinoleville Rancheria. The
rancheria occupies approximely 100 acres on the northern
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edge of Ukiah in Mendocino County. The Tribe has a
membership of approximately 250 members. The Tribe is
governed by an elected council of seven members.
On March 23, 2009, the Governor and the Pinoleville Pomo
Nation signed a tribal-state gaming compact. According to
the Governor's Office, "the compact follows a similar
blueprint of the compacts Governor Schwarzenegger has
previously negotiated in that it provides important
benefits to the state, protects both employees and patrons,
and provides for environmental protections." Under the
terms of the compact, the Tribe may engage in Class III
Gaming only on eligible Indian lands at a single gaming
facility located within the boundaries of the Pinoleville
Rancheria, as those boundaries exist as of the execution
date of the Compact.
The compact will run through December 31, 2030 and allow a
maximum of 900 slot machines. Under the terms of the
compact, the Tribe will share 15 percent of annual net win
revenues with the state. The non-monetary aspects of the
compact are similar to recent compacts. (i.e., to enter
into arrangements to mitigate to the extent practicable the
off-reservation environmental impacts of its gaming
facility on local communities and local governments, and to
offer worker and consumer protections)
This compact is intended to assist the Pinoleville Pomo
Nation in addressing the problems it is facing with the
high unemployment and poverty rates, as well as providing
health, housing, and educational needs for its members.
Other provisions of the compact include:
1. Patron protections: The Tribe agrees to binding
arbitration before a retired judge for disputes over
patron injuries and gambling.
2. Environmental protections: The Tribe must prepare an
environmental impact report and negotiate mitigation of
any off-reservation impacts with the County.
3. Employee protections: The Tribe has granted employees
the right to collectively bargain. The Tribe has agreed
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to participate in the state's worker's compensation
system and unemployment insurance program, to comply
with federal and state occupational health and safety
standards, and to consent to the jurisdiction of the
state agencies and courts enforcing all of those
standards. The Tribe also has agreed to enhanced
employment discrimination provisions.
4. Revenue Sharing Trust Fund: The Tribe agrees to pay
into the Revenue Sharing Trust Fund when it operates
over 700 slot machines:
Number of Gaming Devices Operated Annual Payment
0-700 Gaming Devices $0
701-900 Gaming Devices $900 per Gaming Device
5. Enhanced audit and compliance review procedures: 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
6. Inspection of slot machines: 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.
7. Minimum internal control standards (MICS): The Tribe
must adopt and comply with standards that meet or exceed
the federal National Indian Gaming Commission standards.
The MICS are incorporated into the compact as an
appendix, which shall be updated periodically by the
California Gambling Control Commission and Tribal Gaming
Agency, to ensure the MICS keep up with changing
technology and industry standards.
8. Building and Safety Standards: The casino must meet or
exceed the California Building Code and Public Safety
Code as applicable to Mendocino County.
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9. Problem Gambling: The Tribe must train supervisors and
floor employees on identifying and managing problem
gambling, include a responsible gaming message in
advertising, provide signage and education materials at
conspicuous locations aimed at preventing problem
gambling, and adopt a code of conduct derived from the
American Gaming Association's code.
10.Labor Provisions: If the Tribe employs 250 or more
persons in a tribal casino facility, then the provisions
of the Tribal Labor Relations Ordinance become
effective. The Ordinance provides for a secret ballot
election.
The compact is not effective until it is ratified in
accordance with state law, and notice of approval by the
U.S. Secretary of the Interior is published in The Federal
Register . The Pinoleville Pomo Nation has ratified the
execution of the compact. Upon all the necessary
approvals, the compact will be valid until December 31,
2030
Intergovernmental Agreement and MOU: The Tribe has not
entered into an enforceable written mitigation agreement
(Intergovernmental Agreement and MOU) with Mendocino 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.
UNITE HERE Memorandum of Agreement: On September 29, 2009,
the Pinoleville Pomo Nation negotiated a MOU with the Hotel
Employee and Restaurant Employee Union (UNITE HERE),
recognizing their ability to organize eligible employees of
the casino. Otherwise, the compact has the same Tribal
Labor Relations Ordinance from the 1999 compacts.
Revenue Sharing Trust Fund: The Tribe will continue to
receive the $1.1 annual payment from the Revenue Sharing
Trust Fund established in the 1999 compacts, if the tribe
operates less than 350 gaming devices. A tribe operating
under 350 gaming devices is considered a "non-compact"
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tribe and is eligible for revenue payments from gaming
tribes under the 1999 compacts.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 12/15/09)
Pinoleville Pomo Nation
TSM:nl 12/15/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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