BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 89|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
UNFINISHED BUSINESS
Bill No: SB 89
Author: Senate Budget and Fiscal Review Committee
Amended: 12/10/09
Vote: 27 - Urgency
SENATE VOTES NOT RELEVANT
ASSEMBLY FLOOR : 69-0, 12/10/09 - See last page for vote
SUBJECT : Gaming
SOURCE : Author
DIGEST : This bill ratifies tribal-state gaming compact
between the State of California and the Habematolel Pomo of
Upper Lake, executed on September 2, 2009.
Assembly Amendments (1) delete the prior version which
expressed the intent of the Legislature to enact statutory
changes relating to the Budget Act of 2009; (2) add the
current language which contains the Indian gaming compact
between the State of California and the Habematolel Pomo of
Upper Lake; and (3) add an urgency clause.
ANALYSIS :
Existing Law
1. Provides, under the Indian Gaming Regulatory Act (IGRA),
for the negotiation and conclusion of compacts between
CONTINUED
SB 89
Page
2
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 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.
Background
SB 89
Page
3
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
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:
Patron protections . The Tribe agrees to binding
arbitration before a retired judge for disputes over patron
injuries and gambling.
SB 89
Page
4
Environmental protections . The Tribe must prepare an
environmental impact report and negotiate mitigation of any
off-reservation impacts with the County.
Employee protections . The Tribe has granted employees the
right to collectively bargain. The Tribe has agreed 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.
Revenue Sharing Trust Fund (RSTF) . The Tribe agrees to pay
into the Revenue Sharing Trust Fund (RSTF) 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
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
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.
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.
SB 89
Page
5
Building and Safety Standards . The casino must meet or
exceed the California Building Code and Public Safety Code
as applicable to Mendocino County.
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.
Labor Provisions . If the Tribe employs 250 or more persons
in a tribal casino facility, then the provisions of the
Tribal Labor Relations Ordinance (TLRO) become effective.
TLRO provides for a secret ballot election.
When Will Compact Become Effective ? The compact is not
effective until it is ratified in accordance with state
law, and notice of approval by the US 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 HERE's 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
SB 89
Page
6
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"
tribe and is eligible for revenue payments from gaming
tribes under the 1999 compacts.
Related Legislation
AB 1576 (Chesbro-D) 2009-2010 Session, is an identical
measure which is currently in Senate Rules Committee.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 12/17/09)
Habematolel Pomo of Upper Lake
Lake County Board of Supervisors
Lake County Chamber of Commerce
Lake County Special Districts
North Shore Business Association
Northshore Fire Protection District
Redding Rancheria
San Pasqual Band of Cahuilla Indians
Scotts Valley Pomo Tribe
Shingle Springs Rancheria
ASSEMBLY FLOOR :
AYES: Ammiano, Anderson, Arambula, Beall, Tom Berryhill,
Blakeslee, Block, Blumenfield, Bradford, Brownley,
Buchanan, Caballero, Charles Calderon, Carter, Chesbro,
Conway, Cook, Coto, Davis, De Leon, Emmerson, Evans,
Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines,
Galgiani, Garrick, Gilmore, Hagman, Hall, Hayashi,
Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight,
Krekorian, Lieu, Bonnie Lowenthal, Ma, Mendoza, Miller,
Nava, Nestande, Niello, Nielsen, John A. Perez, V. Manuel
Perez, Portantino, Ruskin, Salas, Saldana, Silva,
Skinner, Smyth, Solorio, Audra Strickland, Swanson,
Torlakson, Torres, Torrico, Tran, Villines, Bass
NO VOTE RECORDED: Adams, Bill Berryhill, De La Torre,
DeVore, Eng, Feuer, Harkey, Logue, Monning, Yamada,
Vacancy
SB 89
Page
7
DLW:TM:do 12/17/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****