BILL ANALYSIS                                                                                                                                                                                                    Ó



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         SENATE THIRD READING
         SB 1356 (De León)
         As Amended  August 18, 2014
         2/3 vote.  Urgency

          SENATE VOTE  :  Vote not relevant

          SUMMARY  :  Ratifies an Amended and Restated Tribal-State Gaming  
         Compact (Compact) between the Viejas Band of Kumeyaay Indians  
         (hereafter "Tribe") and the State of California (State), executed  
         on August 12, 2014.  Specifically,  this bill  :

         1)Authorizes the Tribe to operate a maximum of 4,500 slot machines  
           at not more than two gaming facilities, and only on those Indian  
           lands held in trust for the Tribe as of the execution date of  
           this Compact, as described.  The Tribe may combine and operate  
           in each gaming facility any forms and kinds of gaming permitted  
           under law, except to the extent limited under the Indian Gaming  
           Regulatory Act (IGRA) and any applicable regulations adopted  
           pursuant thereto, the Compact, or the Tribe's gaming ordinance.

         2)Converts the Tribe's current fixed revenue share payment to the  
           State into a percentage-based payment.  Requires payment to the  
           General Fund, Indian Gaming Special Distribution Fund, Revenue  
           Sharing Trust Fund and/or Tribal Nation Grant Fund, as defined.

         3)Supersedes a 2004 amended compact (AB 687 (Núñez), Chapter 91,  
           Statutes of 2004) between the Tribe and the State of California.

         4)States that once effective, this Compact will be in full force  
           and in effect for state law purposes until December 31, 2030.  

         5)Provides that, in deference to tribal sovereignty, certain  
           actions may not be deemed projects for purposes of the  
           California Environmental Quality Act (CEQA).  

         6)Contains an urgency clause, allowing the bill to take effect  
           immediately upon enactment.

          EXISTING LAW  :

         1)Provides, under the federal Indian Gaming Regulatory Act (IGRA),  
           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  








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           state as a means of promoting tribal economic development,  
           self-sufficiency, and strong tribal governments.  Authorizes a  
           number of tribal-state gaming compacts between the State and  
           specified Indian tribes.

         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)Defines, under IGRA, 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.

         4)Requires, under IGRA, 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.  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. 

         5)Authorizes the Governor, under the California Constitution, to  
           negotiate and conclude compacts, subject to ratification by the  
           Legislature.

          FISCAL EFFECT  :  Unknown

          COMMENTS  :  On Thursday, August 21, 2014, the Assembly Governmental  
         Organization Committee held an informational hearing on the  
         contents of this Compact.
         
          SUMMARY  :  The Compact authorizes the Tribe to operate a maximum of  
         4,500 slot machines at not more than two gaming facilities, and  
         only on those Indian lands held in trust for the Tribe as of the  
         execution date of this Compact, as described.  

         According to the Governor's office, the Compact converts the  
         Tribe's current fixed revenue share payment to the state (which  
         required the Tribe to pay a flat fee of approximately $17.4  
         million to the General Fund each year) into a percentage-based  








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         payment in order to account for the impact on revenue caused by  
         changing economic conditions and to enhance the economic  
         development, long-term stability and self-sufficiency of the  
         Tribe.  The percentage-based payment structure ensures that the  
         Tribe remains the primary beneficiary of its gaming operation as  
         required by federal law.  The Department of Finance (DOF)  
         estimates that the state will receive reduced revenue of about $3  
         million to $5 million annually if this Compact is ratified and  
         casino operations perform at the current level.

         This Compact supersedes a 2004 amended compact (AB 687 (Núñez),  
         Chapter 91, Statutes of 2004) between the Tribe and the State of  
         California.  The 2004 amended compact replaced an initial compact  
         signed in 1999 with Governor Gray Davis, who negotiated gambling  
         agreements with more than 60 tribes.

         The 2004 amended compact allowed the Tribe to operate an unlimited  
         number of Class III slot machines in exchange for payments to the  
         state General Fund for machines added after ratification.  Under  
         the 1999 compact, the Tribe could not operate more than 2,000  
         gaming devices.  The 2004 amended compact also required the Tribe  
         to negotiate with local governments concerning enforceable  
         memoranda of understanding (MOU) to address environmental, public  
         safety, infrastructure, and other demands related to gaming  
         operations.  The Tribe also agreed to pay $2 million into the  
         Revenue Sharing Trust Fund (RSTF) for revenue sharing payments to  
         non-gaming and limited gaming tribes.  The negotiated MOU, RSTF  
         disbursement, and designated payments into the General Fund are  
         still mandated in this Compact.

         According to the Governor's office, the terms of this Compact have  
         also been updated to be consistent with some provisions of more  
         recent compacts related to licensing, compliance enforcement,  
         mitigation of off-reservation gaming impacts and limitations on  
         the number of slot machines that may be offered at the casino.  
         Once effective (legislative ratification and federal approval  
         required), this Compact will be in full force and effect for State  
         law purposes until December 31, 2030 - this date remains unchanged  
         from the Tribe's 2004 amended compact.  

         Brief History and Background:  The Tribe, one of the remaining 12  
         bands of the Kumeyaay Indian Nation, is a 252-member federally  
         recognized tribe located on a 1,600-acre reservation in the Viejas  
         Valley, east of the community of Alpine in San Diego County,  
         California.  The Tribe has a "trust" relationship with the federal  








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         government, enforces federal laws and participates in issues  
         pertinent to its land and people on a government-to-government  
         basis.  The Tribe states "that membership in the Viejas Band of  
         Kumeyaay Indians is determined by direct descent from the families  
         forced from their original Capitan Grande Reservation, who  
         contributed their share from the sale of their lands for the El  
         Capitan Reservoir to purchase the current reservation in Viejas  
         Valley."

         According to information provided by the Tribe, the Tribe has  
         experienced tremendous economic prosperity that has successfully  
         helped increase access to health care, education and general  
         welfare to its people and their children, who will carry on the  
         Kumeyaay culture for years to come.  Under the umbrella of Viejas  
         Enterprises, the Tribe's properties include Viejas Casino &  
         Resort; Viejas Outlet Center, a 37-acre shopping center; Alpine  
         Springs Recreational Vehicle Park; and Ma-Tar-Awa Recreational  
         Vehicle Park, the tribe's first business venture that opened in  
         1976.  Through revenues brought in by the Tribe's business  
         enterprises, "the Tribe has been able to reinvest millions of  
         dollars back into its community, with 90 percent of dollars  
         generated at Viejas Casino & Resort returning to the local and  
         state economy." 

         The Tribe's casino has 2,000 slot machines, up to 86 table games,  
         four restaurants, a deli, bingo, an off-track betting facility,  
         lounge, concert venues and a poker room.  The Tribe opened a  
         150-room hotel in March 2013.  The five-story, $36 million hotel  
         is located on the east side of the Viejas Casino.  The hotel has  
         99 rooms and 29 suites; a pool and hot tub, with a patio area and  
         cabanas; a business center; fitness room; and room service.  

         In 1999, the Tribe and the State entered into a tribal-state  
         compact, which enabled the Tribe, through revenues generated by  
         its gaming operation, to improve the governance, environment,  
         education, health, safety, and general welfare of its citizens,  
         and to promote a strong tribal government, self-sufficiency, and  
         to provide essential government services to its citizens.

         In 2004, the Tribe and the State via Governor Schwarzenegger  
         entered into an amendment to the 1999 Compact, which, among other  
         things, significantly increased the gaming operation's earning  
         potential and revenue payments to the State.  The Compact's  
         preamble states that since the time that the State and the Tribe  
         entered into the 2004 amended compact, circumstances in the  








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         overall economy and the casino gaming market have changed, which  
         have caused and will continue to cause a substantial reduction in  
         revenues generated by the gaming operation in comparison to those  
         that were expected when the parties entered into the 2004 amended  
         compact.

         The Compact's preamble contends that the fixed quarterly revenue  
         share payments required of the Tribe under the 2004 amended  
         compact have not adjusted to changed economic and casino gaming  
         market conditions

         Additionally, the Compact's preamble notes that after review of  
         the Tribe's financial condition, the Tribe and the State agree  
         that if the Tribe continues to make revenue sharing payments to  
         the State at the fixed level required by the 2004 amended compact,  
         the Tribe would not be able to adequately fund its Tribal  
         government, to the detriment of the Tribe's ability to provide for  
         the governance, environment, education, health, safety, and  
         general welfare of the Tribe's citizens, and would therefore be  
         incompatible with the purposes and policies of IGRA, Proposition  
         1A (2000), the 1999 Compact, and the 2004 amended compact.

         The Tribe and the State agree that this Compact is designed to  
         enhance the Tribe's economic development and self-sufficiency and  
         to protect the health, safety and general welfare interests of the  
         Tribe and its citizens, the surrounding community, and the  
         California public, and to promote and secure long-term stability,  
         mutual respect, and mutual benefits. 

         Furthermore, the Compact's preamble states the Tribe and the State  
         share an interest in mitigating the off-reservation impacts of the  
         gaming facility, affording meaningful consumer and employee  
         protections in connection with the operations of the gaming  
         facility, fairly regulating the gaming activities conducted at the  
         gaming facility, and fostering a good-neighbor relationship.

         Key Provisions of the Compact

         Scope of Class III Gaming Authorized:  The Tribe is authorized to  
         operate up to 4,500 gaming devices (slot machines), banking or  
         percentage card games, and any devices or games that are  
         authorized under state law to the California State Lottery.  The  
         Tribe may not operate roulette games (table or mechanical) or any  
         game that incorporates the physical use of a die or dice.  The  
         Tribe shall not engage in Class III Gaming that is not expressly  








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         authorized in the Compact.
          
          Exclusivity:  Provides that in the event the exclusive right of  
         Indian tribes to operate Class III gaming in California pursuant  
         to the California Constitution is lost and other non-Indian  
         entities are able to engage in Class III gaming the Tribe shall  
         have the right to terminate this Compact, in which case the Tribe  
         will lose the right to operate Class III gaming authorized by this  
         Compact; or continue under this Compact.

         Amendment by Agreement:  The terms and conditions of the Compact  
         may be amended at any time by the mutual and written agreement of  
         both parties, provided that each party voluntarily consents to  
         such negotiations in writing.  Any amendments to this Compact  
         shall be deemed to supersede, supplant and extinguish all previous  
         understandings and agreements on the subject.

         Revenue Contributions to the State and the Indian Gaming Special  
         Distribution Fund (IGSDF):  The Tribe shall pay to the State  
         quarterly a revenue contribution, which shall be based upon the  
         average number of gaming devices in operation during such quarter,  
         equal to a percentage of the "Net Win" from such gaming devices  
         according to the following schedule:

          ------------------------------------------------------------------- 
         |   Average Number of Gaming Devices in Operation During Quarter    |
         |               Percentage of Gaming Devices' Net Win               |
         |                                                                   |
         |                            1 to 2,000                             |
         |                                8%                                 |
         |                                                                   |
         |                          2,001 to 2,500                           |
         |                                10%                                |
         |                                                                   |
         |                          2,501 to 3,000                           |
         |                                12%                                |
         |                                                                   |
         |                          3,001 to 3,500                           |
         |                                14%                                |
         |                                                                   |
         |                          3,501 to 4,000                           |
         |                                16%                                |
         |                                                                   |
         |                          4,001 to 4,500                           |
         |                                18%                                |








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         |                                                                   |
         |                                                                   |
          ------------------------------------------------------------------- 

         During the first five years in which this Compact is in effect, a  
         portion of the Tribe's quarterly revenue contribution to the State  
         will be deposited in the Indian Gaming Special Distribution Fund  
         (IGSDF) in the amounts specified below:

         1)During years one and two, $5 million will be allocated to the  
           Special Distribution Fund (SDF);

         2)During year three, $4 million will be allocated to the SDF;

         3)During year four, $3 million will be allocated to the SDF; and,

         4)During year five, $2 million will be allocated to the SDF.

         This requirement does not alter the total amount of the  
         contribution that the Tribe pays to the State, but specifies the  
         principal fund to which the Tribe's payments are deposited.

         During each year in which the Compact is in effect, the Tribe's  
         pro rata share of the State's regulatory costs will be deducted  
         from the Tribe's quarterly revenue contribution to the State.  The  
         Tribe's pro rata share payment will be paid into the IGSDF, as  
         specified.

         In each year of this Compact, any amount of the Tribe's quarterly  
         revenue contributions due to be paid to the IGSDF that is  
         remaining after the Tribe's payments are made and deposited into  
         the IGSDF will go to the General Fund.

         "Net Win" is the drop from gaming devices, plus the redemption  
         value of expired tickets, less fills, less payouts, less  
         participation fees (i.e. payments made to gaming resource supplies  
         on a periodic basis by the gaming operation for the right to lease  
         or otherwise offer for play gaming devices), less that portion of  
         the gaming operation's payments to a third-party wide-area  
         progressive jackpot system provider that is contributed only to  
         the progressive jackpot amount. 
          
          Revenue Sharing Trust Fund or Tribal Nation Grant Fund  
         Contribution:  The Tribe shall continue to maintain its existing  
         licenses to operate gaming devices by paying to the State Gaming  








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         Agency for deposit into the Revenue Sharing Trust Fund or the  
         Tribal Nation Grant Fund the following fee within 30 days of the  
         end of each calendar quarter:  $500,000.00. 

         This particular revenue contribution mirrors a provision in the  
         2004 amended compact which required the Tribe to make annual  
         payments in the amount of $2 million to the RSTF.
          
          Quarterly Revenue Contribution Report:  At the time each quarterly  
         payment is due, the Tribe shall submit to the State a report,  
         prepared and certified by an authorized representative of the  
         gaming operation, as defined.
          
          Gaming Facility Mitigation and Local Intergovernmental Agreements:  
          Before the commencement of a project, and no later than the  
         issuance of the Final Tribal Environmental Impact Report (TEIR) to  
         the County, the Tribe shall offer to commence negotiations with  
         the County, and upon the County's acceptance of the Tribe's offer,  
         shall negotiate with the County and shall enter into an  
         enforceable written agreement with the County with respect to the  
         matters set forth: a) Provisions providing for the timely  
         mitigation of any significant effect on the off-reservation  
         environment, as defined; b) Provisions relating to compensation  
         for law enforcement, fire protection, emergency medical services  
         and any other public services to be provided by the County to the  
         Tribe for the purposes of the Tribe's gaming operation as a  
         consequence of the project; c) Provisions providing for reasonable  
         compensation for programs designed to address gambling addiction;  
         and d) Provisions providing for mitigation of any effect on public  
         safety attributable to the project, including any compensation to  
         the County as a consequence thereof.  
          
          Additional Compact Components
          
         1)Gaming Ordinance and Regulations - all gaming activities  
           conducted under this Compact shall, at a minimum, comply with:   
           a) a gaming ordinance duly adopted by the Tribe and approved in  
           accordance with IGRA, b) all rules, regulations, procedures,  
           specifications, and standards duly adopted by the National  
           Indian Gaming Commission (NIGC), the Tribal Gaming Agency, and  
           the State Gaming Agency, and c) the provisions of this Compact,  
           as specified.

         2)Environmental Protections - the Tribe must prepare a TEIR and  
           negotiate mitigation of any off-reservation impacts.  The  








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           Tribe's failure to prepare an adequate TEIR when required shall  
           be deemed a breach of this Compact and furthermore shall be  
           grounds for issuance of an injunction or other appropriate  
           equitable relief.  A completed TEIR must be filed with the  
           County, the City, the Department of Justice, the State  
           Clearinghouse and the State Gaming Agency.  Also, provides for  
           binding arbitration if an intergovernmental agreement with the  
           County is not entered into within 55 days of the submission of  
           the final TEIR, or such further time as the Tribe or the County  
           may mutually agree in writing, any party may demand binding  
           arbitration before a single arbitrator pursuant to the  
           Commercial Arbitration Rules of the American Arbitration  
           Association as set forth in the Compact.

         3)Employee Protections - the Tribe may create and maintain a  
           system that provides redress for employee work-related injuries  
           through requiring insurance or self-insurance, which system must  
           include a scope of coverage, availability of an independent  
           medical examination, right to notice, hearings before an  
           independent tribunal, a means of enforcement against the  
           employer, and benefits comparable to those mandated for  
           comparable employees under state law.  Not later than the  
           effective date of this Compact, the Tribe will advise the State  
           of its election to participate in the statutory workers'  
           compensation system or, alternatively, will forward to the State  
           all relevant ordinances that have been adopted and all other  
           documents establishing the system and demonstrating that the  
           system is fully operational and compliant with the comparability  
           standard, as described.  Independent contractors doing business  
           with the Tribe must comply with all state workers' compensation  
           laws and obligations.

           The Tribe will participate in the State's program for providing  
           unemployment compensation benefits and unemployment compensation  
           disability benefits with respect to employees employed at the  
           gaming facility, as described.  The Tribe has also agreed to  
           adopt and comply with standards no less stringent than federal  
           and state employment discrimination laws.  

         4)Enhanced Audit and Compliance Review Procedures - in addition to  
           providing for an annual independent audit, the Compact allows  
           the state to conduct its own annual audit and compact compliance  
           review.

         5)Inspection and Testing of Slot Machines - slot machines will  








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           have to be tested, approved and certified by an independent  
           gaming test laboratory or state governmental gaming test  
           laboratory to ensure that they are being operated according to  
           specified technical standards.  Also, requires the tribal gaming  
           agency to maintain adequate records that demonstrate compliance  
           with software and hardware specifications.  The state gaming  
           agency will 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.  
                                                    

         6)Compliance Enforcement - it is the responsibility of the tribal  
           gaming agency to conduct on-site gaming regulation and control  
           in order to enforce the terms of this Compact, IGRA, any  
           applicable NIGC and State Gaming Agency regulations (California  
           Gambling Control Commission - Uniform Tribal Gaming Regulation  
           CGCC-8), and the tribal gaming ordinance with respect to gaming  
           operation and facility compliance, and to protect the integrity  
           of the gaming activities, the reputation of the Tribe and the  
           gaming operation for honesty and fairness, and the confidence of  
           patrons that tribal government gaming in California meets the  
           highest standards of regulation and internal controls.  To meet  
           those responsibilities, the tribal gaming agency shall adopt and  
           enforce regulations, procedures, and practices.

         7)Labor Provisions - the Tribe entered into a collective  
           bargaining agreement with a labor organization (Communications  
           Workers of America, CWA Local 9400) before the enactment of its  
           Tribal Labor Relations Ordinance (TLRO), which governs the  
           organizational and representational rights of the employees at  
           the tribal casino and gaming facility.  The Tribe has renewed  
           that collective bargaining agreement and the parties agree that  
           no change in the TRLO is necessary to address employee rights.  

         8)Prohibitions Regarding Minors - the Tribe shall prohibit persons  
           under the age of 21 years from being present in any room or area  
           in which gaming activities are being conducted unless the person  
           is en route to a non-gaming area of the gaming facility, or is  
           employed at the Gaming Facility in a capacity other than as a  
           gaming employee.

         9)Alcohol Provisions - makes it explicit that the purchase, sale,  
           and service of alcoholic beverages shall be subject to state law  
           - the Alcoholic Beverage Control (ABC) Act.









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         10)Protection of Public - the Tribe will not conduct Class III  
           Gaming in a manner that endangers the public health, safety, or  
           welfare; provided that nothing herein shall be construed to make  
           applicable to the Tribe any state laws or regulations governing  
           the use of tobacco.

         11)Health and Safety Standards - the Tribe has agreed to adopt and  
           comply with State public health standards for food and beverage  
           handling and federal water quality and safe drinking standards  
           applicable to California.

         12)Building Codes and Fire Safety - in order to assure the  
           protection of the health and safety of all gaming facility  
           patrons, guests, and employees, the Tribe shall adopt or has  
           already adopted, and shall maintain throughout the term of this  
           Compact, an ordinance that requires any covered gaming facility  
           construction to meet or exceed the California Building Code and  
           the Public Safety Code applicable to the county in which the  
           gaming facility is located.

         13)Emergency Services Accessibility and Possession of Firearms -  
           the Tribe must make reasonable provisions for adequate emergency  
           fire, medical, and related relief and disaster services for  
           patrons and employees.  Also, prohibits the possession of  
           firearms by any person in the gaming facility at all times  
           except for federal, state, or local law enforcement personnel,  
           or tribal law enforcement or security personnel, as authorized.

         14)Effective Date - the Compact shall not be effective unless and  
           until all of the following have occurred:  a) The Compact is  
           ratified by statute in accordance with state law; and b) Notice  
           of approval or constructive approval is published in the Federal  
           Register.  Once effective, this Compact shall be in full force  
           and effect for State law purposes until December 31, 2030.

         Additional Background Information

         IGRA:  In 1988, Congress enacted the IGRA to provide a statutory  
         basis for the operation and regulation of gaming on Indian lands.   
         IGRA provides that an Indian tribe may conduct gaming activity on  
         Indian lands if the activity "is not specifically prohibited by  
         federal law and is conducted within a State which does not  
         prohibit such gaming activity."

         IGRA distinguishes between three classes of gaming (Class I, Class  








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         II, and Class III) and provides for different forms of regulation  
         for each class.  Class I gaming includes "social games" for minor  
         prizes or "traditional forms of Indian gaming."  Class II gaming  
         is defined to include bingo and card games that are explicitly  
         authorized by the laws of the state, or that are not explicitly  
         prohibited by the laws of the state and are played at any location  
         in the State, so long as the card games are played in conformity  
         with those laws and regulations.  Class III gaming includes such  
         things as slot machines, casino games and banked card games such  
         as black jack and baccarat.  Class III gaming may only be  
         conducted under terms of a compact negotiated between an Indian  
         tribe and a State.  

         IGRA was enacted against a legal background in which Indian tribes  
         and individuals generally are exempt from state taxation within  
         their own territory.  IGRA provides that with the exception of  
         assessments permitted under the statute, to defray the State's  
         costs of regulating gaming activity, IGRA shall not be interpreted  
         as conferring upon a State authority to impose any tax, fee,  
         charge, or other assessment upon an Indian tribe to engage in  
         Class III activity. 
         When a tribe requests negotiations for a Class III compact, IGRA  
         requires the State to negotiate with the Indian tribe in good  
         faith.  IGRA provides a comprehensive process to prevent an  
         impasse in compact negotiations, which is triggered when a tribe  
         files suit alleging that the State has refused to negotiate or has  
         failed to negotiate in good faith.

         Rincon Decision:  In 2004, the Rincon Band of Mission Indians sued  
         the State of California in federal court after negotiations for a  
         new gambling agreement with then-Governor Schwarzenegger fell  
         apart.  The Tribe believed the Governor was violating federal law  
         by insisting that tribes pay money into the state's general fund  
         in exchange for more slot machines.

         In July 2011, the United States Supreme Court declined to review a  
         Ninth Circuit Court's decision that ruled the state could not  
         require the Rincon Band tribe to pay a percentage of slot machine  
         revenue into California's General Fund for more gaming devices.   
         The Ninth Circuit had affirmed a lower court decision that the new  
         financial concessions were nothing more than a state tax on tribal  
         casino revenues which is prohibited by IGRA.  The court concluded  
         that a "non-negotiable, mandatory payment of 10% of net win into  
         the State treasury for unrestricted use yields public revenue and  
         is [therefore] a tax and that the court was therefore required to  








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         consider the State's demand as evidence of bad faith under IGRA's  
         statutes."   

         The Rincon decision has changed the dynamics of tribal-state  
         compact negotiations. 
          
          SDF:  Existing law creates the SDF in the State Treasury for the  
         receipt of revenue contributions made by tribal governments  
         pursuant to the terms of the 1999 model Tribal-State Gaming  
         Compacts and authorizes the Legislature to appropriate money from  
         the SDF for the following purposes:  
         1) grants for programs designed to address gambling addiction;  2)  
         grants for the support of state and local government agencies  
         impacted by tribal government gaming; 3) compensation for  
         regulatory costs incurred by the California Gambling Control  
         Commission (CGCC) and the Department of Justice in connection with  
         the implementation and administration of compacts; 4) payment of  
         shortfalls that may occur in the Indian Gaming Revenue Sharing  
         Trust Fund (RSTF); 
         5) disbursements for the purpose of implementing the terms of  
         tribal labor relations ordinances promulgated in accordance with  
         the terms of the 1999 compacts; and, 6) any other purpose  
         specified by law.  

         RSTF:  Existing law creates in the State Treasury the RSTF for the  
         receipt and deposit of moneys derived from gaming device license  
         fees that are paid into the RSTF pursuant to the terms of  
         specified tribal-state gaming compacts for the purpose of making  
         distributions to non-compacted tribes (e.g., federally-recognized  
         non-gaming and tribes that operate casinos with fewer than 350  
         slot machines).  Revenue in the RSTF is available to CGCC, upon  
         appropriation by the Legislature, for making distributions of $1.1  
         million annually to non-compact tribes.  The RSTF was created as  
         part of the 1999 compacts, which, in conjunction with the passage  
         of Proposition 1A, created gaming compacts with approximately 60  
         California tribes.  Non-compact tribes are considered third-party  
         beneficiaries of the 1999 compacts.

         Tribal Nation Grant Fund (TNGF):  The Tribal Nation Grant Fund  
         (TNGF) was created in the Graton Rancheria compact (AB 517 (Hall),  
         Chapter 12, Statutes of 2012), as a new destination for gaming  
         revenue for distribution of funds to non-gaming and limited-gaming  
         tribes, upon application of such tribes for purposes related to  
         effective self-governance, self-determined community, and economic  
         development.  The TNGF currently does not receive funding and does  








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         not have an authorizing statute.  The TNGF was created to  
         complement the RSTF.

         Related legislation:  SB 1224 (Correa) of the current legislative  
         session.  Would ratify the tribal-state gaming compact entered  
         into between the State of California and the Karuk Tribe, executed  
         on December 4, 2013. (Pending on Governor's Desk)
          
          Prior legislation:  AB 1245 (V. Manuel Pérez), Chapter 462,  
         Statutes of 2013.  Ratified the tribal-state gaming compact  
         entered into between the State of California and the Ramona Band  
         of Cahuilla Indians, executed on June 10, 2013.  

         AB 277 (Hall), Chapter 277, Statutes of 2013.  Ratified two new  
         compacts entered into between the State of California and the  
         following tribes:  North Fork Rancheria, executed on August 31,  
         2012, and the Wiyot Tribe, executed on March 20, 2013. 

         AB 1267 (Hall), Chapter 6, Statutes of 2013.  Ratified the amended  
         tribal-state gaming compact entered into between the State of  
         California and the Shingle Springs Band of Miwok Indians, executed  
         on November 15, 2012.  

         SB 668 (Fuller), Chapter 67, Statutes of 2013.  Ratified the  
         tribal-state gaming compact entered into between the State of  
         California and the Fort Independence Indian Community of Paiute  
         Indians, executed on February 28, 2013.  

         AB 517 (Hall), Chapter 12, Statutes of 2012.  Ratified the  
         tribal-state gaming compact entered into between the State of  
         California and the Federated Indians of Graton Rancheria of Sonoma  
         County, executed on March 27, 2012.  

         AB 787 (Chesbro), Chapter 340, Statutes of 2012.  Ratified the  
         amendment to the tribal-state gaming compact entered into between  
         the State of California and the Coyote Valley Band of Pomo  
         Indians, executed on July 25, 2012.

         AB 1418 (Hall), Chapter 412, Statutes of 2011.  Repealed those  
         provisions ratifying the tribal-state gaming compact entered into  
         between the State of California and Pinoleville Pomo Nation,  
         executed on March 9, 2009 and instead ratified the tribal-state  
         gaming compact entered into between the State and the Tribe,  
         executed on August 8, 2011.  









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         AB 1020 (Chesbro), Chapter 27, Statutes of 2011.  Repealed the  
         ratification of the tribal-state gaming compact entered into  
         between the State of California and the Habematolel Pomo of Upper  
         Lake, executed on September 2, 2009, and instead ratified a new  
         tribal-state gaming compact entered into between the State and the  
         Tribe, executed on March 17, 2011.  

         SB 89 (Budget Committee), Chapter 1, Statutes of 2010.  Ratified  
         the tribal-state gaming compact entered into between the State of  
         California and the Habematolel Pomo of Upper Lake, executed on  
         September 2, 2009.

         AB 122 (Coto), Chapter 3, Statutes of 2009.  Ratified the  
         tribal-state gaming compact entered into between the State of  
         California and the Pinoleville Pomo Nation, executed on March 10,  
         2009.

         AB 3072 (Price), Chapter 334, Statutes of 2008.  Ratified 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.    

         SB 106 (Wiggins), Chapter 37, Statutes of 2007.  Ratified a new  
         compact between the State of California and the Yurok Tribe of the  
         Yurok Reservation.

         SB 174 (Ducheny), Chapter 39, Statutes of 2007.  Ratified the  
         first compact amendment to the compact between the State of  
         California and Sycuan.  

         SB 175 (Ducheny), Chapter 38, Statutes of 2007.  Ratified the  
         first compact amendment to the compact between the State of  
         California and Morongo.  

         SB 903 (Padilla), Chapter 40, Statutes of 2007.  Ratified the  
         first compact amendment to the compact between the State of  
         California and Pechanga.  
         SB 941 (Padilla), Chapter 226, Statutes of 2007.  Ratified the  
         first compact amendment to the compact between the State of  
         California and San Manuel.  

         SB 957 (Torlakson), Chapter 41, Statutes of 2007.  Ratified the  
         first compact amendment to the compact between the State of  
         California and Agua Caliente.  









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         SB 470 (Ducheny), Chapter 527, Statutes of 2006.  Ratified the  
         first amendment to the compact between the State and the Quechan  
         Tribe of the Fort Yuma Reservation (Quechan).

         SB 1117 (Burton), Chapter 856, Statutes of 2004.  Ratified two new  
         and two amended compacts entered into between the State and the  
         following tribes:  Coyote Valley Band of Pomo Indians (new  
         compact); Fort Mojave Indian Tribe (new compact); Buena Vista  
         Rancheria of Me-Wuk Indians (amended compact); and, Ewiiaapaayp  
         Band of Kumeyaay Indians (amended compact).

         AB 687 (Núñez), Chapter 91, Statutes of 2004.  Ratified amendments  
         to five compacts entered into between the State and the following  
         tribes:  Pala Band of Mission Indians; Pauma Band of Luiseno  
         Mission Indians of the Pauma and Yuima Reservation; Rumsey Band of  
         Wintun Indians; United Auburn Indian Communities; and, Viejas  
         Group of Kumeyaay Indians.  Also, provided for the issuance of  
         bonds in an amount not to exceed $1.5 billion by the California  
         Infrastructure and Economic Development Bank and required the net  
         proceeds of the sale of the compact assets to be deposited in the  
         Traffic Congestion Relief Fund and the Transportation Deferred  
         Investment Fund.

         SB 930 (Burton), Chapter 802, Statutes of 2003.  Ratified a  
         compact between the State of California and the Torres-Martinez  
         Desert Cahuilla Indians.

         SB 411 (Ducheny), Chapter 790, Statutes of 2003.  Ratified  
         compacts between the State of California and the La Posta Band of  
         Diegueno Mission Indians and the Santa Ysabel Band of Diegueno  
         Mission Indians in San Diego County.

         AB 1385 (Battin), Chapter 874, Statutes of 1999.  Designated the  
         Governor as the state officer responsible for negotiating and  
         executing compacts between the State and federally recognized  
         Indian tribes located in the State.  Also, ratified 57 compacts  
         and created two special funds in the State Treasury (SDF and  
         RSTF), as specified.  

         SB 287 (Burton), Chapter 409, Statutes of 1998.  Ratified 11  
         compacts negotiated between the State of California and Indian  
         tribes that permitted class III video gaming devices on tribal  
         lands and established a process for ratifying other compacts.










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          Analysis Prepared by  :    Eric Johnson / G.O. / (916) 319-2531 


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