Existing federal law, the Indian Gaming Regulatory Act of 1988, provides for the negotiation and execution of tribal-state gaming compacts for the purpose of authorizing certain types of gaming on Indian lands within a state. The California Constitution authorizes the Governor to negotiate and conclude compacts, subject to ratification by the Legislature. Existing law expressly ratifies a number of tribal-state gaming compacts, and amendments to tribal-state gaming compacts, between the State of California and specified Indian tribes.

The California Environmental Quality Act (CEQA) requires a lead agency to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project, as defined, that it proposes to carry out or approve that may have a significant effect on the environment, as defined, or to adopt a negative declaration if it finds that the project will not have that effect.

This bill would ratify the tribal-state gaming compact entered into between the State of California and the Jamul Indian Village of California, executed on August 8, 2016. The bill would provide that, in deference to tribal sovereignty, certain actions are not projects for the purposes of CEQA.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing federal law, the Indian Gaming Regulatory Act of 1988, provides for the negotiation and execution of tribal-state gaming compacts for the purpose of authorizing certain types of gaming on Indian lands within a state. The California Constitution authorizes the Governor to negotiate and conclude compacts, subject to ratification by the Legislature. Existing law expressly ratifies a number of tribal-state gaming compacts, and amendments to tribal-state gaming compacts, between the State of California and specified Indian tribes.

The California Environmental Quality Act (CEQA) requires a lead agency to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project, as defined, that it proposes to carry out or approve that may have a significant effect on the environment, as defined, or to adopt a negative declaration if it finds that the project will not have that effect.

This bill would ratify the tribal-state gaming compact entered into between the State of California and the Jamul Indian Village of California, executed on August 8, 2016. The bill would provide that, in deference to tribal sovereignty, certain actions are not projects for the purposes of CEQA.

This bill would declare that it is to take effect immediately as an urgency statute.

The Horse Racing Law authorizes a thoroughbred racing association or fair to distribute the audiovisual signal and accept wagers on the results of out-of-state thoroughbred races conducted in the United States during the calendar period the association or fair is conducting a race meeting, including days on which there is no live racing being conducted by the association or fair, without the consent of the organization that represents horsemen and horsewomen participating in the race meeting and without regard to the amount of purses. Under that law, the total number of thoroughbred races imported by associations or fairs on a statewide basis under these provisions are required to not exceed 50 per day on days when live thoroughbred or fair racing is being conducted in the state, with the exception of prescribed races, including races imported that are part of the race card of the Kentucky Derby, the Kentucky Oaks, the Preakness Stakes, the Belmont Stakes, the Jockey Club Gold Cup, the Travers Stakes, the Arlington Million, the Breeders Cup, the Dubai World Cup, the Arkansas Derby, the Apple Blossom Handicap, or the Haskell Invitational.

This bill would delete from the 50 imported race per day limitation, races imported that are part of the race card of the Dubai Cup. The bill would instead also exempt from the 50 imported race per day race-per-day limitation, races imported that are part of the race card of any out-of-country thoroughbred race approved by the California Horse Racing Board. the Wood Memorial.

The Horse Racing Law authorizes a thoroughbred racing association or fair to distribute the audiovisual signal and accept wagers on the results of out-of-state thoroughbred races conducted in the United States during the calendar period the association or fair is conducting a race meeting, including days on which there is no live racing being conducted by the association or fair, without the consent of the organization that represents horsemen and horsewomen participating in the race meeting and without regard to the amount of purses. Under that law, the total number of thoroughbred races imported by associations or fairs on a statewide basis under these provisions are required to not exceed 50 per day on days when live thoroughbred or fair racing is being conducted in the state, with the exception of prescribed races, including races imported that are part of the race card of the Kentucky Derby, the Kentucky Oaks, the Preakness Stakes, the Belmont Stakes, the Jockey Club Gold Cup, the Travers Stakes, the Arlington Million, the Breeders Cup, the Dubai Cup, the Arkansas Derby, the Apple Blossom Handicap, or the Haskell Invitational.

This bill would delete from the 50 imported race per day limitation, races imported that are part of the race card of the Dubai Cup. The bill would instead exempt from the 50 imported race per day limitation, races imported that are part of the race card of any out-of-country thoroughbred race approved by the California Horse Racing Board.

 UNFINISHED BUSINESS  

Bill No: SB 187

Author:

: 8/18/16

Vote: 7

PRIOR VOTES NOT RELEVANT

ASSEMBLY FLOOR: 78-0, 8/22/16 - See last page for vote

NOTE: On August 9, 2016, the Senate Governmental Organization Committee held an informational hearing on the tribal gaming compact entered into between the State of California and the Jamul Indian Village.

SUBJECT: Tribal gaming: compact ratification

SOURCE: Author

DIGEST: This bill ratifies the tribal-state gaming compact (Compact) entered into between the State of California and the Jamul Indian Village executed on August 8, 2016. Additionally, this bill provides that, in deference to tribal sovereignty, certain actions are not deemed projects for purposes of the California Environmental Quality Act (CEQA); and, stipulates, except as expressly provided, that none of the provisions shall be construed to exempt a city, county, or city and county, or the Department of Transportation from CEQA requirements.

Assembly Amendments delete the contents of this bill relating to horse racing and instead add language pertaining to ratification of the Jamul Indian Village Compact.

ANALYSIS:

Existing law:

1. Provides, under the 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 State as a means of promoting tribal economic development, self-sufficiency, and strong tribal governments.
2. Authorizes expressly a number of tribal-state gaming compacts between the State of California and specified Indian tribes.
3. 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.
4. 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.
5. 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 U.S. against alienation and over which an Indian tribe exercises governmental power.
6. 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 U.S. 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.
7. Authorizes the Governor, under the California Constitution, to negotiate and conclude compacts, subject to ratification by the Legislature.

This bill ratifies the Compact entered into between the State of California and the Jamul Indian Village (hereafter “Tribe”) executed on August 8, 2016 and supersedes the 1999 compact between the Tribe and the State of California. The Compact authorizes the Tribe to operate a maximum of 2,500 gaming devices (slot machines) at no more than two gaming facilities located on eligible Indian lands held in trust for the Tribe, and located within the boundaries of the Tribe’s reservation in the County of San Diego, as legally described in Appendix A of the Compact.

The Tribe has agreed to pay into the Special Distribution Fund (SDF) its pro rata share of costs the State incurs for the performance of its duties under the Compact as well as 4.75% of its “gross gaming revenue,” to be shared with tribes that are not gaming or that otherwise are not substantially benefiting from gaming. Additionally, the Compact provides a framework for the sharing of gaming revenue with the County of San Diego and other local jurisdictions.

Specifically, from its payments to the Revenue Sharing Trust Fund (RSTF) or the Tribal Nation Grant Fund (TNGF), the Tribe may take annual credits of up to 60% for infrastructure improvements that in part benefit county residents, fire, law enforcement, public transit, education, tourism, and other services including investments in renewable energy and conservation projects, as well as, payments to support capital improvements or operating expenses for facilities that provide health care services to tribal members and other members of the local community. In addition, credits may be applied for costs associated with improving the protection of wildlife and habitat, improving roadways, hiking trails, walkways and bike lanes, and other beautification efforts in the community.

In recognition of the predevelopment expenses incurred by the Tribe, the needs of the Tribe’s citizens and the existence of a binding and enforceable intergovernmental agreement with the County of San Diego, providing for mitigation and other investments in the local community (e.g., fire equipment and personnel, road improvements), this Compact defers the Tribe's contributions to the RSTF/TNGF for the first eight years.

Furthermore, the Compact: (1) provides a regulatory framework that respects the role of the tribal gaming agency as the primary regulator while also ensuring that state gaming regulators fulfill their responsibilities; (2) requires the Tribe to conduct its gaming activities pursuant to an internal control system that implements minimum internal controls that are no less stringent than those in federal regulations; (3) requires the Tribe to adopt a Tribal Labor Relations Ordinance, as specified; and, (4) contains provisions to protect the health and safety of patrons, guests, and employees.

The Compact’s preamble notes that the Tribe is one of only a handful of tribes with a 1999 compact that has been granted the right to operate a gaming facility but has been unable to do so and that the State understands the Tribe has spent considerable resources and incurred significant pre-development costs and debt in connection with efforts to develop its casino project. Construction of the existing casino project by the Tribe, while benefiting the State’s economy and the economies of the surrounding communities, will result in more than $450 million in tribal debt that in turn will reduce the income available to the Tribe for a number of years.

BRIEF HISTORY OF THE JAMUL INDIAN VILLAGE

According to information provided by the Jamul Indian Tribe, tribal members trace their roots 12,000 years back to a time of independence and self-sufficiency. A part of the Kumeyaay people, their ancestors hunted, fished and raised their families in present day San Diego County and northern Mexico. After decades of work by elders to engage with the federal government in a meaningful way, the Tribe was formally recognized by the United States as an Indian tribe in 1981. The Tribe is located in eastern San Diego County, on a six acre reservation and is governed by a five-member Executive Committee pursuant to a constitution duly approved on July 7, 1981 and amended on August 31, 1996.  Executive Committee members are elected by the General Council, which includes all qualified voters 18 years and older, and elections are held every two years in June. 

In 1999, the Tribe entered into a tribal-state gaming compact with the State of California and a year later attempted to exercise its rights under the 1999 compact to develop a hotel and operate a gaming facility on a 101-acre site contiguous to the Tribe’s reservation once in trust and deemed eligible for gaming. After several years and spending over $80 million in pre-development costs, the Tribe decided to reconsider its plans on the proposed 101-acre site in an effort to address local concerns. In 2012, the Tribe presented a new proposal for a scaled-back gaming facility that would be located on the Tribe’s reservation and would not require the acquisition of additional land and therefore, withdrew its fee-to-trust application for the 101-acre site. The Tribe’s new proposal incorporated input from the local community including reducing the height and footprint of the gaming facility and removing the hotel, all at a significantly increased cost to the Tribe.

Today, together with their developer, lender, and manager of the casino, Penn National Gaming, the Tribe is set to open the $400 million Hollywood Casino Jamul in early September 2016. The casino is expected to employ approximately 1,000 permanent workers, and will include a three-story gaming and entertainment facility featuring slot machines, live table games, multiple restaurants, bars and lounges and an enclosed below grade parking structure with approximately 1,800 spaces.  The Tribe notes that it has used primarily union labor during construction of the casino – employing thousands of workers. Additionally, the Tribe has in place a Labor Peace and Recognition Agreement with UNITE HERE, International Union and Local 30, dated July 2016.

To date, the Tribe has committed over $20 million to improve State Highway 94 and has agreed to make annual payments of $2.5 million to the County of San Diego for fire service and to fund training, personnel, and new fire trucks. The Tribe also entered into an Intergovernmental Agreement dated May 16, 2016 with the County of San Diego and committed to pay over $3.7 million to improve the County roadways.

Despite the Tribe’s good faith efforts, there have been over forty administrative appeals, lawsuits, and appeals have been filed against (or involving) the Tribe, all of which have been favorably decided to allow the Tribe to exercise its legal rights to develop, construct and operate a gaming facility. This new Compact will allow the Tribe to transition into self-sufficiency in light of the substantial pre-development costs and delay.

The Tribe states that it looks forward to being able to invest in projects benefiting youth in the area and is already contributing to Noah Homes – a program designed to support people with disabilities. The Tribe also provides various community programs for tribal members to ensure healthy and productive lives.  One such program, Acorns to Oaks, is focused on the prevention of teen pregnancy, alcohol and drug use, and to educate the next generation of Tribal leaders on their heritage and culture. In addition, the Tribe provides scholarships for school age youth and it looks forward to providing additional tribal programs once the casino opens, including healthcare services and development of cultural resources.

KEY COMPONENTS OF THE COMPACT

Scope of Class III Gaming Authorized. Provides that the Tribe is authorized to operate up to 2,500 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, provided that the Tribe will not offer such games through use of the Internet unless others in the state not affiliated with or licensed by the California State Lottery are permitted to do so under state and federal law. The Tribe shall not engage in Class III Gaming that is not expressly authorized in the Compact.

Authorized Gaming Facility. Authorizes the Tribe to establish and operate not more than two gaming facilities and engage in Class III gaming only on eligible Indian lands held in trust for the Tribe, located within the boundaries of the Tribe’s reservation and trust lands as those boundaries exist as of the execution date of this Compact, as legally described in the Compact (Appendix A).

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 nullified by the enactment, amendment, or repeal of a state statute or constitutional provision or the conclusive and dispositive judicial construction of a statute or the state Constitution by a California appellate court after the effective date of this Compact, that gaming devices may lawfully be operated by non-Indian entities, the Tribe shall have the right to: (1) terminate this Compact, in which case the Tribe will lose the right to operate Class III gaming authorized by this Compact or (2) continue under this Compact with entitlement to a reduction of the rates specified below following conclusion of negotiations, to provide for (a) compensation to the State for the costs of regulation, as defined; (b) reasonable payments to local governments impacted by tribal government gaming; (c) grants for programs designed to address gambling addiction; and, (d) such assessments as may be permissible at such time under federal law. 

Payments to the Special Distribution Fund (SDF).  Provides that the Tribe shall pay to the State, on a pro rata basis, the costs the State incurs for the performance of all its duties under this Compact, as established by the monies appropriated in the annual Budget Act for the performance of their duties under the Class III Gaming Compacts each fiscal year for the California Gambling Control Commission (CGCC), the California Department of Justice, the Office of Problem Gambling, and State designated agencies in connection with the implementation and administration of Class III gaming compacts.  The Tribe’s pro rata share of the State’s costs in any given year this Compact is in effect may not be increased more than 5% per year and shall be calculated using the following equation: “The maximum number of gaming devices operated in the gaming facility for the previous fiscal year as determined by the State Gaming Agency, divided by the maximum number of gaming devices operated by all federally recognized tribes in California pursuant to tribal-state Class-III gaming compacts during the previous State fiscal year, multiplied by the Appropriation, equals the Tribe’s pro rata share.”

Payments to the RSTF or the TNGF. Provides that if the Tribe operates more than 350 gaming devices at any time in a given calendar year, it shall thereafter, including in that calendar year, pay to the CGCC, for deposit into the RSTF or the TNGF, 4.75% of its “gross gaming revenue” from the operation of gaming devices in excess of three hundred fifty (350).

“Gross Gaming Revenue” is defined as the win from gaming devices, which is the difference between gaming wins and losses before deducting costs and expenses or deducting incentives or adjusting for changes in progressive jackpot liability accruals. Generally, the difference between patron wagers and the payouts made on winning wagers.

In recognition of the predevelopment expenses incurred by the Tribe, the needs of the Tribe’s citizens and the existence of a binding and enforceable intergovernmental agreement with the County, providing for mitigation and other investments in the local community, the Compact defers the Tribe's contributions to the RSTF/TNGF for the first eight years.

Credits Applied to the RSTF or the TNGF. Stipulates that the State agrees to provide the Tribe with annual credits for up to 60% of the payments otherwise due to be paid into the RSTF or TNGF for the following:

1. Cost of services provided by the Tribe or payments by the Tribe to the County, state agency, local jurisdictions and non-profit and civic organizations operating facilities or providing services within the County for fire, law enforcement, emergency medical services, public transit, road improvements, education, tourism, and other services and infrastructure improvements intended to serve off-reservation needs of local residents or the environment. Such payments shall be subject to approval by the State and at least 20% of the annual credits must be utilized for the above stated purposes;
2. Non-gaming related capital investments and economic development projects by the Tribe on or off tribal trust lands that provide mutual benefits to the Tribe and the State because, for instance, they have particular cultural, social or environmental value, or diversify the sources of revenue for the Tribe’s general fund;
3. Payments to support operating expenses and capital improvements for non-tribal governmental agencies or facilities operating within the County;
4. Investments by the Tribe and any funds paid to the State in connection with, renewable energy projects that, in part, serve the gaming facility, to include projects that incorporate charging stations for electric or other zero-emission vehicles that are available to patrons and employees of the gaming facility and the Tribe, its members and lineal descendants;
5. Cost and payments to support capital improvements, the purchase of property, and operating expenses for facilities within California that provide health care services to tribal members, Indians, and non-Indians;
6. Investments by the Tribe and any funds paid to the State for water treatment or conservation projects;
7. Costs and payments made to support the preservation of historical buildings, landmarks or objects within California that have cultural significance to the Tribe and for providing general welfare benefits for, among other things, educational, healthcare, cultural or vocational purposes, to other Native Americans in the community; and,
8. Costs associated with improving the protection of wildlife and habitat, increasing tourism, establishing or improving highways, roadways, hiking trails, walkways and bike lanes, and other beautification efforts in the community. These costs include but are not limited to:
   1. Payment of $100,000 to the California Department of Fish and Wildlife (CDFW) to conduct environmental studies of wildlife within 30 days of this Compact’s effective date; and
   2. Payment of $2 million to CDFW to conduct wildlife mitigation activities to be paid commencing in year three of this Compact, as specified.

All excess authorized credits that cannot be applied in any one year because they would exceed the 60% may be applied as an annual credit in all following years that this Compact is in effect, in the same percentages, until completely exhausted.

Quarterly Contribution Report. At the time each quarterly payment is due, regardless of whether any monies are owed, the Tribe shall submit to the State Gaming Agency, a report prepared by the chief financial officer of the gaming operation that includes: (1) calculation of the maximum number of gaming devices operated each day, (2) the gross gaming revenue calculation, (3) the amount due the SDF, (4) calculation of the amount due to the RSTF/TNGF, and (5) the total amount of the quarterly payment.

ADDITIONAL COMPONENT ELEMENTS

• Gaming Ordinance and Regulations. Provides that all gaming activities conducted under this Compact shall, at a minimum, comply with (1) a gaming ordinance duly adopted by the Tribe and approved in accordance with IGRA, (2) 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 (3) the provisions of this Compact, as specified.
• Licensing Requirements and Procedures. Provides that all persons in any way connected with the gaming operation or gaming facility who are required to be licensed or to submit to a background investigation under IGRA, and any others required to be licensed under this Compact, including, without limitation, all gaming employees, gaming resource suppliers, financial sources, and any other person having a significant influence over the gaming operation, must be licensed by the Tribal Gaming Agency and cannot have had any determination of suitability denied or revoked by the CGCC. Also, every gaming employee must obtain, and thereafter maintain current, a valid tribal gaming license, as specified.
• Minimum Internal Control Standards (MICS). Requires the Tribe to conduct its gaming activities pursuant to an internal control system that implements MICS that are no less stringent than those contained in the MICS of the federal NIGC standards, as specified. It requires gaming to operate pursuant to a written internal control system that reasonably assures that assets are safeguarded and accountability over assets is maintained; liabilities are properly recorded and contingent liabilities are properly disclosed; financial records are accurate and reliable; transactions are performed in accordance with the Tribal Gaming Agency’s authorization; access to assets is permitted only in accordance with the Tribal Gaming Agency’s approved procedures; recorded accountability for assets is compared with actual assets; and, functions, duties and responsibilities are appropriately segregated and performed by qualified personnel. The Tribe is required to provide the CGCC, upon written request, a copy of the independent certified public accountant agreed-upon procedures report conducted annually for submission to the NIGC pursuant to federal law. This report verifies that the gaming operation is in compliance with the NIGC’s MICS.
• Patron Disputes. Provides that the Tribe (through its Tribal Gaming Agency) must attempt to resolve patron disputes within five days of the play or operation of any game, including refusal to pay to a patron any alleged winnings from any gaming activities. If a patron is dissatisfied with the resolution, the Tribe shall inform the patron in writing within 15 days of the right to resolution of the dispute by the Tribal Gaming Agency. The Tribal Gaming Agency shall conduct an appropriate investigation, provide to the patron a copy of its procedures concerning patron complaints, and render a decision in accordance with industry practice. The decision shall be issued within 60 days of the patron's request. If dissatisfied with the resolution, the patron has the right to seek resolution either in the Tribe’s tribal court system, once a tribal court system is established, or by a three-member tribal claims commission consisting of one tribal government representative and at least one non-tribal member. Any party dissatisfied with the award of the Tribe’s tribal court or tribal claims commission may, at the party’s election, appeal the matter to a tribal court of appeal, if one is established, or invoke the JAMS Optional Arbitration Appeal Procedure. The cost and expense of arbitration shall initially be borne equally by the Tribe and the patron but the JAMS arbitrator shall award to the prevailing party its costs and expenses (but no attorney fees). The Tribe agrees to wave its sovereign immunity in connection with the jurisdiction of the tribal court system, the tribal claims commission, JAMS Optional Arbitration Appeal Procedure and in any action to enforce their judgments or the obligations provided in this section.
• Public and Workplace Liability. Requires the Tribe to obtain and maintain a commercial general liability insurance policy which provides coverage of no less than $10 million and adopt a Tort Liability Ordinance stipulating that California tort law governs claims. Also, provides that California tort law shall apply to specified claims if the Tribe fails to adopt a Tort Liability Ordinance.
• Environmental Protections. Requires the Tribe to prepare a Tribal Environmental Impact Report (TEIR) and negotiate mitigation of any off-reservation impacts, including an evaluation of energy consumption, prior to initiating the development of a Project for a facility – Projects that have commenced prior to the effective date of this Compact, including but not limited to the existing Project, as defined, will be subject to the relevant terms of and conditions of the Tribe’s 1999 compact, and Projects not identified in any TEIR issued before the effective date of this Compact, will be subject to the terms and conditions of this Compact. The Compact provides procedures regarding the (1) Notice of Preparation of Draft TEIR, (2) Notice of Completion of Draft TEIR, and (3) Issuance of Final TEIR. The Tribe’s failure to prepare an adequate TEIR when required may warrant an injunction where appropriate. Before commencement of a Project, and no later than the issuance of the final TEIR, the Tribe shall negotiate an intergovernmental agreement with the California Department of Transportation if state roads are impacted. A completed TEIR must be filed with the County, the Department of Justice, the State Gaming Agency, and the State Clearinghouse. Also, before commencement of a Project, and no later than the issuance of the final TEIR, the Tribe shall offer to commence negotiations with County to, amongst other things, provide for the timely mitigation of any significant effect on the off-reservation environment including provisions relating to compensation for law enforcement, fire protection, emergency medical services and any other public services to be provided by the County and its special districts to the Tribe as a consequence of the Project.
• 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.
• Inspection and Testing of Slot Machines. Provides that slot machines will have to be tested, approved and certified by an independent gaming test laboratory or state governmental gaming test laboratory to ensure 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 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.
• Compliance Enforcement. Provides that 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, 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.
• Labor Provisions. Provides that the gaming activities authorized by this Compact may only commence after the Tribe has adopted an ordinance identical to the Tribal Labor Relations Ordinance (TRLO), referenced as Appendix C of the Compact, and the gaming activities may only continue as long as the Tribe maintains the ordinance. If the Tribe employs 250 or more persons in a tribal casino facility, then the provisions of the TLRO become effective. The TLRO provides for a secret ballot election and union neutrality. The Tribe will not oppose a union organization but can advocate the benefits of working for the Tribe. A labor union must issue a Notice of Intent or Organize (NOIO). For a period of 365 days following delivery of a NOIO, the union shall not engage in strikes, picketing, boycotts, attack websites, or other economic activity at or in relation to the tribal casino or related facility. During the 365 days after the Tribe received the NOIO, the union must collect dated and signed authorization cards and complete the secret ballot election. Failure to complete the secret ballot election within 365 days shall preclude the union from delivering another NOIO for a period of two years (730 days). After the certification that 30% of the eligible employees in a bargaining unit have expressed an interest in the union, a notice of election shall be issued and the election shall be concluded within 30 calendar days thereafter. Secret ballot elections shall be held at the workplace and at least one neutral location. Employees may mail in ballots provided they are received by election day. Union representation requires an affirmative vote of 50% plus one of all votes cast. Mediation for any collective bargaining agreement impasse shall be resolved exclusively through the binding dispute resolution by three members of the Tribal Labor Panel, consisting of ten arbitrators appointed by a mutual selection of the parties; however, if arbitrator schedules cannot be coordinated within 30 days of submission, a single arbitrator shall decide the dispute. The arbitrators will generally follow the American Arbitration Association’s procedural rules relating to labor dispute resolution.
• Workers’ Compensation. Provides that the Tribe agrees to participate in the State’s workers’ compensation program with respect to employees at the casino. All disputes arising from the workers’ compensation laws shall be heard by the State Workers’ Compensation Appeals Board pursuant to the California Labor Code. The Tribe acknowledges the jurisdiction of the Board in such manners. In lieu of participation in the State’s system, the Tribe may create and maintain a system through self-insurance, which includes specified provisions, including hearings before an independent tribunal. Furthermore, the Tribe agrees that it will participate in the State’s unemployment compensation program for providing benefits and unemployment compensation disability benefits to employees at the casino. The Tribe shall withhold all taxes due to the State, except for Tribal members living on the Tribe’s reservation, and forward such amounts to the State.
• Prohibitions Regarding Minors. Provides that 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.
• Alcohol Provisions. Makes it explicit that the purchase, sale, and service of alcoholic beverages shall be subject to state law – the Alcoholic Beverage Control Act.
• Tobacco Provisions. Provides that the Tribe agrees to provide a non-smoking area in the gaming facility and to utilize a ventilation system throughout the gaming facility that exhausts tobacco smoke to the extent reasonably feasible under state-of-the-art technology existing as of the date of the construction or significant renovation of the gaming facility, and further agrees not to offer or sell tobacco products, including but not limited to smokeless tobacco products or e-cigarettes, to anyone younger than the minimum age specified in state law to legally purchase tobacco products.
• Problem Gambling. Requires the gaming operation to establish a program, approved by the Tribal Gaming Agency, to mitigate pathological and problem gaming by implementing specified measures.
• Health and Safety Standards. Provides that the Tribe has agreed to adopt and comply with tribal health standards for food and beverage handling that is no less stringent than State public health standards. Also, the Tribe has agreed to comply with federal water quality and safe drinking water standards applicable in California. The Tribe must also adopt and comply with federal and state laws forbidding harassment, including sexual harassment, discrimination and retaliation. Furthermore, the Tribe must maintain a $3 million insurance policy for these purposes and adopt an ordinance that includes a dispute resolution process.
• Building Codes and Fire Safety. Provides that 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 applicable codes. Gaming facility construction, expansion, improvement, modification or renovation must also comply with the federal Americans with Disabilities Act.
• Emergency Services Accessibility and Possession of Firearms. Requires the Tribe to 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.
• Effective Date. Provides that the Compact shall not be effective unless and until all of the following have occurred: (1) The Compact is ratified by statute in accordance with state law and (2) Notice of approval or constructive approval is published in the Federal Register. Once effective, this Compact shall be in full force and effect for 25 years following the effective date.
• Amendment by Agreement. Provides that the terms and conditions of this 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.

ADDITIONAL BACKGROUND INFORMATION

Indian Gaming Regulatory Act (IGRA)

In 1988, Congress enacted the Indian Gaming Regulatory Act (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 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. Nor may a State refuse to enter into negotiations based on the lack of authority to impose such a tax, fee, charge, or other assessment.

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.

Before 2000, the California Constitution prohibited Class III gaming. In 2000, California voters approved Proposition 1A which had been proposed by the Governor and passed by the Legislature. Proposition 1A amended the California Constitution to permit the State to negotiate compacts with federally recognized Indian tribes for certain Class III gaming activities. Because non-Indian parties were still forbidden from operating gaming facilities, Proposition 1A granted Indian tribes a “constitutionally protected monopoly on most types of Class III games in California.”

Rincon Decision

The U.S. Supreme Court in July 2011 refused to consider the decision of the Ninth Circuit Court of Appeals rejecting a Class III Tribal-State Gaming Compact negotiated by then Governor Schwarzenegger with the Rincon Band of Luiseno Mission Indians. The issue of this case's impact on Indian gaming throughout the country has been a topic of great debate.

As noted, IGRA authorizes states to receive compensation for costs related to tribal gaming such as regulation and gaming addiction, and to offset the effects of casinos on surrounding communities. However, states are prohibited from assessing taxes on tribal casino revenues, so unjustified payments to a state's General Fund are no longer permissible unless the tribes are getting something in return for the required payments, such as those authorized by IGRA.

Any payments to the State, above those needed to mitigate impacts of gaming must be in exchange for a benefit deemed "exclusive" to the tribe.

The Rincon Band challenged the legality of California's "second generation" compacts pursuant to which the signatory tribes would be entitled to increase their slot machine count in return for paying percentages of the new slot machine revenue to the state's General Fund. 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.

Rincon refused to sign the amended compact which had already been executed by several other tribes choosing instead to demand that it be given the expanded gaming opportunity without making the new financial concessions. The Ninth Circuit Court of Appeals 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 consider the State’s demand as evidence of bad faith under IGRA’s statutes.”

The court noted that “the State could rebut the presumption of bad faith by demonstrating that the revenue demanded was to be used for the public interest, public safety, criminality, financial integrity, and adverse economic impacts on existing activities, but the State’s need for general tax revenue was insufficient to demonstrate good faith.”

Special Distribution Fund (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 (DOJ) in connection with the implementation and administration of compacts; (4) payment of shortfalls that may occur in the 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. (Pursuant to compact renegotiations that took place with several of the larger gaming tribes during the Schwarzenegger administration, revenue from those tribes is directed into the state General Fund, instead of the SDF.)

The law establishes a method of calculating the distribution of appropriations from the SDF for grants to local government agencies impacted by tribal gaming. This method includes a requirement that the State Controller, in consultation with the CGCC, deposit funds into County Tribal Casino Accounts and Individual Tribal Casino Accounts based upon a process that takes into consideration whether the county has tribes that pay, or do not pay, into the SDF. The distribution formula "sunsets" on January 1, 2021.

Existing law also establishes an Indian Gaming Local Community Benefit Committee in each county in which gaming is conducted, specifies the composition and responsibilities of that committee, and requires that committee to make the selection of grants from the casino accounts. Among other things, the committee is responsible for establishing all application policies and procedures for grants from the casino accounts. Additionally, existing law requires the State Auditor to conduct an audit every three years and report its findings to the Legislature regarding the allocation and use of SDF grant monies.

Revenue Sharing Trust Fund (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 California tribes (e.g., federally-recognized non-gaming tribes 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)

This particular fund (referenced in recent compacts) was created to complement the RSTF and provides for the distribution of funds to non-gaming tribes, upon application of such tribes for purposes related to effective self-governance, self-determined community, and economic development. Payments from this fund are intended to be made to non-gaming tribes on a “need” basis, upon application.

Prior Legislation

AB 795 (Atkins, Chapter 520, Statutes of 2015) ratified the tribal-state gaming compact entered into between the State of California and the Sycuan Band of Kumeyaay Nation, executed on September 2, 2015.

AB 1540 (Gray, Chapter 531, Statutes of 2015) ratified the tribal-state gaming compact entered into between the State of California and the Santa Ynez Band of Chumash Indians, executed on August 26, 2015.

AB 315 (Bigelow, Chapter 512, Statutes of 2015) ratified the amended and restated tribal-state gaming compact entered into between the State of California and the United Auburn Indian Community, executed on August 14, 2015.

AB 475 (Bigelow, Chapter 8, Statutes of 2015) ratified the tribal-state gaming compact entered into between the State of California and Jackson Rancheria Band of Miwuk Indians, executed on February 1, 2015.

SB 1356 (De León, Chapter 314, Statutes of 2014) ratified the amendment to the tribal-state gaming compact entered into between the State of California and the Viejas Band of Kumeyaay Indians, executed on August 12, 2014.

SB 1224 (Correa, Chapter 300, Statutes of 2014) ratified the tribal-state gaming compact entered into between the State of California and the Karuk Tribe, executed on December 4, 2013.

FISCAL EFFECT: Appropriation: Fiscal Com.: Yes Local:

SUPPORT: (Verified 8/22/16)

Agua Caliente Band of Cahuilla Indians

Barona Band of Mission Indians

California Labor Federation

Jamul Indian Village

Pechanga Band of Luiseno Indians

Teamsters

UNITE HERE, AFL-CIO

Viejas Band of Kumeyaay Indians

Yocha Dehe Wintun Nation

OPPOSITION: (Verified 8/22/16)

None received

ASSEMBLY FLOOR: 78-0, 8/22/16

AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon

NO VOTE RECORDED: Roger Hernández, Melendez

Prepared by:

8/22/16 22:49:35

**** END ****

SENATE THIRD READING

STR Bill Id:SB 187

Author:(Hall)

As Amended Ver:August 18, 2016

2/3 vote. Urgency

SENATE VOTE: (Vote not relevant)

SUMMARY: Ratifies the Tribal-State Gaming Compact (Compact) between the State of California (State) and the Jamul Indian Village (Tribe) which was executed on August 8, 2016. Specifically this bill:

1. Ratifies a Tribal-State Class III gaming compact pursuant to the Indian Gaming Regulatory Act of 1988 (IGRA), between the Jamul Indian Village of California, a federally recognized Indian tribe listed in the Federal Register, and the State of California. The Compact was executed on August 8, 2016.
2. Supersedes the existing 1999 compact between the Tribe and the State of California.
3. Provides the Tribe may operate a maximum of 2,500 gaming devices (slot machines).
4. Allows the Tribe to stablish and operate not more than two gaming facilities and engage in Class III gaming only on eligible Indian lands held in trust for the Tribe, located within the boundaries of the Tribe's reservation and trust lands as those boundaries exist as of the execution date of this Compact, as legally described in the Compact (Appendix A).
5. Provides the Tribe has agreed to pay the State its pro rata share of costs the State incurs for the performance of its duties under the Compact as well as four and three quarters percent (4.75%) of its "gross gaming revenue," to be shared with tribes that are not gaming or that otherwise are not substantially benefiting from gaming. In addition, the Compact provides a framework for the sharing of gaming revenue with the County of San Diego and other local jurisdictions.
6. Provides from its payments to the Revenue Sharing Trust Fund (RSTF) or the Tribal Nation Grant Fund (TNGF), the Tribe may take annual credits of up to 60% for infrastructure improvements that in part benefit county residents, fire, law enforcement, public transit, education, tourism, and other services including investments in renewable energy and conservation projects, as specified.
7. Provides in recognition of the predevelopment expenses incurred by the Tribe, the needs of the Tribe's citizens and the existence of a binding and enforceable intergovernmental agreement with the County of San Diego, providing for mitigation and other investments in the local community (e.g., fire equipment and personnel, road improvements), this Compact defers the Tribe's contributions to the RSTF/TNGF for the first eight years.
8. Provide that, in deference to tribal sovereignty, certain actions are not deemed projects for purposes of the California Environmental Quality Act (CEQA); and, stipulate, except as expressly provided, that none of the provisions shall be construed to exempt a city, county, or city and county, or the Department of Transportation from CEQA requirements.
9. Provides this Compact will be in full force and effect for 25 years following the effective date.
10. Contain an urgency clause, allowing this bill to take effect immediately upon enactment.

EXISTING LAW:

1. Provides, under the 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 State as a means of promoting tribal economic development, self-sufficiency, and strong tribal governments.
2. Authorizes expressly a number of tribal-state gaming compacts between the State of California and specified Indian tribes.
3. 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.
4. Limits the operation of Class III gaming activities to Indian lands acquired on or before October 17, 1988. Provides exceptions to conduct gaming activities on Indian lands acquired after October 17, 1988.
5. 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 (U.S.) for the benefit of any Indian tribe, or individual, or held by any Indian tribe or individual subject to restriction by the U.S. against alienation and over which an Indian tribe exercises governmental power.
6. 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 U.S. 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.
7. Authorizes the Governor, under the California Constitution, to negotiate and conclude compacts, subject to ratification by the Legislature.

Brief History and Background: According to information provided by the Jamul Indian Tribe, tribal members trace their roots 12,000 years back to a time of independence and self-sufficiency. A part of the Kumeyaay people, their ancestors hunted, fished and raised their families in present day San Diego County and northern Mexico. After decades of work by elders to engage with the federal government in a meaningful way, the Tribe was formally recognized by the United States as an Indian tribe in 1981. The Tribe is located in eastern San Diego County, on a six-acre reservation and is governed by a five-member Executive Committee pursuant to a constitution duly approved on July 7, 1981 and amended on August 31, 1996. Executive Committee members are elected by the General Council, which includes all qualified voters 18 years and older, and elections are held every two years in June.

In 1999, the Tribe entered into a tribal-state gaming compact with the State of California and a year later attempted to exercise its rights under the 1999 compact to develop a hotel and operate a gaming facility on a 101-acre site contiguous to the Tribe's reservation once in trust and deemed eligible for gaming. After several years and spending over $80 million in pre-development costs, the Tribe decided to reconsider its plans on the proposed 101-acre site in an effort to address local concerns. In 2012, the Tribe presented a new proposal for a scaled-back gaming facility that would be located on the Tribe's reservation, would not require the acquisition of additional land, and therefore, withdrew its fee-to-trust application for the 101-acre site. The Tribe's new proposal incorporated input from the local community including reducing the height and footprint of the gaming facility and removing the hotel, all at a significantly increased cost to the Tribe.

Today, together with their developer, lender, and manager of the casino, Penn National Gaming, the Tribe is set to open the $400 million Hollywood Casino Jamul in early September 2016. The casino is expected to employ approximately 1,000 permanent workers, and will include a three-story gaming and entertainment facility featuring slot machines, live table games, multiple restaurants, bars and lounges and an enclosed below grade parking structure with approximately 1,800 spaces. The Tribe notes that it has used primarily union labor during construction of the casino – employing thousands of workers. Additionally, the Tribe has in place a Labor Peace and Recognition Agreement with UNITE HERE, International Union and Local 30, dated July 2016.

To date, the Tribe has committed over $20 million to improve State Highway 94 and has agreed to make annual payments of $2.5 million to the County of San Diego for fire service and to fund training, personnel, and new fire trucks. The Tribe also entered into an Intergovernmental Agreement dated May 16, 2016 with the County of San Diego and committed to pay over $3.7 million to improve the County roadways.

Despite the Tribe's good faith efforts, there have been over forty administrative appeals, lawsuits, and appeals have been filed against (or involving) the Tribe, all of which have been favorably decided to allow the Tribe to exercise its legal rights to develop, construct and operate a gaming facility. This new Compact will allow the Tribe to transition into self-sufficiency in light of the substantial pre-development costs and delay.

The Tribe states that it looks forward to being able to invest in projects benefiting youth in the area and is already contributing to Noah Homes – a program designed to support people with disabilities. The Tribe also provides various community programs for tribal members to ensure healthy and productive lives. One such program, Acorns to Oaks, is focused on the prevention of teen pregnancy, alcohol and drug use, and to educate the next generation of Tribal leaders on their heritage and culture. In addition, the Tribe provides scholarships for school age youth and it looks forward to providing additional tribal programs once the casino opens, including healthcare services and development of cultural resources.

Key Provisions of the Compact:

Scope of Class III Gaming Authorized: The Tribe is authorized to operate up to 2,500 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, provided that the Tribe will not offer such games through use of the Internet unless others in the state not affiliated with or licensed by the California State Lottery are permitted to do so under state and federal law. The Tribe shall not engage in Class III Gaming that is not expressly authorized in the Compact.

Authorized Gaming Facility: The Tribe may establish and operate not more than two gaming facilities and engage in Class III gaming only on eligible Indian lands held in trust for the Tribe, located within the boundaries of the Tribe's reservation and trust lands as those boundaries exist as of the execution date of this Compact, as legally described in the Compact (Appendix A).

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, as defined.

Payments to the RSTF or the TNGF: If the Tribe operates more than 350 gaming devices at any time in a given calendar year, it shall thereafter, including in that calendar year, pay to the CGCC, for deposit into the RSTF or the TNGF, 4.75% of its "gross gaming revenue" from the operation of gaming devices in excess of 350.

"Gross Gaming Revenue" is defined as the win from gaming devices, which is the difference between gaming wins and losses before deducting costs and expenses or deducting incentives or adjusting for changes in progressive jackpot liability accruals. Generally, the difference between patron wagers and the payouts made on winning wagers.

In recognition of the predevelopment expenses incurred by the Tribe, the needs of the Tribe's citizens and the existence of a binding and enforceable intergovernmental agreement with the County, providing for mitigation and other investments in the local community, the Compact defers the Tribe's contributions to the RSTF/TNGF for the first eight years.

Credits Applied to the RSTF or the TNGF: The State agrees to provide the Tribe with annual credits for up to 60% of the payments otherwise due to be paid into the RSTF or TNGF for the following:

1. Cost of services provided by the Tribe or payments by the Tribe to the County, state agency, local jurisdictions and non-profit and civic organizations operating facilities or providing services within the County for fire, law enforcement, emergency medical services, public transit, road improvements, education, tourism, and other services and infrastructure improvements intended to serve off-reservation needs of local residents or the environment. Such payments shall be subject to approval by the State and at least 20% of the annual credits must be utilized for the above stated purposes;
2. Non-gaming related capital investments and economic development projects by the Tribe on or off tribal trust lands that provide mutual benefits to the Tribe and the State because, for instance, they have particular cultural, social or environmental value, or diversify the sources of revenue for the Tribe's general fund;
3. Payments to support operating expenses and capital improvements for non-tribal governmental agencies or facilities operating within the County;
4. Investments by the Tribe and any funds paid to the State in connection with, renewable energy projects that, in part, serve the gaming facility, to include projects that incorporate charging stations for electric or other zero-emission vehicles that are available to patrons and employees of the gaming facility and the Tribe, its members and lineal descendants;
5. Investments by the Tribe and any funds paid to the State for water treatment or conservation projects;
6. Cost and payments to support capital improvements, the purchase of property, and operating expenses for facilities within California that provide health care services to tribal members, Indians, and non-Indians;
7. Costs and payments made to support the preservation of historical buildings, landmarks or objects within California that have cultural significance to the Tribe and for providing general welfare benefits for, among other things, educational, healthcare, cultural or vocational purposes, to other Native Americans in the community; and,
8. Costs associated with improving the protection of wildlife and habitat, increasing tourism, establishing or improving highways, roadways, hiking trails, walkways and bike lanes, and other beautification efforts in the community. These costs include but are not limited to:
9. Payment of $100,000 to the California Department of Fish and Wildlife (CDFW) to conduct environmental studies of wildlife within thirty days of this Compact's effective date; and
10. Payment of $2 million to CDFW to conduct wildlife mitigation activities to be paid commencing in year three of this Compact, as specified.

All excess authorized credits that cannot be applied in any one year because they would exceed the 60% may be applied as an annual credit in all following years that this Compact is in effect, in the same percentages, until completely exhausted.

Payments to the Special Distribution Fund: The Tribe shall pay to the State, on a pro rata basis, the costs the State incurs for the performance of all its duties under this Compact, as established by the monies appropriated in the annual Budget Act for the performance of their duties under the Class III Gaming Compacts each fiscal year for the California Gambling Control Commission (CGCC), the California Department of Justice, the Office of Problem Gambling, and State designated agencies in connection with the implementation and administration of Class III gaming compacts, as defined.

Additional Compact Components:

Gaming Ordinance and Regulations: All gaming activities conducted under this Compact shall, at a minimum, comply with 1) a gaming ordinance duly adopted by the Tribe and approved in accordance with IGRA, 2) 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 3) the provisions of this Compact, as specified.

Licensing Requirements and Procedures: All persons in any way connected with the gaming operation or gaming facility who are required to be licensed or to submit to a background investigation under IGRA, and any others required to be licensed under this Compact, including, without limitation, all gaming employees, gaming resource suppliers, financial sources, and any other person having a significant influence over the gaming operation, must be licensed by the Tribal Gaming Agency and cannot have had any determination of suitability denied or revoked by the CGCC. In addition, every gaming employee must obtain, and thereafter maintain current, a valid tribal gaming license, as specified.

Minimum Internal Control Standards: Requires the Tribe to conduct its Gaming Activities pursuant to an internal control system that implements MICS that are no less stringent than specified MICS of the NIGC. It requires gaming to operate pursuant to a written internal control system that reasonably assures that assets are safeguarded and accountability over assets is maintained, liabilities are properly recorded and contingent liabilities are properly disclosed, financial records are accurate and reliable, transactions are performed in accordance with the Tribe's authorization. The Tribe is required to provide to the CGCC, upon written request, a copy of the independent certified public accountant agreed-upon procedures report conducted annually for submission to the NIGC pursuant to federal law. This report verifies that the gaming operation is in compliance with the NIGC's minimum internal control standards.

Patron Disputes: A patron who makes an oral or written complaint to personnel of the gaming operation over the play or operation of any game within five days of the play or operation at issue shall be notified in writing of the patron's right to request in writing, within five days of the gaming operation's written notification to the patron of that right, resolution of the dispute by the Tribal Gaming Agency or through a three-member tribal claims commission consisting of a representative of the tribal government and at least one non-tribal commissioner. The decision shall be issued within 30 days of the patron's request. If dissatisfied with the resolution, or no decision is rendered within 60 days of submission, the patron may seek resolution either in the Tribe's tribal court system, once a tribal court system is established, or before a three-member tribal claims commission. Any party dissatisfied with the award of the arbitrator may at the party's election invoke the JAMS Optional Arbitration Appeal Procedure. The cost and expenses of arbitration shall be initially borne equally by the Tribe and the patron but the JAMS arbitrator shall award to the prevailing party its costs and expenses (but no attorney fees). The Tribe consents to the jurisdiction of the tribal court, tribal claims commission, JAMS Optional Appeal Procedure and any action to enforce their judgments or the obligations, as defined.

Public and Workplace Liability: Requires the Tribe to obtain and maintain a commercial general liability insurance policy which provides coverage of no less than $10 million and adopt a Tort Liability Ordinance stipulating that California tort law governs claims. Also, provides that California tort law shall apply to specified claims if the Tribe fails to adopt a Tort Liability Ordinance.

Environmental Protections: The Tribe must prepare a Tribal Environmental Impact Report (TEIR) and negotiate mitigation of any off-reservation impacts, including an evaluation of energy efficiency, prior to initiating the development of a project for a facility. The Compact provides procedures regarding the 1) Notice of Preparation of Draft TEIR, 2) Notice of Completion of Draft TEIR, and 3) Issuance of Final TEIR. The Tribe's failure to prepare an adequate TEIR when required may warrant an injunction where appropriate. Before commencement of a Project, and no later than the issuance of the final TEIR, the Tribe shall negotiate an intergovernmental agreement with the California Department of Transportation if state roads are impacted. A binding agreement must also be negotiated with San Diego County to, amongst other things, provide for the timely mitigation of any significant effect on the off-reservation environment. This includes 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 as a consequence of the project.

Health and Safety Standards: The Tribe has agreed to comply with federal water quality and safe drinking water standards applicable in California. The Tribe must also adopt and comply with federal and state laws forbidding harassment, including sexual harassment, discrimination and retaliation. In addition, the Tribe must maintain a $3 million insurance policy for these purposes and adopt an ordinance that includes a dispute resolution process. The Tribe has agreed to adopt and comply with tribal health standards for food and beverage handling that are no less stringent than State public health standards.

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 applicable codes. Gaming facility construction, expansion, improvement, modification or renovation must also comply with the federal Americans with Disabilities Act.

Emergency Services Accessibility: The Tribe must make reasonable provisions for adequate emergency fire, medical, and related relief and disaster services for patrons and employees.

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.

Inspection and Testing of Slot Machines: Gaming devices will have to be tested, approved and certified by an independent gaming test laboratory or state governmental gaming test laboratory to ensure 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 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.

Labor Provisions: Rather than requiring side agreements between the Tribe and labor organizations, the Compact incorporates provisions of Tribal Labor Relations Ordinance (TLRO) that has the support of labor entities. The Compact provides that the gaming activities authorized by this Compact may only commence after the Tribe has adopted an ordinance identical to the TLRO provided for in Appendix C of the Compact, and the gaming activities may only continue as long as the Tribe maintains the ordinance. If the Tribe employs 250 or more persons in a tribal casino facility, then the provisions of the TLRO become effective. The TLRO provides for a secret ballot election. The new TLRO proscribed by this compact is modeled after the TLRO first incorporated into the 2015 compact with the Santa Ynez Band of Chumash Indians and reflects significant changes from the 1999 TLRO.

The TLRO provides for a neutrality agreement between the Tribe and union if the union requests this. If the union first offers in writing not to engage in strikes, picketing, boycotts, attack websites, or other economic activity at or in relation to the tribal casino or related facility and issue and deliver a Notice of Intent to Organize (NOIO) to the Tribe, then the Tribe must not disparage or advocate opposition to the union. The Tribe may make factual representations to employees concerning employment with the Tribe, but may not take actions or make statements that could reasonably be interpreted as criticizing the union or advocating against unionization. During the 365 days after the Tribe received the NOIO, the union must collect dated and signed authorization cards and complete the secret ballot election. Secret ballot elections shall be held at a location or locations determined by the employer, but there must be at least neutral location. Employee may mail ballots so long as received by Election Day. Failure to complete the secret ballot election within 365 day under the neutrality agreement shall preclude the union from delivering another NOIO for a period of 730 days

Where there is a neutrality agreement, the TLRO provides for resolution of collective bargaining impasse through interest arbitration by the Federal Mediation and Conciliation Service (FMCS). The interest arbitration procedure is modeled on the Mandatory Mediation and Conciliation provisions in the Agricultural Labor Relations Act. Other disputes are presented to an arbitrator with expertise in labor law. Appropriate challenges to the arbitrator's decision may be presented in court.

Workers' Compensation: The Tribe agrees to participate in the State's workers' compensation program with respect to employees at the casino. All disputes arising from the workers' compensation laws shall be heard by the State Workers' Compensation Appeals Board pursuant to the California Labor Code, as specified. In lieu of participation in the State's system, the Tribe may create and maintain a system through self-insurance, which includes specified provisions, including hearings before an independent tribunal. Furthermore, the Tribe agrees that it will participate in the State's unemployment compensation program for providing benefits and unemployment compensation disability benefits to employees at the casino. The Tribe shall withhold all taxes due to the State, except for Tribal members living on the Tribe's reservation, and forward such amounts to the State.

Prohibitions Regarding Minors: Prohibits 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.

Problem Gambling: The Tribe through its Tribal Gaming Agency must establish a program, approved by the Tribal Gaming Agency, to mitigate pathological and problem gaming by implementing specified measures.

Alcohol Provisions: Makes it explicit that the purchase, sale, and service of alcoholic beverages shall be subject to state law.

Tobacco Provisions: The Tribe agrees to provide a non-smoking area in the gaming facility and to utilize a ventilation system throughout the gaming facility that exhausts tobacco smoke to the extent reasonably feasible under state-of-the-art technology existing as of the date of the construction or significant renovation of the gaming facility, and further agrees not to offer or sell tobacco products, including but not limited to smokeless tobacco products or e-cigarettes, to anyone younger than the minimum age specified in state law to legally purchase tobacco products.

Amendment by Agreement: The terms and conditions of this 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.

Effective Date: The Compact shall not be effective unless and until all of the following have occurred: 1) The Compact is ratified by statute in accordance with state law and 2) Notice of approval or constructive approval is published in the Federal Register. Once effective, this Compact shall be in full force and effect for 25 years following the effective date.

Additional Background Information:

Terms of the Tribe's 2006 Amended Compact: The Tribe's 2006 amended compact authorized no more than 7,500 gaming devices. The amended compact required an annual flat payment of $42.5 million to the State's general fund, plus an annual payment of 15% of the net win generated from the operation of between 2,000-5,000 gaming devices. The amended compact also required an annual $2 million payment into the RSTF. The compact is valid through 2030.

Rincon Decision: In 2004, the Rincon Band of Mission Indians sued the State in federal court after negotiations for a new gambling agreement with then-Governor Schwarzenegger came to a standstill. 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 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 in California.

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 CGCC and the DOJ in connection with the implementation and administration of compacts; 4) payment of shortfalls that may occur in the Indian Gaming 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. The distribution formula "sunsets" on January 1, 2021.

RSTF: Existing law also 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 (2000), created gaming compacts with approximately 60 California tribes. Non-compact tribes are considered third-party beneficiaries of the 1999 compacts.

According to CGCC, which administers the RSTF, a revenue shortfall of approximately $15.5 million is anticipated this fiscal year. According to the Department of Finance (DOF), the SDF has sufficient funds in it for fiscal year 2016-2017 to cover the RSTF shortfall. However, DOF indicates that it projects a $1.6 million SDF balance deficiency in fiscal year 2017-2018 assuming a $25 million transfer to the RSTF. To cover the anticipated shortfall in 2017-2018, approximately $1.6 million will need to be transferred from the General Fund in order to ensure full RSTF payments are made to non-gaming and limited-gaming tribes. A similar amount was redirected in 2015-2016. Recent compacts, including this one, have attempted to alleviate the shortfall situation by requiring payments by Tribes directly to the RSTF. This model appears to be a template for future compacts, as well.

TNGF: The 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 fund is designed to be fluid and payments are intended to be made to non-gaming tribes on a "need" basis, upon application by non-gaming tribes. The TNGF currently does not receive funding.

Related legislation: AB 629 (Gonzalez) of the current legislative session. Ratifies the tribal-state gaming compact entered into between the State and the Pala Band of Mission Indians, executed on May 6, 2016.

AB 2358 (Gonzalez) of the current legislative session. Ratifies the tribal-state gaming compact entered into between the State and the Pechanga Band of Luiseno Indians, executed August 4, 2016.

AB 2915 (Eduardo Garcia) of the current legislative session. Provides for the ratification of a new Tribal-State gaming compact between the State and Agua Caliente Band of Cahuilla Indians, executed on August 4, 2016.

AB 1977 (Wood) of the current legislative session. Ratifies the first amendment to the 2006 tribal-state gaming compact entered into between the State and the Yurok Tribe, executed August 4, 2016.

SB 1313 (Hall) of the current legislative session. Ratifies the tribal-state gaming compact entered into between the State and the Yocha Dehe Wintun Nation, executed on August 4, 2016.

AB 1282 (Gray) of the current legislative session. Ratifies the tribal-state gaming compact entered into between the State and the Buena Vista Rancheria of Me-Wuk Indians, executed on June 28, 2016.

AB 1767 (Bigelow) of the current legislative session. Ratifies the first amendment to the 2015 tribal-state gaming compact entered into between the State and the Jackson Rancheria Band of Miwuk Indians, executed on June 22, 2016.

SB 404 (De León) of the current legislative session. Ratifies the tribal-state gaming compact entered into between the State and the Viejas Band of Kumeyaay Indians, executed on June 22, 2016.

AB 291 (Atkins) of the current legislative session. Ratifies the tribal-state gaming compact entered into between the State and the Barona Band of Mission Indians, executed on June 22, 2016.

Prior legislation: AB 795 (Atkins), Chapter 520, Statutes of 2015. Ratified the tribal state gaming compact entered into between the State and the Sycuan Band of Kumeyaay Nation, executed on September 2, 2015.

AB 1540 (Gray), Chapter 531, Statutes of 2015. Ratified the tribal-state gaming compact entered into between the State and the Santa Ynez Band of Chumash Indians, executed on August 26, 2015.

AB 315 (Bigelow), Chapter 512, Statutes of 2015. Ratified the amended and restated tribal-state gaming compact entered into between the State and the United Auburn Indian Community, executed on August 14, 2015.

AB 475 (Bigelow), Chapter 8, Statutes of 2015. Ratified the tribal-state gaming compact entered into between the State and Jackson Rancheria Band of Miwuk Indians, executed on February 1, 2015.

SB 1356 (De León), Chapter 314, Statutes of 2014. Ratified the amendment to the tribal-state gaming compact entered into between the State and the Viejas Band of Kumeyaay Indians, executed on August 12, 2014.

SB 1224 (Correa), Chapter 300, Statutes of 2014. Ratified the tribal-state gaming compact entered into between the State and the Karuk Tribe, executed on December 4, 2013.

AB 1245 (V. Manuel Perez), Chapter 462, Statutes of 2013. Ratified the tribal-state gaming compact entered into between the State and the Ramona Band of Cahuilla Indians located in Riverside County, executed on June 10, 2013.

AB 277 (Hall), Chapter 51, Statutes of 2013. Ratified two new compacts entered into between the State 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 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 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 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 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 and Pinoleville Pomo Nation, executed on March 9, 2009, and instead ratified the tribal-state gaming compact entered into between the State and the Pinoleville Pomo Nation, executed on August 8, 2011.

AB 1020 (Chesbro), Chapter 27, Statutes of 2011. Repealed the ratification of the tribal-state gaming compact entered into between the State 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 Habematolel Pomo of Upper Lake, executed on March 17, 2011.

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

AB 122 (Coto), Chapter 3, Statutes of 2010. Ratified the tribal-state gaming compact entered into between the State 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 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 and the Yurok Tribe of the Yurok Reservation.

SB 174 (Ducheny), Chapter 38, Statutes of 2007. Ratified the first compact amendment to the compact between the State and Sycuan.

SB 175 (Ducheny), Chapter 39, Statutes of 2007. Ratified the first compact amendment to the compact between the State and Morongo.

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

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

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

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.

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.

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

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

Proposition 1A, adopted by the people of California on March 7, 2000. Modified the prohibition against casinos and lotteries in the California Constitution to authorize the Governor to negotiate compacts, subject to legislative ratification, for the operation of slot machines, lottery games, and banking and percentage card games by federally recognized Indian tribes on Indian lands in California, in accordance with federal law. Authorized slot machines, lottery games, and banking and percentage card games to be conducted and operated on Indian lands subject to the compacts.

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 and Indian tribes that permitted class III video gaming devices on tribal lands and established a process for ratifying other compacts.

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531 FN: 0004376

SENATE THIRD READING

STR Bill Id:SB 187

Author:(Hall)

As Amended Ver:April 21, 2015

Majority vote

SENATE VOTE: 35-0

SUMMARY: Adds the "Wood Memorial" to the group of stake races in Horse Racing Law which are exempt from the 50 race per day limit on imported races.

EXISTING LAW:

1. Provides that the California Horse Racing Board (CHRB) shall regulate the various forms of horse racing authorized in this state.

2. Limits the number of races that may be imported by associations and fairs to no more than 50 races per day on days when live thoroughbred or fair racing is being conducted in this state, with specified exceptions.

3. Exempts from that 50 race per day limit races imported that are part of the race card of certain prominent races, including the Kentucky Derby, the Kentucky Oaks, the Preakness Stakes, the Belmont Stakes, the Jockey Club Gold Cup, the Travers Stakes, the Arlington Million, the Breeders' Cup, the Dubai Cup, the Arkansas Derby, the Apple Blossom Handicap or the Haskell Invitational.

4. Authorizes thoroughbred racing associations or fairs to distribute the audiovisual signal and accept wagers on the results of out-of-state and international thoroughbred races during the calendar period the association or fair is conducting live racing, including days on which there is no live racing being conducted by the association or fair.

FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the Legislative Counsel.

COMMENTS:

Purpose of this bill. This bill provides that all races imported by a thoroughbred association or fair that are part of the race card of the overall Wood Memorial day would be exempted from the 50 race per day limit, as defined in current law. Over the years, this provision of law has been amended to allow specific notable races to be imported outside of this cap for promotional and financial reasons.

The author's office notes that this bill is intended to help increase public interest and participation at California racetracks and satellite wagering facilities. The satellite importation of this historic and prestigious race will allow California racetracks to remain competitive, increase the wagering handle on this specific race day and will lead to increased purses, racetrack revenue, and breeders' awards in this state.

Wood Memorial Stakes. The Wood Memorial is a Thoroughbred horse race for three-year-olds held annually in April at Aqueduct Racetrack in Queens, New York. It is a Grade I race run over a distance of nine furlongs (1-1/8 miles) on dirt. The Wood Memorial is one of five races run as preps for the United States Triple Crown. Eleven winners of the Wood Memorial have won the Kentucky Derby. Four of them also won the Triple Crown.

Prior/Related Legislation. AB 650 (Perea) of the current legislative session. Adds the "Blue Grass Stakes" to the group of stake races in Horse Racing Law which are exempt from the 50 race per day limit on imported races. Pending on the Senate Inactive File.

AB 2655 (Hall), Chapter 149, Statutes of 2014. Added the "Apple Blossom Handicap" to the group of stake races in Horse Racing Law which are exempt from the 50 race per day limit on imported races.

AB 2693 (Governmental Organization Committee), Chapter 350, Statutes of 2012. Among other things, added the "Arkansas Derby" to the group of stake races in Horse Racing Law which are exempt from the 50 race per day limit on imported races.

AB 707 (Garrick), Chapter 84, Statutes of 2011. Increased from 32 to 50, the limitation on the total number of out-of-state thoroughbred races that may be imported per day by a thoroughbred association or fair that is conducting a live race meet with approval by the CHRB.

AB 2790 (Governmental Organization Committee), Chapter 141, Statutes of 2010. Added the "Arlington Million" to the list of imported races not subject to the limitation of 32 races per day.

SB 899 (Denham), Chapter 279, Statutes of 2010. Deleted the statewide cap on the number of out-of-country thoroughbred races that a thoroughbred racing association or fair may import, simulcast, and on which wagers may be accepted statewide in any given year.

AB 763 (Chesbro), Chapter 122, Statutes of 2009. Authorized the Humboldt County Fair to offer satellite wagering on eight out-of-state races during the August days when the fair is offering live racing, if specified conditions are met.

SB 379 (Denham), Chapter 443, Statutes of 2007. Added the "Dubai World Cup" to a specified day of races that would be exempted from the 23 race day limit on imported races for satellite wagering.

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531 FN: 0001436

Date of Hearing: July 8, 2015

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Adam Gray, Chair

SBPCA Bill Id:SB 187

Author:(Hall) – As Amended Ver:April 21, 2015

SENATE VOTE: 35-0

SUBJECT: Horse racing: out-of-state thoroughbred races: Wood Memorial.

SUMMARY: Adds the “Wood Memorial” to the group of stake races in Horse Racing Law which are exempt from the 50-race per day limit on imported races.

EXISTING LAW:

1. Provides that the California Horse Racing Board (CHRB) shall regulate the various forms of horse racing authorized in this state.

2. Limits the number of races that may be imported by associations and fairs to no more than 50 races per day on days when live thoroughbred or fair racing is being conducted in this state, with specified exceptions.

3. Exempts from that 50 race per day limit races imported that are part of the race card of certain prominent races, including the Kentucky Derby, the Kentucky Oaks, the Preakness Stakes, the Belmont Stakes, the Jockey Club Gold Cup, the Travers Stakes, the Arlington Million, the Breeders' Cup, the Dubai Cup, the Arkansas Derby, the Apple Blossom Handicap or the Haskell Invitational.

4. Authorizes thoroughbred racing associations or fairs to distribute the audiovisual signal and accept wagers on the results of out-of-state and international thoroughbred races during the calendar period the association or fair is conducting live racing, including days on which there is no live racing being conducted by the association or fair.

FISCAL EFFECT: Unknown

COMMENTS:

Purpose of the bill. This bill provides that all races imported by a thoroughbred association or fair that are part of the race card of the overall Wood Memorial day would be exempted from the 50-race per day limit, as defined in current law. Over the years, this provision of law has been amended to allow specific notable races to be imported outside of this cap for promotional and financial reasons.

The author’s office notes that this bill is intended to help increase public interest and participation at California racetracks and satellite wagering facilities. The satellite importation of this historic and prestigious race will allow California racetracks to remain competitive, increase the wagering handle on this specific race day and will lead to increased purses, racetrack revenue, and breeders' awards in this state.

Wood Memorial Stakes. The Wood Memorial is a Thoroughbred horse race for three-year-olds held annually in April at Aqueduct Racetrack in Queens, New York. It is a Grade I race run over a distance of nine furlongs (1-1/8 miles) on dirt. The Wood Memorial is one of five races run as preps for the U.S. Triple Crown. Eleven winners of the Wood Memorial have won the Kentucky Derby. Four of them also won the Triple Crown.

Satellite Wagering. Satellite wagering via an off-track facility has been legal in California since 1985. It was authorized at a time when California racetracks were beginning to experience declining attendance and handle figures. The industry believed that making the product easier to access not only would expose and market horse racing to potential customers, but also would make it more convenient for the existing patrons to wager more often.

Simulcasting. Simulcasting is the process of transmitting the audio and video signal of a live racing performance from one facility to a satellite for re-transmission to other locations or venues where parimutuel wagering is permitted. Simulcasting provides racetracks with the opportunity to increase revenues by exporting their live racing content to as many wagering locations as possible, such as other racetracks, fair satellite facilities and Indian casinos. Revenues are increased because simulcasting provides racetracks that export their live content with additional customers in multiple locations who would not have otherwise been able to place wagers on the live racing event.

Racetrack Attendance. Over the past 25 years, the industry has witnessed a general decline in the number of people attending and wagering at live horse racetracks in California due to a number of factors, including increased competition from other forms of gaming, unwillingness of customers to travel a significant distance to racetracks and the availability of off-track wagering. The declining attendance at live horse racing events has prompted racetracks to rely on revenues from in-state and out-of-state satellite wagering and account wagering.

Prior/Related Legislation. AB 650 (Perea), 2015-2016 Legislative Session. Adds the "Blue Grass Stakes" to the group of stake races in Horse Racing Law which are exempt from the 50-race per day limit on imported races. (Senate Inactive File)

AB 1295 (Gray), 2015-2016 Legislative Session. Would provide that the limitation of 50 imported races per day does not apply to races imported into the combined central and southern zones when there is live thoroughbred or fair racing being conducted in those zones but no live thoroughbred or fair racing is being conducted in the northern zone. (Pending in Senate G.O. Committee)

AB 2655 (Hall), Chapter 149, Statutes of 2014. Added the "Apple Blossom Handicap" to the group of stake races in Horse Racing Law which are exempt from the 50-race per day limit on imported races.

AB 2693 (Governmental Organization Committee), Chapter 350, Statutes of 2012. Among other things, added the “Arkansas Derby” to the group of stake races in Horse Racing Law which are exempt from the 50-race per day limit on imported races.

AB 707 (Garrick), Chapter 84, Statutes of 2011. Increased from 32 to 50, the limitation on the total number of out-of-state thoroughbred races that may be imported per day by a thoroughbred association or fair that is conducting a live race meet with approval by the CHRB.

AB 2790 (Governmental Organization Committee), Chapter 141, Statutes of 2010. Added the "Arlington Million" to the list of imported races not subject to the limitation of 32 races per day.

SB 899 (Denham), Chapter 279, Statutes of 2010. Deleted the statewide cap on the number of out-of-country thoroughbred races that a thoroughbred racing association or fair may import, simulcast, and on which wagers may be accepted statewide in any given year.

AB 763 (Chesbro), Chapter 122, Statutes of 2009. Authorized the Humboldt County Fair to offer satellite wagering on eight out-of-state races during the August days when the fair is offering live racing, if specified conditions are met.

SB 379 (Denham), Chapter 443, Statutes of 2007. Added the “Dubai World Cup” to a specified day of races that would be exempted from the 23-race day limit on imported races for satellite wagering.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

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

 CONSENT  

Bill No: SB 187

Author: Hall (D)

Amended: 4/21/15

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 7-0, 4/28/15

AYES: Hall, Block, Hernandez, Hill, Hueso, Lara, McGuire

NO VOTE RECORDED: Berryhill, Gaines, Galgiani, Vidak

SUBJECT: Horse racing: out-of-state thoroughbred races: Wood Memorial

SOURCE: Author

DIGEST: This bill adds the “Wood Memorial” to the group of stake races in Horse Racing Law which are exempt from the 50-race per day limit on imported races.

ANALYSIS:

Existing law:

1. Provides that the California Horse Racing Board shall regulate the various forms of horse racing authorized in this state.

2. Limits the number of races that may be imported by associations and fairs to no more than 50 races per day on days when live thoroughbred or fair racing is being conducted in this state, with specified exceptions.

3. Exempts from that 50-race per day limit races imported that are part of the race card of certain prominent races, including the Kentucky Derby, the Kentucky Oaks, the Preakness Stakes, the Belmont Stakes, the Jockey Club Gold Cup, the Travers Stakes, the Arlington Million, the Breeders' Cup, the Dubai Cup, the Arkansas Derby, the Apple Blossom Handicap or the Haskell Invitational.

4. Authorizes thoroughbred racing associations or fairs to distribute the audiovisual signal and accept wagers on the results of out-of-state and international thoroughbred races during the calendar period the association or fair is conducting live racing, including days on which there is no live racing being conducted by the association or fair.

This bill adds the “Wood Memorial” to the group of stake races in Horse Racing Law which are exempt from the 50-race per day limit on imported races.

Background

Wood Memorial Stakes. The Wood Memorial is a flat thoroughbred horse race for three-year-olds held annually in April at Aqueduct Racetrack in Queens, New York. It is a Grade I race run over a distance of nine furlongs (1-1/8 miles) on dirt. The Wood Memorial is one of five races run as preps for the U.S. Triple Crown. The race was named to honor Eugene D. Wood, a New York State politician and horse racing enthusiast who had been a founder and past president of the old Jamaica Racetrack where the race was run from 1925 until 1960. Eleven winners of the Wood Memorial have won the Kentucky Derby. Four of them also won the Triple Crown. The 2015 Wood Memorial winner was “Frosted” (Joel Rosario – jockey); 2nd “Tencendur” (Jose L. Ortiz – jockey); 3rd “El Kabeir” (Charles C. Lopez – jockey); and 4th “Daredevil” (Javier Castellano – jockey).

Purpose of SB 187. This bill provides that all races imported by a thoroughbred association or fair that are part of the race card of the overall Wood Memorial day would be exempted from the 50-race per day limit, as defined in current law. Over the years, this provision of law has been amended to allow specific notable races to be imported outside of this cap for promotional and financial reasons.

The author’s office notes that this bill is intended to help increase public interest and participation at California racetracks and satellite wagering facilities. The satellite importation of this historic and prestigious race will allow California racetracks to remain competitive, increase the wagering handle on this specific race day and will lead to increased purses, racetrack revenue, and breeders' awards in this state.

Satellite Wagering. Satellite wagering via an off-track facility has been legal in California since 1985. It was authorized at a time when California racetracks were beginning to experience declining attendance and handle figures. The industry believed that making the product easier to access not only would expose and market horse racing to potential customers, but also would make it more convenient for the existing patrons to wager more often.

Simulcasting. Simulcasting is the process of transmitting the audio and video signal of a live racing performance from one facility to a satellite for re-transmission to other locations or venues where parimutuel wagering is permitted. Simulcasting provides racetracks with the opportunity to increase revenues by exporting their live racing content to as many wagering locations as possible, such as other racetracks, fair satellite facilities and Indian casinos. Revenues are increased because simulcasting provides racetracks that export their live content with additional customers in multiple locations who would not have otherwise been able to place wagers on the live racing event.

Racetrack Attendance. Over the past 25 years the industry has witnessed a general decline in the number of people attending and wagering at live horse racetracks in California due to a number of factors, including increased competition from other forms of gaming, unwillingness of customers to travel a significant distance to racetracks and the availability of off-track wagering. The declining attendance at live horse racing events has prompted racetracks to rely on revenues from in-state and out-of-state satellite wagering and account wagering.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 4/28/15)

None received

OPPOSITION: (Verified 4/28/15)

None received

Prepared by: Arthur Terzakis / G.O. / (916) 651-1530

5/1/15 14:30:16

**** END ****

 CONSENT  

Bill No: SB 187

Author: Hall (D)

Amended: 4/21/15

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 7-0, 4/28/15

AYES: Hall, Block, Hernandez, Hill, Hueso, Lara, McGuire

NO VOTE RECORDED: Berryhill, Gaines, Galgiani, Vidak

SUBJECT: Horse racing: out-of-state thoroughbred races: Wood Memorial

SOURCE: Author

DIGEST: This bill adds the “Wood Memorial” to the group of stake races in Horse Racing Law which are exempt from the 50-race per day limit on imported races.

ANALYSIS:

Existing law:

1. Provides that the California Horse Racing Board shall regulate the various forms of horse racing authorized in this state.

2. Limits the number of races that may be imported by associations and fairs to no more than 50 races per day on days when live thoroughbred or fair racing is being conducted in this state, with specified exceptions.

3. Exempts from that 50-race per day limit races imported that are part of the race card of certain prominent races, including the Kentucky Derby, the Kentucky Oaks, the Preakness Stakes, the Belmont Stakes, the Jockey Club Gold Cup, the Travers Stakes, the Arlington Million, the Breeders' Cup, the Dubai Cup, the Arkansas Derby, the Apple Blossom Handicap or the Haskell Invitational.

4. Authorizes thoroughbred racing associations or fairs to distribute the audiovisual signal and accept wagers on the results of out-of-state and international thoroughbred races during the calendar period the association or fair is conducting live racing, including days on which there is no live racing being conducted by the association or fair.

This bill adds the “Wood Memorial” to the group of stake races in Horse Racing Law which are exempt from the 50-race per day limit on imported races.

Background

Wood Memorial Stakes. The Wood Memorial is a flat thoroughbred horse race for three-year-olds held annually in April at Aqueduct Racetrack in Queens, New York. It is a Grade I race run over a distance of nine furlongs (1-1/8 miles) on dirt. The Wood Memorial is one of five races run as preps for the U.S. Triple Crown. The race was named to honor Eugene D. Wood, a New York State politician and horse racing enthusiast who had been a founder and past president of the old Jamaica Racetrack where the race was run from 1925 until 1960. Eleven winners of the Wood Memorial have won the Kentucky Derby. Four of them also won the Triple Crown. The 2015 Wood Memorial winner was “Frosted” (Joel Rosario – jockey); 2nd “Tencendur” (Jose L. Ortiz – jockey); 3rd “El Kabeir” (Charles C. Lopez – jockey); and 4th “Daredevil” (Javier Castellano – jockey).

Purpose of SB 187. This bill provides that all races imported by a thoroughbred association or fair that are part of the race card of the overall Wood Memorial day would be exempted from the 50-race per day limit, as defined in current law. Over the years, this provision of law has been amended to allow specific notable races to be imported outside of this cap for promotional and financial reasons.

The author’s office notes that this bill is intended to help increase public interest and participation at California racetracks and satellite wagering facilities. The satellite importation of this historic and prestigious race will allow California racetracks to remain competitive, increase the wagering handle on this specific race day and will lead to increased purses, racetrack revenue, and breeders' awards in this state.

Satellite Wagering. Satellite wagering via an off-track facility has been legal in California since 1985. It was authorized at a time when California racetracks were beginning to experience declining attendance and handle figures. The industry believed that making the product easier to access not only would expose and market horse racing to potential customers, but also would make it more convenient for the existing patrons to wager more often.

Simulcasting. Simulcasting is the process of transmitting the audio and video signal of a live racing performance from one facility to a satellite for re-transmission to other locations or venues where parimutuel wagering is permitted. Simulcasting provides racetracks with the opportunity to increase revenues by exporting their live racing content to as many wagering locations as possible, such as other racetracks, fair satellite facilities and Indian casinos. Revenues are increased because simulcasting provides racetracks that export their live content with additional customers in multiple locations who would not have otherwise been able to place wagers on the live racing event.

Racetrack Attendance. Over the past 25 years the industry has witnessed a general decline in the number of people attending and wagering at live horse racetracks in California due to a number of factors, including increased competition from other forms of gaming, unwillingness of customers to travel a significant distance to racetracks and the availability of off-track wagering. The declining attendance at live horse racing events has prompted racetracks to rely on revenues from in-state and out-of-state satellite wagering and account wagering.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT:

(Verified 4/28/15)

None received

OPPOSITION: (Verified 4/28/15)

None received

Prepared by: Arthur Terzakis / G.O. / (916) 651-1530

4/29/15 16:18:39

**** END ****

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Isadore Hall, III

Chair

2015 - 2016 Regular

Bill No: SB 187 Hearing Date: 4/28/2015

SUBJECT: Horse racing: out-of-state thoroughbred races: Wood Memorial.

DIGEST: This bill adds the “Wood Memorial” to the group of stake races in Horse Racing Law which are exempt from the 50-race per day limit on imported races.

ANALYSIS:

Existing law:

1. Provides that the California Horse Racing Board (CHRB) shall regulate the various forms of horse racing authorized in this state.

2. Limits the number of races that may be imported by associations and fairs to no more than 50 races per day on days when live thoroughbred or fair racing is being conducted in this state, with specified exceptions.

3. Exempts from that 50 race per day limit races imported that are part of the race card of certain prominent races, including the Kentucky Derby, the Kentucky Oaks, the Preakness Stakes, the Belmont Stakes, the Jockey Club Gold Cup, the Travers Stakes, the Arlington Million, the Breeders' Cup, the Dubai Cup, the Arkansas Derby, the Apple Blossom Handicap or the Haskell Invitational.

4. Authorizes thoroughbred racing associations or fairs to distribute the audiovisual signal and accept wagers on the results of out-of-state and international thoroughbred races during the calendar period the association or fair is conducting live racing, including days on which there is no live racing being conducted by the association or fair.

This bill adds the “Wood Memorial” to the group of stake races in Horse Racing Law which are exempt from the 50-race per day limit on imported races.

Background

Wood Memorial Stakes: The Wood Memorial is a flat thoroughbred horse race for three-year-olds held annually in April at Aqueduct Racetrack in Queens, New York. It is a Grade I race run over a distance of 9 furlongs (1-1/8 miles) on dirt. The Wood Memorial is one of five races run as preps for the U.S. Triple Crown. The race was named to honor Eugene D. Wood, a New York State politician and horse racing enthusiast who had been a founder and past president of the old Jamaica Racetrack where the race was run from 1925 until 1960. Eleven winners of the Wood Memorial have won the Kentucky Derby. Four of them also won the Triple Crown. The 2015 Wood Memorial winner was “Frosted” (Joel Rosario – jockey); 2nd “Tencendur” (Jose L. Ortiz – jockey); 3rd “El Kabeir” (Charles C. Lopez – jockey); and, 4th “Daredevil” (Javier Castellano – jockey).

Purpose of SB 187: This measure provides that all races imported by a thoroughbred association or fair that are part of the race card of the overall Wood Memorial day would be exempted from the 50-race per day limit, as defined in current law. Over the years, this law has been amended to allow specific notable races to be imported outside of this cap for promotional and financial reasons.

The author’s office notes that this measure is intended to help increase public interest and participation at California racetracks and satellite wagering facilities. The satellite importation of this historic and prestigious race will allow California racetracks to remain competitive, increase the wagering handle on this specific race day and will lead to increased purses, racetrack revenue, and breeders' awards in this state.

Satellite Wagering: Satellite wagering via an off-track facility has been legal in California since 1985. It was authorized at a time when California racetracks were beginning to experience declining attendance and handle figures. The industry believed that making the product easier to access not only would expose and market horse racing to potential customers, but also would make it more convenient for the existing patrons to wager more often.

Simulcasting: Simulcasting is the process of transmitting the audio and video signal of a live racing performance from one facility to a satellite for re-transmission to other locations or venues where parimutuel wagering is permitted. Simulcasting provides racetracks with the opportunity to increase revenues by exporting their live racing content to as many wagering locations as possible, such as other racetracks, fair satellite facilities and Indian casinos. Revenues are increased because simulcasting provides racetracks that export their live content with additional customers in multiple locations who would not have otherwise been able to place wagers on the live racing event.

Racetrack Attendance: Over the past 25 years the industry has witnessed a general decline in the number of people attending and wagering at live horse racetracks in California due to a number of factors, including increased competition from other forms of gaming, unwillingness of customers to travel a significant distance to racetracks and the availability of off-track wagering. The declining attendance at live horse racing events has prompted racetracks to rely on revenues from in-state and out-of-state satellite wagering and account wagering.

Prior/Related Legislation

AB 650 (Perea) 2015-16 Session. Would add the “Blue Grass Stakes” to the group of stake races in Horse Racing Law which are exempt from the 50-race per day limit on imported races. (Pending in Assembly policy committee)

AB 1295 (Gray) 2015-16 Session. Would provide that the limitation of 50 imported races per day does not apply to races imported into the combined central and southern zones when there is live thoroughbred or fair racing being conducted in those zones but no live thoroughbred or fair racing is being conducted in the northern zone. (Pending in Assembly policy committee)

AB 2655 (Hall), Chapter 149, Statutes of 2014. Added the “Apple Blossom Handicap” to the group of stake races in Horse Racing Law which are exempt from the 50-race per day limit on imported races.

AB 2693 (Governmental Organization), Chapter 350, Statutes of 2012. Among other things, added the “Arkansas Derby” to the group of stake races in Horse Racing Law which are exempt from the 50-race per day limit on imported races.

AB 2520 (Hall), Chapter 347, Statutes of 2012. Increased the number of races quarter or harness racing associations are allowed to import for simulcast wagering purposes from 8 to 10 per day on live racing days.

AB 707 (Garrick), Chapter 84, Statutes of 2011. Increased from 32 to 50, the limitation on the total number of out-of-state thoroughbred races that may be imported per day by a thoroughbred association or fair that is conducting a live race meet with approval by the CHRB.

AB 2790 (Governmental Organization), Chapter 141, Statutes of 2010. Added the "Arlington Million" to the list of imported races not subject to the limitation of 32 races per day.

SB 899 (Denham), Chapter 279, Statutes of 2010. Deleted the statewide cap on the number of out-of-country thoroughbred races that a thoroughbred racing association or fair may import, simulcast, and on which wagers may be accepted statewide in any given year.

AB 136 (Silva), Chapter 221, Statutes of 2009. Deleted the limitation on the total number of out-of-state or out-of-country harness or quarter horse races that may be imported in a calendar year by a harness or quarter horse racing association.

AB 763 (Chesbro), Chapter 122, Statutes of 2009. Authorized the Humboldt County Fair to offer satellite wagering on eight out-of-state races during the August days when the fair is offering live racing, if specified conditions are met.

AB 2048 (Silva), Chapter 439, Statutes of 2008. Among other things, increased by two (from six to eight) the number of races that a harness and quarter horse racing association could import on live racing days from out-of-state and out-of-country locations.

AB 3074 (Governmental Organization), Chapter 508, Statutes of 2008. Authorized the CHRB to allow harness racing tracks to accept wagers during the Kentucky Futurity and increased from 23 to 32 the total number of thoroughbred races that may be imported statewide for satellite wagering by associations or fairs.

SB 379 (Denham), Chapter 443, Statutes of 2007. Added the “Dubai World Cup” to a specified day of races that would be exempted from the 23-race day limit on imported races for satellite wagering.

AB 241 (Price), Chapter 594, Statutes of 2007. Among other things, authorized all fairs to operate a satellite wagering facility off of the fair grounds. In addition, authorized the establishment of up to 45 “mini-satellite” wagering sites to be operated by private industry throughout the state.

AB 765 (Evans), Chapter 613, Statutes of 2007. Among other things, reauthorized horse racing's Advance Deposit Wagering law, which was due to "sunset" on January 1, 2008.

AB 1736 (Governmental Organization), Chapter 444, Statutes of 2007. Added the “Travers Stakes” to a specified day of races that would be exempted from the 23-race day limit on imported races for satellite wagering.

SB 1183 (Margett), Chapter 232, Statutes of 2004. Authorized a harness racing association that is conducting a live race meeting to accept wagers on the full card of races conducted by another racing association on the day the other racing association conducts the Breeders Crown Stakes, the Meadowlands Pace, the Hambletonian or the North American Cup.

AB 509 (Jerome Horton), Chapter 235, Statutes of 2004. Allowed a thoroughbred racing association or fair to import the audiovisual signal, and accept wagers on, the results of out-of-country thoroughbred races.

AB 471 (Hertzberg), Chapter 198, Statutes of 2001. Among other things, allowed a California resident to wager on races (including most out-of-state racetracks) using the phone, Internet or other electronic media.

AB 2760 (Wesson), 1999-2000 Session. Would have established a backstretch employee labor relations process, as specified, and authorized the CHRB to permit racing associations to accept advanced deposit wagers, as defined. (Vetoed by the Governor on the basis that allowing wagering via the Internet and telephone would be a major change in the status quo and a significant expansion of gambling.)

SB 27 (Maddy), Chapter 335, Statutes of 1998. Among other things, authorized wagering on the results of out-of-state thoroughbred races provided that the total number accepted statewide in any given year does not exceed the total number of thoroughbred races on which wagers were accepted in 1998. Also, capped the total number of thoroughbred races imported at 23 per day.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT:

None received

OPPOSITION:

None received