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 those 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 amendment to the tribal-state gaming compact entered into between the State of California and the Habematolel Pomo of Upper Lake, executed on August 16, 2018. 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 those 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 amendment to the tribal-state gaming compact entered into between the State of California and the Habematolel Pomo of Upper Lake, executed on August 16, 2018. 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 law, the Gambling Control Act, provides for the licensure and regulation of various legalized gambling activities and establishments by the California Gambling Control Commission and the investigation and enforcement of those activities and establishments by the Department of Justice. Existing law requires a person who is required to hold a state license to obtain the license before engaging in the activity or occupying the position with respect to which the license is required, except as specified. Existing law also requires every person who, by order of the commission, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order. Except as otherwise specified, a willful violation of the Gambling Control Act is punishable as a misdemeanor.

This bill would require the application described above to be filed within 90 calendar days after receipt of an order of the commission.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1966

Author:(Aguiar-Curry)

As Amended Ver:August 24, 2018

2/3 vote. Urgency

(vote not relevant)

Original Committee Reference: G.O.

SUMMARY: This bill would ratify the amendment to the tribal-state gaming compact (Amended Compact) entered into between the State of California (State) and the Habematolel Pomo of Upper Lake (Tribe), executed on August 16, 2018.

The Senate amendments delete the Assembly version of this bill, and instead:

1. Ratify the amendment to the tribal-state gaming compact entered into between the State of California and the Tribe, executed on August 16, 2018.
2. Provide that in deference to tribal sovereignty, certain actions are not deemed projects for purposes of the California Environmental Quality Act (CEQA), as specified.
3. 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, or any state agency or local jurisdictions, from CEQA requirements.
4. Contain an urgency clause, allowing this bill to take effect immediately upon enactment.

GENERAL OVERVIEW:

On August 16, 2018, the Tribe, a federally recognized Indian tribe, and the State entered into an Amendment to the Tribal-State Compact between the State and the Tribe pursuant to the Indian Gaming Regulatory Act (IGRA) and section 15.1 of the Tribal-State Compact between the State and the Tribe, effective August 10, 2011 (2011 Compact).

The Amended Compact conforms the worker compensation provisions of the Tribe's existing compact, ratified in 2011, to those of compacts that are more recent. In addition, the Amended Compact clarifies that nothing in any other tribal compact should be a factor in construing the terms of this Amended Compact and brings the Tribal Labor Relations Ordinance provisions of the Tribe's compact in line with compacts that are more recent.

In 2011, the Tribe entered into a new tribal-state compact (ratified by AB 1020 (Chesbro), Chapter 27, Statutes of 2011)) that authorized the operation of no more than 750 slot machines at one gaming facility located on those Indian lands held in trust for the Tribe. Under terms of the 2011 Compact, the Tribe agreed to pay $900 per slot machines into the Revenue Sharing Trust Fund $900 if the Tribe operates 350 slot machines or more.

According to the Amended Compact's preamble, the State and the Tribe share an interest in creating a framework within which the gaming facility can operate successfully to generate revenue for essential government programs for tribal members while also ensuring that other interests, including an efficient and effective system to address the appropriate process to protect employees who are injured or become sick while performing work-related duties.

The Amended Compact's preamble further states, the Tribe and the State share an interest in ensuring that the Tribe is entitled to offer only the forms of Class III gaming that the State possesses the power to authorize or permit under the California Constitution. The State and the Tribe agree that all terms of this Amendment and the 2011 Compact are intended to be binding and enforceable.

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 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.

FISCAL EFFECT: Unknown

COMMENTS: On August 22, 2018, the Assembly Governmental Organization Committee held an informational hearings on the amendment to the tribal-state gaming compact entered into between the State of California and the Habematolel Pomo of Upper Lake, executed on August 16, 2018.

Brief History of Tribe: The Habematolel Pomo of Upper Lake is a federally recognized tribe of Pomo Indians in Lake County, California. The Tribe's reservation, the Upper Lake Rancheria, is located near the town of Upper Lake in northwestern California. The Tribe has a general membership of approximately 273 tribal members, the majority of whom reside in the counties of Lake, Santa Clara, Contra Costa, Napa, Mendocino, Sonoma, Yolo, Alameda, and Los Angeles due to historic displacement.

Ancestral Pomo people occupied parts of central and northern California, known as "Pomo Country." The Pomos, along with the Patwin and Wintun, were actually made up of numerous small bands or villages spread throughout the area north of the Sacramento River Delta and between the Russian River and the California River Valleys, as well as along the Pacific Coast.

On November 13, 2008, the United States Department of Interior determined that the Tribe met the conditions of the restored lands exception under IGRA, and the Tribe accepted two parcels of land, in trust for the benefit of the Tribe, totaling 11.24 acres in the County of Lake (adjacent to and south of State Route 20 and east of State Route 29. This land is within the Tribe's aboriginal territory and eligible for development for gaming purposes.

The Tribe is governed by a tribal council composed of seven elected members elected at-large for a term of four years. The council includes a chairperson, a vice-chairperson, a treasurer, and a secretary. The Habematolel Pomo tribal office currently has nine employees to operate their own housing, environmental, and educational programs, including computer classes and GED preparation.

The Tribe currently operates the Running Creek Casino located along the historic Highway 20 corridor of Upper Lake, California. Opened in 2012, the casino includes approximately 33,000 square feet of gaming, 349 slot machines, five table games, three restaurants, a banquet room, and live entertainment.

The Tribe reports that the goals of the Habematolel Pomo of Upper Lake Tribe are as follows: to preserve its Pomo culture; to protect the interests of its children; to use, conserve and control its acquired land and natural resources; to promote the stability and security of its Tribe and families; and to promote its people's social and economic well-being.

Key Provisions of the Compact:

Tribal Labor Relations Ordinance: Updates the Tribal Labor Relations Ordinance (TLRO) provisions of the Tribe's 2011 Compact to make it consistent with more recent compacts.

Worker Compensation System: This Amended Compact authorizes the Tribe to opt out of the State's Workers Compensation program and instead authorizes the Tribe to create and maintain a their own workers compensation program as long as the Tribe provides the same benefits and legal protections to employees as the state does. Recent compacts have included a similar provision.

Construction: Similar to other compacts, this Amended Compact specifies that neither the presence nor omission in another tribal-state Class III Gaming of language that is present in this Amended Compact shall be a factor in construing the terms of this Amended Compact.

Additional Background Information:

Compact Ratification: The State Constitution, as amended by Proposition 1A of March 2000, permits Indian tribes to conduct and operate slot machines, lottery games, and banked and percentage card games on Indian land. These gambling activities shall only occur if:

1. The Governor and an Indian tribe reach agreement on a compact;
2. The Legislature approves the compact, and
3. The federal government approves the compact.

The Governor is the designated State officer responsible for negotiating and executing, on behalf of the State, Tribal-State gaming compacts with federally recognized Indian tribes located within the State of California. Following completion of negotiations, the Governor shall submit a copy of any executed Tribal-State compact to both houses of the Legislature for ratification and shall submit a copy of the executed compact to the Secretary of State. This Compact provides that it shall not be presented to the Legislature for a ratification vote until the Tribe has provided the written proof and will provide written proof to the Governor the tribal governing body has ratified it.

The Federal Indian Gaming Regulatory Act (IGRA) of 1988: Established the jurisdictional framework that presently governs Indian gaming. Under IGRA, before a tribe may lawfully conduct class III gaming (games commonly played at casinos, such as slot machines and black jack), the following conditions must be met: 1) The particular form of class III gaming must be permitted in the state; 2) The tribe and the state must have negotiated a compact that has been approved by the Secretary of the Interior; and 3) The tribe must have adopted a tribal gaming ordinance that has been approved by the chairman of the National Indian Gaming Commission.

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.

Special Distribution Fund: 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 Department of Justice (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.

Revenue Sharing Trust Fund: 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.

Tribal Nation Grant Fund: 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 1966 (Aguiar-Curry) of the current legislative session. Would ratify the tribal-state gaming compact (Compact) entered into between the State of California and the Big Valley Band of Pomo Indians of the Big Valley Rancheria, California (Tribe), executed on August 16, 2018. (Pending on the Senate Floor)

AB 3262 (Gray) of the current legislative session. Would ratify amendments to the current tribal-state gaming compact between the State of California and the Santa Ynez Band of Chumash Mission Indians, executed on August 1, 2018. (Pending on the Senate Floor)

SB1051 (Dodd) of the current legislative session. Would ratify separate tribal-state gaming compacts between the State of California and the La Jolla Band of Luiseño Indians, executed on August 1, 2018; the Mechoopda Indian Tribe of Chico Rancheria, executed on August 8, 2018; the San Pasqual Band of Mission Indians, executed on August 8, 2018; the Torres Martinez Band of Desert Cahuilla Indians, executed on August 16, 2018; the Twenty-Nine Palms Band of Mission Indians, executed on August 8, 2018; as well as amendments to current tribal-state gaming compacts with the Dry Creek Rancheria Band of Pomo Indians, executed on August 1, 2018 and the Karuk Tribe, executed on August 1, 2018. (Pending on the Assembly Floor)

Prior legislation: AB 1433 (Wood), Chapter 11, Statutes of 2018. Ratified the tribal state compact entered into between the State of California and the Elk Valley Rancheria, California, executed on August 31, 2017.

SB 6 (Hueso), Chapter 455, Statutes of 2017. Ratified the amendment to the tribal-state gaming compact entered into between the State of California and the Quechan Tribe of the Fort Yuma Indian Reservation, executed on August 31, 2017.

SB 626 (Dodd), Chapter 465, Statutes of 2017. Ratified the amendment to the tribal-state gaming compact entered into between the State of California and the Federated Indians of Graton Rancheria, executed on August 18, 2017.

SB 585 (Mendoza and McGuire), Chapter 464, Statutes of 2017. Ratified the amendment to the tribal-state gaming compact entered into between the State of California and the Dry Creek Rancheria Band of Pomo Indians, executed on August 18, 2017.

AB 174 (Bigelow), Chapter 435, Statutes of 2017. Ratified the tribal-state gaming compact entered into between the State of California and the United Auburn Indian Community, executed on August 18, 2017.

AB 253 (Bigelow), Chapter 437, Statutes of 2017. Ratified the tribal-state gaming compact entered into between the State of California and the Tuolumne Band of Me-Wuk Indians, executed on August 18, 2017.

AB 394 (Mathis), Chapter 440, Statutes of 2017. Ratified a tribal-State gaming compact entered into between the State of California and the Tule River Indian Tribe of California, executed on August 31, 2017.

AB 891 (Mayes), Chapter 447, Statutes of 2017. Ratified the tribal-state gaming compact entered into between the State of California and the Morongo Band of Mission Indians, executed on September 6, 2017.

AB 1606 (Cooper), Chapter 453, Statutes of 2017. Ratified the tribal-state gaming compact entered into between the State of California and the Wilton Rancheria, executed on July 19, 2017.

AB 1378 (Gray), Chapter 450, Statutes of 2017. Ratified an amendment to the tribal-state gaming compact entered into between the State of California and the San Manuel Band of Mission Indians, executed on August 18, 2017.

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 (Tule River Indian Tribe of California) and created two special funds in the State Treasury (SDF and RSTF), as specified.

Proposition 5 (Adopted by the People of California on November 3, 1998) specified the terms and conditions of mandatory compacts between the State and tribal governments for class III gambling on Indian lands; amended California law to allow slot machines and banked card games at tribal casinos; provided for contributions to trust funds benefiting non-gaming tribes, statewide emergency medical care programs, and programs benefiting communities near tribes; and, allowed tribes to retain a monopoly on authorized gambling. Proposition 5 was found to be unconstitutional because it amended a provision of the Government Code and did not amend the Constitution. The proposition was invalidated in its entirety, save the final sentence of Government Code Section 98005, containing the state's consent to federal suits brought by California tribes pursuant to IGRA.

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

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531 FN: 0005178

 THIRD READING  

Bill No: AB 1966

Author: , et al.

Amended: 8/24/18 in Senate

Vote: 27- Urgency

PRIOR VOTES NOT RELEVANT

SENATE FLOOR: 26-0, 8/29/18 (FAIL)

AYES: Allen, Atkins, Beall, Bradford, De León, Delgado, Dodd, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mitchell, Monning, Pan, Portantino, Roth, Skinner, Stern, Wieckowski, Wiener

NO VOTE RECORDED: Anderson, Bates, Berryhill, Cannella, Chang, Fuller, Gaines, Moorlach, Morrell, Nguyen, Nielsen, Stone, Vidak, Wilk

[NOTE: On August 22, 2018, the Senate Governmental Organization Committee held an informational hearing on the Amendment to the tribal-state gaming compact between the State of California and the Habematolel Pomo of Upper Lake, executed on August 16, 2018.]

SUBJECT: Tribal gaming: compact ratification

SOURCE: Author

DIGEST:

This bill ratifies the Amendment to the tribal state compact (Compact) entered into between the State of California and the Habematolel Pomo of Upper Lake (hereafter “Tribe) executed on August 16, 2018.

Senate Floor Amendments of 8/24/18 delete the prior version of the bill and instead add language ratifying the Compact entered into between the State of California and the Tribe executed on August 16, 2018. The amendments also add Senator McGuire as principal coauthor and add an urgency clause.

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:

1. Ratifies the Compact between the State of California and the Tribe executed on August 16, 2018.
2. Provides that in deference to tribal sovereignty, certain actions are not deemed projects for purposes of the California Environmental Quality Act (CEQA).
3. 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, or any state agency or local jurisdictions, from CEQA requirements.
4. Contains an urgency clause.

Background

The Amendment to the Amended Compact between the State of California and the Tribe was executed on August 16, 2018. The Amended Compact conforms the worker compensation provisions of the Tribe’s existing compact, ratified in 2011, to those of more recent compacts. In addition, the Amended Compact clarifies that nothing in any other tribal compact should be a factor in construing the terms of this Amended Compact and brings the Tribal Labor Relations Ordinance provisions of the Tribe’s compact in line with more recent compacts.

In 2011, the Tribe entered into a new tribal-state compact [ratified by AB 1020 (Chesbro, Chapter 27, Statutes of 2011)] that authorized the operation of no more than 750 slot machines at one gaming facility located on those Indian lands held in trust for the Tribe. Under terms of the 2011 Compact, the Tribe agreed to pay $900 per slot machine into the Revenue Sharing Trust Fund if the Tribe operates 350 slot machines or more.

According to the Amended Compact’s preamble, the State and the Tribe share an interest in creating a framework within which the gaming facility can operate successfully to generate revenue for essential government programs for tribal members while also ensuring that other interests, including an efficient and effective system to address the appropriate process to protect employees who are injured or become sick while performing work-related duties.

The Tribe currently operates the Running Creek Casino located along the historic Highway 20 corridor of Upper Lake, California. Opened in 2012, the casino includes approximately 33,000 square feet of gaming, 349 slot machines, five table games, three restaurants, a banquet room, and live entertainment.

Brief History of the Tribe. The Habematolel Pomo of Upper Lake is a federally recognized tribe of Pomo Indians in Lake County, California. The Tribe's reservation, the Upper Lake Rancheria, is located near the town of Upper Lake in northwestern California. The Tribe has a general membership of approximately 273 tribal members, the majority of whom reside in the counties of Lake, Santa Clara, Contra Costa, Napa, Mendocino, Sonoma, Yolo, Alameda, and Los Angeles due to historic displacement.

Ancestral Pomo people occupied parts of central and Northern California, known as “Pomo Country.” The Pomos, along with the Patwin and Wintun, were actually made up of numerous small bands or villages spread throughout the area north of

the Sacramento River Delta and between the Russian River and the California River Valleys, as well as along the Pacific Coast.

On November 13, 2008, the United States Department of Interior determined that the Tribe met the conditions of the restored lands exception under the IGRA, and the Tribe accepted two parcels of land, in trust for the benefit of the Tribe, totaling 11.24 acres in the County of Lake (adjacent to and south of State Route 20 and east of State Route 29. This land is within the Tribe’s aboriginal territory and eligible for development for gaming purposes.

The Tribe is governed by a tribal council composed of seven elected members elected at-large for a term of four years. The council includes a chairperson, a vice-chairperson, a treasurer, and a secretary. The Habematolel Pomo tribal office currently has nine employees to operate their own housing, environmental, and educational programs, including computer classes and GED preparation.

The Tribe currently operates the Running Creek Casino located along the historic Highway 20 corridor of Upper Lake, California. Opened in 2012, the casino includes approximately 33,000 square feet of gaming, 349 slot machines, five table games, three restaurants, a banquet room, and live entertainment.

The Tribe reports that the goals of the Habematolel Pomo of Upper Lake Tribe are as follows: to preserve its Pomo culture; to protect the interests of its children; to use, conserve and control its acquired land and natural resources; to promote the stability and security of its Tribe and families; and to promote its people’s social and economic well-being.

Details of the Amended Compact

Satellite Wagering Facility. This Amended Compact allows the tribe to provide off-track wagering on horse races at a satellite wagering facility. The Tribe is required to follow the same regulations as other satellite wagering facilities in the state as prescribed by the California Horse Racing Board.

Construction. Similar to other compacts, this Amended Compact specifies that neither the presence nor omission in another tribal-state Class III Gaming of language that is present in this Amended Compact shall be a factor in construing the terms of this Amended Compact.

Worker Compensation System. The Tribe is authorized to opt out of the State’s Workers Compensation program and instead authorizes the Tribe to create and maintain their own workers compensation program as long as the tribe provides the same benefits and legal protections to employees as the state. Recent compacts have included a similar provision.

Construction. Similar to other compacts, this Amended Compact specifies that neither the presence nor omission in another tribal-state Class III Gaming of language that is present in this Amended Compact shall be a factor in construing the terms of this Amended Compact.

Tribal Labor Relations Ordinance. The Compact updates the Tribal Labor Relations Ordinance provisions of the Tribe’s compact to make them consistent to recent compacts.

Additional Background Information

IGRA. In 1988, Congress enacted 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.”

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 the California Gambling Control Commission, 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. 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.

Related/Prior Legislation

SB 531 (Dodd, 2018) ratifies the tribal-state gaming compacts entered into between the State of California and the La Jolla Band of Luiseño Indians, the Mechoopda Indian Tribe of Chico Rancheria, the San Pasqual Band of Mission Indians, the Torres-Martinez Desert Cahuilla Indians, and the Twenty-Nine Palms, band of Mission Indians. The bill also ratifies the amendment to the tribal-state gaming compact entered into between the State of California and both the Dry Creek Rancheria Band of Pomo Indians, and the Karuk Tribe. (Pending on the Assembly Floor)

AB 1965 (Aguiar-Curry, 2018) ratifies the tribal-state gaming compact entered into between the State of California and the Big Valley Band of Pomo Indians of the Big Valley Rancheria, executed on August 16, 2018. (Pending on the Senate Floor)

AB 3262 (Gray, 2018) ratifies the amendment to the tribal-state gaming compact entered into between the State of California and the Santa Ynez Band of Mission Indians, executed on August 1, 2018. (Pending on the Senate Floor)

AB 1433 (Wood, Chapter 11, Statutes of 2018) ratified the tribal-state gaming compact entered into between the State of California and the Elk Valley, Rancheria, executed on August 31, 2017.

AB 1020 (Wood, Chapter 27, Statutes of 2011) ratified the tribal-state gaming compact entered into between the State of California and the Tribe, executed on September 2, 2009.

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

SUPPORT: (Verified 8/27/18)

California Tribal Business Alliance

Mechoopda Indian Tribe of Chico Rancheria

Pala Band of Mission Indians

Picayune Rancheria of the Chukchansi Indians

Torres Martinez Desert Cahuilla Indian Tribe

OPPOSITION: (Verified 8/27/18)

None received

Prepared by:

8/30/18 10:29:26

**** END ****

 CONSENT  

Bill No: AB 1966

Author:

:

Vote:

SENATE GOVERNMENTAL ORG. COMMITTEE: 10-0, 6/12/18

AYES: Dodd, Wilk, Cannella, Gaines, Galgiani, Glazer, Hill, Hueso, Portantino, Vidak

NO VOTE RECORDED: Bradford, Lara

ASSEMBLY FLOOR: 68-0, 4/12/18 (Consent) - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST: This bill extends the time, from 45 to 90 days, after receipt of an order by the California Gambling Control Commission (Commission) within which a person must apply for a gambling license or a finding of suitability.

ANALYSIS:

Existing law:

1. Provides, under the Gambling Control Act (Act), for the licensure and regulation of various legalized gambling activities and establishments by the Commission and the investigation and enforcement of those activities and establishments by the Department of Justice (DOJ).
2. Requires a person who is required to hold a state license to obtain the license before engaging in the activity or occupying the position with respect to which the license is required, except as specified.
3. Requires every person who is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.

This bill extends the time, from 45 to 90 days, after receipt of an order by the Commission within which a person must apply for a gambling license or a finding of suitability.

Background

Purpose of the bill. According to the author’s office, “specified people or businesses can be ordered by the Commission to apply for a gambling license or file for a finding of suitability, which determines if a person would be disqualified from holding a gambling license. Current law requires that a person or business file with the Commission within 45 calendar days of the order. This timeline can be unnecessarily restrictive and burdensome, particularly for smaller businesses. AB 1966 will create more flexibility in the law by increasing the filing deadline to 90 calendar days from 45 days.”

Gambling Control Act. The Act provides the Commission with jurisdiction over the operation of gambling establishments in California. The Act requires every owner, lessee, or employee of a gambling establishment to obtain and maintain a valid state gambling license. The Act assigns the Commission the responsibility of assuring that gambling licenses are not issued to, or held by, unqualified or disqualified persons, or by persons whose operations are conducted in a manner that is harmful to the public health, safety, or welfare.

The Act directs the Commission to issue licenses only to those persons of good character, honesty and integrity, whose prior activities, criminal record, if any; reputation, habits and associations do not pose a threat to the public interest of this state. The DOJ conducts background and field investigations and enforces the provisions of the Act in this regard.

Under the Act, every person who is required to apply for a gambling license or a finding of suitability is required to file an application within 45 calendar days after receipt of the order. This bill extends that timeline to 90 calendar days.

Related/Prior Legislation

SB 730 (Florez, Chapter 438, Statutes of 2017) made various changes to the licensing and regulatory processes related to key employees for gambling establishments under the Act.

AB 2218 (Burke, 2016) would have extended a licensing exemption for the owners of the cardroom located at the old Hollywood Park Racetrack. Additionally, would have extended the time, from 45 to 60 days, after receipt of an order by the Commission within which a person must apply for a gambling license or a finding of suitability. (Vetoed by Governor Brown)

SB 472 (Hill, Chapter 760, Statutes of 2013) required, among other things, every person who, by order of the Commission, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.

AB 2526 (Hall, 2012) would have changed several definitions within the Gambling Control Act. (Held on the Senate Inactive File)

AB 777 (Hall, 2011) would have required every person who is required to hold a state gaming license to obtain the license before engaging in the activity or occupying the position with respect to which the license is required. (Never heard in the Assembly Governmental Organization Committee)

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 6/12/18)

None received

OPPOSITION: (Verified 6/12/18)

None received

ASSEMBLY FLOOR: 68-0, 4/12/18

AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Grayson, Harper, Holden, Irwin, Kalra, Kiley, Lackey, Levine, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Bloom, Cristina Garcia, Gray, Jones-Sawyer, Limón, Low, Mullin, Santiago, Steinorth

Prepared by:

6/13/18 14:37:36

**** END ****

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Bill Dodd

Chair

2017 - 2018 Regular

Bill No: 1966 Hearing Date: 6/12/18

SUBJECT: Gambling license: period to file application

DIGEST: This bill extends from 45 to 90 days the time after receipt of an order by the California Gambling Control Commission (Commission) within which a person must apply for a gambling license or a finding of suitability.

ANALYSIS:

Existing law:

1. Provides, under the Gambling Control Act, for the licensure and regulation of various legalized gambling activities and establishments by the Commission and the investigation and enforcement of those activities and establishments by the Department of Justice (DOJ).
2. Requires a person who is required to hold a state license to obtain the license before engaging in the activity or occupying the position with respect to which the license is required, except as specified.
3. Requires every person who is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.

This bill extends from 45 to 90 days the time after receipt of an order by the Commission within which a person must apply for a gambling license or a finding of suitability.

Background

Purpose of the bill. According to the author’s office, “specified people or businesses can be ordered by the Commission to apply for a gambling license or file for a finding of suitability, which determines if a person would be disqualified from holding a gambling license. Current law requires that a person or business file with the Commission within 45 calendar days of the order. This timeline can be unnecessarily restrictive and burdensome, particularly for smaller businesses. AB 1966 will create more flexibility in the law by increasing the filing deadline to 90 calendar days from 45 days.”

Gambling Control Act. The Gambling Control Act (Act) provides the Commission with jurisdiction over the operation of gambling establishments in California. The Act requires every owner, lessee, or employee of a gambling establishment to obtain and maintain a valid state gambling license. The Act assigns the Commission the responsibility of assuring that gambling licenses are not issued to, or held by, unqualified or disqualified persons, or by persons whose operations are conducted in a manner that is harmful to the public health, safety, or welfare.

The Act directs the Commission to issue licenses only to those persons of good character, honesty and integrity, whose prior activities, criminal record, if any; reputation, habits and associations do not pose a threat to the public interest of this state. The DOJ conducts background and field investigations and enforces the provisions of the Act in this regard.

Under the Act, every person who is required to apply for a gambling license or a finding of suitability is required to file an application within 45 calendar days after receipt of the order. This bill would extend that timeline to 90 calendar days.

Prior/Related Legislation

AB 2218 (Burke, 2016) would have extended a licensing exemption for the owners of the cardroom located at the old Hollywood Park Racetrack. Additionally, extended from 45 to 60 days the time after receipt of an order by the Commission within which a person must apply for a gambling license or a finding of suitability. (Vetoed by Governor Brown)

SB 472 (Hill, Chapter 760, Statutes of 2013) required, among other things, every person who, by order of the Commission, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.

AB 777 (Hall, 2011) would have required every person who is required to hold a state gaming license to obtain the license before engaging in the activity or occupying the position with respect to which the license is required. (Never heard in the Assembly Governmental Organization Committee)

AB 2526 (Hall, 2012) would have changed several definitions within the Gambling Control Act. (Held on the Senate Inactive File)

SB 730 (Florez, Chapter 438, Statutes of 2017) made various changes to the licensing and regulatory processes related to key employees for gambling establishments under the Act.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

None received

OPPOSITION:

None received

Date of Hearing: April 4, 2018

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Adam Gray, Chair

ABPCA Bill Id:AB 1966 (

Author:Aguiar-Curry) – As Introduced Ver:January 31, 2018

SUBJECT: Gambling license: period to file application

SUMMARY: Extends from 45 to 90 days the time after receipt of an order by the Gambling Control Commission (CGCC) within which a person must apply for a gambling license or a finding of suitability.

EXISTING LAW:

1. The Gambling Control Act (Act) provides for the licensure of certain individuals and establishments involved in various gambling activities, and for the regulation of those activities, by the CGCC.
2. Requires every person who is required to hold a state license to obtain the license prior to engaging in the activity or occupying the position with respect to which the license is required, except as specified.
3. Requires every person who, by order of the CGCC, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.

FISCAL EFFECT: Unknown

COMMENTS:

Background: The Act provides the CGCC with jurisdiction over the operation of gambling establishments in California. The Act assigns the CGCC the responsibility of assuring that gambling licenses are not issued to, or held by, unqualified or disqualified persons, or by persons whose operations are conducted in a manner that is harmful to the public health, safety, or welfare. The Act directs the CGCC to issue licenses only to those persons of good character, honesty and integrity, whose prior activities, criminal record, if any; reputation, habits and associations do not pose a threat to the public interest of this state. The Department of Justice

Bureau of Gambling Control (DOJ or Bureau) conducts background and field investigations and enforces the provisions of the Act in this regard.

Purpose of the bill: According to the author: “Specified people or businesses can be ordered by the Gambling Control Commission to apply for a gambling license or file for “a finding of suitability,” which determines if a person would be disqualified from holding a gambling license. Current law requires that a person or business file with the commission within 45 calendar days of the order. This timeline can be unnecessarily restrictive and burdensome, particularly for smaller businesses. AB 1966 will create more flexibility in the law by increasing the filing deadline from 45 to 90 calendar days.”

Prior/Related Legislation: AB 2218 (Burke) 2015-2016 Session. Would have extended a licensing exemption for the owners of the cardroom located at the old Hollywood Park Racetrack. Additionally, extended from 45 to 60 days the time after receipt of an order by the CGCC within which a person must apply for a gambling license or a finding of suitability. (Vetoed by Governor)

SB 472 (Hill) 2013-2014 Session Chapter 760, Statutes of 2013. Requires every person who, by order of the commission, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.

AB 777 (Hall) 2011-2012 Session. Would have required every person who is required to hold a state gaming license to obtain the license before engaging in the activity or occupying the position with respect to which the license is required. (Not heard)

AB 2526 (Hall) 2011-2012 Session. Would have changed several definitions within the Act: 1) revised the definition of a “key employee” to any person employed in the operation of a gambling enterprise in a supervisory capacity or empowered to make discretionary decisions with regard to the gambling operations; and 2) added surveillance managers and supervisors to the definition of “key employee” for licensing purposes, etc. (Died, Senate Inactive File)

SB 730 (Florez), Chapter 438, Statutes of 2007. Made various changes to the licensing and regulatory processes related to key employees for gambling establishments under the Act.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

Analysis Prepared by: Kenton Stanhope / G.O. / (916) 319-2531