The existing federal 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 tribal-state gaming compacts, subject to ratification by the Legislature. Existing law expressly ratifies a number of tribal-state gaming compacts, and amendments of 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 compacts entered into between the State of California and the following Indian tribes: the La Jolla Band of Luiseno 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 would also ratify the amendment to the tribal-state gaming compact between the State of California and the Dry Creek Rancheria Band of Pomo Indians, executed on August 1, 2018, and the amendment to the tribal-state gaming compact between the State of California and the Karuk Tribe, executed on August 1, 2018. The bill would provide that, in deference to tribal sovereignty, certain actions related to these compacts and amended compacts are not projects for purposes of CEQA.

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

The existing federal 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 tribal-state gaming compacts, subject to ratification by the Legislature. Existing law expressly ratifies a number of tribal-state gaming compacts, and amendments of 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 compacts entered into between the State of California and the following Indian tribes: the La Jolla Band of Luiseno 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 would also ratify the amendment to the tribal-state gaming compact between the State of California and the Dry Creek Rancheria Band of Pomo Indians, executed on August 1, 2018, and the amendment to the tribal-state gaming compact between the State of California and the Karuk Tribe, executed on August 1, 2018. The bill would provide that, in deference to tribal sovereignty, certain actions related to these compacts and amended compacts are not projects for purposes of CEQA.

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

The Gambling Control Act provides for the licensure and regulation of various legalized gambling activities by the California Gambling Control Commission and the investigation and enforcement of those activities and establishments by the Department of Justice. Existing law requires the commission to keep a record of all proceedings at its regular and special meetings and to make these records open to public inspection. Existing law also requires the department to maintain a file of all applications for licenses under the act and a record of all actions taken with respect to those applications, and to make this file and record open to public inspection.

This bill would require the commission and department to make these records and the file open to public inspection during normal business hours.

 UNFINISHED BUSINESS 

Bill No: SB 1051

Author: Dodd (D), et al.

Amended: 8/23/18

Vote: 27 - Urgency

PRIOR SENATE VOTES NOT RELEVANT

NOTE: On August 14, 2018 and August 22, 2018, the Senate Governmental Organization Committee held informational hearings on the separate tribal-state gaming compacts 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 Band of Desert Cahuilla Indians, and the Twenty Palms Band of Mission Indians, as well as hearings on amendments to current tribal-state gaming compacts with the Dry Creek Rancheria Band of Pomo Indians and the Karuk Tribe.

ASSEMBLY FLOOR: Not available

SUBJECT: Tribal gaming: compact ratification

SOURCE: Author

DIGEST:

This bill ratifies 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.

Assembly Amendments

delete the contents of the bill and instead ratify five separate tribal-state gaming compacts and two amendments to current tribal-state gaming compacts.

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 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.
2. Provides 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.
3. Contains an urgency clause.

Background

Brief Description of Each Compact

The new compact with the La Jolla Band of Luiseño Indians furthers the parties' mutual interest in improving the quality of life of tribal members though a framework that generates revenue for governmental programs while also fairly regulating the gaming activities; affording meaningful consumer and employee protections; and mitigating the off-reservation impacts of the gaming facility. Once effective (legislative ratification and federal approval required), this compact will be in full force and effect for 25 years following the effective date.

The core provisions of the compact with the Mechoopda Indian Tribe of Chico Rancheria – includes terms related to licensing, regulatory oversight, labor, public health and safety, environmental protection, mutually beneficial investments in the local community and revenue sharing – are similar to those in recent compacts. The terms are intended to provide the Tribe with the flexibility to develop a new gaming facility that generates revenue for tribal government programs while ensuring that impacts on the local community are appropriately mitigated. Once effective (legislative ratification and federal approval required), this compact will be in full force and effect for 25 years following the effective date.

The new compact with the Torres Martinez Band of Desert Cahuilla Indians further the parties' mutual interest in improving the quality of life of tribal members though a framework that generates revenue for tribal governmental programs while also fairly regulating the gaming activities; affording meaningful consumer and employee protections; and, mitigating the off-reservation impacts of the gaming facility. Once effective (legislative ratification and federal approval required), this compact will be in full force and effect for 25 years following the effective date.

The new compacts with the San Pasqual Band of Mission Indians and the Twenty-Nine Palms Band of Mission Indians include updated provisions for licensing, compliance enforcement and mitigation of off-reservation impacts. The regulatory provisions respect the authority of each Tribe's professional regulators and build upon their constructive relationships with State gaming regulators. The terms of each compact reflect the Tribes' specific circumstances and the markets in which each Tribe operates its gaming facility. Once effective (legislative ratification and federal approval required), these compacts will be in full force and effect for 25 years following the effective date.

The aforementioned compacts, do the following: (1) provide 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) require 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) require the Tribe to adopt a Tribal Labor Relations Ordinance, as specified; and, (4) contain provisions to protect the health and safety of patrons, guests, and employees.

According to the Governor's Office, certain terms of the above-mentioned compacts relating to licensing, compliance enforcement, mitigation of off-reservation gaming impacts and protections for patrons and employees are consistent with recent ratified compacts.

The amended compact with the Karuk Tribe conforms the provisions of its 2013 compact (SB 1224, Correa, Chapter 300, Statutes of 2014) regarding workers' compensation to those of more recent compacts.

The amended compact with the Dry Creek Rancheria Band of Pomo Indians makes technical corrections to its 2017 compact (SB 585, Mendoza and McGuire, Chapter 464, Statutes of 2017) to clarify and more effectively implement the prior agreement.

ADDITIONAL BACKGROUND INFORMATION

Indian Gaming Regulatory Act. 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

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 1966 (Aguiar-Curry, 2018) ratifies the tribal-state gaming compact entered into between the State of California and the Habematolel Pomo of Upper Lake, 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 Assembly 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.

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

SUPPORT: (Verified 8/27/18)

California Tribal Business Alliance

Mechoopda Indian Tribe of Chico Rancheria

Pala Band of Mission Indians

Picayune Rancheria of Chuckchansi Indians

Torres Martinez Desert Cahuilla Indians

OPPOSITION: (Verified 8/27/18)

None received

Prepared by:

8/31/18 14:34:19

**** END ****

SENATE THIRD READING

STR Bill Id:SB 1051

Author:(Dodd)

As Amended Ver:August 23, 2018

Majority vote

SENATE VOTE: 38-0

SUMMARY: 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. Specifically, this bill:

1. Ratify tribal-state gaming compact between the State of California and the La Jolla Band of Luiseño Indians, executed on August 1, 2018.
2. Ratify tribal-state gaming compact between the State of California and the Mechoopda Indian Tribe of Chico Rancheria, executed on August 8, 2018.
3. Ratify tribal-state gaming compact between the State of California and the San Pasqual Band of Mission Indians, executed on August 8, 2018.
4. Ratify tribal-state gaming compact between the State of California and the Torres Martinez Band of Desert Cahuilla Indians, executed on August 16, 2018.
5. Ratify tribal-state gaming compact entered into between the State of California and the Twenty-Nine Palms Band of Mission Indians, executed on August 8, 2018.
6. Ratify amendments 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 1, 2018.
7. Ratify amendments to the tribal-state gaming compact entered into between the State of California and the Karuk Tribe, executed on August 1, 2018.
8. Add Assemblymember Gray as principal coauthor.
9. Add Senators Anderson, Gaines, Glazer, Lara, McGuire, Nielsen, Vidak and Assemblymember Berman, Daly, Eduardo Garcia, Gloria, Low, Mayes and Wood as co-authors.
10. 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.
11. Contain an urgency clause, allowing this bill to take effect immediately upon enactment.

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.

COMMENTS: On August 14, 2018 and August 22, 2018, the Assembly Governmental Organization Committee held informational hearings on the signed tribal-state gaming compacts 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 Band of Desert Cahuilla Indians, the Twenty-Nine Palms Band of Mission Indians, as well as an amendment to current tribal-state gaming compacts with the Dry Creek Rancheria Band of Pomo Indians and the Karuk Tribe.

Brief Description of Each Compact:

The new compact with the La Jolla Band of Luiseño Indians furthers the parties' mutual interest in improving the quality of life of tribal members though a framework that generates revenue for governmental programs while also fairly regulating the gaming activities; affording meaningful consumer and employee protections; and mitigating the off-reservation impacts of the gaming facility. Once effective (legislative ratification and federal approval required), this compact will be in full force and effect for 25 years following the effective date.

The core provisions of the compact with the Mechoopda Indian Tribe of Chico Rancheria – includes terms related to licensing, regulatory oversight, labor, public health and safety, environmental protection, mutually beneficial investments in the local community and revenue sharing – are similar to those in recent compacts. The terms are intended to provide the Tribe with the flexibility to develop a new gaming facility that generates revenue for tribal government programs while ensuring that impacts on the local community are appropriately mitigated. Once effective (legislative ratification and federal approval required), this compact will be in full force and effect for 25 years following the effective date.

The new compact with the Torres Martinez Band of Desert Cahuilla Indians further the parties' mutual interest in improving the quality of life of tribal members though a framework that generates revenue for tribal governmental programs while also fairly regulating the gaming activities; affording meaningful consumer and employee protections; and, mitigating the off-reservation impacts of the gaming facility. Once effective (legislative ratification and federal approval required), this compact will be in full force and effect for 25 years following the effective date.

The new compacts with the San Pasqual Band of Mission Indians and the Twenty-Nine Palms Band of Mission Indians include updated provisions for licensing, compliance enforcement and mitigation of off-reservation impacts. The regulatory provisions respect the authority of each Tribe's professional regulators and build upon their constructive relationships with State gaming regulators. The terms of each compact reflect the Tribes' specific circumstances and the markets in which each Tribe operates its gaming facility. Once effective (legislative ratification and federal approval required), these compacts will be in full force and effect for 25 years following the effective date.

The aforementioned compacts, do the following: (a) provide 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; (b) require 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; (c) require the Tribe to adopt a Tribal Labor Relations Ordinance, as specified; and, (d) contain provisions to protect the health and safety of patrons, guests, and employees.

According to the Governor's Office, certain terms of the above-mentioned compacts relating to licensing, compliance enforcement, mitigation of off-reservation gaming impacts and protections for patrons and employees are consistent with recent ratified compacts.

The amended compact with the Karuk Tribe conforms the provisions of its 2013 compact {SB 1224 (Correa), Chapter 300, Statutes of 2014} regarding workers' compensation to those of more recent compacts.

The amended compact with the Dry Creek Rancheria Band of Pomo Indians makes technical corrections to its 2017 compact (SB 585 (Mendoza and McGuire), Chapter 464, Statutes of 2017) to clarify and more effectively implement the prior agreement.

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 1965 (Aguiar-Curry) of the current legislative session. Would ratify a tribal state gaming compact between the State of California and the Big Valley Band of Pomo Indians of the Big Valley Rancheria executed on August 16, 2018. Furthermore, would ratify amendments to the current tribal-state gaming compact between the State of California and the Habematolel Pomo of Upper Lake, 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)

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: 0004662

SENATE THIRD READING

STR Bill Id:SB 1051

Author:(Dodd)

As Introduced Ver:February 12, 2018

Majority vote

SENATE VOTE: 38-0

SUMMARY: This bill requires the California Gambling Control Commission (CGCC) and the Department of Justice (DOJ) to make its records of all proceedings at its regular and special meetings as well as records of all applications for licenses under the California Gambling Control Act (Act), open to public inspection during normal business hours.

EXISTING LAW:

1. Provides, under the Act, for the licensure and regulation of various legalized gambling activities by the Commission and the investigation and enforcement of those activities and establishments by DOJ.
2. Requires the CGCC to keep a record of all proceedings at its regular and special meetings and to make these records open to public inspection.
3. Requires DOJ to maintain a file of all applications for licenses under the Act and a record of all actions taken with respect to those applications, and to make this file and record open to public inspections.

FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill contains no additional state costs.

COMMENTS:

Purpose of the bill: According to the author: "Under current law both the CGCC and DOJ are required to maintain various records of their regular and special meetings in addition to records of all applications for licenses under the Act. Those records are required to be open for public inspection. This bill would clarify that the records should be open for public inspection during normal business hours. This small change will guarantee the availability of records for public inspection while also providing clarity for the CGCC and DOJ."

Background: The Gambling Control Act created a comprehensive scheme for statewide regulation of legal gambling under a bifurcated system of administration involving the Bureau of Gambling Control (BGC) under DOJ and the five-member CGCC by the Governor. The CGCC is authorized to establish minimum regulatory standards for the gambling industry and to ensure that state gambling licenses are not issued to or held by unsuitable or unqualified individuals. In addition, the CGCC acts as the regulatory body over Tribal casinos, pursuant to the CGCC's authority under the Tribal-State Gaming Compacts.

Some of the CGCC's primary responsibilities related to cardrooms and third party providers include: issuing work permits to employees in specific jurisdictions; taking reasonable actions to ensure that no ineligible, unqualified, or unsuitable individuals are associated with gaming activities; granting temporary/interim licenses, permits or approvals; and, adjudicating recommendations concerning license denials, revocations, or disciplinary actions.

The BGC monitors the conduct of gaming operations to ensure compliance with state gambling laws and conducts extensive background investigations of applicants seeking a state gambling license. The Bureau also conducts background checks for all key employees and state gambling license and vendor applications.

The BGC inspects premises where gambling is conducted, examines gambling equipment, audits papers, books, and records of the gambling establishment, investigates suspected violations of gambling laws, and is ultimately responsible for enforcing compliance with all state laws pertaining to gambling.

Prior/Related Legislation: AB 2857 (Gray) of the current legislative session. Would revise the definition of "applicant" to no longer include a person who is about to apply for a state gambling license, or other licenses, permits, or approvals. (Pending on Senate Third Reading)

SB 1313 (Vidak) of 2018. Would eliminate the requirements that members of the CGCC have certain career backgrounds and instead would state the intent of the Legislature that the CGCC be compromised of the most qualified individuals available. (Held in Assembly Appropriations Committee)

SB 280 (Glazer) of the current legislative session. Would have required the CGCC to post a public record of every vote on its Internet Web site no later than two business days after the meeting at which the vote was taken. (Never heard in the Senate Governmental Organization Committee)

SB 666 (Vidak), Chapter 245, Statutes of 2017. Prohibited a member of the CGCC, the executive director, the chief, and any employee of the CGCC or DOJ who works on or supervises gambling issues, for a period of two years after leaving office, from holding a direct or indirect interest in, hold employment with, represent, appear for, or negotiate on behalf of a gambling establishment, gambling enterprise, registrant, or licensee.

SB 692 (Vidak) of 2016. Would have prohibited a member of the CGCC, the executive director, chief, and any employee of the CGCC or the DOJ from holding a direct or indirect interest in, holding employment with, representing, appearing for, or negotiating on behalf of a gambling establishment, gambling enterprise, registrant, or licensee for a period of two years after leaving office or employment. (Vetoed by Governor Brown)

AB 2526 (Hall) of 2012. Would have revised several definitions within the Act. Specifically the bill revised the definition of a "key employee," added surveillance managers and supervisors to the definition of "key employee" for licensing purposes and deleted the term "pit boss" and replaced the term "shift boss" to "shift manager." (Held on the inactive file on the Senate Floor)

Analysis Prepared by: Kenton Stanhope / G.O. / (916) 319-2531 FN: 0004399

Date of Hearing: August 8, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

SBPCA Bill Id:SB 1051

Author:(Dodd) – As Introduced Ver:February 12, 2018

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires the California Gambling Control Commission (CGCC) and the Department of Justice (DOJ) to make specified records open to public inspection during normal business hours.

FISCAL EFFECT:

No additional state costs.

COMMENTS:

Background and purpose. The CGCC and the Bureau of Gambling Control, under the DOJ, split the duties of regulating legal gambling. The CGCC establishes minimum regulatory standards for the industry and ensures licenses are not issued to, or held by, unsuitable or unqualified individuals. The Bureau of Gambling Control monitors the conduct of gaming operations and conducts background checks for applicants seeking a state license and for all key employees. Existing law requires both CGCC and DOJ to keep specified records and files open to the public. According to the author, SB 1051 clarifies that these records need to be available to the public during normal business hours.

Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081

Date of Hearing: June 20, 2018

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Adam Gray, Chair

SBPCA Bill Id:SB 1051

Author:(Dodd) – As Introduced Ver:February 12, 2018

SENATE VOTE: 38-0

SUBJECT: Gambling Control Act: records: open to public inspection

SUMMARY: This bill requires the California Gambling Control Commission (CGCC) and the Department of Justice (DOJ) to make its records of all proceedings at its regular and special meetings as well as records of all applications for licenses under the California Gambling Control Act (Act), open to public inspection during normal business hours.

EXISTING LAW:

1. Provides, under the Act, for the licensure and regulation of various legalized gambling activities by the Commission and the investigation and enforcement of those activities and establishments by DOJ.
2. Requires the CGCC to keep a record of all proceedings at its regular and special meetings and to make these records open to public inspection.
3. Requires DOJ to maintain a file of all applications for licenses under the Act and a record of all actions taken with respect to those applications, and to make this file and record open to public inspections.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

COMMENTS:

Purpose of the bill: According to the author: “Under current law both the CGCC and DOJ are required to maintain various records of their regular and special meetings in addition to records of all applications for licenses under the Act. Those records are required to be open for public inspection. This bill would clarify that the records should be open for public inspection during normal business hours. This small change will guarantee the availability of records for public inspection while also providing clarity for the CGCC and DOJ.”

Background: The Gambling Control Act created a comprehensive scheme for statewide regulation of legal gambling under a bifurcated system of administration involving the Bureau of Gambling Control (BGC) under DOJ and the five-member CGCC by the Governor. The CGCC is authorized to establish minimum regulatory standards for the gambling industry and to ensure that state gambling licenses are not issued to or held by unsuitable or unqualified individuals. In addition, the CGCC acts as the regulatory body over Tribal casinos, pursuant to the CGCC’s authority under the Tribal-State Gaming Compacts.

Some of the CGCC’s primary responsibilities related to cardrooms and third party providers include: issuing work permits to employees in specific jurisdictions; taking reasonable actions to ensure that no ineligible, unqualified, or unsuitable individuals are associated with gaming activities; granting temporary/interim licenses, permits or approvals; and, adjudicating recommendations concerning license denials, revocations, or disciplinary actions.

The BGC monitors the conduct of gaming operations to ensure compliance with state gambling laws and conducts extensive background investigations of applicants seeking a state gambling license. The Bureau also conducts background checks for all key employees and state gambling license and vendor applications.

The BGC inspects premises where gambling is conducted, examines gambling equipment, audits papers, books, and records of the gambling establishment, investigates suspected violations of gambling laws, and is ultimately responsible for enforcing compliance with all state laws pertaining to gambling.

Prior/Related Legislation: AB 2857 (Gray) of 2017-2018 Legislative Session. Would revise the definition of “applicant” to no longer include a person who is about to apply for a state gambling license, or other licenses, permits, or approvals. (Pending in Senate Governmental Organization Committee)

SB 1313 (Vidak) of 2017-2018 Legislative Session. Would eliminate the requirements that members of the CGCC have certain career backgrounds and instead would state the intent of the Legislature that the CGCC be compromised of the most qualified individuals available. (Pending in Assembly Governmental Organization Committee)

SB 280 (Glazer) of 2017-2018 Legislative Session. Would have required the CGCC to post a public record of every vote on its Internet Web site no later than two business days after the meeting at which the vote was taken. (Never heard in the Senate Governmental Organization Committee)

SB 666 (Vidak), Chapter 245, Statutes of 2017. Prohibited a member of the CGCC, the executive director, the chief, and any employee of the CGCC or DOJ who works on or supervises gambling issues, for a period of two years after leaving office, from holding a direct or indirect interest in, hold employment with, represent, appear for, or negotiate on behalf of a gambling establishment, gambling enterprise, registrant, or licensee.

SB 692 (Vidak) of 2015-2016 Legislative Session. Would have prohibited a member of the CGCC, the executive director, chief, and any employee of the CGCC or the DOJ from holding a direct or indirect interest in, holding employment with, representing, appearing for, or negotiating on behalf of a gambling establishment, gambling enterprise, registrant, or licensee for a period of two years after leaving office or employment. (Vetoed by Governor Brown)

AB 2526 (Hall) of 2011-2012 Legislative Session. Would have revised several definitions within the Act. Specifically the bill revised the definition of a "key employee," added surveillance managers and supervisors to the definition of "key employee" for licensing purposes and deleted the term "pit boss" and replaced the term "shift boss" to "shift manager." (Held on the inactive file on the Senate Floor)

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

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

 CONSENT  

Bill No: SB 1051

Author:

:

Vote:

SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 4/24/18

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

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT:

SOURCE: Author

DIGEST: This bill requires the California Gambling Control Commission (Commission) and the Department of Justice (DOJ) to make its records of all proceedings at its regular and special meetings as well as records of all applications for licenses under the California Gambling Control Act (Act), open to public inspection during normal business hours.

ANALYSIS:

Existing law:

1. Provides, under the Act, for the licensure and regulation of various legalized gambling activities by the Commission and the investigation and enforcement of those activities and establishments by DOJ.
2. Requires the Commission to keep a record of all proceedings at its regular and special meetings and to make these records open to public inspection.
3. Requires DOJ to maintain a file of all applications for licenses under the Act and a record of all actions taken with respect to those applications, and to make this file and record open to public inspections.

This bill requires the Commission and DOJ to make its records of all proceedings at its regular and special meetings as well as records of all applications for licenses under the Act, open to public inspection during normal business hours.

Background

Purpose of the bill. Under current law both the Commission and DOJ are required to maintain various records of their regular and special meetings in addition to records of all applications for licenses under the Act. Those records are required to be open for public inspection.

This bill clarifies that the records should be open for public inspection during normal business hours. This small change will guarantee the availability of records for public inspection while also providing clarity for the Commission and DOJ.

Related/Prior Legislation

SB 1313 (Vidak, 2018) eliminates the requirements that members of the Commission have certain career backgrounds and instead states the intent of the Legislature that the Commission be compromised of the most qualified individuals available. (Pending on the Senate Floor)

SB 280 (Glazer, 2017) would have required the Commission to post a public record of every vote on its Internet Web site no later than two business days after the meeting at which the vote was taken. (Never heard in the Senate Governmental Organization Committee)

SB 666 (Vidak, Chapter 245, Statutes of 2017) prohibited a member of the Commission, the executive director, the chief, and any employee of the Commission or DOJ who works on or supervises gambling issues, for a period of two years after leaving office, from holding a direct or indirect interest in, hold employment with, represent, appear for, or negotiate on behalf of a gambling establishment, gambling enterprise, registrant, or licensee.

SB 692 (Vidak, 2016) would have prohibited a member of the Commission, the executive director, chief, and any employee of the Commission or the DOJ from holding a direct or indirect interest in, holding employment with, representing, appearing for, or negotiating on behalf of a gambling establishment, gambling enterprise, registrant, or licensee for a period of two years after leaving office or employment. (Vetoed by Governor Brown)

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 5/7/18)

None received

OPPOSITION: (Verified 5/7/18)

None received

Prepared by:

5/9/18 13:47:26

**** END ****

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Bill Dodd

Chair

2017 - 2018 Regular

Bill No: SB Hearing Date: 4/24/2018

SUBJECT:

DIGEST: This bill requires the California Gambling Control Commission (Commission) and the Department of Justice (DOJ) to make its records of all proceedings at its regular and special meetings as well as records of all applications for licenses under the California Gambling Control Act (Act), open to public inspection during normal business hours.

ANALYSIS:

Existing law:

1. Provides, under the Act, for the licensure and regulation of various legalized gambling activities by the Commission and the investigation and enforcement of those activities and establishments by DOJ.
2. Requires the Commission to keep a record of all proceedings at its regular and special meetings and to make these records open to public inspection.
3. Requires DOJ to maintain a file of all applications for licenses under the Act and a record of all actions taken with respect to those applications, and to make this file and record open to public inspections.

This bill requires the Commission and DOJ to make its records of all proceedings at its regular and special meetings as well as records of all applications for licenses under the Act, open to public inspection during normal business hours.

Background

Purpose of the bill. Under current law both the Commission and DOJ are required to maintain various records of their regular and special meetings in addition to records of all applications for licenses under the Act. Those records are required to be open for public inspection.

This bill would clarify that the records should be open for public inspection during normal business hours. This small change will guarantee the availability of records for public inspection while also providing clarity for the Commission and DOJ.

Gambling regulation/enforcement in California. The Gambling Control Act created a comprehensive scheme for statewide regulation of legal gambling under a bifurcated system of administration involving the Bureau of Gambling Control (Bureau) under DOJ and the five-member Commission by the Governor. The Commission is authorized to establish minimum regulatory standards for the gambling industry and to ensure that state gambling licenses are not issued to or held by unsuitable or unqualified individuals. In addition, the Commission acts as the regulatory body over Tribal casinos, pursuant to the Commission’s authority under the Tribal-State Gaming Compacts.

Some of the Commission’s primary responsibilities related to cardrooms and third party providers include: issuing work permits to employees in specific jurisdictions; taking reasonable actions to ensure that no ineligible, unqualified, or unsuitable individuals are associated with gaming activities; granting temporary/interim licenses, permits or approvals; and, adjudicating recommendations concerning license denials, revocations, or disciplinary actions.

The Bureau monitors the conduct of gaming operations to ensure compliance with state gambling laws and conducts extensive background investigations of applicants seeking a state gambling license. The Bureau also conducts background checks for all key employees and state gambling license and vendor applications.

The Bureau inspects premises where gambling is conducted, examines gambling equipment, audits papers, books, and records of the gambling establishment, investigates suspected violations of gambling laws, and is ultimately responsible for enforcing compliance with all state laws pertaining to gambling.

Prior/Related Legislation

SB 1313 (Vidak, 2018) would eliminate the requirements that members of the Commission have certain career backgrounds and instead would state the intent of the Legislature that the Commission be compromised of the most qualified individuals available. (Pending in the Senate Governmental Organization Committee)

SB 280 (Glazer, 2017) would have required the Commission to post a public record of every vote on its Internet Web site no later than two business days after the meeting at which the vote was taken. (Never heard in the Senate Governmental Organization Committee)

SB 666 (Vidak, Chapter 245, Statutes of 2017) prohibited a member of the Commission, the executive director, the chief, and any employee of the Commission or DOJ who works on or supervises gambling issues, for a period of two years after leaving office, from holding a direct or indirect interest in, hold employment with, represent, appear for, or negotiate on behalf of a gambling establishment, gambling enterprise, registrant, or licensee.

SB 692 (Vidak, 2016) would have prohibited a member of the Commission, the executive director, chief, and any employee of the Commission or the DOJ from holding a direct or indirect interest in, holding employment with, representing, appearing for, or negotiating on behalf of a gambling establishment, gambling enterprise, registrant, or licensee for a period of two years after leaving office or employment. (Vetoed by Governor Brown)

AB 2526 (Hall, 2012) would have revised several definitions within the Act. Specifically the bill revised the definition of a "key employee," added surveillance managers and supervisors to the definition of "key employee" for licensing purposes and deleted the term "pit boss" and replaced the term "shift boss" to "shift manager." (Held on the inactive file on the Senate Floor)

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

SUPPORT:

None received

OPPOSITION:

None received