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 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 compact entered into between the State of California and the Dry Creek Rancheria Band of Pomo Indians, executed on August 18, 2017. The bill would provide that, in deference to tribal sovereignty, certain actions related to that compact are not projects for 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 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 compact entered into between the State of California and the Dry Creek Rancheria Band of Pomo Indians, executed on August 18, 2017. The bill would provide that, in deference to tribal sovereignty, certain actions related to that compact are not projects for purposes of CEQA.

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

Existing law establishes a system of public elementary and secondary schools in this state and authorizes local educational agencies throughout the state to operate schools and provide instruction to pupils in kindergarten and grades 1 to 12, inclusive. Existing law authorizes the governing board of a school district to make awards to employees who do any of certain specified acts.

This bill would also authorize the governing board of a school district to make awards to employees who use their own personal resources to meet the classroom material needs of pupils.

The bill would also make nonsubstantive changes to these provisions.

 UNFINISHED BUSINESS  

Bill No: SB 585

Author:

:

Vote:

PRIOR SENATE VOTES NOT RELEVANT

NOTE: On September 6, 2017, the Senate Governmental Organization Committee held an informational hearing on the tribal-state gaming compact between the State of California and the Dry Creek Rancheria Band of Pomo Indians.

ASSEMBLY FLOOR: 79-0, 9/14/17 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST:

This bill ratifies the tribal state gaming compact (Compact) entered into between the State of California and the Dry Creek Rancheria Band of Pomo Indians (hereafter “Tribe”) executed on August 18, 2017.

Assembly Amendments

delete the contents of this bill and instead add language pertaining to ratification of the Dry Creek Rancheria Band of Pomo Indians Compact.

ANALYSIS:

Existing law:

1. Provides, under the Indian Gaming Regulatory Act (IGRA), for the negotiation and conclusion of compacts between federally recognized Indian tribes and the State for the purpose of conducting Class III gaming activities on Indian lands within a State as a means of promoting tribal economic development, self-sufficiency, and strong tribal governments.
2. Authorizes expressly a number of tribal-state gaming compacts between the State of California and specified Indian tribes.
3. Authorizes the conduct of Class III gaming activities to the extent such activities are permitted by state law, a gaming compact has been concluded by a federally recognized tribe and the State, and the compact has been approved by the Secretary of the Interior.
4. Limits the operation of Class III gaming activities to Indian lands acquired on or before October 17, 1988. Provides for certain exceptions to conduct gaming activities on Indian lands acquired after October 17, 1988.
5. Defines “Indian lands” to mean all lands within the limits of any Indian reservation, and any lands title to which is either held in trust by the United States for the benefit of any Indian tribe, or individual, or held by any Indian tribe or individual subject to restriction by the U.S. against alienation and over which an Indian tribe exercises governmental power.
6. Requires the State to negotiate to conclude a compact in good faith with an Indian tribe having jurisdiction over the Indian lands upon which the Class III gaming activity is to be conducted. Provides the U.S. district courts with jurisdiction over any cause of action initiated by a tribal government alleging that the State failed to negotiate in good faith to conclude a compact. Prescribes the remedy, mediation supervised by the courts, if it is found that the State failed to negotiate in good faith to conclude a compact.
7. Authorizes the Governor, under the California Constitution, to negotiate and conclude compacts, subject to ratification by the Legislature.

This bill:

1. Ratifies the Compact between the State of California and the Tribe executed on August 18, 2017.
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 Compact between the State of California and the Tribe was executed on August 18, 2017.

The Compact authorizes the Tribe to operate up to 1,200 slot machines at no more than two gaming facilities located on eligible Indian lands held in trust for the Tribe, and located within the boundaries of the Tribe’s Reservation. If the tribe chooses to operate more than one gaming facility, then one of the two gaming facilities shall have no more than 500 slot machines and shall have a primary purpose other than gaming.

Currently, the Tribe is not required to make payments to the Special Distribution Fund (SDF). Under this compact, the Tribe has agreed to pay the State its pro rata share of costs the State incurs for the performance of its duties under the Compact.

In recognition of the needs of the Tribe’s more than 1,000 tribal members and the existence of binding and enforceable agreement with the County of Sonoma (County), the Compact does not include an obligation for the Tribe to pay any amount into the Revenue Sharing Trust Fund (RSTF) or the Tribal Nation Grant Fund (TNGF) if it operates less than 1,200 slot machines. However, the Compact does include a provision that would allow the Tribe, after negotiations with the State, to increase the number of slot machines to no more than 1,500. If such an increase occurs, the Tribe shall be required to pay in to the RSTF or TNGF a specified amount, or a percentage of the Net Win from Class III slot machines not to exceed 2%. The Tribe currently pays approximately $500,000 to the RSTF.

According to the Governor’s Office, certain terms of the Compact related to licensing, regulatory, environmental mitigation, patron protection, labor, public health, and safety provisions are substantially the same as recent compacts.

The Memorandum of Agreement (MOA) between the Dry Creek Rancheria and Sonoma County established a mutually agreeable process to identify and mitigate potential off-reservation environmental impacts of future Tribal economic development projects, including on-reservation gaming projects that meets or exceeds the processes required under the Compact. The MOA created a framework for building and maintaining a mutually beneficial government-to-government relationship between the Tribe and

the County and identified ways for the Tribe and the County to work together to provide services and benefits to the Tribal community and Sonoma County residents. The Tribe’s MOA with the County is recognized in all areas where it would be applicable to the gaming facility.

Currently, the Tribe operates the River Rock Casino (Casino) located in Sonoma County. The Casino currently includes approximately 1,100 slot machines. Once effective (legislative ratification and federal approval required), this Compact will be in full force and effect for 25 years following the effective date.

Brief History of the Dry Creek Rancheria of Pomo Indians. The Dry Creek Rancheria Band of Pomo Indians is a federally-recognized Indian Tribe located in Sonoma County, California, approximately five miles from the city of Geyserville. The Tribe has a total enrolled population of approximately 1,070 members. Its reservation is comprised of 93 acres in Sonoma County.

According to the Tribe, ancestors of the Pomo people lived in the area of Sonoma, Mendocino, and Lake Counties thousands of years ago. Historically, the Tribe used regional plants and game for food, including clams, fish, and abalone collected on trips to the coast during the summer. But their primary food was acorns which were gathered, stored, and processed throughout the season.

Official recognition of the Tribe occurred in 1915 when the federal government created the Dry Creek Rancheria and named the Tribe the Dry Creek Rancheria Band of Pomo Indians. The Tribe is governed by its Articles of Association, amended September 22, 1979, which established a Board of Directors. The Tribe's current trust land, which includes the 75-acre Dry Creek Rancheria and contiguous tribal trust land, is comprised largely of land that is a hillside. In 2007, the Bureau of Indian Affairs approved an application to take 18-acres of contiguous lands (“the Dugan Parcel”) into trust on behalf of the Dry Creek Rancheria. The trust land acquisition became final in 2010, and the Dugan Parcel is held in trust for the benefit of the Tribe.

In 1999, the Tribe and dozens of other Tribes signed Compacts with the State of California. In 2002, the Tribe opened its interim facility. Currently, the Tribe operates the River Rock Casino located in Sonoma County. As previously noted, the Casino currently includes approximately 1,100 slot machines.

Key Provisions of the Compact

Scope of Class III Gaming Authorized. The Tribe is authorized to operate up to 1,200 slot machines, banking or percentage card games, and any devices or games that are authorized under state law to the California State Lottery, provided that the Tribe will not offer such games through use of the Internet unless others in the state not affiliated with or licensed by the California State Lottery are permitted to do so under state and federal law. The Tribe shall not engage in Class III Gaming that is not expressly authorized in the Compact.

Authorized Gaming Facility. The Tribe may establish and operate no more than two gaming facilities and engage in Class III gaming only on eligible Indian lands held in trust for the Tribe, located within the boundaries of the Tribe’s reservation. If the Tribe chooses to operate more than one gaming facility, then one of the two gaming facilities shall have no more than 500 slot machines and shall have a primary purpose other than gaming.

Payments to the Special Distribution Fund. The Tribe shall pay to the State, on a pro rata basis, the costs the State incurs for the performance of all its duties under this Compact, as established by the monies appropriated in the annual Budget Act for the performance of their duties under the Class III Gaming Compacts. 

Payments to the RSTF or the TNGF. In recognition of the needs of the Tribe’s more than 1,000 tribal members and the existence of binding and enforceable agreement with the County, the Tribe has no obligation to pay any amount into the RSTF or TNGF if it operates less than 1,200 slot machines. However, the Compact includes a provision that would allow the Tribe, after negotiations with the State, to increase the number of slot machines to no more than 1,500. If such an increase occurs, the Tribe shall be required to pay in to the RSTF or TNGF a specified amount, or a percentage of the Net Win from Class III slot machines, not to exceed 2%, form slot machines in excess of 350. The Tribe currently pays approximately $500,000 to the RSTF.

ADDITIONAL COMPACT COMPONENTS

Gaming Ordinance and Regulations. All gaming activities conducted under this Compact shall, at a minimum, comply with a gaming ordinance duly adopted by the Tribe and approved in accordance with IGRA and all applicable rules, regulations, procedures, specifications, and standards duly adopted by the National Indian Gaming Commission (NIGC), the Tribal Gaming Agency, and the State Gaming Agency, and with the provisions of this Compact, as specified.

Prohibitions Regarding Minors. The Tribe shall prohibit persons under the age 18 years from being present in any room or area in which gaming activities are being conducted unless the person is en route to a non-gaming area of the gaming facility. If the Tribe permits the consumption of alcoholic beverages in the gaming facility, the Tribe shall prohibit persons under the age of 21 from purchasing, consuming, or possessing alcoholic beverages. The Tribe shall also prohibit persons under the age of 21 from being present in any room or area in which alcoholic beverages may be consumed.

Licensing Requirements and Procedures. All persons in any way connected with the gaming operation or gaming facility who are required to be licensed or to submit to a background investigation under IGRA, and any others required to be licensed under this Compact, including, without limitation, all gaming employees, gaming resource suppliers, financial sources, and any other person having a significant influence over the gaming operation, must be licensed by the Tribal Gaming Agency. Also, every gaming employee must obtain, and thereafter maintain current, a valid tribal gaming license, as specified.

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

Patron Disputes. The Tribal Gaming Agency must promulgate regulations governing patron disputes over the play or operation of any game, including any refusal to pay to a patron any alleged winnings from any gaming activities that includes specified minimum standards.

Environmental Protections. The 2008 MOA between the Tribe and the County establishes a process by which the Tribe identifies and mitigates off-reservation impacts. To the extent the MOA, including any amendments consented to by the Tribe and the County remains in effect, the Tribe is not subject to the following provisions. However, in the event the MOA is no longer in effect, the Tribe will be required to prepare a comprehensive and adequate tribal environmental impact report (TEIR), analyzing the potentially significant off-reservation environmental impacts of the project. Failure to prepare the TEIR that satisfies the requirements and standards set forth in this Compact may be deemed to be a breach of this Compact and shall be grounds for issuance of an injunction or other appropriate equitable relief.

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

Alcohol Provisions. Makes it explicit that the purchase, sale, and service of alcoholic beverages shall be subject to state law – the Alcoholic Beverage Control Act.

Labor Provisions. Provides that the gaming activities authorized by this Compact may only commence after the Tribe has adopted an ordinance identical to the Tribal Labor Relations Ordinance (TRLO), referenced as Appendix C of the Compact, and the gaming activities may only continue as long as the Tribe maintains the ordinance. If the Tribe employs 250 or more persons in a tribal casino facility, then the provisions of the TLRO become effective. The TLRO provides for a secret ballot election and union neutrality. After the certification that 30% of the eligible employees in a bargaining unit have expressed an interest in the union, a notice of election shall be issued and the election shall be concluded within 30 calendar days thereafter. Employees may mail in ballots provided they are received by election day. Union representation requires an affirmative vote of 50% plus one of all votes cast.

Workers’ Compensation. The Tribe agrees to participate in the State’s workers’ compensation program with respect to employees at the casino. All disputes arising from the workers’ compensation laws shall be heard by the State Workers’ Compensation Appeals Board pursuant to the California Labor Code. The Tribe acknowledges the jurisdiction of the Board in such manners. In lieu of participation in the State’s system, the Tribe may create and maintain a system through self-insurance, which includes specified provisions, including hearings

before an independent tribunal. Furthermore, the Tribe agrees that it will participate in the State’s unemployment compensation program for providing benefits and unemployment compensation disability benefits to employees at the casino. The Tribe shall withhold all taxes due to the State, except for Tribal members living on the Tribe’s reservation, and forward such amounts to the State.

Health and Safety Standards. The Tribe has agreed to adopt and comply with tribal health standards for food and beverage handling that consistent with the State’s public health standards. Also, the Tribe has agreed to comply with federal water quality and safe drinking water standards applicable in California. The Tribe must also adopt and comply with federal and state laws forbidding harassment, including sexual harassment, discrimination, and retaliation.

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

ADDITIONAL BACKGROUND INFORMATION

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.”

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: grants for programs designed to address gambling addiction; grants for the support of state and local government agencies impacted by tribal government gaming; compensation for regulatory costs incurred by the CGCC and DOJ in connection with the implementation and administration of compacts; payment of shortfalls that may occur in the RSTF; disbursements for the purpose of implementing the terms of tribal labor relations ordinances promulgated in accordance with the terms of the 1999 compacts; and, any other purpose specified by law. (Pursuant to compact renegotiations that took place with several of the larger gaming tribes during the Schwarzenegger administration, revenue from those tribes is directed into the state General Fund, instead of the SDF.)

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

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

Tribal Nation Grant Fund. 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. Payments from the TNGF are expected to begin in 2018.

Related/Prior Legislation

SB 6 (Hueso, 2017) ratifies the tribal state gaming compact entered into between the State of California and the Quechan Tribe of the Fort Yuma Indian Reservation Compact.

SB 626 (Dodd, 2017) ratifies 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.

AB 891 (Mayes, 2017) ratifies 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 174 (Bigelow, 2017) ratifies 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, 2017) ratifies 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, 2017) ratifies the tribal-state gaming compact entered into between the State of California and the Tule River Indian Tribe of California (hereafter “Tribe”) executed on August 31, 2017.

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

AB 1378 (Gray, 2017) ratifies the 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.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 9/13/17)

California Nations Indian Gaming Association

OPPOSITION: (Verified 9/13/17)

None received

ASSEMBLY FLOOR: 79-0, 9/14/17

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

Prepared by:

9/15/17 8:55:25

**** END ****

SENATE THIRD READING

STR Bill Id:SB 585

Author:(McGuire and Mendoza)

As Amended Ver:September 7, 2017

2/3 vote. Urgency

SENATE VOTE: (vote not relevant)

SUMMARY: Ratifies a tribal-state gaming compact (Compact) entered into between the State of California and the Dry Creek Rancheria Band of Pomo Indians (Tribe), executed on August 18, 2017. Additionally, this bill provides that, in deference to tribal sovereignty, certain actions are not deemed projects for purposes of the California Environmental Quality Act (CEQA); and, stipulates, except as expressly provided, that none of the provisions shall be construed to exempt a city, county, or city and county, or the Department of Transportation from CEQA requirements. Specifically, this bill:

1. Ratifies a tribal-state gaming compact between the State of California and the Dry Creek Rancheria Band of Pomo Indians, executed on August 18, 2017.
2. Authorizes the Tribe to operate up to 1,200 gaming devices at no more than two gaming facilities located on eligible Indian lands held in trust for the Tribe, as defined.
3. States if the Tribe chooses to operate more than one gaming facility, then one of the two gaming facilities shall have no more than 500 slot machines and shall have a primary purpose other than gaming.
4. States the Tribe has agreed to pay the State its pro rata share of costs the State incurs for the performance of its duties under the Compact. Under the Tribe's 1999 Compact, the Tribe is not required to make payments to the Special Distribution Fund.
5. Provides in recognition of the needs of the Tribe's more than 1,000 tribal members and the existence of binding and enforceable agreement with the County of Sonoma, the Compact does not include an obligation for the Tribe to pay any amount into the Revenue Sharing Trust Fund (RSTF) or the Tribal Nation Grant Fund (TNGF), if it operates less than 1,200 slot machines.
6. Allows the Tribe, after negotiations with the State, to increase the number of gaming devices to no more than 1,500. If such an increase occurs, the Tribe shall be required to pay in to the RSTF or TNGF a specified amount, or a percentage of the "Net-Win" from Class III gaming devices not to exceed 2%.
7. The Compact: a) provides a regulatory framework that respects the role of the Tribal Gaming Agency as the primary regulator while also ensuring that state gaming regulators fulfill their responsibilities; b) requires the Tribe to conduct its gaming activities pursuant to an internal control system that implements minimum internal controls that are no less stringent than those in federal regulations; c) requires the Tribe to adopt a Tribal Labor Relations Ordinance, as specified; and, d) contains provisions to protect the health and safety of patrons, guests, and employees.
8. Once effective, this Compact will be in full force and effect for 25 years following the effective date
9. 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.
10. 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 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 (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 September 6, 2017, the Assembly Governmental Organization Committee held an informational hearing on the tribal gaming compact entered into between the State of California and Dry Creek Rancheria Band of Pomo Indians.

Brief History and Background: According to information provided by the Tribe, the Dry Creek Rancheria Band of Pomo Indians has a total enrolled population of 1,071 members and its reservation is comprised of 93 acres in Sonoma County. Official recognition of the Tribe as a sovereign nation occurred in 1915, when the federal government created the Dry Creek Rancheria and named the Tribe the Dry Creek Rancheria Band of Pomo Indians. The Rancheria occupies 75 steep acres between Healdsburg and Geyserville off Highway 128 – a sliver of the Tribe's historic land. The Tribe also owns non-trust properties including land in Petaluma (Petaluma property) and Geyserville (Bellacana property). Major ancestral tribal lands containing gravesites, former villages, and sites for gathering the sedge used in basket weaving were flooded by water from the Warm Springs Darn and Lake Sonoma in 1983.

In 1999, the Dry Creek Rancheria Band of Pomo Indians and dozens of other Tribes signed Compacts with California Governor Gray Davis permitting gaming. The 1999 Compact was approved by the Assistant Secretary – Indian Affairs, U.S. Department of the Interior, in 2000. In 2002, the Tribe opened the River Rock Casino, which generates revenues that the Tribal Government has used to finance housing, education, health, administrative and other programs that benefit its members as well as residents and agencies in surrounding communities. The casino is located in the heart of wine country, nestled among the rolling hills of the Alexander Valley. The 62,000 square foot facility offers over 1,150 state-of-the-art slot machines, including video poker and progressives, as well as 18 various table games. The casino also provides guests with a complete entertainment experience, which includes great dining, and exciting entertainment. The Tribe has completed more than $4 million dollars in capital improvements to the casino including: the addition of Center Stage Bar & Grill and Fortune Café, a new Players Club location, and wider aisles, new carpeting and more comfortable chairs. Funding from gaming operations has been used to support the county of Sonoma as well as the communities of Geyserville, Healdsburg, Windsor and Santa Rosa through many donations to those school districts and hospitals, among others. The casino encompasses the Dry Creek Rancheria Band of Pomo Indians' commitment to community, culture, and creativity.

The Tribe also operates the Alexander Valley RV Park and Campground.

The Dry Creek Rancheria Band of Pomo Indians is known for its enduring commitment to preserving the Tribe's history and cultural identity. As part of this commitment, the Tribe plans to build a Cultural Center. The Cultural Center will provide a welcomed gathering place for all generations to celebrate ancient traditions and keep treasured Tribal arts alive.

According to the Governor's office, this Compact respects the strong government-to-government relationships that the Tribe has with local jurisdictions by affirming existing agreements that address issues important to each Tribe and their local community in a manner that reflects their values and unique historical background. The terms of this Compact reflect the Tribes' specific circumstances and the markets in which the Tribe operates its gaming facility.

Key Provisions of the Compact:

Scope of Class III Gaming Authorized: The Tribe is authorized to operate up to 1,200 gaming devices (slot machines), banking or percentage card games, and any devices or games that are authorized under state law to the California State Lottery, provided that the Tribe will not offer such games through use of the Internet unless others in the state are permitted to do so under state and federal law. The Tribe shall not be prohibited from offering Class II gaming or precluded from negotiating a separate compact governing the conduct of off-track wagering at the Tribe's gaming facility. The Tribe shall not engage in Class III gaming that is not expressly authorized in the Compact.

Authorized Gaming Facility: The Tribe may establish and operate not more than two gaming facilities and engage in Class III gaming only on eligible Indian lands held in trust for the Tribe, located within the boundaries of the Tribe's Rancheria, as those boundaries exist as of the execution date of this Compact, as legally described in, and represented on the map at Appendix A hereto, and on which Class III gaming may lawfully be conducted under IGRA. The Tribe may combine and operate in its gaming facilities any forms and kinds of gaming permitted under law, except to the extent limited under IGRA, this Compact, or the Tribe's gaming ordinance. If the Tribe chooses to operate more than one gaming facility, then one of the two gaming facilities shall have no more than 500 gaming devices and shall have a primary purpose other than gaming authorized under IGRA, and shall be subject to negotiation with the County pursuant to the MOA.

Memorandum of Agreement with Sonoma County: An existing MOU between the Tribe and Sonoma County establishes a mutually agreeable process to identify and mitigate potential off-reservation environmental impacts of future Tribal economic development projects, including on-reservation gaming projects, which meet or exceed the procedures required under the Compact. The MOA creates a framework for building and maintaining a mutually beneficial government-to-government relationship between the Tribe and the County and identifies ways for the Tribe and the County to work together to provide services and benefits to the Tribal community and Sonoma County residents.

The term of the MOA was extended by an amendment in 2015 from December 31, 2020, to December 31, 2030. Under the amended MOA, the Tribe made a one-time payment of $4.2 million to cover missed payments attributable to 2014 and 2015, which were deemed paid in full. The MOA annual payment is $750,000. After the first payment, annual payment amounts also include escalators based on the Tribe's increased earnings from the casino during the prior year (if any), with a cap on the annual payment of no more than $1 million per year.

The amended MOA extended the gaming moratorium on the Tribe's property in Petaluma from March 16, 2016 to March 16, 2024. The Tribe also agreed to operate no more than one casino anywhere within Sonoma County for the length of the MOA, even though its tribal-state compact currently permits two casinos. Furthermore, under the amended MOA, the Tribe must refrain from seeking or obtaining trust status for any purpose, including gaming, for its Petaluma property, until March 18, 2024. It also will not seek or obtain trust status for its other land in Sonoma County for gaming purposes, except for designated property adjacent to its existing trust land in Alexander Valley.

The amended MOA provide that, for any future amendments to the MOA, the parties shall agree to negotiate an amended and restated MOA, to incorporate past, present, and future modifications to the MOA, into a unified document, to the parties mutual satisfaction, for clarity and ease of administration.

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

Tribal Ownership, Management, and Control of Gaming Operation: The gaming operation authorized under this Compact shall be owned solely by the Tribe.

Payments to the RSTF or the TNGF: According to the Governor's office, currently the Tribe pays $500,000 into the RSTF and TNGF. Under the terms of this new Compact, the Tribe shall have no obligation to pay any amount to the RSTF and TNGF so long as the Tribe operates less than 1,200 slot machines. The Tribe may request renegotiation of the Compact to increase the number of authorized gaming devices to no more than 1,500. This increase triggers required payments into the RSTF or TNGF as either a flat-fee or an amount not to exceed 2% of "Net Win" from all of its Class III machines in excess of 350.

The Compact defines "Net Win" to mean the "drop from gaming devices, plus the redemption value of expired tickets, less fills, less payouts, less that portion of the gaming operation's payments to a third-party wide-area progressive jackpot system provider that is contributed only to the progressive jackpot amount."

If the MOA with the County ceases to be in effect, the State may request renegotiation of this Compact to address issues related to local mitigation and reasonable contributions to the RSTF and TNGF.

Payments to the Special Distribution Fund: The Tribe shall pay to the State on a pro rata basis the State's costs incurred for purposes consistent with IGRA, including the performance of all its duties under this Compact, the administration and implementation of tribal-state Class III gaming compacts, and funding for the Office of Problem Gambling, as determined by the monies appropriated in the annual Budget Act each fiscal year to carry out those purposes.

The Tribe's pro rata share of the State's costs in any given year this Compact is in effect may not be increased more than 5% per year and shall be calculated using the following equation: "The maximum number of gaming devices operated in the gaming facility during the previous State fiscal year as determined by the CGCC, divided by the maximum number of gaming devices operated by all federally recognized tribes in California pursuant to tribal-state Class III gaming compacts during the previous State fiscal year, multiplied by the Appropriation, equals the Tribe's pro rata share."

Under its 1999 Compact, the Tribe is not required to make payments to offset the State's regulatory costs (SDF).

Additional Compact Components:

Gaming Ordinance and Regulations: All gaming activities conducted under this Compact shall, at a minimum, comply with: 1) a gaming ordinance duly adopted by the Tribe and approved in accordance with IGRA, 2) all rules, regulations, procedures, specifications, and standards duly adopted by the National Indian Gaming Commission (NIGC), the Tribal Gaming Agency, and the California Gambling Control Commission (CGCC), and 3) the provisions of this Compact, as specified.

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

Minimum Internal Control Standards: The Compact requires the Tribe to conduct its gaming activities pursuant to an internal control system that implements MICS that are no less stringent than specified MICS of the NIGC. It requires gaming to operate pursuant to a written internal control system that reasonably assures that assets are safeguarded and accountability over assets is maintained, liabilities are properly recorded and contingent liabilities are properly disclosed, financial records are accurate and reliable, transactions are performed in accordance with the Tribe's authorization.

The Tribe is required to provide to the CGCC, upon written request, a copy of the independent certified public accountant agreed-upon procedures report conducted annually for submission to the NIGC pursuant to federal law. This report verifies that the gaming operation is in compliance with the NIGC's minimum internal control standards.

Patron Disputes: A patron who makes an oral or written complaint to personnel of the gaming operation over the play or operation of any game within five days of the play or operation at issue shall be notified in writing of the patron's right to request in writing, within five days of the gaming operation's written notification to the patron of that right, resolution of the dispute by the Tribal Gaming Agency or through a three-member tribal claims commission consisting of a representative of the tribal government and at least one non-tribal commissioner. The decision shall be issued within 15 days of the patron's request. If dissatisfied with the resolution, or no decision is rendered within 15 days of submission, the patron may seek resolution in either the Tribe's tribal court system, once a tribal court system is established, or before a three-member tribal claims commission. Any party dissatisfied with the award of the arbitrator may at the party's election invoke the JAMS Optional Arbitration Appeal Procedure. The cost and expenses of arbitration shall be initially borne equally by the Tribe and the patron but the JAMS arbitrator shall award to the prevailing party its costs and expenses (but no attorney fees). The Tribe consents to the jurisdiction of the tribal court, tribal claims commission, JAMS Optional Appeal Procedure and any action to enforce their judgments or the obligations in this section.

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

The Tribe must consent to jurisdiction in the Tribe's tribal court system, once a tribal court system is established, or before a three-member tribal claims commission. Any party dissatisfied with the award of the tribal venue may invoke the JAMS Optional Arbitration Appeal Procedure. The appeal will be based solely on the record developed in the tribal court or tribal claims commission proceedings. Factual determinations will not be set aside if supported by substantial evidence. The cost and expenses of arbitration shall be initially borne equally by the parties but the JAMS arbitrator shall award to the prevailing party its costs and expenses (but no attorney fees). The Tribe consents to the jurisdiction of the tribal court, tribal claims commission, JAMS Optional Appeal Procedure and any action to enforce their judgments or the obligations, as defined.

Environmental Protections: The terms and provisions of the MOA establish the relevant duties, standards and procedures for identification and mitigation of off-reservation impacts. As such, the Environmental Protection provisions of this Compact differ somewhat from other compacts. This Compact defers environmental mitigation and protections to the MOA between the Tribe and County.

Should, however, the MOA ever expire or be revoked, then the following environmental protection provisions will apply:

1. The Tribe must prepare a Tribal Environmental Impact Report (TEIR) and negotiate mitigation of any off-reservation impacts, including an evaluation of energy efficiency, prior to initiating the development of a project for a facility. The Compact provides procedures regarding the a) Notice of Preparation of Draft TEIR, b) Notice of Completion of Draft TEIR, and c) Issuance of Final TEIR.
2. A binding agreement must also be negotiated with Dry Creek County to, amongst other things, provide for the timely mitigation of any significant effect on the off-reservation environment. This includes provisions relating to compensation for law enforcement, fire protection, emergency medical services and any other public services to be provided by the County to the Tribe as a consequence of the project.

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

Building Codes and Fire Safety: In order to assure the protection of the health and safety of all gaming facility patrons, guests, and employees, the Tribe shall adopt and shall maintain throughout the term of this Compact, an ordinance that requires any covered gaming facility construction to meet or exceed the applicable codes. Gaming facility construction, expansion, improvement, modification or renovation must also comply with the federal Americans with Disabilities Act.

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

Enhanced Audit and Compliance Review Procedures: In addition to providing for an annual independent audit, the Compact allows the state to conduct its own annual audit and compact compliance review of the gaming operation, gaming facility, and gaming activities to ensure compliance with all provisions of this compact.

Inspection and Testing of Slot Machines: Gaming devices will have to be tested, approved and certified by an independent gaming test laboratory or state governmental gaming test laboratory to ensure they are being operated according to specified technical standards. Also, requires the CGCC to maintain adequate records that demonstrate compliance with software and hardware specifications. The CGCC would be authorized to annually conduct up to four random inspections of slot machines in operation to confirm that the slot machines are operating in conformance with these standards.

Labor Provisions: The Compact provides that the gaming activities authorized by this Compact may only commence after the Tribe has adopted an ordinance identical to the Tribal Labor Relations Ordinance (TRLO) provided for in Appendix C of the Compact, and the gaming activities may only continue as long as the Tribe maintains the ordinance. If the Tribe employs 250 or more persons in a tribal casino facility, then the provisions of the TLRO become effective. The TLRO provides for a secret ballot election.

The TLRO provides for union neutrality. The Tribe will not oppose union but can advocate the benefits of working for the Tribe. A union must issue a Notice of Intent or Organize (NOIO). For a period of 365 days following delivery of a NOIO, the union shall not engage in strikes, picketing, boycotts, attack websites, or other economic activity at or in relation to the Tribal casino or related facility. During the 365 days after the Tribe received the NOIO, the union must collect dated and signed authorization cards and complete the secret ballot election. Failure to complete the secret ballot election within 365 days shall preclude the union from delivering another NOIO for a period of 730 days.

After the certification that 30% of the employees have expressed an interest in the union, a notice of election shall be issues and the election shall be concluded within 30 calendar days thereafter. Secret ballot elections shall be held at workplace and at least one neutral location. Employee may mail ballots so long as received by election day. Union representation requires an affirmative vote of 50% plus one of all votes cast.

Mediation for any collective bargaining agreement impasse shall be resolved exclusively through the binding dispute resolution by three members of the Tribal Labor Panel, consisting of ten arbitrators appointed by a mutual selection of the parties. However, if arbitrator schedules cannot be coordinated within 30 days of submission, a single arbitrator shall decide the dispute. The arbitrators will generally follow the American Arbitration Association's procedural rules relating to labor dispute resolution.

Workers' Compensation: The Tribe agrees to participate in the state's workers' compensation program with respect to employees at the casino. All disputes arising from the workers' compensation laws shall be heard by the State Workers' Compensation Appeals Board pursuant to the California Labor Code. In lieu of participating in the State's workers' compensation system, the Tribe may create and maintain a system that provides redress for employee work-related injuries through requiring insurance or self-insurance, which system must include a scope of coverage, provision of up to $10,000 in medical treatment for an alleged injury until the date that liability for the claim is accepted or rejected. Furthermore, the Tribe agrees that it will participate in the state's unemployment compensation program for providing benefits and unemployment compensation disability benefits to employees at the gaming facility. The Tribe shall withhold all taxes due to the state, except for Tribal members living on the Tribe's reservation, and forward such amounts to the state.

Prohibitions Regarding Minors: The Tribe shall prohibit persons under the age of 21 years from being present in any room or area in which gaming activities are being conducted unless the person is en-route to a non-gaming area of the gaming facility, or is employed at the gaming facility in a capacity other than as a gaming employee. The Tribe shall also prohibit persons under the age of 21 years from being present in any room or area in which alcoholic beverages may be consumed, except to the extent permitted by the Department of Alcoholic Beverage Control (ABC) for other commercial establishments serving alcoholic beverages.

Alcoholic Beverage Service: Purchase, sale, and service of alcoholic beverages by or to patrons shall be subject to state alcoholic beverage laws.

Tobacco Provisions: The Tribe agrees to provide a non-smoking area in the gaming facility and to utilize a ventilation system throughout the gaming facility that exhausts tobacco smoke to the extent reasonably feasible. The Tribe agrees not to offer or sell tobacco or e-cigarettes to anyone younger than the minimum age specified in state law.

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

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

Effective Date: The Compact shall not be effective unless and until all of the following have occurred: 1) the Compact is ratified by statute in accordance with state law and, 2) notice of approval or constructive approval is published in the Federal Register. Once effective, this Compact shall be in full force and in effect until 25 years (2041) following the effective date.

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

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

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 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.

Prior legislation: SB 404 (De León), Chapter 229, Statutes of 2016, ratified the tribal-state gaming compact entered into between the State of California and the Viejas Band of Kumeyaay Indians, executed on June 22, 2016.

SB 187 (Hall), Chapter 306, Statutes of 2016, ratified the tribal-state gaming compact entered into between the State of California and the Jamul Indian Village, executed August 4, 2016.

SB 1313 (Hall), Chapter 310, Statutes of 2016, ratified the tribal-state gaming compact entered into between the State of California and the Yocha Dehe Wintun Nation, executed on August 4, 2016.

AB 2915 (Garcia), Chapter 240, Statutes of 2016, ratified an amendment to the 2006 tribal state gaming compact entered into between the State of California and the Agua Caliente Band of Cahuilla Indians, executed on August 4, 2016.

AB 2358 (Gonzalez), Chapter 298, Statutes 2016, ratified the tribal-state gaming compact entered into between the State of California and the Pechanga Band of Luiseno Indians, executed August 4, 2016.

AB 1977 (Wood), Chapter 296, Statutes of 2016, ratified the first amendment to the 2006 tribal-state gaming compact entered into between the State of California and the Yurok Tribe, executed August 4, 2016.

AB 1767 (Bigelow), Chapter 291, Statutes 2016, ratified first amendment to the 2015 tribal-state gaming compact entered into between the State of California and the Jackson Rancheria Band of Miwuk Indians, executed on June 22, 2016.

AB 1282 (Gray), Chapter 287, Statutes 2016, ratified the tribal-state gaming compact entered into between the State of California and the Buena Vista Rancheria of Me-Wuk Indians, executed on June 28, 2016.

AB 629 (Gonzalez), Chapter 160, Statutes 2016, ratified the tribal-state gaming compact entered into between the State of California and the Pala Band of Mission Indians, executed on May 6, 2016.

AB 466 (Brown), Chapter 285, Statutes of 2016, ratified an amendment to the 2006 tribal-state gaming compact entered into between the State of California and the San Manuel Band of Mission Indians, executed on August 16, 2016.

AB 291 (Atkins), Chapter 284, Statutes of 2016, ratified the tribal-state gaming compact entered into between the State of California and the Barona Band of Mission Indians, executed on June 22, 2016.

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

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

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

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

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

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

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

AB 277 (Hall), Chapter 51, Statutes of 2013, ratified two new compacts entered into between the State of California and the following tribes: North Fork Rancheria, executed on August 31, 2012 and the Wiyot Tribe, executed on March 20, 2013.

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

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

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

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

AB 1418 (Hall), Chapter 412, Statutes of 2011, repealed those provisions ratifying the tribal-state gaming compact entered into between the State of California and Pinoleville Pomo Nation, executed on March 9, 2009 and instead ratified the tribal-state gaming compact entered into between the State of California and the Pinoleville Pomo Nation, executed on August 8, 2011. Ratification of this revised compact authorized the Tribe to operate up to 900 slot machines with up to 15% of the casino's net win from the slots designated for local communities, gambling mitigation and regulation, instead of requiring revenue contributions be made to the General Fund as provided by the 2009 compact.

AB 1020 (Chesbro), Chapter 27, Statutes of 2011, repealed the ratification of the tribal-state gaming compact entered into between the State of California and the Habematolel Pomo of Upper Lake, executed on September 2, 2009, and instead ratified a new tribal-state gaming compact entered into between the State of California and the Habematolel Pomo of Upper Lake, executed on March 17, 2011. Ratification of this revised compact authorized the Tribe to operate up to 750 slot machines with up to 15% of the net-win from those gaming devices being paid to the Special Distribution Fund (SDF) and the Revenue Sharing Trust Fund (RSTF), instead of requiring revenue contributions be made to the General Fund as provided by the 2009 compact.

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

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

AB 3072 (Price), Chapter 334, Statutes of 2008, ratified the first amendment to a tribal-state gaming compact entered into between the State of California and the Shingle Springs Band of Miwok Indians, executed on June 30, 2008.

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

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

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

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

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

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

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

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

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

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

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

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

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

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: 0002068

SENATE THIRD READING

STR Bill Id:SB 585

Author:(Mendoza)

As Introduced Ver:February 17, 2017

Majority vote

SENATE VOTE: 37-0

SUMMARY: Authorizes the governing board of a school district to award employees who use their own personal resources to meet the classroom material needs of pupils and makes other, nonsubstantive changes.

EXISTING LAW:

1. Authorizes the governing board of a school district to make awards to employees who do any of the following:
   1. Propose procedures or ideas that thereafter are adopted and effectuated, and that result in eliminating or reducing district expenditures or improving operations;
   2. Perform special acts or special services in the public interest; or
   3. By their superior accomplishments, make exceptional contributions to the efficiency, economy, or other improvement in operations of the school district.
2. Requires that, before any awards are made pursuant to this authority, the governing board shall adopt rules and regulations and may appoint one or more merit award committees made up of district officers, district employees, or private citizens to consider employee proposals, special acts, special services, or superior accomplishments and to act affirmatively or negatively thereon or to provide appropriate recommendations thereon to the board.
3. Requires that any award granted under this authority that may be made by an awards committee under appropriate district rules shall not exceed $200, unless a larger award is expressly approved by the governing board.
4. Provides that when an awards program is established in a school district pursuant to this authority, the governing board shall budget funds for this purpose but may authorize awards from funds under its control whether or not budgeted funds have been provided or the funds budgeted are exhausted.

COMMENTS: This bill expands the purposes for which a school district may award an employee to include employees who use their own personal resources to meet the classroom material needs of pupils and makes other, nonsubstantive changes. Information provided by the author's office cites a report from Bersin & Associates, a human resources research firm, which states that organizations that recognize employees have a 31% lower voluntary turnover rate than organizations that do not have employee reward programs. Accordingly, the author's office argues that this bill could help improve teacher retention as well as encourage teachers and other school employees to use personal resources on behalf of students.

The permissive Education Code may not apply in this case. Education Code Section 35160 states:

On and after January 1, 1976, the governing board of any school district may initiate and carry on any program, activity, or may otherwise act in any manner which is not in conflict with or inconsistent with, or preempted by, any law and which is not in conflict with the purposes for which school districts are established [emphasis added].

This provision gives districts blanket authority to take actions that are not in conflict with, inconsistent with, or preempted by other law. In most cases, this eliminates the need to enact legislation to authorize districts to operate specific programs or activities. In this case, however, the Legislature has already provided specific authorization to have an award program and has specified the purposes for which awards may be provided and the actions that a governing board must take prior to making awards. Because of this, school districts (and possibly the courts) may conclude that an award given for a purpose other than a statutorily authorized purpose may be inconsistent with existing law. This bill eliminates that potential conflict.

Analysis Prepared by: Rick Pratt / ED. / (916) 319-2087 FN: 0001631

Date of Hearing: June 21, 2017

ASSEMBLY COMMITTEE ON EDUCATION

Patrick O'Donnell, Chair

SBPCA Bill Id:SB 585

Author:(Mendoza) – As Introduced Ver:February 17, 2017

SENATE VOTE: 37-0

SUBJECT: School employees: awards

SUMMARY: Authorizes the governing board of a school district to award employees who use their own personal resources to meet the classroom material needs of pupils and makes other, nonsubstantive changes.

EXISTING LAW:

1. Authorizes the governing board of a school district to make awards to employees who do any of the following:
   1. Propose procedures or ideas that thereafter are adopted and effectuated, and that result in eliminating or reducing district expenditures or improving operations;
   2. Perform special acts or special services in the public interest; or
   3. By their superior accomplishments, make exceptional contributions to the efficiency, economy, or other improvement in operations of the school district.
2. Requires that, before any awards are made pursuant to this authority, the governing board shall adopt rules and regulations and may appoint one or more merit award committees made up of district officers, district employees, or private citizens to consider employee proposals, special acts, special services, or superior accomplishments and to act affirmatively or negatively thereon or to provide appropriate recommendations thereon to the board.
3. Requires that any award granted under this authority that may be made by an awards committee under appropriate district rules shall not exceed two hundred dollars ($200), unless a larger award is expressly approved by the governing board.
4. Provides that when an awards program is established in a school district pursuant to this authority, the governing board shall budget funds for this purpose but may authorize awards from funds under its control whether or not budgeted funds have been provided or the funds budgeted are exhausted.

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

COMMENTS: This bill expands the purposes for which a school district may award an employee to include employees who use their own personal resources to meet the classroom material needs of pupils and makes other, nonsubstantive changes. Information provided by the author's office cites a report from Bersin & Associates, a human resources research firm, which states that organizations that recognize employees have a 31% lower voluntary turnover rate than organizations that do not have employee reward programs. Accordingly, the author's office argues that this bill could help improve teacher retention as well as encourage teachers and other school employees to use personal resources on behalf of students.

The permissive Education Code may not apply in this case. Education Code §35160 states:

"On and after January 1, 1976, the governing board of any school district may initiate and carry on any program, activity, or may otherwise act in any manner which is not in conflict with or inconsistent with, or preempted by, any law and which is not in conflict with the purposes for which school districts are established [emphasis added]."

This provision gives districts blanket authority to take actions that are not in conflict with, inconsistent with, or preempted by other law. In most cases, this eliminates the need to enact legislation to authorize districts to operate specific programs or activities. In this case, however, the Legislature has already provided specific authorization to have an award program and has specified the purposes for which awards may be provided and the actions that a governing board must take prior to making awards. Because of this, school districts (and possibly the courts) may conclude that an award given for a purpose other than a statutorily authorized purpose may be inconsistent with existing law. This bill eliminates that potential conflict.

REGISTERED SUPPORT / OPPOSITION:

Support

California Federation of Teachers

California School Employees Association

Opposition

None received

Analysis Prepared by: Rick Pratt / ED. / (916) 319-2087

 THIRD READING  

Bill No: SB 585

Author: , et al.

:

Vote:

SENATE EDUCATION COMMITTEE: 7-0, 4/19/17

AYES: Allen, Wilk, Galgiani, Leyva, Mendoza, Pan, Vidak

SUBJECT:

SOURCE: Author

DIGEST:

This bill expands the list of employees to which school district governing boards are authorized to make awards, under Education Code § 44015, to include employees who use their own personal resources to meet the classroom material needs of pupils.

ANALYSIS:

Existing law:

1. Authorizes school district governing boards to make awards to employees who: (1) propose procedures or ideas that thereafter are adopted and effectuated, and that eliminate or reduce district expenditures or improve operations, (2) perform special acts or services in the public interest, or (3) by their superior accomplishments, make exceptional contributions to the efficiency, economy, or other improvement to operations of the school district.
2. Authorizes school district governing boards to make awards to pupils for excellence.
3. Requires school district governing boards to adopt rules and regulations before making awards, and authorizes the boards to appoint one or more merit award committees made up of district officers, district employees, or private citizens to consider employee proposals, special acts, special services, or superior accomplishments and to provide recommendations thereon.
4. Prohibits awards from exceeding two hundred dollars, unless a larger award is expressly approved by a school district governing board.
5. Requires school district governing boards establishing award programs to budget funds for its purpose, but authorizes awards from funds under the board’s control whether or not budgeted funds have been provided or the funds budgeted have been exhausted.

This bill expands the list of employees to which school district governing boards are authorized to make awards, under Education Code § 44015, to include employees who use their own personal resources to meet the classroom material needs of pupils.

Comments

1. Need for the bill. According to the author’s office, The California Department of Education currently sponsors several programs that reward teachers, classified employees, students, and individual schools. This bill seeks to extend the recognition to employees who dedicate their resources to teaching their students. Establishing and maintaining employee recognition programs is important for employee engagement and positive motivation. This practice encourages employees to produce more and better quality work. This bill would provide encouragement for teachers and other school employees who extend their personal resources, and further, enrich the lives of students.
2. Teacher awards at the state level. Several programs at the state level aim to recognize teachers, including:
   1. California Distinguished Schools, which honor schools that have demonstrated overall academic and programmatic excellence.
   2. The Academic Achievement Award, which honors Title I schools that have shown progress in closing the achievement gap among students.
   3. The California Teacher of the Year, which recognizes teachers for their exemplary contributions to student instruction.
   4. The Classified Employee of the Year, which honors outstanding contributions from school staff.
3. Teacher awards at the local level. School districts are authorized to provide awards and recognition for their teachers as they see fit. The way in which these awards are made can be determined by a school governing board, but less formal awards are often made by school principals or other administrators. While the way in which school districts choose to recognize employees varies considerably, the awards are generally all aimed at recognizing teacher excellence for the purpose of improving the district’s school climate, employee satisfaction, teacher performance, and the retaining of high-quality teachers. Further, due to perennial staffing difficulties for schools, particularly in the areas of special education, math, and science, school districts have incentive to ensure their teachers are recognized.

Nothing in current law prevents local educational agencies from making awards to their employees, including those that use their own personal resources to meet the classroom material needs of pupils. Further, it is unclear whether any school districts have made awards to their employees recently under the authority provided under Education Code § 44015.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 4/24/17)

California Teachers Association

OPPOSITION: (Verified 4/24/17)

None received

Prepared by:

4/26/17 14:33:48

**** END ****

SENATE COMMITTEE ON EDUCATION

Senator Benjamin Allen, Chair

2017 - 2018 Regular

Bill No: Hearing Date: April 19, 2017

Subject:

SUMMARY

This bill expands the list of employees to which school district governing boards are authorized to make awards, under Education Code § 44015, to include employees who use their own personal resources to meet the classroom material needs of pupils.

BACKGROUND

Existing law, Education Code § 44015:

1. Authorizes school district governing boards to make awards to employees who: (1) propose procedures or ideas that thereafter are adopted and effectuated, and that eliminate or reduce district expenditures or improve operations, (2) perform special acts or services in the public interest, or (3) by their superior accomplishments, make exceptional contributions to the efficiency, economy, or other improvement to operations of the school district.
2. Authorizes school district governing boards to make awards to pupils for excellence.
3. Requires school district governing boards to adopt rules and regulations before making awards, and authorizes the boards to appoint one or more merit award committees made up of district officers, district employees, or private citizens to consider employee proposals, special acts, special services, or superior accomplishments and to provide recommendations thereon.
4. Prohibits awards from exceeding two hundred dollars, unless a larger award is expressly approved by a school district governing board.
5. Requires school district governing boards establishing award programs to budget funds for its purpose, but authorizes awards from funds under the board’s control whether or not budgeted funds have been provided or the funds budgeted have been exhausted.

ANALYSIS

This bill expands the list of employees to which school district governing boards are authorized to make awards, under Education Code § 44015, to include employees who use their own personal resources to meet the classroom material needs of pupils.

STAFF COMMENTS

1. Need for the bill. According to the author’s office, The California Department of Education (CDE) currently sponsors several programs that reward teachers, classified employees, students, and individual schools. This bill seeks to extend the recognition to employees who dedicate their resources to teaching their students. Establishing and maintaining employee recognition programs is important for employee engagement and positive motivation. This practice encourages employees to produce more and better quality work. This bill would provide encouragement for teachers and other school employees who extend their personal resources, and further, enrich the lives of students.
2. Teacher awards at the state level. Several programs at the state level aim to recognize teachers, including:
   1. California Distinguished Schools, which honor schools that have demonstrated overall academic and programmatic excellence.
   2. The Academic Achievement Award, which honors Title I schools that have shown progress in closing the achievement gap among students.
   3. The California Teacher of the Year, which recognizes teachers for their exemplary contributions to student instruction.
   4. The Classified Employee of the Year, which honors outstanding contributions from school staff.
3. Teacher awards at the local level. School districts are authorized to provide awards and recognition for their teachers as they see fit. The way in which these awards are made can be determined by a school governing board, but less formal awards are often made by school principals or other administrators. While the way in which school districts choose to recognize employees varies considerably, the awards are generally all aimed at recognizing teacher excellence for the purpose of improving the district’s school climate, employee satisfaction, teacher performance, and the retaining of high-quality teachers. Further, due to perennial staffing difficulties for schools, particularly in the areas of special education, math, and science, school districts have incentive to ensure their teachers are recognized.

Nothing in current law prevents local educational agencies from making awards to their employees, including those that use their own personal resources to meet the classroom material needs of pupils. Further, it is unclear whether any school districts have made awards to their employees recently under the authority provided under Education Code § 44015.

SUPPORT

California Federation of Teachers

OPPOSITION

None received

-- END --