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

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

This bill would ratify the tribal-state gaming compacts entered into between the State of California and the Cahto Tribe of the Laytonville Rancheria, the Ewiiaapaayp Band of Kumeyaay Indians, California, the Manchester Band of Pomo Indians of the Manchester Rancheria, California, the Resighini Rancheria, and the Sherwood Valley Rancheria of Pomo Indians of California. The bill would provide that, in deference to tribal sovereignty, certain actions related to those compacts are not projects for the purposes of CEQA.

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

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

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

This bill would ratify the tribal-state gaming compacts entered into between the State of California and the Cahto Tribe of the Laytonville Rancheria, the Ewiiaapaayp Band of Kumeyaay Indians, California, the Manchester Band of Pomo Indians of the Manchester Rancheria, California, the Resighini Rancheria, and the Sherwood Valley Rancheria of Pomo Indians of California. The bill would provide that, in deference to tribal sovereignty, certain actions related to those compacts are not projects for the purposes of CEQA.

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

Existing law, the Gambling Control Act, establishes the California Gambling Control Commission, which is responsible for licensing and regulating various gambling activities and establishments. Under existing law, the commission consists of 5 members appointed by the Governor, subject to confirmation by the Senate.

Existing law requires specified employees of a gambling enterprise to apply for and obtain a work permit from the commission or from a city, county, or city and county. Existing law authorizes the commission to issue an order summarily suspending a persons work permit upon a finding that the suspension is necessary for the immediate preservation of the public peace, health, safety, or general welfare, and provides for a hearing within 30 calendar days of the date of service of the suspension.

This bill would instead provide for a hearing within 28 calendar days.

 UNFINISHED BUSINESS  

Bill No: SB 771

Author: Dodd (D), et al.

Amended: 8/31/23

Vote: 27 - Urgency

PRIOR SENATE VOTES NOT RELEVANT

NOTE: On August 22, 2023, the Senate Governmental Organization Committee held an informational hearing on the tribal-state gaming compacts between the State of California and the Cahto Tribe of the Laytonville Rancheria, the Ewiiaapaayp Band of Kumeyaay Indians, California, the Manchester Band of Pomo Indians of the Manchester Rancheria, California, the Resighini Rancheria, and the Sherwood Valley Rancheria of Pomo Indians of California.

ASSEMBLY FLOOR: 80-0, 9/11/23 - See last page for vote

SUBJECT: Tribal gaming: compact ratification

SOURCE: Author

DIGEST:

The bill ratifies the tribal state gaming compacts between the State of California and between the State of California and the Cahto Tribe of the Laytonville Rancheria, the Ewiiaapaayp Band of Kumeyaay Indians, California, the Manchester Band of Pomo Indians of the Manchester Rancheria, California, the Resighini Rancheria, and the Sherwood Valley Rancheria of Pomo Indians of California, as specified.

Assembly Amendments

delete the contents of the bill and instead ratifies the five aforementioned tribal state gaming compacts.

ANALYSIS:

Existing law:

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

This bill:

1. Ratifies the tribal-state gaming compacts between the State of California and the Cahto Tribe of the Laytonville Rancheria, the Ewiiaapaayp Band of Kumeyaay Indians, California, the Manchester Band of Pomo Indians of the Manchester Rancheria, California, the Resighini Rancheria, and the Sherwood Valley Rancheria of Pomo Indians of California
2. Provides that, in deference to tribal sovereignty, certain actions are not deemed projects for purposes of the California Environmental Quality Act (CEQA); and, stipulate, except as expressly provided, that none of the provisions shall be construed to exempt a city, county, or city and county, or the Department of Transportation, or any state agency or local jurisdiction, from CEQA requirements.
3. Contains an urgency clause.

Background

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

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

IGRA was enacted against a legal background in which Indian tribes and individuals generally are exempt from state taxation within their own territory. IGRA provides that with the exception of assessments permitted under the statute, to defray the State’s costs of regulating gaming activity, IGRA shall not be interpreted as conferring upon a State authority to impose any tax, fee, charge, or other assessment upon an Indian tribe to engage in Class III activity. Nor may a State refuse to enter into negotiations based on the lack of authority to impose such a tax, fee, charge, or other assessment.

When a tribe requests negotiations for a Class III compact, IGRA requires the State to negotiate with the Indian tribe in good faith. IGRA provides a comprehensive process to prevent an impasse in compact negotiations, which is triggered when a tribe files suit alleging that the State has refused to negotiate or has failed to negotiate in good faith.

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

Revenue Sharing Trust Fund (RSTF). Existing law creates in the State Treasury the RSTF for the receipt and deposit of moneys derived from gaming device license fees that are paid into the RSTF pursuant to the terms of specified tribal-state gaming compacts for the purpose of making distributions to non-compacted California tribes (e.g., federally-recognized non-gaming tribes and tribes that operate casinos with fewer than 350 slot machines).

Revenue in the RSTF is available to the California Gambling Control Commission, upon appropriation by the Legislature, for making distributions of $1.1 million annually to non-compact tribes. The RSTF was created as part of the 1999 compacts, which, in conjunction with the passage of Proposition 1A, created gaming compacts with approximately 60 California tribes. Non-compact tribes are considered third-party beneficiaries of the 1999 compacts.

Tribal Nation Grant Fund. This particular fund 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.

Comments

Key provisions off the Compact

Gaming Facilities and Number of Gaming Machines Authorized. The Cahto Tribe of the Laytonville Rancheria, Manchester Band of Pomo Indians of the Manchester Rancheria, Resighini Rancheria, and Sherwood Valley Rancheria of Pomo Indians of California would be authorized to operate three gaming facilities on gaming eligible lands. The Ewiiaapaayp Band of Kumeyaay Indians, California would be authorized to operate two such facilities on its gaming eligible land. The total number of gaming devices (slot machines) each Tribe is authorized to operate at their gaming facilities is as follows:

1. Cahto Tribe of the Laytonville Rancheria – 1,200
2. Manchester Band of Pomo Indians of the Manchester Rancheria – 1,200
3. Sherwood Valley Rancheria of Pomo Indians of California – 1,200
4. Resighini Rancheria – 1,200
5. Ewiiaapaayp Band of Kumeyaay Indians, California – 1,200

Payments to the Special Distribution Fund (SDF). The Tribes 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. This contribution is eligible to be reduced or eliminated if an individual Tribe remains a limited-gaming tribe and there are sufficient funds in the SDF.

Payments to the RSTF or the TNGF. The Compacts does not require any Tribe to pay into either the Revenue Sharing trust Fund (RSTF) or the Tribal Nation Grant Fund (TNGF).

Distribution by Tribe to Local Governments. Each Compact of the Cahto Tribe of the Laytonville Rancheria, Manchester Band of Pomo Indians of the Manchester Rancheria, Resighini Rancheria, and Sherwood Valley Rancheria of Pomo Indians of California Compacts state that if the Tribe operates more than 350 slot machines, the Tribe shall pay 0.5% of Net Win to neighboring jurisdictions, public agencies, and local charitable organizations to mitigate impacts upon those entities resulting from the operation of the gaming facility, or other purposes as the Tribe may see fit, consistent with the request of a recipient. The Ewiiaapaayp Band of Kumeyaay Indians, California shall distribute 0.25% of its Net Win to local governments and charitable organizations to mitigate impacts of its gaming facility.

Labor Provisions. The Compacts provide that the gaming activities authorized by each Compact may only commence after the Tribe has adopted an ordinance identical to the Tribal Labor Relations Ordinance (TRLO), as referenced in the Compacts, 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 makes it clear that employees shall have the right to self-organization, to form, to join, or assist employee organizations, to bargain collectively through representatives of their own choosing. 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.

Effective Date. Each 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.

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

SUPPORT: (Verified 9/7/23)

Ewiiaapaayp Band of Kumeyaay Indians

The Resighini Rancheria

OPPOSITION: (Verified 9/7/23)

None received

ASSEMBLY FLOOR: 80-0, 9/11/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

9/11/23 20:06:36

**** END ****

SENATE THIRD READING

STR Bill Id:SB 771

Author:(Committee on Governmental Organization)

As Amended Ver:August 31, 2023

2/3 vote. Urgency

SUMMARY

Would ratify separate tribal-state gaming compacts between the State of California and the:

1. Cahto Tribe of the Laytonville Rancheria
2. Manchester Band of Pomo Indians of the Manchester Rancheria

3) Sherwood Valley Rancheria of Pomo Indians of California

4) Resighini Rancheria

5) Ewiiaapaayp Band of Kumeyaay Indians, California

Major Provisions

1. Ratify tribal-state gaming compact between the State of California and the Cahto Tribe of the Laytonville Rancheria, executed on May 23, 2023.
2. Ratify tribal-state gaming compact between the State of California and the Manchester Band of Pomo Indians of the Manchester Rancheria, California, executed on May 23, 2023..
3. Ratify tribal-state gaming compact between the State of California and the Sherwood Valley Rancheria of Pomo Indians of California, executed on May 23, 2023.
4. Ratify tribal-state gaming compact between the State of California and the Resighini Rancheria, executed on June 7, 2023.
5. Ratify tribal-state gaming compact entered into between the State of California and the Ewiiaapaayp Band of Kumeyaay Indians, California, executed on August 2, 2023.

EXISTING LAW:

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

COMMENTS

On August 30 and September 6, 2023, the Assembly Governmental Organization Committee will hold informational hearings on the separate signed tribal-state gaming compacts between the State of California and the Cahto Tribe of the Laytonville Rancheria, Manchester Band of Pomo Indians of the Manchester Rancheria, Sherwood Valley Rancheria of Pomo Indians of California, Resighini Rancheria, and Ewiiaapaayp Band of Kumeyaay Indians, California.

KEY PROVISIONS OF THE COMPACTS:

Scope of Class III Gaming Authorized. Each Tribe may engage in Class III Gaming, operate slot machines, banking or percentage card games, and any devices or games that are authorized under State law. They are prohibited from offering 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 Tribes shall not engage in any Class III Gaming that is not expressly authorized in the Compact.

Gaming Facilities and Number of Gaming Machines Authorized.

The Cahto Tribe of the Laytonville Rancheria, Manchester Band of Pomo Indians of the Manchester Rancheria, Resighini Rancheria, and Sherwood Valley Rancheria of Pomo Indians of California would be authorized to operate three gaming facilities on gaming eligible lands. The Ewiiaapaayp Band of Kumeyaay Indians, California would be authorized to operate two such facilities on its gaming eligible land. The total number of gaming devices (slot machines) each Tribe is authorized to operate at their gaming facilities is as follows:

Number of Gaming Devices Authorized

1. Cahto Tribe of the Laytonville Rancheria – 1,200
2. Manchester Band of Pomo Indians of the Manchester Rancheria – 1,200
3. Sherwood Valley Rancheria of Pomo Indians of California – 1,200
4. Resighini Rancheria – 1,200
5. Ewiiaapaayp Band of Kumeyaay Indians, California – 1,200

Payments to the Special Distribution Fund (SDF). The Tribes 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. This contribution is eligible to be reduced or eliminated if an individual Tribe remains a limited-gaming tribe and there are sufficient funds in the SDF.

Payments to the RSTF or the TNGF. The Compact does not require each Tribe to pay into either the RSTF or the TNGF.

Distribution by Tribe to Local Governments. Each Compact of the Cahto Tribe of the Laytonville Rancheria, Manchester Band of Pomo Indians of the Manchester Rancheria, Resighini Rancheria, and Sherwood Valley Rancheria of Pomo Indians of California Compacts state that if the Tribe operates more than 350 slot machines, the Tribe shall pay 0.5% of Net Win to neighboring jurisdictions, public agencies, and local charitable organizations to mitigate impacts upon those entities resulting from the operation of the gaming facility, or other purposes as the Tribe may see fit, consistent with the request of a recipient. The Ewiiaapaayp Band of Kumeyaay Indians, California shall distribute 0.25% of its Net Win to local governments and charitable organizations to mitigate impacts of its gaming facility.

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 abrogated by the enactment, amendment, or repeal of a state statute or constitutional provision or the conclusive and dispositive judicial construction of a statute or the State Constitution by a California appellate court after the effective date of each Compact, that gaming devices may lawfully be operated by non-Indian entities, the Tribe shall have the right to terminate this Compact, as specified.

Labor Provisions. Provides that the gaming activities authorized by each Compact may only commence after the Tribe has adopted an ordinance identical to the TRLO, as referenced in the Compacts, 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 makes it clear that employees shall have the right to self-organization, to form, to join, or assist employee organizations, to bargain collectively through representatives of their own choosing. 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.

Force Majeure Clause. Each Compact states that in the event of a force majeure beyond the Tribe's control that cause the Tribes gaming facility to be inoperable or operate at significantly less capacity, the Tribe and the State agree to meet and confer for the purposes of discussing the event and appropriate actions. In the instance that a force majeure event impacts more than 50% of tribal gaming operations located in California, the State and the Tribe agree to allow the State to elect to meet and confer with several or all tribes that have been impacted by the force majeure event for the purpose of discussing the event and appropriate actions, given the circumstances.

Effective Date. Each 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.

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

According to the Author

According to the Governor's Office, each of the individually-negotiated new Compacts reflect the Governor's and the Tribes' mutual commitment to a strong and respectful government-to-government relationship, and to promoting tribal economic development and self-sufficiency and strong tribal governments. Each Tribe is committed to improving the environment, education status, and the health, safety and general welfare of its members and the surrounding community. Each Compact respects the Tribe's primary responsibility and sovereign authority over the regulation of its gaming facility and continues to enhance the Tribe's economic development and self-sufficiency. Each Tribe and the State have concluded that the Compact protects the interests of the Tribe and its members, the surrounding community, and the California public, and will promote and secure long-term stability, mutual respect, and mutual benefits.

Arguments in Support

Each of these separate tribal-state gaming compacts further the parties' mutual interest in improving the quality of life of Tribal members though a framework that generates revenue for governmental programs while also fairly regulating the gaming activities. Each Compact affords meaningful consumer and employee protections and provide mitigation for the off-reservation impacts of the gaming facility. These Compacts are consistent with those that have been ratified by the Legislature over the past few years.

Arguments in Opposition

None on file.

FISCAL COMMENTS

Unknown.

VOTES

Votes Not Relevant.

UPDATED

VERSION: August 31, 2023

CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0001407

SENATE THIRD READING

STR Bill Id:SB 771

Author:(Committee on Governmental Organization)

As Introduced Ver:February 17, 2023

Majority vote

SUMMARY

This bill changes, from 30 to 28 calendar days, for when the California Gambling Control Commission (CGCC) must commence a hearing when a person's work permit is summarily suspended.

EXISTING LAW:

1. Provides, under the Gambling Control Act (Act), for the licensure and regulation of various legalized gambling activities and establishments by the Commission and the investigation and enforcement of those activities and establishments by the Bureau of Gambling Control (Bureau), under the California Department of Justice (DOJ).
2. Requires specified employees of a gambling enterprise to apply for and obtain a work permit from the CGCC or from a city, county, or city and county.
3. Authorizes the CGCC to issue an order summarily suspending a person's work permit upon a finding that the suspension is necessary for the immediate preservation of the public peace, health, safety, or general welfare, and provides for a hearing within 30 calendar days of the date of service of the suspension

COMMENTS

Background.

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

The Act directs the CGCC to issue licenses only to those persons of good character, honesty and integrity, whose prior activities, criminal record, if any, reputation, habits and associations do not pose a threat to the public interest of this state. The DOJ conducts background and field investigations and enforces the provisions of the Act in this regard. There are over 4,400 licenses processed per year, mainly license renewals and employee transfers.

As of April 2023, the CGCC reports that there are 82 licensed card clubs in California. These gaming establishments vary in size, from businesses with just a few gaming tables to large establishments with over 350 gaming tables. Card clubs offer poker and other table games to the public. Card clubs differ from tribal casinos in the way they generate revenue and the specific types of games they can offer.

Current law authorizes the CGCC to issue an order summarily suspending a person's work permit upon finding that the suspension is necessary for the immediate preservation of the public peace, health, safety, or general welfare. An order is required to be signed by at least three members of the CGCC.

A person whose work permit is immediately suspended has the right to a hearing within 30 calendar days of the date of suspension. This bill simply changes this specific time frame from 30 to 28 calendar days.

According to the Author

According to the author's office, "every year the Senate Governmental Organization committee moves a legislative vehicle through the legislative process to ensure that a vehicle is available should the need for a tribal compact vehicle emerge. Specifically, this bill simply changes from 30 to 28 days by which the CGCC must commence a hearing when the commission suspends a person's work permit."

Arguments in Support

None on file.

Arguments in Opposition

None on file.

FISCAL COMMENTS

None. This bill is keyed non-fiscal by Legislative Counsel.

VOTES

SENATE FLOOR: 37-0-3

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener

ABS, ABST OR NV: Blakespear, Glazer, Wilk

ASM GOVERNMENTAL ORGANIZATION: 21-0-1

YES: Santiago, Lackey, Aguiar-Curry, Berman, Bryan, Cervantes, Megan Dahle, Waldron, Gipson, Jones-Sawyer, Low, Mathis, McCarty, McKinnor, Jim Patterson, Quirk-Silva, Ramos, Robert Rivas, Blanca Rubio, Ta, Villapudua

ABS, ABST OR NV: Garcia

UPDATED

VERSION: February 17, 2023

CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0001332

Date of Hearing: June 14, 2023

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Miguel Santiago, Chair

SBPCA Bill Id:SB 771

Author:(Committee on Governmental Organization) – As Introduced Ver:February 17, 2023

SENATE VOTE: 37-0

SUBJECT: Gambling: work permits: suspension

SUMMARY: This bill changes, from 30 to 28 calendar days, for when the California Gambling Control Commission (CGCC) must commence a hearing when a person’s work permit is summarily suspended.

EXISTING LAW:

1) Provides, under the Gambling Control Act (Act), for the licensure and regulation of various legalized gambling activities and establishments by the Commission and the investigation and enforcement of those activities and establishments by the Bureau of Gambling Control (Bureau), under the California Department of Justice (DOJ).

2) Requires specified employees of a gambling enterprise to apply for and obtain a work permit from the CGCC or from a city, county, or city and county.

3) Authorizes the CGCC to issue an order summarily suspending a person’s work permit upon a finding that the suspension is necessary for the immediate preservation of the public peace, health, safety, or general welfare, and provides for a hearing within 30 calendar days of the date of service of the suspension.

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

COMMENTS:

Purpose of the bill. According to the author’s office, “every year the Senate Governmental Organization committee moves a legislative vehicle through the legislative process to ensure that a vehicle is available should the need for a tribal compact vehicle emerge. Specifically, this bill simply changes from 30 to 28 days by which the CGCC must commence a hearing when the commission suspends a person’s work permit.”

Background.

Work permit suspension. Current law authorizes the CGCC to issue an order summarily suspending a person’s work permit upon finding that the suspension is necessary for the immediate preservation of the public peace, health, safety, or general welfare. An order is required to be signed by at least three members of the CGCC.

A person whose work permit is immediately suspended has the right to a hearing within 30 calendar days of the date of suspension. This bill simply changes this specific time frame from 30 to 28 calendar days.

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

The Act directs the CGCC to issue licenses only to those persons of good character, honesty and integrity, whose prior activities, criminal record, if any, reputation, habits and associations do not pose a threat to the public interest of this state. The DOJ conducts background and field investigations and enforces the provisions of the Act in this regard. There are over 4,400 licenses processed per year, mainly license renewals and employee transfers.

As of April 2023, the CGCC reports that there are 82 licensed card clubs in California. These gaming establishments vary in size, from businesses with just a few gaming tables to large establishments with over 350 gaming tables. Card clubs offer poker and other table games to the public. Card clubs differ from tribal casinos in the way they generate revenue and the specific types of games they can offer.

Types of Gaming Licenses. For the purpose of processing, approving, and in any other way regulating gaming licenses for card rooms and related businesses, as well as their owners and employees, the Bureau and the CGCC perform the aforementioned tasks. Every gaming position in a card club, with the exception of the player in the card room, calls for a particular kind of license.

Many licenses go to individuals who work in the gaming industry, such as card dealers and floor supervisors. Licenses are required for workers in non-gaming positions like food service. The licenses held by business owners—individuals who partially or fully own card rooms or who provide players for specific types of games, as specified—are typically those that are the subject of the most thorough review. Although state law does not allow the licensure of new card rooms, individuals may buy existing card rooms, which require these individuals to apply for licenses.

Related legislation. SB 346 (Ochoa Bogh) of 2023. Requires the CGCC to post a public record of every vote on its Internet Web site no later than two business days after the meeting at which the vote was taken. (Assembly Committee on Governmental Organization)

AB 782 (Lackey) of 2023. Would add 30 calendar days (from 30 to 60) to the time period that a limited liability company must provide to the DOJ, a copy of its annual federal income tax return, after the return is filed with the Internal Revenue Service. (Senate Committee on Governmental Organization)

AB 553 (Ramos) of 2023. This bill would require the DOJ, by no later than June 1, 2024, to develop and implement a formal time tracking policy and procedure for employees assigned to the Bureau of Gambling Control to track those hours and other expenses that can be charged to the Indian Gaming Special Distribution Fund. The bill would, commencing January 1, 2025, require quarterly audits of timekeeping to ensure that only those hours and expenses directly related to tribal gaming are charged to the fund. (Senate Committee on Governmental Organization)

AB 1271 (Gipson) of 2023. This bill revises the Act to allow a key employee or a person with a work permit issued by the CGCC to work at multiple different gambling enterprises. The CGCC must adopt regulations implementing a new owner license that allows a person or entity to be endorsed on the license certificate of multiple gambling enterprises and is authorized to adopt regulations waiving specified license application requirements. (Senate Committee on Governmental Organization)

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

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

 CONSENT  

Bill No: SB 771

Author: Committee on Governmental Organization

Introduced: 2/17/23

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 15-0, 4/25/23

AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto

SUBJECT: Gambling: work permits: suspension

SOURCE: Author

DIGEST: This bill changes, from 30 to 28 calendar days, for when the California Gambling Control Commission (Commission) must commence a hearing when a person’s work permit is summarily suspended.

ANALYSIS:

Existing law:

1. Provides, under the Gambling Control Act (Act), for the licensure and regulation of various legalized gambling activities and establishments by the Commission and the investigation and enforcement of those activities and establishments by the Bureau of Gambling Control (Bureau), under the California Department of Justice (DOJ).
2. Requires specified employees of a gambling enterprise to apply for and obtain a work permit from the Commission or from a city, county, or city and county.
3. Authorizes the Commission to issue an order summarily suspending a person’s work permit upon a finding that the suspension is necessary for the immediate preservation of the public peace, health, safety, or general welfare, and provides for a hearing within 30 calendar days of the date of service of the suspension.

This bill changes, from 30 to 28 calendar days, for when the Commission must commence a hearing when a person’s work permit is summarily suspended.

Background

Purpose of the Bill. According to the author’s office, “every year the Senate Governmental Organization committee moves a legislative vehicle through the legislative process to ensure that a vehicle is available should the need for a tribal compact vehicle emerge. Specifically, this bill simply changes from 30 to 28 days by which the Commission must commence a hearing when the Commission suspends a person’s work permit.”

Current Process. Current law authorizes the Commission to issue an order summarily suspending a person’s work permit upon finding that the suspension is necessary for the immediate preservation of the public peace, health, safety, or general welfare. An order is required to be signed by at least three members of the Commission.

The person whose work permit is summarily suspended has a right to a hearing to commence within 30 calendar days from the date of the suspension. This bill simply changes this specific time frame from 30 to 28 calendar days.

Gambling Regulation/Enforcement in California. The Act created a comprehensive scheme for statewide regulation of legal gambling under a bifurcated system of administration involving the Bureau within DOJ and the five-member Commission by the Governor. The Commission is authorized to establish minimum regulatory standards for the gambling industry and to ensure that the state gambling licenses are not issued to, or held by, unsuitable or unqualified individuals.

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

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

Related/Prior Legislation

SB 346 (Ochoa Bogh, 2023) requires the Commission to post a public record of every vote on its Internet Web site no later than two business days after the meeting at which the vote was taken. (Pending in the Senate Appropriations Committee)

SB 302 (Governmental Organization, 2021) would have required the Commission to post a public record of every vote on its Internet Web site no later than two business days after the meeting at which the vote was taken. (Gutted and amended to an unrelated issue)

SB 869 (Governmental Organization, 2020) would have required the Commission to post a public record of every vote on its Internet Web site no later than two business days after the meeting at which the vote was taken. (Gutted and amended to an unrelated issue)

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

SUPPORT: (Verified 4/25/23)

None received

OPPOSITION: (Verified 4/25/23)

None received

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

4/26/23 15:12:01

**** END ****

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Bill Dodd

Chair

2023 - 2024 Regular

Bill No: 771 Hearing Date: 4/25/2023

SUBJECT: Gambling: work permits: suspension

DIGEST: This bill changes, from 30 to 28 calendar days, for when the California Gambling Control Commission (Commission) must commence a hearing when a person’s work permit is summarily suspended.

ANALYSIS:

Existing law:

1. Provides, under the Gambling Control Act (Act), for the licensure and regulation of various legalized gambling activities and establishments by the Commission and the investigation and enforcement of those activities and establishments by the Bureau of Gambling Control (Bureau), under the California Department of Justice (DOJ).
2. Requires specified employees of a gambling enterprise to apply for and obtain a work permit from the Commission or from a city, county, or city and county.
3. Authorizes the Commission to issue an order summarily suspending a person’s work permit upon a finding that the suspension is necessary for the immediate preservation of the public peace, health, safety, or general welfare, and provides for a hearing within 30 calendar days of the date of service of the suspension.

This bill changes, from 30 to 28 calendar days, for when the Commission must commence a hearing when a person’s work permit is summarily suspended.

Background

Purpose of the Bill. According to the author’s office, “every year the Senate Governmental Organization committee moves a legislative vehicle through the legislative process to ensure that a vehicle is available should the need for a tribal compact vehicle emerge. Specifically, this bill simply changes from 30 to 28 days by which the Commission must commence a hearing when the Commission suspends a person’s work permit.”

Current Process. Current law authorizes the Commission to issue an order summarily suspending a person’s work permit upon finding that the suspension is necessary for the immediate preservation of the public peace, health, safety, or general welfare. An order is required to be signed by at least three members of the Commission.

The person whose work permit is summarily suspended has a right to a hearing to commence within 30 calendar days from the date of the suspension. This bill simply changes this specific time frame from 30 to 28 calendar days.

Gambling Regulation/Enforcement in California. The Act created a comprehensive scheme for statewide regulation of legal gambling under a bifurcated system of administration involving the Bureau within DOJ and the five-member Commission by the Governor. The Commission is authorized to establish minimum regulatory standards for the gambling industry and to ensure that the state gambling licenses are not issued to, or held by, unsuitable or unqualified individuals.

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

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

Prior/Related Legislation

SB 346 (Ochoa Bogh, 2023) requires the Commission to post a public record of every vote on its Internet Web site no later than two business days after the meeting at which the vote was taken. (Pending in the Senate Governmental Organization)

SB 302 (Governmental Organization, 2021) would have required the Commission to post a public record of every vote on its Internet Web site no later than two business days after the meeting at which the vote was taken. (Gutted and amended to an unrelated issue)

SB 869 (Governmental Organization, 2020) would have required the Commission to post a public record of every vote on its Internet Web site no later than two business days after the meeting at which the vote was taken. (Gutted and amended to an unrelated issue)

SB 286 (Governmental Organization, 2019) would have required the Commission to post a public record of every vote on its Internet Web site no later than two business days after the meeting at which the vote was taken. (Gutted and amended to an unrelated issue)

AB 1827 (Governmental Organization, 2019) would require the Commission to post a public record of each of its votes on its Internet Web site. (Died in the Senate Inactive File)

AB 2838 (Low, 2018) would have required the Bureau of Gambling Control to review and comment on any submitted ordinance within 60 days of receiving the ordinance. (Vetoed by Governor Brown)

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

None received

OPPOSITION:

None received