Senate Standing Committee on Governmental Organization

We'll be holding a bill hearing, as well as a handful of informational hearings on tribal compacts and tribal compact extensions. We'll begin with our bill hearing. We have only one item today. That's SCR 58 by Senator Glazer. Let's establish the quorum. But we can't -- how many do we have here, now? We need one more for a quorum. I suggest that we start as a subcommittee. Is there any objection? Seeing none, we'll do just that. Senator Glazer, good morning. Why don't you proceed?

Thank you, Chair Dodd. Thank you for allowing me to present this resolution, SCR 58. Members, long before California became a state, Native people inhabited these beautiful valleys, hills and mountains, and cared for our precious forests, lakes and coastal waters. We acknowledge and honor our indigenous elders' past, present and future, whose stewardship of these beautiful lands allow us to pursue the California dream.

And this resolution seeks to do just that -- to provide a short, respectful acknowledgment that the cultural and governmental contributions of the Native people of California have shaped the course of this state throughout its history. In my own community, the Ohlone tribes were a linguistic family of up to 50 independent villages that were hunters and gatherers. They were known to cleverly use a decoy goose, made out of a dead goose stuffed with straws, to attract foul for hunting and perform cultural burns to yield larger crops.

Unfortunately, colonization left tribes stripped of their land, their independence, and their culture. Despite these indignities, Native Americans persisted. And since the 1970s, the government has acknowledged some of the atrocities that colonizers committed against Native Americans. Historically and presently, Native Americans are leaders in business, government, medicine, the arts, and conservation, to name just a few.

I believe this type of recognition, as recognized in this bill, can bring about a larger effort to heal long-standing injuries and injustices, and strengthen ties between Native Americans and non-Native American Californians. And for these reasons, I introduce SCR 58, and would respectfully ask for your aye vote today.

Thank you, Senator. Thank you, Senator. Apparently, the access code was wrong. And before we get to lead witnesses in support, the participant phone line is 877-226-8163 and the access code is 7362832. Thank you very much. Are there any witnesses in the room wishing to testify in support of this bill? Okay. Is there any opposition witnesses in the room? Seeing none. Thank you. Moderator, can we please prompt individuals waiting to testify in support or opposition to SCR 58? Feel free to open the lines and call witnesses individually, please.

Certainly, thank you. And if so, please press 1-0 at this time. Again, it's 1-0. And currently none in queue.

What did she say? I didn't hear it.

There's none in queue at this time.

None in queue. Thank you very much, Moderator. So with that, before we bring it back to our members, we have a quorum. Secretary, please call the roll.

Dodd? Here. Wilk. Alvarado-Gil. Here. Archuleta. Here. Ashby. Here. Bradford. Here. Glazer. Here. Jones. Nguyen. Ochoa-Bogh. Padilla. Portantino. Here. Roth. Here. Rubio. Seyarto.

Fantastic. We have a quorum. Do any of our members have questions or comments?

I do.

Not surprisingly, Senator Archuleta.

Well, I was first up.

You are. You're here.

Senator Glazer, thank you for presenting this resolution. I would just like to add, if I may, the contributions that the Native Americans have given to our military, our country. As an example, in World War II, people don't realize, sometimes, that in the Pacific, where the Marines were fighting -- Guadalcanal, Iwo Jima, and across the Pacific, Tarawa, everywhere -- there was problems.

And the Marines had this great idea that, "Why don't we get a language that no one can interpret -- misrepresent any way, shape or form -- jump in and know what our troops were doing?" And so the Navajos were brought in and they were called the Code Talkers. And so the Code Talkers saved countless, countless of Marine lives and airmen and sailors throughout the Second World War. And I would just like to point that out -- that their contribution to our country in the military, not only then, but today, was so vital and so important. And I acknowledge them and their sacrifice and their contribution to our country. Thank you.

Thank you, Senator. Anybody else? Senator Glazer, would you like to close?

I would just close by mentioning that this issue became particularly greater -- my awareness on this issue grew, substantially, after a senate delegation trip to Australia and New Zealand. They also have an indigenous population in those countries. And their handling of the issue was the thing that really opened my eyes -- that in every public event in Australia and New Zealand, they acknowledged the indigenous people that were there before them, and the fact that they're there based on the contributions that they had made to their land that they call, now, Australia and New Zealand. And we call ourselves Californians, but we're a recent inhabitant here. And I think this acknowledgement of those who have been here before us is healthy, mature and honest. And that's what this resolution seeks to create. Thank you for your consideration.

Senator Rubio, did you want to make a comment?

Yes, and I apologize. But I wanted to add to that because Senator Glazer and I had that experience together, where we attended many meetings, and it was just refreshing to see -- it wasn't just in government buildings, but pretty much everywhere we went. It was normalized. That was expected, and everyone just did it. So I just want to add my voice, how important it was, and it was incredible. Not just the acknowledgment, but the language.

They would start with their native language and then they would transition into English, which -- again, we have a long way to catch up. So just want to say thank you for bringing it up, because it was special to see how much they acknowledge their first people and how much they pay deference to their culture. And they allow them to even have a room in their Capitol, where they can display everything that they have from history and their accomplishments. So just want to add my voice and say that I'm really glad you brought that up. Thank you.

Great. We have a motion by Senator Archuleta. The motion is: the resolution be adopted and re-referred to the floor. Secretary, please call the roll.

Dodd. Aye. Wilk. Alvarado-Gil. Aye. Archuleta. Aye. Ashby. Aye. Bradford. Aye. Glazer. Aye. Jones. Nguyen. Aye. Ochoa-Bogh. Padilla. Portantino. Aye. Roth. Aye. Rubio. Aye. Seyarto.

Bill has ten votes. We'll hold that bill open. What's that? For five minutes? I said five minutes, I did. So, for those members that are not currently here, and your staffs are listening or you're listening, you want to add on to this resolution, you've got to be here in Room 1200 within five minutes, which I have would be 9:51. All right.

Senator Jones, Senator Ochoa-Bogh, Senator Padilla and Senator Seyarto. You have a minute, 40 seconds before we close the roll.

Secretary, please call the roll.

Absent members: Wilk, Jones, Ochoa-Bogh, Padilla, Seyarto. Seyarto. Aye. 11-0.

That bill is 11-0. And that bill is out. Okay, we'll now move on to the informational hearings. Once again, good morning. I'm Senator Bill Dodd, chairman of the Senate Governmental Organization Committee. Today we will holding informational hearings on tribal compact extensions, as well as five tribal state compacts. We'll begin with a tribal compact extension hearing, followed in alphabetical order by five tribal state gaming compacts listed on the agenda.

For those of you unfamiliar with the senate's procedure, the established policy allows for an informational hearing on the details of the compact, to be followed by a vote on the senate floor. No vote will be taken here today. As an example, the bill ratifying all five tribal state compacts will be SB 771, by yours truly. Assuming everything goes smoothly, SB 771 will soon be amended, with ratifying a language for all five compacts and taken up on the assembly floor.

Once that bill comes to the senate, the bill will be referred straight to the senate floor for a vote of the full senate body. With that, let us begin with our informational hearings on extension to the 1999 compacts and hear from our witness, Nathan Voegeli -- I got that right after so many times -- senior advisor for tribal negotiations for Governor Newsom. Mr. Voegeli, please feel free to begin.

Good morning. Thank you, Mr. Chairman. Committee members. My name is Nathan Voegeli. I'm the senior advisor for tribal negotiations for the governor's office. I'd like to thank everyone for the time to go over these amendments, to extend the compacts for 22 tribes to December 31, 2024. The tribes with proposed extensions, today, all have compacts that were signed in 1999 or 2000. I'll generally refer to all of these as 1999 compacts.

The 1999 compacts were for an initial 20-year term, with a termination date of December 31, 2020. They were automatically extended, by their own terms, to June 30, 2022. Last year, the state and each of these tribes agreed to extend their 1999 compacts to December 31, 2023. Many of these tribes have signed new compacts, five of which we'll hear today, that are before the legislature for ratification. Others may have ongoing litigation that is not expected to be resolved until later this year or next year.

As a result, the governor's office agreed with these 22 tribes, to extend their 1999 compacts, one more year, to December 31, 2024. Because these extensions are an amendment to the 1999 compacts, for purposes of state law, the extensions must be ratified by the legislature. The extensions, however, do not require the approval of the Secretary of the Department of the Interior, pursuant to federal regulations. Thank you for your time. I'm available to answer any questions.

Thank you. Mr. Voegeli, are there any questions from members? Is there anything preventing the governor or, in terms of the rules, to extend once again between now and 2024? If he sees that that's an important thing to do?

Yeah. If a tribe in the state, the governor's office, agrees to extend the compacts again, they can do so. It would just require mutual agreement.

Okay. We'll now move on to anyone wanting to provide public comment. Let's begin with any witnesses here in this room. Seeing nobody come forward, we'll move to witnesses waiting to provide any opposition. Okay, so now we'll move on to witnesses waiting to provide public comment via the teleconference service. Moderator, if you could please prompt individuals waiting to provide public comment? Please open the lines and call members of the public individually.

Certainly, thank you. Again, please press 1-0 at this time. If so, it's 1-0. And currently none in queue.

Okay. Having heard, or not heard, which is the case here, today, from public comment, that concludes our informational hearing on the compact extensions. Thank you, Mr. Voegeli, for that. Now we'll move on to the Cahto compact. Mr. Voegeli, feel free to begin when you're ready.

Good morning. Thank you again, Mr. Chair. Nathan Voegeli for the governor's office. I'm going to go over the compact with the Cahto Tribe, but before I do, I'd like to extend thanks to Tribal Chair Norris and her team working to bring this to completion. I'll give a brief background on Class III gaming in California and then go over the specifics of this compact.

Under the Federal Indian Gaming Regulatory Act, or IGRA, a tribe may offer slot machines and other Class III games that are permitted in the state, if the tribe has negotiated a Class III gaming compact. IGRA broadly limits compacts to subjects directly related to the operation of gaming activities. Class III gaming, under a compact, is limited to Indian lands. California voters in 2000 approved Proposition 1A, amending the California Constitution to permit tribes to operate slot machines, banking and percentage card games, and lottery games.

The governor has authorized to negotiate tribal state compacts, subject to ratification by the legislature. Once ratified, compact gets submitted to the Secretary of the US. Department of Interior for a 45 day review. During that time, the secretary can approve the compact, disapprove the compact, or not act on it, in which case, it is deemed approved. The compact before the legislature will replace the Cahto Tribe's current compact, which was signed in 1999. This is the second attempt at replacing the tribe's 1999 compact.

The governor's office and the tribe previously negotiated a compact in 2021, but it wasn't ratified because of disapprovals by the US. Department of the Interior for three compacts earlier that year. This new compact reflects the government-to-government nature of the tribal state relationship and includes revised provisions modeled, in part, on California compacts approved by Interior last year.

The compact term is for 25 years, and it includes force majeure language to address reduced operations or closures from pandemics, wildfires and other events outside of the tribe's control. The tribe has the right to negotiate an amendment, if tribes in California gain the right to operate a new form of Class III gaming, or lose their exclusive right to operate gaming devices. The compact includes standard controls for fair play, honesty and the integrity of gaming operations.

These include facility and employee licensing, gaming device testing and inspections, and tribal gaming regulations with internal control standards. Minors under 18 are prohibited from gaming, and those under 21 will be limited from being present in areas where alcohol is served, except as allowed under a California Alcoholic Beverage Control license. The tribe agreed to provide a nonsmoking area and best-available ventilation in the case of new or significantly renovated areas of the casino.

The Cahto Tribe recently announced the closure of its Red Fox Casino, which it operated under the terms of its 1999 compact. Under this compact, the tribe remains eligible for an annual distribution of $1.1 million, from the Revenue Sharing Trust Fund and for grants through the Tribal Nation Grant Fund, as long as it operates less than 350 slot machines. If the tribe resumes gaming, the compact allows it to operate up to three gaming facilities and 1200 gaming devices on lands eligible for gaming, as of the compact execution date and identified in the compact.

The tribe will have no requirements to pay into the Revenue Sharing Trust Fund. The tribe committed to paying into the Special Distribution Fund its pro rata share of the state's regulatory costs. However, this amount may be reduced or eliminated under state law, when there are sufficient funds in the Special Distribution Fund. The compact also addresses health, safety and labor protections for employees and visitors.

The Cahto Tribe committed to paying its employees at least equivalent to the state's minimum wage and to maintaining and complying with the Tribal Labor Relations Ordinance, or TLRO. The TLRO in this compact is the same as that in a prior ratified compact and will replace the Tribe's TLRO from its 1999 compact. The TLRO takes effect when the tribe employs 250 or more people at its gaming-related facilities, not counting tribal members. It includes various tribal commitments, if a labor organization agrees to the terms of the TLRO as a bilateral contract.

Based on the maximum number of authorized gaming devices, the governor and tribe agreed to lower insurance amounts relative to the tribe's prior compact, for torts and employment practices liability. The tribe will be obligated to maintain a general liability policy for $2 million per occurrence, $5 million in the aggregate, and a policy of $2 million per occurrence, to protect against claims of employment discrimination, harassment or retaliation.

The compact also provides the tribe greater discretion in establishing the procedures for any claims. The Cahto Tribe and the governor's office agreed to a local mitigation approach in this compact, similar to that approved in other compacts this year. No environmental review or intergovernmental agreement is required. Instead, the tribe, if it operates 350 or more gaming devices, will set aside one half of 1 percent of its net win into an impact mitigation fund.

It will be responsible for identifying impacts of its gaming facilities, and mitigating those impacts through distributions from that impact mitigation fund to local governments, emergency services and service agencies. Finally, the compact includes a dispute resolution process to address any alleged breach and to enforce compact terms. The compact is structured to encourage good faith negotiations to resolve disagreements, but allows for court resolution if necessary. This compact is a culmination of extensive work by the tribe and governor's office to replace the Cahto Tribe's 1999 compact, and facilitate the tribe's ongoing development. I'll be happy to answer any questions the committee may have about it.

Any questions for members? I have a couple. It's my understanding the compact is almost identical to the three other compacts that we're hearing today. Those would be Manchester, Resighini and Sherwood Valley. Can you talk a little bit about how that came to be? Was that just coincidence, or were they kind of working together on their respective compacts?

Yeah, I can't speak specifically to the negotiations with each of those tribes. But in general, I think you see this throughout -- a lot of these compacts have similar provisions. Because, particularly, after the Chicken Ranch decision, we are able to identify ways to improve those compacts and have them improved by the Secretary of Interior. So that's reflected here, where you see some of those similar provisions carry through throughout.

Yeah, I think one final question is: these are all operating well below the 1200 gaming devices that the compacts allow. What is it in the compact that puts that number out there, in terms of the total maximum 1200?

Yeah. Just for context, the 1999 compacts allowed tribes to operate up to 2000, but there were concurrent commitments, relative to fees and payments. In this case, what the governor's office negotiated was a maximum of 1200 gaming devices, foregoing, revenue sharing, trust fund fees, being paid into that. But we're still collecting special distribution fund fees if those aren't able to be reduced or eliminated. But the reality is, all four of these tribes are either not operating currently, or well under the 349 device that would trigger a lot of those provisions.

Thank you. Before we go to public comment, I do want to apologize to anybody listening from the Cahto tribe for mispronouncing that at the top of the hearing, here. So let's begin with any witnesses, here, in Room 1200. Is there any witnesses, here, in Room 1200? Okay, seeing none. We'll move on to witnesses waiting to provide public comment via the teleconference service. Moderator?

Thank you. Pardon me. Thank you. And please press 1-0 at this time. And currently none in queue.

Thank you, Moderator. I appreciate that. Having heard all, or not, public testimony, members, are there any final questions or comments regarding this compact? Seeing none. We will now move to the Ewiiaapaayp compact. Mr. Voegeli, please proceed when you're ready.

Thank you, Mr. Chair. Thanks also to Tribal Chair Pinto and his negotiation team, including Vice Chair Garcia, who's here today with us. Rather than going over this compact in detail, I'll focus on those provisions that vary from the terms I described for the Cahto compact. The Ewiiaapaayp Band has a 1999 compact, but has never opened a casino.

In recognition of this, the governor's office agreed to allow the tribe to establish up to two gaming facilities, on any of its land that is held in trust and eligible for gaming under IGRA. In order to mitigate local impacts, the tribe and the governor's office agreed that the tribe would set aside one quarter of 1 percent of its net win for distribution to local government and other public agencies and charitable organizations impacted by the facility. This amount applies regardless of the number of devices the tribe operates. The Tribal Labor Relations Ordinance in this compact is substantively similar to that of the Cahto tribe, but more closely resembles the TLRO in the compact with the Middletown Rancheria, ratified earlier this year. Those are the primary differences, and I'm happy to answer any questions.

Thank you very much. We'll now move to -- Mr. Voegeli, I think I do have a question. Are there any major differences in this compact, compared to the four compacts that we're hearing today?

Yeah, the primary differences I mentioned would relate to the local mitigation impact payments. So for the other tribes, the tribes don't have an obligation until they hit more than 349 devices, at which point, they've agreed to contribute one half of 1 percent to local mitigation. In this case, the tribe, regardless of the level of operations, would be contributing one quarter of 1 percent, even if it's under that 349 or less gaming device threshold.

And then the other provision is the type of land that the tribe could operate on. Under those other four compacts, the tribes are limited to the land that they currently have in trust and eligible for gaming. In the case of the Ewiiaapaayp Band, the language mimics the language that was in the 1999 compact, recognizing that they haven't operated a facility at all, under that compact, and would allow them to operate gaming on any land that is taken into trust for gaming, for them.

Thank you. We'll now move on to the Ewiiaapaayp Vice Chairman, Michael Garcia, who is here today. Welcome. Thank you for coming today. Please feel free to begin.

Good morning, honorable committee chair, Bill Dodd, honorable vice chair, Scott Wilk and honorable committee members. First of all, thank you for sitting here today and listening to me. And thank Senator Jones for always working with us. Once again, my name is Michael Garcia. I'm the vice chairman for the Ewiiaapaayp Band of Kumeyaay Indians, a federally recognized Indian tribe in San Diego County. On behalf of Ewiiaapaayp Chairman Robert Pinto, Sr., I am pleased to speak in support of the committee's favorable consideration of the amendments extending the Tribal-State compacts -- gaming compacts -- of 1999, including the Ewiiaapaayp Amendment and the 2023 Tribal-State Gaming Compacts between the state of California and five tribes, including the Ewiiaapaayp Band's 2023 compact.

The committee's action, today, also advances the interests and policies of our mutual communities and regions. Ewiiaapaayp is a non-gaming tribe and a beneficiary of the Revenue Sharing Trust Fund and Tribal Nations Grant Fund. Your actions today, and passing these bills out of committee, will ultimately lead to enactment and the certainty of our tribal leadership, as far as our needs, as we make decisions affecting our next generations. I urge you to vote in favor of passing these bills out of Committee on Government Organizations. So thank you very much and congratulations on pronouncing Ewiiaapaayp right. I know that's a difficult task for most people.

Great staff work. Thank you very much.

Vice Chairman. Any members wishing to ask a question? Vice Chairman, I do have one for you. How close do you think you are to opening up a casino? And what type of services is the tribe planning to provide once the casino opens?

Thank you.

I don't see anything happening right away. Once we attract some, I guess, some financial interests, we can probably move forward and have a more certain time and date we can do that. And, geez, the opportunities at helping out our community, as well as other communities are pretty vast. Right off the bat, we're thinking healthcare and probably education and other housing for our community.

I guess Senator Jones has to work a little harder.

Maybe Vice Chairman Garcia could share what you're already doing for the community on your current reservation land.

Yeah, the parcel that we have considered is the home for Southern Indian Health Council. And we started in, probably 1986, and we've gotten to a point where the facility is becoming a little overgrown. It's busting at the seams, and we hope this opportunity presents us a chance to have a new facility built for Southern Indian Health Council. So that's one of the big things we want to consider.

Thank you. Good question, Senator Jones. Appreciate that. Okay. Thank you, Vice Chair. I will now move to Mario Yedidia, western regional political director with Unite Here, who I believe is on Zoom.

Thank you, Chairman. Good morning.

Good morning.

Good morning to the members of the committee. Morning to Vice Chairman Garcia and Mr. Voegeli, as well. Indeed, I'm Mario Yadidia, the western regional political director for Unite Here, the casino worker union in North America. Our members are overwhelmingly people of color, immigrants, and women. In California, we represent 6000 workers, across ten tribal casinos, where collective bargaining agreements ensure dignity, respect, and fair wages and benefits. And we're here this morning to voice strong support for the compact of the Ewiiaapaayp Band. We hope the legislature can approve it without delay. Thank you very much.

Thank you, Mr. Yedidia. Now we will move to anyone wanting to provide public comment on this compact. Anybody in Room 1200? Seeing none. We'll now move on to witnesses waiting to provide public comment via the teleconference service. Moderator, if you would please prompt individuals waiting to provide public comment?

Certainly. Thank you. Again, it's 1-0 at this time. Please press 1-0. And currently we have nobody in queue.

Okay, seeing none. Thank you, Vice Chairman Garcia, for being here today, and I wish you all the best moving forward. Thank you, Mr. Vogeli. Is there any questions from any members here? Seeing none. We will now move on to the Manchester compact. Mr. Voegeli, please feel free to begin.

Thank you, everyone. The Manchester Band of Pomo Indians is a limited gaming tribe located in Mendocino County, operating under 150 slot machines. The compact before the committee is substantively the same as the compact with the Cahto Tribe that I described earlier. It allows for up to 1200 gaming devices at three facilities. If the tribe operates over 350 slot machines, it will distribute one half of 1 percent of its net win to mitigate the local impacts. This compact could not have been negotiated without the support and engagement of tribal Chair Tish Jones and her team. And I'll, again, remain available for any questions.

Thank you. Any questions from members? Seeing none. We'll now move on to anyone wanting to provide public comment. Let's begin in 1200. Seeing none. We'll move to the witnesses waiting to provide public comment via the teleconference service. Moderator?

Thank you. Again, it's 1-0. And currently nobody in queue at this time.

Okay, having heard all the public testimony, members, are there any final questions or comments on the Manchester compact? Seeing none. We'll move on to the Resighini compact. Mr. Voegeli, you're on again.

Thank you, Mr. Chair. Resighini Rancheria is located in southern Del Norte County. While it previously operated slot machines under its 1999 compact, it currently is a non-gaming tribe. Resighini Rancheria compact tracks that for the Cahto Tribe and the Manchester Band that I previously went over, though with slight variation, reflecting, primarily, the fact that the tribe is not currently gaming. I'm grateful for the support of tribal Chair Fawn Murphy and her team in negotiating the compact. Thank you.

Any questions? Seeing none. Let's begin with witnesses in 1200. There's none. Moderator, if you would prompt individuals waiting to provide public comment, if there are any?

Thank you. Again, it's 1-0 at this time. None in queue currently.

Thank you very much, Moderator. Any other comments from any members of the committee? Seeing none. We'll move on, now, to the Sherwood Valley Compact. Mr. Voegeli, please feel free to begin.

Thank you. The Sherwood Valley Rancheria, also a limited gaming tribe, operating less than 200 slot machines at its facility in Mendocino County. The tribe's compact tracks that of the Cahto Tribe, so I won't go into further details here. I really appreciate the time and dedication that the tribe put towards reaching agreement. This tribe, like the others that we've discussed today, have very little resources, and negotiating these compacts represent a significant investment, by the tribe, in their future. Thank you to Chairperson Hazel Ramirez, prior chair, Melanie Rafanan, and their team for reaching agreement.

Okay. Members? Any questions? Seeing none. We'll move on to public comment. Nobody here in Room 1200 wishing to testify. Moderator, let's move on to witnesses, if any, waiting to provide public comment.

Thank you. Again, 1-0 at this time. Apparently we have nobody in queue.

Thank you, Moderator. Having heard all the public testimony, members, are there any final questions? Seeing none. Thank you to all the individuals, or again, not, who called in to participate in the public testimony today. I personally wanted to thank Mr. Voegeli for all his work on these compacts. That was very amazing work. If you were not able to testify via the teleconference service, please submit your comments or suggestions, in writing, to the Senate Governmental Organization Committee or visit our website. Your comments and suggestions are important to us, and we want to include your testimony in the official hearing records. The Senate Committee on Governmental Organizations is adjourned.