Assembly Standing Committee on Governmental Organization

I want to thank everybody who's here today and I know it's been a long day but we're going to move through this fairly quickly and take care of business. We're going to start the governmental organization. Committee is now called to order and I'd like to take this opportunity to welcome everyone today to today's informational hearing ring. The call number for the public is 877-692-8957, 877-692-8957 and the Committee access code is 1850-1100-1850-1100.

The number can also be found on the Committee's website and is displayed on your screens. For those calling in, please mute yourself while in the queue to eliminate any background noise. You will be placed in the queue until your opportunity to provide public comment. When it is your opportunity to provide public comment, please press one, then zero. Unmute yourself in order to speak. Please be brief, limiting your comments to only your name, organization and position on the appropriate compact.

The Tribal state gaming compacts before us today were executed recently. Between the Governor Newsom on behalf of the state of California and the YPA, the Ewiiaapaayp apologize. Band Kumeyaay Indians California and the Resighini Rancheria. There's also a set of 22 separate compact amendments to extend the terms of Tribal-State Gaming Compacts of 1999 for designating tribes. Today we'll hear from the principal architects of the compact, the Governor's office, and the chair of each tribe.

If here these negotiated compacts are the culmination of a lengthy negotiation process, compromises and careful consideration of the requirements. Under the Indian Gaming Regulatory Act, each compact authorizes the tribes to operate a maximum number of gaming devices. A designated number of facilities located on the eligible Indian lands, held in trust by the tribes and located within the boundaries of the tribe's reservations.

Under each contract, the tribe has agreed to pay the state its prorated share of cost the state incurs for the performance of its duties under the compact. I am pleased to see these compacts mirror many of the recent compacts that have become before this Committee in the area of environmental protections, meaningful consumer and employee protections and the labor provisions that allow workers to unionize under specific conditions. I just want to remind all interested parties no formal vote will be taken up today.

Today's hearing for this Committee is only to be briefed on the context of each compact as they cannot be amended by the Legislature in any which way. SB 771 by Senator Dodd is the ratification Bill for two long-term compacts and then AB 1658, authored by myself, is a ratification of a one-year extension for 22 tribes. At some point, both of these measures will be taken up with the Assembly floor in consideration.

I would like to thank the witnesses in advance for taking time out of their busy schedules to be with us today. Without further ado, let's begin and we'll first be briefed on the amendments extending Tribal State Gaming Compacts of 1999, 2000 and the governor's office begin. Thank you.

Good afternoon, Mr. Chairman. Committee Members. Nathan Voegeli for the governor's office. I appreciate the committee's time allowing me 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 these compacts as 1999 compacts. The 1999 compacts were for an initial 20 year term with a termination date of December 31, 2020.

Because the state and these tribes had not reached agreement on new compacts, the 1999 compacts were extended automatically by their own terms to June 30, 2022. Last year, the state and each of these tribes agreed to extend their 1999 compacts for 18 months to December 31, 2023. Many of these tribes have signed new compacts with the state 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 pursuant to federal regulations. The extensions did not require the review or approval of the Secretary of the Department of Interior. I'm available to answer any questions the committee may have.

Thank you very much. Any committee Members have any questions, then I'm going to move along to public comment. Anyone in the room in support or opposition, just to move it quicker.

Mr. Chair, Members of the Committee, Paula Treat, on behalf of the Calusa tribe, wholeheartedly supporting.

Thank you. We're now going to the phones. The same name, organization and position only for any support or opposition. Thank you.

And ladies and gentlemen, if you wish to speak in support or opposition, please press one, then zero at this time. We have no one queuing up at this time.

Thank you. I'm going to go ahead and move on to the next one, if it's okay with anyone having heard no public comments. And we're now going to go move to the weapon bend. And you may begin.

Thank you again. The California Constitution allows tribes to operate class three slot machines, banking and percentage card games, and lottery games on tribal lands. Under the federal Indian Gaming Regulatory Act, a tribe must negotiate with the state for class three gaming compact, which is generally limited to subjects directly related to the operation of gaming. The California constitution authorizes the Governor to negotiate compacts subject to legislative ratification. After ratification, a compact must be submitted to the Secretary of the US.

Department of Interior for a 45-day review. The Secretary can approve, disapprove, or not act on the compact, in which case it is deemed approved. This new compact is between the State of California and the Weapon Band of Kumeyaay Indians. It follows a compact negotiated in 2021, which did not move forward for ratification after the US. Department of Interior disapproved several California compacts shortly after that compact was signed. The Ewiiaapaayp Band is located in eastern San Diego County.

The tribe's reservation is remote, with limited road access or opportunities for development. While tribal gaming in California has been an important source of revenue for many tribal governments, the Ewiiaapaayp Band has never operated a casino. It has limited staff and resources. So I'd especially like to take a moment to thank Tribal Chair Pinto, Vice Chair Garcia, who's here today, and the Tribe's negotiating team for dedicating the time to reach agreement on this new compact.

This compact has many similarities to the compacts I reviewed with the committee last week. I'll focus on the key terms and differences the Tribe under this new 25-year compact can operate up to 1200 gaming devices at up to two facilities. Because the Ewiiaapaayp Band never operated a gaming facility under its 1999 compact, the Governor's office agreed that the Tribe could conduct gaming on any of its lands that are eligible when it begins gaming. This tracks the language used in the Tribe's 1999 compact.

As a non-gaming tribe, the Ewiiaapaayp Band is eligible to receive 1.1 million annually from the Revenue Sharing Trust Fund. It will remain eligible after it begins gaming as long as it operates less than 350 devices. If it goes over this amount, then it's no longer eligible for the disbursement, but it's also not obligated to pay into the revenue-sharing trust Fund. The Tribe agreed to reimburse the state for its pro-rata share of the state's regulatory costs through payments to the special distribution Fund.

So long as the tribe operates less than 350 slot machines. This obligation can be reduced or eliminated in accordance with state law. Once the tribe begins gaming operations, the compact recognizes that its tribal gaming agency will have primary responsibility for regulation. The compact sets standard controls to ensure the integrity, honesty, and fair play of gaming operations. It specifies requirements for facility and employee licensing and for gaming device testing and inspections.

If the Tribe's gaming operation is significantly impacted by events outside of its control, such as pandemics, floods, or wildfires, then the state agreed to a meet and confer process to address those impacts. Additionally, if new forms of class three gaming become available to tribes in California, or if their right to operate class three games is lost, the Tribe can seek to amend its compact. The compact includes various health, safety, and labor protections for employees and visitors.

The Tribe will provide a nonsmoking area in any gaming facility and use best available ventilation when constructing a casino. Miners under 18 are prohibited from gaming, and those under 21 can only be in areas where alcohol is served as allowed. Under a California Alcoholic Beverage Control license, the Governor's office and the Tribe negotiated lower insurance amounts for torts and employment discrimination claims because of the limited size of the tribe's gaming operation.

While the 21 compact required a $7.7 million general liability policy, this new compact requires the tribe to carry a policy of $2 million per occurrence and $5 million in the aggregate. The employment practices policy must provide at least $2 million in coverage for claims of discrimination, harassment, and retaliation. Compact also provides the Tribe greater discretion in establishing appropriate procedures for any claims, but ensures protections for all covered classes in California.

The tribe committed to ensuring that casino employees receive at least equivalent to the state's minimum wage. The new compact also maintains the same Tribal Labor Relations Ordinance that was included in the 2021 Unratified Compact. It takes effect when the tribe employs 250 or more non-tribal member employees at its gaming-related facilities. The tribal labor relations ordinance includes reciprocal commitments by the tribe and a labor organization.

If the labor organization agrees to the terms of the ordinance, disputes over collective bargaining or other issues can be submitted to binding arbitration. The Tribe and Governor's Office negotiated a local mitigation component that reflects the economic reality of a small tribal gaming operation in an area with a limited population. The Tribe will set aside one-quarter of 1% of its net win into an impact mitigation fund once it begins gaming.

It will be responsible for distributing that funding to local government, emergency services, and service agencies to mitigate impacts from the gaming facility on those entities. The Tribe is not required to conduct an environmental review or enter into an intergovernmental agreement for any new projects. Finally, if the Tribe and the state have any disputes during implementation, the compact provides for a formal meet and confer process to try to resolve the issues. Should good faith negotiations fail to resolve the disagreements, either party may seek resolution through litigation.

The Tribe and the Governor's Office work together to negotiate this compact and protect the interests of the Tribe and the state. It recognizes the challenges facing the Weapon Band and is intended to help facilitate the Tribe's ongoing development. I'll be happy to answer any questions the committee may have.

Thank you. Now we have Vice Chairman Garcia. Is he present? Thank you, sir. Thank you, Chairman. Vice Chairman, I apologize about that.

No problem. And first and foremost, anytime anybody sees the name of the tribe the first time, they go into shock. So understood. Good afternoon. Honorable Committee Chair Miguel Santiago, Honorable Chair Tom Lackey, and honorable Committee Members. I'm Michael Garcia. I'm the Vice Chairman of the Ewiiaapaayp Band of Kumeyaay Indians, a federally recognized tribe in East San Diego.

On behalf of my Chairman, Mr. Robert Pinto, I am pleased to testify in this informational hearing in support of the Assembly's favorable consideration of the 2023 Tribal State Gaming Compacts between the State of California and several tribes, including the Ewiiaapaayp Band's 2023 Gaming Compact. Ewiiaapaayp is a non gaming tribe and a grateful beneficiary of the revenue sharing trust Fund and Tribal Nations Grant Fund.

While Ewiiaapaayp has no currently foreseeable gaming project, our 2023 compact protects our non-gaming tribe benefits and establishes the foundation for evaluation of a future project should one arise in the future. I thank you for our opportunity to inform the committee, and thank you again.

Thank you. Mr. Vice Chairman, I've been advised that Alejandro Rayburn with Unite HERE would be calling in by phone. Moderator, please. Unless they're present and I'm not aware of that, then moderator.

Alejandro, your line is open. Please go ahead.

Thank you.

Thank you. Good afternoon, Chairman Santiago and Members. Good afternoon to Vice Chairman Garcia. Also hello to Mr. Voegeli. My name is Alejandro Rayburn and I'm a research coordinator with Unite HERE International Union with a casino workers union in North America. Our Members are overwhelmingly people of color, immigrants, and women. In California, we have 6,000 Members at ten different tribal casinos across the state, where collective bargaining agreements ensure dignity, respect, and fair wages and benefits.

We're here today 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. Any Committee Members have any comments or questions? I don't hear any. It's conventional that we just go through public comments.

Now, just one quick comment. I just want to say thank you to the Assemblymember Ramos, for helping us out with this project.

Thank you. Now we're going to public comments. Name, organization and position only if you are here. Moderator will go to the phones.

And again, if you wish to speak on this issue in support or opposition, please press one, then zero at this time. And Mr. Chair, we have no one in queue at this time to speak.

Thank you. So I'll conclude and move on to the next compact and Governor's Office can begin. We're beginning with Resighini Rancheria. Apologize.

Thank you again, Mr. Chairman. This time we're moving from the far south of the state to the far north. We've got Resighini Rancheria, which is located on the north coast in Del Norte County, near the mouth of the Klamath River. The Resighini Rancheria compact is largely similar to the Ewiiaapaayp compact that I just went over and others last week. But I'll highlight the key terms.

To start, I'd like to extend my thanks to Tribal Chair Fawn Murphy and her negotiation team for the time and effort they put into reaching this agreement. While the Resighini Rancheria operated a casino in the early 2000s, it is not currently gaming as a non-gaming tribe. The tribe is and will remain eligible under this new compact for $1.1 million annually from the revenue-sharing trust Fund and grants from the Tribal Nation Grant Fund.

Unless it begins operating over 350 or more devices, the tribe under this compact can operate up to 1200 slot machines at three facilities. It agreed to reimburse the state for its regulatory costs, but its pro-rata share can be reduced or eliminated if it operates less than 350 gaming devices, and there are sufficient funds in the special distribution fund.

The Tribe's Compact, similar to that of the Kato Tribe, Ewiiaapaayp band, and others I went over, does not require the Tribe to set aside funds to mitigate impacts on local governments if it operates less than 350 gaming devices. Given the small size of such an operation and the funding challenges the tribe faces in meeting the needs of its members, the Governor's office agreed that only if the tribe operated 350 or more slot machines would it be required to set aside one-half of 1% of its net win to mitigate local impacts from its gaming facility.

Before the Tribe begins gaming, it will be obligated to have in place procedures to address tort claims by patrons and visitors and allegations of harassment, discrimination, or retaliation by employees. It will carry a general liability policy of at least $5 million and a $2 million policy to address employment claims. Employees will receive at least equivalent to the state's minimum wage rate. If the Tribe's gaming operation employs over 250 non-tribal members, then tribal labor issues will be governed by the Tribal Labor Relations Ordinance.

That ordinance provides a process for labor organization and the resolution of collective bargaining or other labor disputes through arbitration. Over the 25-year term of the compact, the tribal gaming agency will have primary regulatory authority over the gaming operation. It will ensure that gaming employees are subject to background checks and licensing. To protect the integrity of the Tribe's gaming, the Tribe also agreed to gaming device testing, inspection, and minimum control standards.

The compact includes other required health and safety standards to ensure any gaming meets building food, water quality, and occupational safety requirements. Miners under 18 are not allowed in gaming areas, and alcohol sales will be governed by California state law. Finally, the Governor's Office agreed that the state would negotiate with the Tribe if its operations are significantly impacted by changed conditions or if Tribes in California are able to operate new forms of class three gaming.

If there is a force majeure event, such as a wildfire pandemic, the State and Tribe would meet and confer to address adverse impacts that significantly reduce or halt the Tribe's gaming operations. Though Resighini Rancheria is not currently gaming, this compact is designed to allow for future gaming and foster the Tribe's continued development over its 25-year term. I'm pleased the Governor's Office and Tribe could reach agreement for ratification, and I'm available to answer any questions.

Thank you. Now, we're going to go to any public comments. I don't have anybody else speaking on behalf of this compact, so I'm going to go ahead and move on to public comments. Anybody in the room, name, organization and position only. We're going to go move to the phones. Moderator, please.

Thank you, Mr. Chair. And if you wish to speak in support or opposition, please press one, then zero. At this time. Mr. Chair, we have no one wishing to speak at this time.

Any Committee Members have any questions. I should have done that first, but now I'm going to come back. I apologize. Having and seeing none, I'm going to go ahead and close up. Thank you very much for being here. Also Committee Members and Vice Chair and anybody else who showed up today. Thank you very much. We're going to conclude this meeting.