Senate Standing Committee on Governmental Organization

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All right. The Senate governmental organization Committee will come to order. After eight years as chair of Senate Geo, this will be my last informational hearing on compaqs. So enjoy these words for one last time. Im Senator Bildad, Chairman of the government organizations Committee. Today we will be holding three information hearings.

Two are simple one year compact extensions for the Picayune rancheria and the Trinidad rancheria. We will follow those hearings with the Table Mountain compact hearing. For those of you unfamiliar with the Senate's procedure, the established policy allows for 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. For example, the Bill ratifying the two compact extensions will be SB 931 by yours truly. SB 931 will be taken up by the Assembly floor next week. 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 our informational hearing on the Picayune extension. Here to testify is Matthew Lee, senior advisor for tribal negotiations for Governor Newsom. Mister Lee, welcome and feel free to begin.

Thank you very much, Mister Chairman, honorable Members, it's a pleasure and an honor to be here this morning, especially for the last informational hearing by a great chair. So thank you for that opportunity. I'm happy to start with what I hope is an easy one today.

This is for the Peking rancheria of Chukchansi Indians down in Korskold, north of Fresno, near Yosemite. Large existing gaming operation. The goal here is to preserve the status quo of that existing gaming operation, including, I believe, more than 700 union jobs.

While the process contemplated by the Indian Gaming Regulatory act can continue to play out, we don't have a new compact to replace the expiring compact at this time. We could still get one and so want to preserve the status quo so that that existing gaming operation can continue to operate while that process plays out.

Thank you very much. Mister Lee, are there any questions from Members seeing? None. We'll move to anyone wanting to provide public comment here in the room. Mister Quintana, good morning.

Good morning. Good morning, sir. David Quintana, on behalf of the Picayun rancher of two Chansey Indians, we would like to thank the governor's office and Matt Lee for working so hard with us, and you, Chairman Dodd, for allowing us to be in SB nine for our extension thank you. Thank you.

Well, that concludes our informational hearing on the Picayune compact extension. We'll now move to the Trinidad Rancheria compact extension. Mister Lee, feel free to begin.

Good morning again. Thank you very much. A very similar situation here. This is for a small existing gaming operation up in Trinidad on the Humboldt County coast. Similar situation compact. So there are ongoing negotiations to replace the expiring 1999 compact.

Remain optimistic that those could still produce a new compact, but we don't have it yet, and realize that the existing compact expires at the end of this year. So to preserve the status quo as to that existing gaming operation, are asking for a one year extension at this time. Thank you.

Thank you very much. Any questions from Members? I do have a question.

So, on these compacts, what's the normal timeframe for them to be enacted? Are they three year, five year, 10 year? Because we're doing one year ones right now for these particular three. And I'm curious, what is so difficult about these negotiations versus the other ones.

So, the basic timeline here is that there are a large number of compacts from 1999 and some from 2000 that were entered into right when the state first legalized tribal gaming. Those compacts tended to be for 20 to 25 years. So there's been this wave of 99 compacts that have been expiring in recent years.

Almost all of those have now been replaced in some fashion, most often because the state has bargained for a new long term compact. And the term of those compacts is itself a subject of negotiation when we're bargaining for the compact, but 2025 years tends to be the right ballpark.

You could see longer, you could see Shorter, but that's sort of the ordinary course. These one year extensions that we're dealing with here today are because those are the pending negotiations that we still have left. We have not yet been able to reach an agreement on those or to otherwise resolve those.

I don't want to get into the confidential substance of how the negotiations are going or what's being bargained for, but it is true that these are taking longer than all the others. I remain optimistic that by this time next year, we'll be coming back to you with a long term202530 year compact. Right.

Well, I understand that, and I understand that there needs to be confidentiality in what you're bargaining for. But I also understand what some of those things are and why these compacts are any different. They're almost boilerplate with their compacts, and why these three are singled out is kind of beyond me.

As far as why we need Morgan negotiating leverage with them, I don't think so. I think they need to be treated just like the other ones.

And so, you know, I'm hoping that as you, as those negotiations continue, that we stay in our lane as far as our government versus their sovereignty, and negotiate in good faith for the same things that the other compacts have. So that's my comment about these two. And we'll hear about the third one in a minute.

Yes, sir. Hear that loud and clear. And that's 100% consistent with our position and our practice.

Thank you very much, Mister Lee. So I want to now move to anyone wanting to provide public comments on the Trinidad compact extension in the room here, please come forward. Seeing none, that concludes our info hearing on the Trinidad compact extension. We will now move to the Table mountain compact. Mister Leaf, please feel free to begin.

Good morning again, Mister Chairman, honorable Members, representatives of tribal governments, Members of the public, it's a pleasure to be here. This compact is for the Table Mountain rancheria. This, unlike the other two, this is a full. A full long term compact.

It would be for up to 3000 gaming devices at up to three facilities, although one of those facilities would be very small, no more than 50 devices. The terms in the compact relating to the state's regulatory costs are pretty standard.

There's a Fund called the special distribution Fund that covers the state's regulatory costs, and there's a formula for determining a tribe's contributions to that Fund. Under the compact that's here, there's a separate Fund called the revenue Sharing Trust Fund, which is a mechanism that the state administers, but does not directly receive money from.

That is a trust Fund administered for the benefit of limited gaming and non gaming tribes. There's a sliding scale of contributions to that revenue sharing trust Fund based on the number of devices that's here. There is a Fund to mitigate impacts to local governments from the gaming facility. Happy to say more about that, but that's here, too.

There are some of the very standard, typical insurance terms that we like to see in these compacts to ensure that Members of the public and workers are protected and can seek financial compensation for harms that might befall them. Those are here.

There are also additional worker protections in this compact, very similar to the worker protections that we always bargain for in all of our compacts, very similar to the worker protections that you've seen in all of our recent compacts.

Those include state minimum wage, state law protections in terms of discrimination, retaliation, things like that, in terms of employment, classifications, workers comp. It also includes what's called a tribal labor relations ordinance. The tribal labor Relations Ordinance here is extremely similar, virtually identical to the tribal labor relations ordinance that we include in all of our compacts.

And what that does is it establishes a transparent and fair and level playing field, a framework related to the potential formation of a labor union within the gaming facility, the potential organization and representation of workers at that facility by a labor union. So that's here, too.

It matches the worker protections in all of our compacts that we always bargain for. Happy to say more about that if it's helpful.

Thank you. Questions? Comments?

Yeah, it's going to be helpful. So last week they were, we had a series of compacts that we went through last week, and this was supposed to be one of them, and then it got pulled last minute.

What kind of negotiations or what kind of new provisions were agreed to in this last week that prevented them from having their hearing last week?

I am not aware of any new negotiations or new agreements in the past week, and I certainly have not participated in those.

All right, so essentially, a lot of this was about the labor and union, correct?

I couldn't speak to why this Committee chooses to schedule certain things we're hearing and why it doesn't know.

Okay. So my comment on this is going to be those type of negotiations are not. They're a sovereign nation. It'd be like us going to Saudi Arabia and telling them what to do with their labor, and we shouldn't be doing that.

I think it's wrong, and we certainly shouldn't be, you know, trying to delay and cause anxiety because you have an expiring contract at the end, a compact at the end of this year, and it is not fair for people to be leveraged that way.

And so anyway, I hope in the future that we agree as, as you know, our government stays in our lane when dealing with our Indian gable, our tribal nations, when we're doing these compacts, and minimize that kind of leveraging, which is causing delays so that we can try and get a better deal for labor.

Sir, I just want to be very clear for the record, because I think you've hit on an important point, and I, in terms of substance, I agree with a lot of what you have to say.

Nothing about the timing of this hearing has anything to do with me or other Members of the state's negotiating team seeking to reopen negotiations or otherwise seek further concessions. I want to be very clear for.

Any future record, I understand that you guys did not have anything. This was not pulled by you guys. This is pulled by us guys. And not us, but Members of our body, the legislative body. I want to send a clear message that that shouldn't be happening. And we owe people an apology for even trying it.

Okay, Mister Lee, I do have a question. Anybody else? Senator Rubio?

Thank you. And I want to just thank everyone for being here. I know this is an important issue. And, you know, I think if I may add a little bit to what you were saying, sir. You know, I've heard concerns about contracts expiring at the end of this year as well, and some concerns.

And so is there anything you could add to that? That, you know, because, you know, clearly these compacts need to be taken care of and they need to continue to operate, but you don't have any information that you can share in terms of concerns around compacts expiring at the end of the year.

So in terms of compacts expiring at the end of this year, with the three items before this Committee today, I believe we'll be in very good shape. These are the last.

So there are some compacts where there is an expiring compact, but we hope to have a new long term compact in place, ratified by the Legislature and approved by the Department of the Interior, so that it can take effect by January 1 of next year.

That's a one category of compact, and that takes care of many, I believe three or four of the compacts that we have left in our whole universe of potential compacts. Then there's a smaller universe, which are these short term extensions where there is some prospect of future negotiation.

Would very much like to reach a long term compact in those. And we are where there is still a prospect of further negotiation. We are seeing these one year extensions precisely for the reason you identified, so that the status quo isn't disrupted come January 1. Then there is another category of compacts.

And I'm happy to say more about this process because I think it's useful information to have across the board. There are situations where we have not been able to reach a deal. There has been litigation, that litigation is almost over. There is really nothing further for the state to do.

And what is likely to happen, what is going to happen, or, or quite likely to happen, is that the US Department of the Interior is going to issue what are called secretarial procedures, where the Federal Government regulates a gaming operation directly without any significant role for the state, obviously want that process to play out as quickly as possible, and we'll do our part to keep it moving so my hope and expectation is that to the extent, you know, to the extent it's up to us, certainly to the extent there is the prospect of further, you know, further negotiations that could produce a compact.

That's why you're seeing these items come before you in hearings like this one. Precisely so that we don't disrupt existing gaming operations on Gen one.

So I just want to discuss one more topic. You know, first of all, I'm a union Member, as a teacher, of course, and I know. I wasn't aware that.

Well, first of all, I know that we pride ourselves on making sure that we give, you know, all our unions that the best possible opportunity to succeed and make sure that they have the power to negotiate and bargain and, you know, get the best deal that they can get for themselves.

But is it standard to choose a union for them?

We absolutely don't choose a union for anyone. And so I think the short answer is no. The tribal labor Relations ordinance I mentioned is about creating a legal framework that could facilitate access to a union. It doesn't make anyone choose to be unionized, and it certainly doesn't choose a specific union.

Thank you, Senator Jones. Thank you, Senator Dodd. I first, I'll be brief, wanted to affirm the concerns that have already been raised by Senator Ciarto. Senator Rubio, Senator Grove has spoken very eloquently and passionately about this issue. And, you know, the bottom line for me is, you know, the tribes are either sovereign or they're not.

Okay.

And I think what I want the tribes to hear from this morning is that there are people in this body that do believe they are sovereign, and they do. We do believe that they have the right to negotiate their compacts in good faith.

And some of us think that that good faith is adulterated a little bit in these negotiations. And I'll leave it at that because my colleagues have spoken very eloquently on this issue. Thank you.

Thank you, Senator Jones. Anybody else? Okay, thank you, Mister Lee. Where am I here? We'll now move to Chairwoman Michelle Heredia Cordova, who is here in the room. Chairwoman, good morning, and please feel free to begin.

All right. Hello. Hles greetings. I am Michelle Heredia Cordova, and I have the privilege of being the tribal Chairwoman for Table Mountain Rancheria's sovereign band of Chukchansi mono people. And the words I share today, I share in a good way.

Over the past two weeks, my fellow council Members and I have walked the halls asking for your support and having our compact heard. And during that time, someone remarked that we were able to do this because we stand on the shoulders of those who come before us.

And I can tell you that sentiment is not lost on us. For not only do we stand on their shoulders, but we carry their blood, their sweat and their tears. From the genocide, slavery and displacement to forced assimilation. There can be no compensation great enough to make reparations for what California's first people have endured.

This compact is not just an agreement or a contract, for we are not a business or a corporation focused on improving the bottom line. For us, gaming revenue has been a lifeline helping us piece together what was broken.

With this revenue, we've been able to provide the best medical care for our tribal citizens as well as for our 1300 plus employees and their families. We are currently working on building a new medical facility to expand our services to the public. Along with our own medical operation.

We have made major contributions and our longtime partners with community medical centers, St. Agnes and Valley Children's hospitals. In terms of housing, we can now afford the infrastructure such as power, water and roads needed to build homes and bring our tribal citizens back to their ancestral lands for education.

We cover full tuition for our tribal citizens so they can pursue higher education and return with that knowledge. To help strengthen our tribe. We also have a preschool that serves both our tribal community and the families of our employees.

We contribute to our local schools through donations and sponsorships and have a longstanding partnership with Fresno state in cultural preservation. Over the last 25 years, we have bought back numerous baskets and artifacts and we are currently working on building a cultural center to showcase our collection, a place where we can share our history and tell our story.

The center will also house a dedicated space to preserve our language, ceremonies, songs and native food traditions. Through gaming revenue, we support the operation of our tribal Police Department, which serves to protect our tribal citizens, employees and patrons.

The new compact will allow our tribe to continue important partnerships with law enforcement, fire protection agencies and others in our community. The revenue generated through gaming has allowed us to buy back and reclaim our original lands and increase our land base, including our tribal cemetery. My aunt, our late Chairwoman, Miss Beverly J.

Hunter, who now rests there, was instrumental in fighting to bring our tribe cemetery, the resting place of our ancestors, back under our possession. She began these compact negotiations with us and I know she, along with all of our other ancestors, are here with us today. In closing, I'd like to thank you for your time.

We respectfully request your support for the Table Mountain Rancheria gaming compact and we'd like to thank the Governor and his compact negotiations team for their collaborative efforts and reaching agreement with our tribe on a new class three gaming compact. We look forward to a future of continued collaboration and mutual success. Thank you.

Thank you, Chairwoman. Any Members have any comments, questions? Chairwoman, thank you very much for being here today. We'll now move to anybody in the room here wanting to provide public comments on this compact.

Mister chair. Members of the Committee, Paula Treat. On behalf of Tahon and Calusa tribes, one who has secretarial procedures. We're all in favor of this. On behalf of Pechanga, a longtime friend of Table Mountain, we are thrilled with their success.

Chairman David Quintana. On behalf of the Cahuilla band of Indians, the Viejas Band of Kumeyaay Indians, and the Hambemdol pomo of Upper Lake, we support Table Mountains compact.

Thank you. Anybody else seeing? None. That concludes our info hearing on the table Mountain compact. Mister chair, can I.

Mister chair, over here.

Where are you left? Yes. I want to say just Senator Jones, please.

There was some, you know, kerfuffle up here. I just want to recognize the Chairwoman and her team for doing a great job, being very gracious in all of this and having to put up with it. You've done a great job. You've all. I'm proud of you. So thank you and thanks for coming forward.

I think it'd be appropriate for the Senator who represents this great tribe to be able to say a few words.

I thank the chair for inviting me to sit on the dais this morning. As you heard, the Chairwoman was eloquent, gracious, but firm in her belief to represent her people. And I echo my colleagues comments that made the comments about the delays and compacts. You truly are a sovereign nation.

I, as the Senate representative of that area, and I think any Senator who represents rice desires you to be good neighbors with your neighboring government. And all of you are specifically in my area. I'm not familiar with other areas.

I've heard a lot of people come into me and say, we have to do these things because we have tribes that don't do this. I've never heard of one tribe not being a good neighbor to their local government. And it's my honor to represent the Table Mountain tribe, the Tule river tribe, but also having this Chairwoman.

And out of the nine Member council, I believe there are six women that are on this council. Am I correct or not? Okay, so it's really incredible that women are taking a role in buying back ancestral lands, specifically the cemetery, and making sure that there is good medical care.

Highest wages are paid in the 70 percentile, almost 80 percentile, $50,000 in life insurance, medical benefits. All the things that you offer the people that work for you, whether they're a tribal, part of the tribal community or not being a part of the tribal community, you take care of them. And it's my honor to represent you.

Thank you. I appreciate the Member comments. I think for the amount of work and time that's gone in, that was very appropriate. I do want to thank Mister Lee for the great job. This is our last compact hearing, I believe, of the year. Thank you very much. You've done a great job. Really appreciate you.

Chairwoman Heredia Cordova and your Members, thank you very much for being here today. The Senate Committee on governmental organization is adjourned.