Whats next?

So here we are in 2007, and what does the future hold for the Chumash and the County and the people who live here? It would seem logical that the success or failure of the compacts currently in the State Legislature this year would have a great deal to do with any future Chumash Casino expansion plans. I encourage the County and anyone else concerned to follow these bills this year. One of the things that I believe was of grave concern to some in the valley was the “Most Favored Nations” clause in the current Chumash compact. They believed that should any of the current compacts in the State Legislature this year get ratified, then get signed off by the Federal Government, that, that would allow any other Indian Casino in our state, including the Chumash, who did not renegotiate their compact with the Governor, to add 5000 mores slots. The dominos start to fall, so they believed. An email to Senator McClintock’s office cleared this up. Mike Stoker, who serves as the District Director for SB County for the Senator, emailed me and said he would ask the Legislative Counsel as he didn’t know the answer. A few days later I received another email from Mr Stoker who said, “From the information I have been provided the Chumash would have to negotiate with the Governor to renew the compact. My understanding is there is no "favored nation status" clause that would be applicable. I am also under the understanding that nothing is in the works for the tribe to add 5000 more slots....or add any slots for that matter.”

So I believe, given that news, that Sacramento is where the Chumash are watching things very closely, as should the county and all other interested parties. The fate of the above mentioned compacts, more than anything, will give you an idea of perhaps what the Chumash may have in mind down the road. It would have been nice to have the 90 day notice that the Chumash said they would give the County should they decide to open negotiations with the Governor, but now that courtesy may not be available unless things change.

Where do these compacts sit right now in Sacramento? Back in February two tribes in the Palm Springs area received some powerful backing for their revised compacts struck with Gov. Arnold Schwarzenegger at the end of the last legislative session. The Agua Caliente Band of Cahuilla Indians of Palm Springs and the Morongo Band of Mission Indians of Cabazon are seeking to increase their slot machine allowances by up to 2,500 slots each. Senate leader Don Perata, D-Oakland, will be the author of the compact, for the Agua Caliente Band of Cahuilla Indians. Perata was not the formal author of Assembly Bill 2399 last year for the Agua Caliente compact, but as the Senate leader, Perata controls the flow of legislation and last year allowed AB 2399 to reach the Senate floor. That is a big advantage for the Agua Caliente compact. Sen. Denise Ducheny, D-San Diego, will be the author of the compact bill for the Morongo Band.

There are many issues surrounding these compacts and it is highly political. The debates will be intense. Labor issues and because these bills were introduced late in the legislative session, were chiefly responsible for the compacts not being ratified at the end of the last session in 2006. A decision in favor of labor was handed down in February of this year. A Federal Appeals Court ruled that Indian tribes must comply with federal labor laws. This decision was against one of the state's wealthiest tribes, the San Manuel band of San Bernardino County. Basically the court said that because the casino operated as a commercial enterprise, rather than a government operation, there should be some legal restraint. Right now only a handful of California's casinos have labor agreements.

The ruling stems from a 1999 complaint filed by the Hotel Employees & Restaurant Employees International Union alleged that San Manuel denied its organizers equal access to casino workers while the tribe cooperated with a rival union, the Communication Workers of America. The tribe and the CWA ultimately agreed to a contract. When the National Labor Relations Board concluded that federal labor law applied to the tribe, San Manuel appealed to the circuit court. The tribe invoked its sovereign immunity, contending that federal labor law did not apply to actions of tribal governments on their reservations. The court ruled against them. It’s unclear how the ruling might affect five big pending compacts currently being introduced to the Legislature this year, and with this new ruling it could mean renegotiated compacts which so far the tribes and the Governor have refused to do.

Also, last fall a Federal Appeals court upheld a ruling that the National Indian Gaming Commission does not have the authority to regulate most tribal casinos. Critics of these compacts jumped all over this saying that the sudden loss of federal oversight is something that should be addressed in the agreements before they are ratified. The administration and the tribes, however, do not want to reopen the compacts as stated before.

Another issue is the Governor’s prediction that the new compacts will bring in $506 million for the state per year. The nonpartisan Legislative Analyst's Office thinks the figure would be less than half that amount. Another thing to consider is that there are 48 new lawmakers in the Legislature this year who will have to become educated on the issues. “It's going to take a great deal of research," said State Sen. Jeff Denham (R-Merced, "It's going to take a great deal of time to educate all of those new members."

As you can see, there is a long battle ahead for these compacts and to get them through the Senate and Assembly this year will be very difficult. The Chumash are watching this unfold and it would be prudent for the County to also keep an eye on them as it may set precedents for future expansion plans by the Chumash should they decide to pursue them.

Using the official site for California legislative information is a great way to track these bills: http://www.leginfo.ca.gov/

Also, this website offers very valuable information for understanding current issues involving California Tribal Gaming: http://www.lao.ca.gov/2007/tribal_casinos/tribal_casinos_020207.aspx