SB-957 Analysis

SB-957, which contains the 5 renegotiated compacts, has passed through the Senate and now goes to the Assembly where it will face much tougher odds. This is the same process the Chumash will face if they ever renegotiate their compact with the governor to add more slots.

The process is as follows:

First Reading/Introduction
A bill is introduced or read the first time when the bill number, the name of the author, and the descriptive title of the bill is read on the floor of the house. The bill is then sent to the Office of State Printing. No bill may be acted upon until 30 days has passed from the date of its introduction.

Committee Hearings
The bill then goes to the Rules Committee of the house of origin where it is assigned to the appropriate policy committee for its first hearing. Bills are assigned to policy committees according to subject area of the bill. For example, a Senate bill dealing with health care facilities would first be assigned to the Senate Health and Human Services Committee for policy review. Bills that require the expenditure of funds must also be heard in the fiscal committees: Senate Appropriations or Assembly Appropriations. Each house has a number of policy committees and a fiscal committee. Each committee is made up of a specified number of Senators or Assembly Members. During the committee hearing the author presents the bill to the committee and testimony can be heard in support of or opposition to the bill. The committee then votes by passing the bill, passing the bill as amended, or defeating the bill. Bills can be amended several times. Letters of support or opposition are important and should be mailed to the author and committee members before the bill is scheduled to be heard in committee. It takes a majority vote of the full committee membership for a bill to be passed by the committee.
Each house maintains a schedule of legislative committee hearings. Prior to a bill's hearing, a bill analysis is prepared that explains current law, what the bill is intended to do, and some background information. Typically the analysis also lists organizations that support or oppose the bill.

Second and Third Reading
Bills passed by committees are read a second time on the floor in the house of origin and then assigned to third reading. Bill analyses are also prepared prior to third reading. When a bill is read the third time it is explained by the author, discussed by the Members and voted on by a roll call vote. Bills that require an appropriation or that take effect immediately, generally require 27 votes in the Senate and 54 votes in the Assembly to be passed. Other bills generally require 21 votes in the Senate and 41 votes in the Assembly. If a bill is defeated, the Member may seek reconsideration and another vote

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The Analysis for SB-957 is below. The language is non-legal which makes it great for understanding the bill and it also includes supporters and opponents opinions. Should the Chumash ever get this far the analysis of the bill that would contain their amended compact would look very much like this.


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SENATE RULES COMMITTEE SB 957
Office of Senate Floor Analyses
1020 N Street, Suite 524
(916) 651-1520 Fax: (916)
327-4478
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THIRD READING


Bill No: SB 957
Author: Torlakson (D)
Amended: 4/9/07
Vote: 21


Note:On April 10 & 11, 2007, the Senate Governmental
Organization Committee held an informational hearing
on the following Tribal-State Gaming Compacts:

SB 106 (Wiggins), Yurok Tribe of the Yurok
Reservation; SB 174 (Ducheny), Morongo Band of Mission
Indians; SB 175 (Ducheny), Sycuan Band of the Kumeyaay
Nation; SB 903 (Padilla), Pechanga Band of Luiseno
Indians; SB 941 (Padilla), San Manuel Band of Mission
Indians; SB 957 (Torlakson), Agua Caliente Band of
Cahuilla Indians


SUBJECT : Tribal-state gaming compacts

SOURCE : Agua Caliente Band of Cahuilla Indians


DIGEST : This bill ratifies an amendment to a
tribal-state gaming compact entered into between the State
of California and the Agua Caliente Band of Cahuilla
Indians, executed on August 8, 2006. The bill requires
that related revenue contributions be deposited into the
General Fund and also specifies that, in deference to
tribal sovereignty, certain actions may not be deemed
projects for purposes of the California Environmental
Quality Act.


ANALYSIS : Existing federal law, the Indian Gaming
Regulatory Act, 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 compacts, subject to
ratification by the Legislature. Existing law expressly
ratifies a number of tribal-state gaming compacts, and
amendments of tribal-state gaming compacts, between the
State of California and specified Indian tribes.

I. The amended five Tribal-State gaming compacts contain
provisions that are identical or similar as follows:

1. The amended compacts authorize the Tribes to establish
and operate up to two gaming facilities within the
existing boundaries of their reservations other than
Agua Caliente which may operate a third casino. It
provides that the compacts shall be in full force and
effect for state law purposes until December 31, 2030.

2. The amended compacts authorize the Tribes to operate up
to 7,500 gaming devices.

3. The amended compacts require the Tribes to make
specified annual payments to the State for the
operation of the existing gaming devices for the
duration of the compact. This annual payment is
reported to be approximately 10 percent of the Tribes'
annual net win form 2005. In addition, the Tribes are
required to pay 15 percent of the net win form the
operation of the newly authorized gaming devices above
2,000 and up to 5,000. Finally, the Tribes are
required to pay 25 percent of the net win from the
operation of gaming devices above 5,000. The
Administration estimates that the state General Fund
could receive up to $7 billion total under the terms of
these amended compacts.

4. Under the compact amendments, the Tribes are required
to maintain their existing licenses to operate gaming
devices and pay $2 million, annually, into the Revenue
Sharing Trust Fund (RSTF). Provides that the state
Tribal Gaming Agency (TGA) has the authority to
redirect a portion of the Tribes' contributions to the
state's General Fund to cover any shortfalls in the
RSTF.

5. The amended compacts provide the Tribes' core
geographic markets. If the state authorizes any person
or entity other than an eligible Indian tribe to
operate gaming devices in the Tribes' core geographic
markets, the Tribes shall have the right, until such
gaming ceases, to:

A. Terminate the compact.

B. If the Tribes operate less than 2,000 slot
machines, they shall be relieved of their
obligations to make payments to the RSTF, but
still pay for the actual and reasonable cost of
regulation.

C. If the Tribes operate more than 2,000 slot
machines, the Tribes will be relieved of their
obligations to make payments to the RSTF, but
shall pay 12.5 percent of their net win
attributed to all gaming devices above 2,000 or
the actual and reasonable cost of regulation,
whichever is greater.

6. In no event shall the Tribes be relieved of paying
their obligations pursuant to any inter-governmental
agreements to mitigate the significant effects on the
off-reservation environment.

7. Slot machines will have to be tested, approved and
certified by an independent or state governmental test
laboratory and the California Gambling Control
Commission (CGCC) to ensure that they are being
operated according to the manufacturer's technical
standards. The CGCC would be authorized to annually
conduct up to four random inspections of slot machines
in operation. During each random inspection, the CGCC
may inspect no more than five percent of the machines
in operation.



8. The amended compacts require the Tribes to adopt an
ordinance requiring any new gaming facility
construction to meet or exceed the California Building
Code and the Public Safety Code applicable to the city
or county as set forth in Titles 19 and 24 of the
California Code of Regulations, including and not
limited to, code for building, electrical, energy,
mechanical, plumbing, fire and safety. The compacts
provide procedures for site and plan inspections by
city, county and state building authorities to
determine compliance with applicable building codes.
A gaming facility shall be issued a certificate of
occupancy by the Tribes based on the final inspecting
certification by local and state building authorities.


9. The amended compacts delete the existing patron
dispute provisions. The amendments provide that the
Tribes are required to promulgate regulations
governing patron disputes over the play or operation
of any game. A patron who makes a complaint over the
play or operation of any game within three days shall
be notified in writing of his or her right to request
resolution within 15 days. The tribes shall render a
decision within 60 days of the patron's request. If
the patron is dissatisfied with the decision, or no
decision is issued within the 60 days, the patron may
request that the dispute be settled by binding
arbitration. The Tribes agree to waive sovereign
immunity for these purposes and agree to abide by the
decision of the arbitrator.

10. The compact amendments authorize the Tribes to
establish a tribal court system to handle such
disputes. The establishment of a tribal court system
triggers renegotiations between the Tribes and the
State for the revision of the "Patron Dispute"
provisions of the amended compacts. The intended
result of such renegotiations will give the tribal
courts authority to adjudicate patron disputes in lieu
of the binding arbitration process.

11. The amended compacts provide that the Tribes agree to
comply with federal laws regarding public health and
safety, state public health standards for food and
beverage handling, and federal water quality and safe
drinking water standards. Additionally, the Tribes
are required to comply with standards no less
stringent than state public health standards for food
and beverage handling and water quality. The
amendments also allow for inspections of food and
beverage services by state or county health
inspectors. The Tribes are not required to submit to
jurisdiction of the state or county health inspectors,
but any alleged violations of the standards may be
treated by the state as a violation of the compact.

12. The Tribes are required to adopt and comply with
standards no less stringent than the standards of the
Fair Labor Standards Act (FLSA), 29 U.S.C. Section
201, et seq., and the United States Department of
Labor regulations implementing the Fair Labor
Standards Act (29 CFR Section 500, et seq.) The FLSA
establishes minimum wage, overtime pay, recordkeeping,
and child labor standards affecting full-time and
part-time workers in the private sector and in
federal, state, and local governments. Covered
nonexempt workers are entitled to a minimum wage of
not less than $5.15 an hour. Overtime pay at a rate
of not less than one and one-half times their regular
rates of pay is required after 40 hours of work in a
workweek.

13. The Tribes shall obtain and maintain commercial
general liability insurance consistent with industry
standards for non-tribal casinos which provide
coverage of no less than $10,000,000 per occurrence
for bodily injury, personal injury, and property
damage arising out of, connected with, or relating to
the operation of the casino. The Tribes waive their
sovereign immunity up to the limits of the insurance
policy.

14. In addition, a tribal ordinance shall be adopted
recognizing that California tort law, including all
applicable statutes of limitations, shall govern all
claims of bodily injury, personal injury, or property
damage connected with the operation of the casino.


15. The amended compacts authorize the Tribes to
establish a tribal court system to handle such
disputes of bodily/personal injury or property damage
within the workplace. The establishment of a tribal
court system triggers renegotiations between the
Tribes and the State for the revision of the "Public
and Workplace Health, Safety, and Liability"
provisions of the amended compacts. The intended
result of such renegotiations will give the tribal
courts authority to adjudicate disputes in lieu of the
binding arbitration process.

16. The Tribes agree to create and maintain a system that
provides redress for employee work-related injuries
through requiring insurance or self-insurance, or
participate in the state statutory workers'
compensation system.

17. Before the commencement of any project, as defined,
the Tribes are required to prepare a tribal
environmental impact report that assesses the
potential environmental effects of new and expanded
gaming facilities, and detail how these effects can be
minimized. This section has been negotiated as an
alternative to directly applying the California
Environmental Quality Act to the tribal environmental
review process. The Tribes are also required to enter
into an enforceable written mitigation agreement
(Intergovernmental Agreement) with specified entities
and any impacted city in which the casino is located
or adjacent to, for the mitigation of any significant
effect on the off-reservation environment, as
specified, as well as compensation for public
services, including law enforcement, fire protection,
and emergency medical services. Any party may demand
binding arbitration with respect to disputes over
mitigation or compensation on which the parties cannot
reach agreement. The Tribes agree to waive their
right to assert sovereign immunity so that arbitration
awards are deemed part of the Intergovernmental
Agreement and to allow the federal or state courts to
enforce the party's obligation to arbitrate and any
award rendered in the arbitration.



18. The amended compacts provide that any person or
entity extending financing, directly or indirectly, to
the Tribes for a gaming operation shall be licensed by
the tribal authorities prior to extending that
financing. The Tribes shall not enter into any
contract or agreement for the provision of financing
with any person who the CGCC has determined as
unsuitable or that a determination of suitability has
expired without renewal. The compact amendments
exempt a bona-fide bank or other federally regulated
lending institution.

2007 Tribal-State Gaming Compacts Legislation

SB 106 (Wiggins), Yurok Tribe of the Yurok Reservation
SB 174 (Ducheny), Morongo Band of Mission Indians
SB 175 (Ducheny), Sycuan Band of the Kumeyaay Nation
SB 903 (Padilla), Pechanga Band of Luiseno Indians
SB 941 (Padilla), San Manuel Band of Mission Indians
SB 957 (Torlakson), Agua Caliente Band of Cahuilla Indians

Prior Legislation from the 2005-06 Legislative Session

SB 470 (Ducheny), Chapter 527, Statutes of 2006, ratified
an amended Tribal-State Gaming Compact entered into on June
26, 2006, between the Quechan Tribe of the Fort Yuma Indian
Reservation. The Senate Floor Vote was 34-1 on 8/29/06.

SB 935 (Ducheny), would have ratified the amendment of a
tribal-state gaming compact entered into on June 26, 2006,
between the State of California and the Quechan Tribe of
the Fort Yuma Indian Reservation. (Died in Assembly
Governmental Organization Committee)

SB 1362 (Chesbro), would have ratified the amendment of a
tribal-state gaming compact entered into on August 24,
2006, between the State of California and the Yurok Tribe
of the Yurok Reservation. (Died in Assembly Governmental
Organization Committee)

AB 1053 (Bogh), would have ratified an amendment to a
tribal-state gaming compact entered into between the State
of California and the Morongo Band of Mission Indians,
executed in August 2006. (Died in Senate Rules Committee)

AB 2399 (Garcia), would have ratified the first amendment
to the Tribal-State Gaming Compact concluded on August 8,
2006, between the State of California and the Agua Caliente
Band of Cahuilla Indians. (Died in Conference Committee)

AB 2549 (Plescia), would have ratified the first amendment
to the Tribal-State Gaming Compacts concluded between the
State of California and the Agua Caliente Band of Cahuilla
Indians, San Manuel Band of Mission Indians, Pechanga Band
of Luiseno Indians, the Morongo Band of Mission Indians,
the Sycuan Band of the Kumeyaay Nation, and the Yurok Tribe
of the Yurok Reservation. (Died in Senate Rules Committee)

II. Existing provisions of these five Tribal-State
Compacts not modified by the Compact Amendments.

1. The Tribal Labor Relations Ordinance (TLRO) provides
for secret ballot elections, as opposed to "card
check", and stipulates unfair labor practices for both
the Tribe and the union. The Tribes are permitted to
campaign against unionization. If collective
bargaining negotiations result in an impasse, and the
binding dispute provisions prove ineffective, the
union has a right to strike, except strike-related
picketing is not authorized on Indian lands. The TLRO
includes a binding dispute resolution mechanism that
provides three levels of resolution: the first level
is for all matters related to organizing, election
procedures, alleged unfair labor practices, discharge
of eligible employees, and collective bargaining
impasses, can be appealed to a designated tribal
entity (such as a Tribal Council or Grievance Board);
the second level utilizes the state Tribal Labor Panel
that is administered by the Department of Personnel
Administration (the panel is operated through the
American Arbitrators Association, which then bills the
department for its services); and the third level
authorizes either party to seek a motion to compel
arbitration or to confirm an arbitration award, which
may be appealed to a federal or state court.

2. Although the 1999 compacts restrict persons under 18
years of age from being present in any area in which
Class III gaming is conducted, current policy is to
prohibit any person under 21 years of age from being
present in any area of the casino where Class III
gaming occurs. Additionally, persons under the age of
21 years are prohibited from purchasing, consuming, or
possessing alcoholic beverages on the Tribes'
premises.

3. The Tribes are responsible for conducting on-site
gaming regulation to enforce the compact and Indian
Gaming Regulatory Act regulation. This includes the
physical safety of patrons and employees, assets
transported, and the prevention of illegal activity in
the facility. The compacts specify procedures for
surveillance of premises and recording of incidents.

4. With certain exceptions, every gaming employee shall
obtain and maintain a valid tribal gaming license and
maintain a determination of suitability by the CGCC,
subject to biennial renewal. The compacts require
employees and gaming resource suppliers (that receives
$25,000 or more in any 12 month consecutive period
within the 24 month period immediately preceding
application) to be licensed by TGA. Such licensure
shall be dependent upon a finding of suitability by
the CGCC.

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

SUPPORT : (Verified 4/18/07)

Agua Caliente Band of Cahuilla Indians (source)
Morongo Band of Mission Indians
Pechanga Band of Luiseno Indians
San Manuel Band of Mission Indians
Sycuan Band of the Kumeyaay Nation
Yurok Tribe of the Yurok Reservation

OPPOSITION : (Verified 4/18/07)

California Labor Federation
California Teamster's Public Affairs Council
California Unite Here
Dehesa Valley Community Council Inc.
Group of Jamul Citizens
Stand Up for California
Service Employees International Union
Worksafe

ARGUMENTS IN SUPPORT : According to the Morongo Band of
Mission Indians, "The Morongo compact amendment alone could
provide the state with over $3 billion dollars during the
next 23 years. This is a generous sharing of up to 25
percent of our tribe's gross gaming machine revenues before
deducting any expenses.

"This compact amendment, through the original 1999 compact,
preserves our employees' right to self-organization and
representation by a union of their choice. The Tribal
Labor Relations Ordinance (TLRO) which Morongo and the
State of California agreed to in 1999, is a landmark law
between our governments and gives unions and casino workers
enforceable organizational and representational rights
through its provisions for fair, prompt, secret ballot
elections. Most importantly, the TLRO provides for a
prompt resolution of any disputes or unfair labor
practices.

"The Morongo tribe has stood by this law since 1999 and
will continue to do so through the end of the compact."

ARGUMENTS IN OPPOSITION : According to the California
Teamsters Public Council, "In contrast to most previous
compacts submitted by the Governor in 2004, these compacts
take away the right of tribal casino workers (most of whom
are not tribal members) to freely choose whether they want
to obtain union representation through card check
recognition. Effectively, these compacts establish an
unfair playing field where workers will find it essentially
impossible to achieve decent wages, benefits and working
conditions. Using the card check recognition procedure
authorized under the 2004 compacts, almost 5000 California
tribal gaming employees have chosen unionization and have
negotiated mutually agreeable collective bargaining
agreements with their tribal employers. In so doing that
have improved their lives and their communities, and have
relieved California taxpayers of the burden to their health
care costs and other social services for the working poor.
Conversely, other tribal gaming workers, who are subject to
compacts which do not contain card check recognition
protections, are subjected to untenable working conditions
with low wages and no benefits. Enactment of these
compacts will create the largest expansion of gaming in
American history. Billions of dollars will be made under
the provisions of these compacts, yet the workers who are
the engine behind this lucrative industry will not be
afforded the workplace protections that so many other
Californians' enjoy."


According to Stand up for California, "These agreements,
much like the former agreements, presume primary regulatory
and oversight will be performed by the National Indian
Gaming Commission (NIGC). However, the United States Court
of Appeals for the District of Columbia Circuit affirmed
the Washington D.C. Federal District Court's August 2005
ruling in Colorado River Indian Tribes v. NIGC , (D.D.C
Aug.2005). The Court held that the NIGC does not have
authority to promulgate or enforce regulatory oversight.
Therefore, all regulatory oversight of gaming is left to
each state to include in their tribal state compacts."


TSM:nl 4/18/07 Senate Floor Analyses

SUPPORT/OPPOSITION: SEE ABOVE

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How important is the passage of this bill to other tribes in California, including the Chumash, who may seek to expand in the future? My opinion is that it is huge. If this bill gets ratified I believe it will set a major precedent for opening the door for other tribes to expand. If opponents of Indian gaming in California could stop this bill in its tracks, that would be a HUGE victory for them and make it very, very difficult for future tribes to expand. Why haven’t POLO/POSY, who have said all along that their cause is not only for the valley but for the state as well as the nation, concentrated their efforts and dollars in Sacramento? Why aren’t their acronyms among the opposition groups listed in the above analysis? Why are they going to the County to ask them to do things they have no power to do, like pass a resolution to stop state-wide casino expansions? Not working very smart in my opinion if they truly want to stop indian gaming expansion. It again makes you wonder what their true cause may be.

Sources:
http://info.sen.ca.gov/pub/07-08/bill/sen/sb_0951-1000/sb_957_cfa_20070418_163103_sen_floor.html
http://www.leginfo.ca.gov/bil2lawx.html