News Briefs – Judge Stays Order .. SB 1695 Passes Senate … Charity Bingo - Stop Electronic Games

Judge Holds Order

The federal judge who a couple weeks ago decided that the Governator didn’t negotiate in good faith with the Rincon has put a hold on his order that Gov. Schwarzenegger and North County's Rincon Indian band reach an agreement on a gambling expansion by July.

U.S. Magistrate Judge William McCurine Jr. agreed Monday afternoon to an emergency request by the governor's lawyers, who said the state could experience “chaotic” gambling expansion if the order wasn't delayed.

The judge's stay of that order is temporary.

He gave lawyers from each side the rest of the month to fully brief him on whether he should make the order permanent – at least until the appeal is decided – but didn't say when he would rule.

The governor's lawyers say a forced negotiation before the 9th U.S. Circuit Court of Appeal rules on the “bad faith” issue puts the state in a bad bargaining position that could lead other tribes to also expand their casinos in an “uncontrolled” manner.

Rincon's lawyers say that's speculation, and there's no good reason why negotiations can't go forth while the case is being appealed.

Senate Passes SB 1695 - Measure bars Indian gaming compacts without land deals.

In a sign that lawmakers aren't pleased with the recent Highway 99 casino deal, the state Senate on Monday passed a bill that would prohibit the governor from negotiating gambling compacts with Indian tribes until they have qualified gaming land.

Senate Bill 1695 by Sen. Dean Florez, D-Shafter, passed on a 31-4 vote with bipartisan support. The vote was the latest rebuke of Gov. Schwarzenegger's deal with the Mono Indians of North Fork Rancheria, which has also drawn criticism from U.S. Sen. Dianne Feinstein.

The tribe still needs federal approval to put a casino on land along Highway 99 just north of Madera. That didn't stop the governor from announcing a compact two weeks ago that would allow for 2,500 slot machines at the targeted site -- which is about 35 miles from the tribe's traditional homeland.

Because the deal already is signed, the Florez bill would not affect the casino. But state lawmakers still must approve the compact, and Monday's vote suggests the tribe might face an uphill fight.

The deal has drawn criticism from Republicans and Democrats. In a recent letter to Florez supporting his bill, Feinstein, D-Calif., said signing state compacts before land is approved "manipulates the process."

She said she is opposed to the compact because it would permit the first off-reservation casino in California. State Senate GOP leader Dave Cogdill, whose district includes the land, also has criticized the compact, calling it "premature."

On Monday, Senate leader Don Perata, D-Oakland, joined the chorus, saying the compact encouraged "reservation shopping."

"This would not only make it possible, it would effectively sanction it," he said during floor debate.

When he signed the deal, Schwarzenegger touted its environmental benefits.

The one-of-a-kind compact calls for the North Fork Rancheria to share a small fraction of casino revenues with the Wiyot tribe on California's North Coast. In return for about $5 million in annual payments, the 600-member Wiyot tribe has agreed to forgo its right to game on tribal lands along the environmentally sensitive Humboldt Bay near Eureka.

The governor also promised not to ask legislators to take up the compact until the federal government acts. A decision on putting the land into federal trust is not expected until next year.
The state compact "informs the public about the governor's support of the project," said Schwarzenegger press secretary Aaron McLear.

The administration acted early, he said, because the casino has already cleared one important federal hurdle by passing the "commutable test" -- meaning the land is considered within easy driving distance of the tribe's original homeland in the Sierra foothills.

Monday's vote does not necessarily mean the state Senate would reject the North Fork compact if presented the deal. At least a couple of senators voting yes on the Florez bill suggested they might consider approving a compact at a later date.

"If the federal government would approve the [casino], then there's a basis for a compact," said Sen. Denise Ducheny, D-San Diego.

"The problem is us making the compact for land which the federal government has not yet allowed the tribe to take into trust."

SB 1695 still must pass the Assembly. Even then, the governor could veto it.

State cracks down on electronic bingo machines in Sacramento County

The future of electronic bingo games and the local charities supported by them in Sacramento County is being thrown into question as a number of the bingo operators have been ordered by the state attorney general's office to stop using slot-machine look-alikes.

This is the first time the state has taken direct action to halt the use of electronic bingo machines in the county.

Three local bingo parlors have confirmed receiving letters informing them they have 30 days to remove the "unlawful electronic bingo devices" to avoid further legal action. Those close to the situation expect the area's other operations using electronic bingo machines will soon receive similar notices.

Electronic bingo, or e-bingo as its sometimes called, has been on thin legal ice for years. Just months after Sacramento County passed an ordinance spelling out which types of electronic bingo games were acceptable, the attorney general's office raised doubts. An order in August 2007 reiterated a long-standing state Justice Department position that bingo involves paper games, ink daubers and live callers.

But until Wednesday, the state had not taken any action.

Reached late Thursday, the attorney general's press office was unable to clarify the scope of the legal action and unable to say whether any type of electronic bingo games are acceptable.

In recent years, electronic bingo machines have helped prop up sagging charity bingo receipts. The machines resemble slot machines, but according to their makers they play a networked bingo game.

Since charitable bingo fundraising was authorized by Sacramento County in 1977, it has funded high school extracurricular programs – sports, band and other organizations – and helped feed seniors and support the disabled. But in recent years, revenue has declined.

Doug Pringle, executive director of Disabled Sports USA, which operates a Sacramento County bingo parlor, painted a bleak picture after receiving the notice Thursday.

"We just got ours a couple minutes ago," Pringle said. "My understanding is that they are going to hit all of them."

"It's devastating. It's devastating to my charity and a lot of them around town," said Pringle, who estimated that about half of his group's revenue comes from e-bingo.

Unlike called games, rented e-bingo machines don't require much volunteer support and don't need a crowded hall to make money.

Pringle said he hopes the attorney general or other officials can sit down with operators so they can find out how they can comply with the law.

"We basically want to comply with the law, but we don't want to give away a valuable source of income."

Two other parlors that received the notices are Capitol Freelancers, 7257 E. Southgate Blvd., and Sacramento Bingo Center, 2833 Marconi Ave., according to county officials and documents obtained by The Bee.

Free-lancers, which uses the proceeds to benefit its music program, received the notice Wednesday.

The parlors have 30 days to comply with the order. About 400 electronic bingo machines operate in unincorporated Sacramento County.

Tribal gambling operators – which have been pressuring the governor to stop e-bingo – cheered the action.

In March, Indian gambling interests, arguing that the machines infringe on their exclusive rights to operate slot machines, threatened to withhold millions of dollars owed the state.

"Clearly it is a violation of the law and certainly the spirit of the compacts that tribes have with the state of California," said Doug Elmets, a spokesman for the California Tribal Business Alliance. "We're pleased that the attorney general elected to enforce the law."

Sources:
http://www.signonsandiego.com/news/state/20080512-1548-bn12rincon.html
http://www.fresnobee.com/263/story/594882.html
http://www.sacbee.com/101/story/925165.html