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Allow New Types of Gambling in California. Initiative Constitutional Amendment

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University of California, Hastings College of the Law UC Hastings Scholarship Repository Initiatives California Ballot Propositions and Initiatives 8-6-2018 Allow New Types of Gambling in California. Initiative Constitutional Amendment. Follow this and additional works at: https://repository.uchastings.edu/ca_ballot_inits Recommended Citation Allow New Types of Gambling in California. Initiative Constitutional Amendment. California Initiative 1854 (2018). https://repository.uchastings.edu/ca_ballot_inits/2131 This Initiative is brought to you for free and open access by the California Ballot Propositions and Initiatives at UC Hastings Scholarship Repository. It has been accepted for inclusion in Initiatives by an authorized administrator of UC Hastings Scholarship Repository. For more information, please contact [email protected]. August 16, 2018 Initiative 18-0003 (Amdt. #1) The Attorney General of California has prepared the following title and summary of the chief purpose and points of the proposed measure: ALLOWS NEW TYPES OF GAMBLING IN CALIFORNIA. INITIATIVE CONSTITUTIONAL AMENDMENT. Allows federally recognized Native American tribes to operate roulette and craps games on tribal lands, subject to compacts negotiated by the Governor and ratified by the Legislature. Allows licensed gambling establishments, such as card rooms, to conduct on-site sports wagering and to operate Nevada-style card games, and may result in authorization of sports wagering on tribal lands because of federal law. Prohibits Governor from approving gaming on newly acquired off-reservation tribal lands and negotiating gaming compacts with non-federally recognized tribes. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Unclear net fiscal impact, as it would depend primarily on how the measure is interpreted and implemented as well as the extent to which businesses and members of the public participate in the new gaming activities. (18-0003) ~ COMPETITIVE ED(GE ~ ADVANTAGE, INC. 18-0003 1 Arndt.# The Senator Hotel, 1121 L Street, Suite 105 [email protected] (916)-710-2872 July 16, 2018 VIA PERSONAL DELIVERY RECEIVED Hon. Xavier Becerra JUL I 6 2018 Office ofthe Attorney General INITIATIVE COORDINATOR 13 00 I Street, 17th Floor ATTORNEY GENERAL'S OFFICE Sacramento, CA 95814 Attention: Ashley Johansson, Initiative Coordinator Re: Request for Title and Summary for Initiative Constitutional Amendment (A.G. No. 18- 0003)- Amended Language Dear Ms. Johansson: Pursuant to Section 9002 (b) of the California Elections Code, please find attached amendments to the :above-captioned initiative measure. I respectfully request that a title and summary be prepared for the initiative measure using the amended language. My address as a registered voter, the required proponent affidavits pursuant to Sections 9001 and 9608 ofthe California Elections Code, and a check for $2,000.00 were included with the original submission. Any correspondence regarding this initiative should be directed to Competitive Edge Advantage, Inc.at 1121 L Street, Suite 105, Sacramento, CA 95814, Attention: Russell Lowery (telephone: 916-710- 2872). Thank you for your anticipated cooperation. Sincerely, Russell Lowery, Proponent Enclosure: Proposed Initiative Constitutional Amendment That Section 19 of Article IV thereof is amended to read: SEC.19. (a) The Legislature has no power to authorize lotteries, and shall prohibit the sale of lottery tickets in the State. (b) The Legislature may provide for the regulation of horse races and horse race meetings and wagering on the results. (c) Notwithstanding subdivision (a), the Legislature by statute may authorize cities and counties to provide for bingo games, but only for charitable purposes. (d) Notwithstanding subdivision (a), there is authorized the establishment of a California State Lottery. (e) The Legislature has no power to authorize, and shall prohibit, casinos of the type currently operating in Nevada and New Jersey. (f) Notwithstanding subdivisions (a) and (e ), and any other provision of state law, the Governor is authorized to negotiate and conclude compacts, subject to ratification by the Legislature, for the operation of slot machines and for the conduct of lottery games banking and percentage card games, roulette, and craps by federally recognized Indian tribes on Indian lands in California in accordance with federal law. Accordingly, slot machines, lottery games, banking and percentage card games, roulette, and craps are hereby permitted to be conducted and operated on tribal lands subject to those compacts. The Governor shall not concur with a determination made by the Secretary ofthe interior pursuant to section 20 ofthe Indian Gaming Regulatory Act (IGRA) 25 U.S.C. Section 2719(b)(l)(A), nor shall the Governor negotiate a gaming compact with a tribe that does not have land held in trust on which the gaming is to occur and that is not federally recognized. (g) Notwithstanding subdivision (a), the Legislature may authorize private, nonprofit, eligible organizations, as defined by the Legislature, to conduct raffles as a funding mechanism to provide support for their own or another private, nonprofit, eligible organization's beneficial and charitable works, provided that (1) at least 90 percent of the gross receipts from the raffle go directly to beneficial or charitable purposes in California, and (2) any person who receives compensation in connection with the operation of a raffle is an employee of the private nonprofit organization that is conducting the raffle. The Legislature, two-thirds of the membership of each house concurring, may amend the percentage of gross receipts required by this subdivision to be dedicated to beneficial or charitable purposes by means of a statute that is signed by the Governor. (h) Notwithstanding subdivisions (a) and (e), the legislature shall authorize sports wagering and banking and percentage card games for licensed gambling establishments. All wagers made pursuant to this section shall be physically placed within a licensed gambling establishment. August I, 2018 Hon. Xavier Becerra Attorney General 1300 I Street, 17th Floor Sacramento, California 95814 Attention: Ms. Anabel Renteria Initiative Coordinator Dear Attorney General Becerra: Pursuant to Elections Code Section 9005, we have reviewed the proposed constitutional initiative related to gaming activities (A.G. File 18-0003, Amendment#!). Background Gaming in California. State law limits the types of gaming that can occur in California. For example, state law prohibits wagering on the outcomes ofcontests between animals and/or people (including sporting events). It also prohibits banking and percentage games played with cards, dice, or other devices for monetary benefit (such as roulette and craps). Banking games generally involve players betting against the "house," who is a participant in the game with an interest in its outcome, and percentage games generally involve the house receiving a percentage ofthe money involved in the game. Under existing state law, specific gaming activities in California are allowed-including some activities that are exceptions to the above limits. Currently, the following major gaming activities are authorized in California: • Cal(fornia Lottery. The California Lottery currently oversees the sale of various lottery games (such as Scratcher games or Powerball) at about 23,000 retail locations across the state. The California Lottery is overseen and regulated by the Lottery Commission. • Cardrooms. Cardrooms in 32 counties operate certain card games (such as poker and pai-gow) in a manner that is generally understood to make them non-banked or non-percentage games. These cardrooms are regulated by the local governments that authorized them, the California Gambling Control Commission (CGCC), and the California Department ofJustice (DOJ). • Horse Racing. Currently, 36 tracks, fairs, and satellite facilities in 19 counties facilitate wagering on horse racing. The California Horse Racing Board oversees and regulates the horse racing industry. • Tribal Gaming. Tribes currently operate 63 casinos in 27 counties, offering slot machines, lottery games, and banking and percentage card games on tribal lands. These casinos are regulated by individual tribal gaming agencies, CGCC, and DOJ. Legislative Analyst's Office California Legislature Mac Taylor • Legislative Analyst 925 L Street, Suite 1000 • Sacramento CA 95814 (916) 445-4656 • FAX 324-4281 Hon. Xavier Becerra 2 August 1, 2018 The state and local governments receive revenues from authorized gaming activities in different ways. For example, cardrooms and their owners along with winnings are subject to state and local taxes. Lottery sales and winnings are generally not subject to state and local taxes. Federal Authorization ofTribal Gaming. Indian tribes possess special status under federal law. Specifically, tribes have certain rights to govern themselves without interference from states. As a result, state regulation of tribal casinos and other activities is generally limited to what is authorized under (1) federal law and (2) federally approved agreements between a tribe and a state. For example, federal law permits federally recognized tribes to operate casinos that offer certain types of games ( such as slot machines) on Indian land in states that allow such games. The federal government generally defines Indian lands as reservation lands or lands held in trust by the U.S. for the
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