Tribal Gaming Compacts. Exclusive Gaming Rights. Contributions to State
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University of California, Hastings College of the Law UC Hastings Scholarship Repository Propositions California Ballot Propositions and Initiatives 2004 Tribal Gaming Compacts. Exclusive Gaming Rights. Contributions to State. Follow this and additional works at: http://repository.uchastings.edu/ca_ballot_props Recommended Citation Tribal Gaming Compacts. Exclusive Gaming Rights. Contributions to State. California Proposition 70 (2004). http://repository.uchastings.edu/ca_ballot_props/1232 This Proposition 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 Propositions by an authorized administrator of UC Hastings Scholarship Repository. For more information, please contact [email protected]. BALLOT MEASURE SUMMARY PROP PROP Tribal Gaming Compacts. Exclusive DNA Samples. Collection. Database. Gaming Rights. Contributions to State. Initiative Funding. Initiative Statute. 69 70 Constitutional Amendment and Statute. Summary Summary Requires collection of DNA samples from all felons, and from Upon tribe’s request, Governor must execute 99-year compact. others arrested for or charged with specified crimes, and sub- Tribes contribute percentage of net gaming income to state mission to state DNA database. Provides for funding. Fiscal funds, in exchange for expanded, exclusive tribal casino gam- Impact: Net state cost to process DNA samples of potentially ing. Fiscal Impact: Unknown effect on payments to the state nearly $20 million annually when costs are fully realized. Local from Indian tribes. The potential increase or decrease in these costs likely more than fully offset by revenues, with the additional payments could be in the tens of millions to over a hundred mil- revenues available for other DNA-related activities. lion dollars annually. What Your Vote Means What Your Vote Means Yes No Yes No A YES vote on this measure A NO vote on this measure A YES vote on this measure A NO vote on this measure means: The state would ex- means: DNA samples would means: Tribes entering a new means: Tribes would continue pand the collection of DNA continue to be required only or amended tribal-state gam- to be subject to existing tribal- samples to include all convict- from persons convicted of ser- bling compact would make state gambling compacts, which ed felons, and some convicted ious felony offenses. Criminal payments to the state based require various types of pay- nonfelons, as well as individu- penalties would not increase. on their gambling income. ments to the state. Existing als arrested for certain offens- These compacts would last compacts will last up to 26 more es. Criminal penalties would 99 years and place no limits years and place some limits increase to fund the expan- on the types or number of on the types and number of sion of DNA collection. casino games. casino games. Arguments Arguments Pro Con Pro Con Requiring convicted felons and Proposition 69 will not make Proposition 70 will provide PROPOSITION 70 IS A BAD arrestees for rape/murder to you safer, but could trap your billions of dollars to the State DEAL FOR CALIFORNIA. submit DNA, Proposition 69 DNA in a criminal database. and will restrict tribal gam- Governor Schwarzenegger’s helps solve crime, prevents 69 treats thousands of bling to Indian reservations. negotiated agreements with false imprisonment, and stops Californians that are never Both the taxpayers and Indian gaming tribes guaran- serial rapists/killers. 69 brings charged with a crime just like Indians win: Tribes pay the tee they pay their fair share California law enforcement up the guilty. 69 risks your most same amount as every other and respect California laws. to par with 34 states. Governor sensitive, private informa- business pays in state income Proposition 70 effectively destroys Schwarzenegger, Attorney Gen- tion—your DNA. Protect your taxes; in return, they can these agreements. Join Governor eral Lockyer, law enforcement, privacy. No on 69! See operate their casinos. That’s Schwarzenegger, law enforce- defense attorneys, and victims’ www.protectmyDNA.com only fair! ment, labor, environmental groups say vote yes! groups, and seniors in voting NO on Proposition 70. For Additional Information For Additional Information For Against For Against Beth Pendexter Beth Givens Gene Raper No on Propositions 68 and Californians for the DNA 3100 5th Avenue, Suite B Citizens for a Fair Share of 70—Governor Fingerprint—Yes on 69 San Diego, CA 92103 Indian Gaming Revenues Schwarzenegger’s 925 L Street, Suite 1275 415-621-1192 P.O. Box 1863 Committee for Fair Share Sacramento, CA 95814 [email protected] Sacramento, CA 95812 Gaming Agreements 916-448-5802 www.protectmyDNA.com 760-778-7413 1415 L Street, Suite 1245 [email protected] [email protected] Sacramento, CA 95814 www.dnayes.org www.indianfairshare.com 916-440-1505 [email protected] www.no68and70.org Ballot Measure Summary | 9 PROPOSITION Tribal Gaming Compacts. Exclusive Gaming Rights. Contributions to State. Initiative 70 Constitutional Amendment and Statute. OFFICIAL TITLE AND SUMMARY Prepared by the Attorney General Tribal Gaming Compacts. Exclusive Gaming Rights. Contributions to State. Initiative Constitutional Amendment and Statute. • Upon request by federally-recognized Indian tribe, Governor must execute renewable 99-year gaming compact. • Grants exclusive tribal gaming rights; no limits on number of machines, facilities, types of games on Indian land. • Tribes contribute percentage of net gaming income, based on prevailing state corporate tax rate, to state fund. • Contributions cease if non-tribal casino-type gaming is permitted. • Contributions are in lieu of any other fees, taxes, levies. • Requires off-reservation impact assessments, public notice/comment opportunities before significant expansion or construction of gaming facilities. Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: • Unknown effect on payments to the state from Indian tribes. The potential increase or decrease in these payments could be in the tens of millions to over a hundred million dollars annually. • Likely reduction in tribal payments to local governments, potentially totaling in the millions of dollars annually. ANALYSIS BY THE LEGISLATIVE ANALYST BACKGROUND agreements were approved by the state. Under these new Indian Tribes in California. Under federal law, Indian agreements, these tribes may operate as many slot tribes in California are considered sovereign nations. As a machines as they desire. In exchange, these tribes make a result, tribes are not required to pay most federal, state, or specified payment annually to the state, with additional local taxes (such as income, property, or sales tax). In addi- payments for each slot machine added to their facilities. tion, tribes are largely exempt from state laws, including Payments to the state from these revised compacts are California environmental and workplace laws. expected to total in the low hundreds of millions of dollars annually. Unlike the payments required by the 1999 com- Federal law and the State Gambling on Tribal Lands. pacts, the state can use these payments for any purpose. Constitution allow tribes to conduct gambling on Indian The newer compacts also require the tribes to (1) prepare land if they enter into agreements with the state. These more detailed environmental studies, (2) negotiate with agreements, called compacts, lay out the conditions under local governments regarding payments addressing which the gambling may occur. Under current compacts, the impacts of new gambling facilities on the local tribes may operate slot machines and card games, such as communities, and (3) follow other provisions related to twenty-one. Other Nevada-style casino games such as craps patron disputes, building codes, and labor relations. These and roulette are prohibited. Currently, 64 tribes have com- new agreements expire in 2030, ten years later than the pacts and operate 53 casinos with a total of more than 1999 compacts. 54,000 slot machines. 1999 Compacts. Most tribes signed their current com- PROPOSAL pacts in 1999. Under these compacts, a tribe may operate This measure amends the State Constitution and state up to two facilities and up to a total of 2,000 slot machines. statutes to require the Governor to amend an existing In exchange, tribes make some payments to the state compact or enter into a new compact with any tribe within which can only be used for specified purposes (such as for 30 days of a tribe’s request. Any such compact would have making payments to tribes that either do not operate slot to include certain provisions, as discussed below. machines or operate fewer than 350 machines). These pay- Gambling Revenues. Under the provisions of the meas- ments total over $100 million annually. Under these com- ure, a tribe entering into an amended or new compact pacts, tribes are required to prepare an environmental would pay the state a percentage of its net income from study analyzing the impact on the surrounding area of any gambling activities. The percentage of net income paid new or expanded gambling facility. These compacts will would be equivalent to the corporate tax rate paid by a pri- expire in 2020. vate business (currently 8.84 percent). The measure spec- 2004 Compacts. In the summer of 2004, five tribes signed ifies that the state could spend these revenues for any pur- amendments to their 1999 compacts,