BILL ANALYSIS {u SCA 11 u} Page 1 SENATE THIRD READING SCA 11 (Burton) As Amended September 9, 1999 2/3 vote {u SENATE VOTE u} :Vote not relevant {u u} {u ELECTIONS 5-1 GOVERNMENTAL ORGANIZATION 18-0 u} ----------------------------------------------------------------- |Ayes:|Vincent, Battin, |Ayes:|Wesson, Granlund, | | |Cardenas, Frusetta, | |Ackerman, Battin, Briggs, | | |Longville | |Cardenas, Cardoza, Floyd, | | | | |Hertzberg, Lempert, | | | | |Longville, Machado, | | | | |Maldonado, Margett, Soto, | | | | |Vincent, Wiggins, Wright | |-----+--------------------------+-----+--------------------------| |Nays:|Thompson | | | | | | | | ----------------------------------------------------------------- {u APPROPRIATIONS 17-0 u} ----------------------------------------------------------------- |Ayes:|Migden, Brewer, Ackerman, | | | | |Cedillo, Hertzberg, | | | | |Kuehl, Maldonado, Papan, | | | | |Romero, Runner, Shelley, | | | | |Steinberg, Thomson, | | | | |Wesson, Wiggins, Zettel, | | | | |Aroner | | | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- {u SUMMARY u} : Authorizes the Governor to enter into compacts with Indian tribes to allow certain forms of gambling on Indian lands in California, subject to ratification of those compacts by the Legislature. Specifically, {u this bill u} : 1)Authorizes the Governor, notwithstanding specified provisions of the California Constitution, and any other provision of state law, to negotiate and conclude compacts with federally recognized Indian tribes to permit certain forms of gambling on Indian lands in California in accordance with federal law. {u SCA 11 u} Page 2 2)Authorizes the compacts to allow the operation of slot machines, and the conduct of lottery games and banking and percentage card games, on California tribal lands subject to approval of the compacts by the Legislature. 3)Expressly authorizes slot machines, lottery games, and banking and percentage card games only on tribal lands, subject to those compact terms. {u EXISTING LAW u} : 1)The California Constitution provides that the Legislature has no power to authorize lotteries, and requires it to prohibit the sale of lottery tickets in California. Authorizes the California State Lottery, notwithstanding this prohibition. 2)Authorizes the Legislature to provide for the regulation of horse races and permit wagering thereon. 3)Allows the Legislature to allow cities and counties to permit charitable bingo games. 4)Provides the Legislature has no power to authorize, and shall prohibit, casinos of the type currently operating in Nevada and New Jersey. {u FISCAL EFFECT u} : Unknown {u COMMENTS u} : On August 23, 1999, the California Supreme Court invalidated Proposition 5, a statutory initiative measure approved by the voters at the November 3, 1998 statewide general election. Proposition 5 permitted gaming on California Indian lands subject to specified conditions. The Court ruled that Proposition 5, by allowing games like 21 or blackjack, and slot machine-style video games, permitted the operation of casinos of the type currently operating in Nevada and New Jersey and thereby violated the California Constitution ( {u Hotel Employees & Restaurant Employees International Union u} v. {u Davis u} (8/23/99), S0748350). This measure, a constitutional amendment, provides that, notwithstanding prohibitions of the California Constitution, and in state statutes, the Governor may negotiate agreements (compacts) with federally recognized Indian tribes to permit the {u SCA 11 u} Page 3 operation of slot machines and the conduct of lottery games and banking and percentage card games on California Indian lands in accordance with federal law. This measure makes those agreements subject to ratification by the Legislature. Accordingly, this measure expressly permits the operation of slot machines and lottery games, and the conduct of banking and percentage card games on tribal lands subject to the terms of the compacts. Under the Federal Indian Gaming Regulatory Act of 1988, tribes are allowed to offer slot machines or games like blackjack (collectively known as "Class III" gambling) only after negotiating compacts with states. Former Governor Pete Wilson refused to open negotiations with any tribe that was already offering those games, which he alleged were illegal. Former Governor Wilson negotiated a compact with the Pala Band of Mission Indians for certain forms of gambling, and 10 other tribes also agreed to this compact. Legislation to ratify this agreement has been stayed subject to a referendum on the March 7, 2000, statewide primary election. News reports indicate that Governor Gray Davis and Indian tribes held many meetings and discussions since the Court invalidated Proposition 5. The Governor and the tribes have been seeking a legislative solution to avoid the shutting down of Indian casinos following the invalidation of Proposition 5. The concept is to submit a legislative measure to the voters for their approval at the March 7, 2000, statewide primary election to validly authorize Indian gaming. This measure would expressly permit the operation of slot machines, and the conduct of lottery games and banking card games on Indian lands in accordance with federal law. This language in effect authorizes Class III gaming on California Indian lands of the type permitted by Proposition 5. According to the author's office, the language was approved by a vote of 32 to 1 by the Indian tribes negotiating with Governor Gray Davis. In anticipation of Proposition 5 being invalidated, Indian tribes have been circulating for signature an initiative petition to reenact Proposition 5 as a constitutional amendment. The initiative would appear on the March 7, 2000, statewide primary ballot if it qualifies. Signatures are to be submitted starting September 7, 1999. In order for this measure to appear on the March 7, 2000, {u SCA 11 u} Page 4 statewide primary ballot, it must be adopted by both houses of the Legislature by the end of business of September 9, the currently scheduled start of Interim Recess. {u Analysis Prepared by u} : Romulo I. Lopez / E., R. & C. A. / (916) 319-2094 FN: 0003528