TRIBAL-STATE GAMING COMPACT (2020)
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TRIBAL-STATE GAMING COMPACT
BETWEEN
THE STATE OF CALIFORNIA
AND
THE SHINGLE SPRINGS BAND
OF MIWOK INDIANS
TABLE OF CONTENTS
PREAMBLE
1
Sec. 1.0.
Purposes and Objectives.
3
Sec. 2.0.
Definitions.
4
Sec. 3.0.
Scope of Class III Gaming Authorized.
9
Sec. 4.0.
Authorized Number of Gaming Devices, Location of
Gaming Facilities, Cost Reimbursement, and Mitigation.
10
Sec. 4.1.
Authorized Number of Gaming Devices.
10
Sec. 4.2.
Authorized Gaming Facilities.
10
Sec. 4.3.
Special Distribution Fund.
10
Sec. 4.3.1. Use of Special Distribution Funds.
12
Sec. 4.4.
Cost Reimbursement and Mitigation to Local Governments.
13
Sec. 4.5.
Quarterly Payments and Quarterly Contribution Report.
13
Sec. 4.6.
Exclusivity.
16
Sec. 4.7.
Revenue Contributions.
17
Sec. 4.8.
Revenue Sharing Obligations Owed Under the 2012
Amended Compact.
18
Sec. 5.0.
Revenue Sharing With Non-Gaming and Limited-Gaming
Tribes.
18
Sec. 5.1.
Definitions.
18
Sec. 5.2.
Payments to the Revenue Sharing Trust Fund or the Tribal
Nation Grant Fund.
21
i
Sec. 5.3.
Provision for Credits Related to Payments Due Under
Section 5.2.
23
Sec. 6.0.
Licensing.
27
Sec. 6.1.
Gaming Ordinance and Regulations.
27
Sec. 6.2.
Tribal Ownership, Management, and Control of Gaming
Operation.
28
Sec. 6.3.
Prohibitions Regarding Minors.
28
Sec. 6.4.
Licensing Requirements and Procedures.
28
Sec. 6.4.1. Summary of Licensing Principles.
28
Sec. 6.4.2. Gaming Facility.
29
Sec. 6.4.3. Gaming Employees.
33
Sec. 6.4.4. Gaming Resource Suppliers.
35
Sec. 6.4.5. Financial Sources.
38
Sec. 6.4.6. Processing Tribal Gaming License Applications.
43
Sec. 6.4.7. Suitability Standard Regarding Gaming Licenses.
46
Sec. 6.4.8. Background Investigations of Applicants.
46
Sec. 6.4.9. Temporary Licensing of Gaming Employees.
49
Sec. 6.5.0. Tribal Gaming License Issuance.
49
Sec. 6.5.1. Denial, Suspension, or Revocation of Licenses.
50
Sec. 6.5.2. Renewal of Licenses; Extensions; Further Investigation.
50
ii
Sec. 6.5.3. Identification Cards.
51
Sec. 6.5.4. Fees for Tribal Gaming License.
52
Sec. 6.5.5. Suspension of Tribal Gaming License.
52
Sec. 6.5.6. State Determination of Suitability Process.
52
Sec. 6.6.
Submission of New Application.
55
Sec. 7.0.
Approval and Testing of Gaming Devices.
55
Sec. 7.1.
Gaming Device Approval.
55
Sec. 7.2.
Gaming Test Laboratory Selection.
56
Sec. 7.3.
Maintenance of Records of Testing Compliance.
57
Sec. 7.4.
State Gaming Agency Inspections.
58
Sec. 7.5.
Technical Standards.
59
Sec. 7.6.
Transportation of Gaming Devices.
59
Sec. 8.0.
Inspections.
60
Sec. 8.1.
Investigation and Sanctions.
60
Sec. 8.2.
Assistance by State Gaming Agency.
61
Sec. 8.3.
Access to Premises by State Gaming Agency; Notification;
Inspections.
61
Sec. 8.4.
Inspection, Copying and Confidentiality of Documents.
62
Sec. 8.5.
Cooperation with Tribal Gaming Agency.
64
Sec. 8.6.
Compact Compliance Review.
65
iii
Sec. 8.7.
Waiver of Materials.
65
Sec. 9.0.
Rules and Regulations for the Operation and Management
of the Gaming Operation and Facility.
65
Sec. 9.1.
Adoption of Regulations for Operation and Management;
Minimum Standards.
65
Sec. 9.1.1. Minimum Internal Control Standards (MICS).
68
Sec. 9.2.
Program to Mitigate Problem Gambling.
71
Sec. 9.3.
Enforcement of Regulations.
72
Sec. 9.4.
State Civil and Criminal Jurisdiction.
72
Sec. 9.5.
Tribal Gaming Agency Members.
72
Sec. 9.6.
Uniform Tribal Gaming Regulations.
73
Sec. 10.0.
Patron Disputes.
74
Sec. 11.0.
Off-Reservation Environmental and Economic Impacts.
77
Sec. 11.1.
Tribal Environmental Impact Report.
77
Sec. 11.2.
Notice of Preparation of Draft TEIR.
79
Sec. 11.3.
Notice of Completion of Draft TEIR.
80
Sec. 11.4.
Issuance of Final TEIR.
81
Sec. 11.5.
Cost Reimbursement to County.
82
Sec. 11.6.
Failure to Prepare Adequate TEIR.
82
Sec. 11.7.
Intergovernmental Agreement.
82
Sec. 11.8.
Arbitration.
84
iv
Sec. 12.0.
Public and Workplace Health, Safety, and Liability.
86
Sec. 12.1.
General Requirements.
86
Sec. 12.2.
Tobacco Smoke.
86
Sec. 12.3.
Health and Safety Standards.
86
Sec. 12.4.
Tribal Gaming Facility Standards Ordinance.
94
Sec. 12.5.
Insurance Coverage and Claims.
95
Sec. 12.6.
Participation in State Statutory Programs Related to
Employment.
99
Sec. 12.7.
Emergency Services Accessibility.
101
Sec. 12.8.
Alcoholic Beverage Service.
101
Sec. 12.9.
Possession of Firearms.
101
Sec. 12.10. Labor Relations.
101
Sec. 13.0.
Dispute Resolution Provisions.
102
Sec. 13.1.
Voluntary Resolution; Court Resolution.
102
Sec. 13.2.
Arbitration Rules for the Tribe and the State.
103
Sec. 13.3.
No Waiver or Preclusion of Other Means of Dispute
Resolution.
104
Sec. 13.4.
Limited Waiver of Sovereign Immunity.
104
Sec. 13.5.
Judicial Remedies for Material Breach.
105
Sec. 14.0.
Effective Date and Term of Compact.
106
v
Sec. 14.1.
Effective Date.
106
Sec. 14.2.
Term of Compact; Termination.
106
Sec. 15.0.
Amendments; Renegotiations.
106
Sec. 15.1.
Amendment by Agreement.
106
Sec. 15.2.
Negotiations for a New Compact.
107
Sec. 15.3.
Changes in the Law.
107
Sec. 15.4.
Requests to Amend or to Negotiate a New Compact.
107
Sec. 15.5.
Entitlement to Renegotiate Compact Based on Changed
Market Conditions.
108
Sec. 15.6.
Entitlement to Renegotiate Compact Based on State
Authorization of New Forms of Class III Gaming.
108
Sec. 15.7.
Continued Effect of Intergovernmental Agreements.
108
Sec. 16.0.
Notices.
108
Sec. 17.0.
Changes to IGRA.
109
Sec. 18.0.
Miscellaneous.
109
Sec. 18.1.
Third Party Beneficiaries.
109
Sec. 18.2.
Complete Agreement.
109
Sec. 18.3.
Construction.
109
Sec. 18.4.
Successor Provisions.
109
Sec. 18.5.
Ordinances and Regulations.
110
Sec. 18.6.
Calculation of Time.
110
vi
Sec. 18.7.
Force Majeure.
110
Sec. 18.8.
Not a Model Compact.
111
Sec. 18.9.
Representations.
111
APPENDICES
A.
Legal Description and Map of the Shingle Springs Band of Miwok
Indians’ Gaming Eligible Land
A-1
B.
Off-Reservation Environmental Impact Analysis Checklist
B-1
C.
Tribal Labor Relations Ordinance
C-1
D.
Off-Track Satellite Wagering
D-1
vii
TRIBAL-STATE COMPACT
BETWEEN THE STATE OF CALIFORNIA
AND THE SHINGLE SPRINGS BAND OF MIWOK INDIANS
The Shingle Springs Band of Miwok Indians (Tribe), a federally recognized
Indian tribe listed in the Federal Register, and the State of California (State) enter
into this tribal-state class III gaming compact (Compact) pursuant to the Indian
Gaming Regulatory Act of 1988 (IGRA).
PREAMBLE
WHEREAS, the Tribe is a sovereign tribal government recognized by the United
States, and consisting of people whose forebears were settled long ago on a
federally-owned parcel in the County of El Dorado, California, and that came to be
known as Shingle Springs Rancheria (Verona Tract); and
WHEREAS, federal agents acquired the 160-acre Shingle Springs Rancheria in
1920, to provide a much needed home base for the Tribe, then comprised of
homeless Indians emanating from El Dorado, Sutter and Sacramento counties, and
generally known as the “Sacramento-Verona Band of Homeless Indians”; and
WHEREAS, originally comprised of 34 persons, the Tribe thereafter came to be
federally recognized as the “Shingle Springs Band of Miwok Indians,” and today
counts over 460 among its citizenry, with a government that operates a gaming
facility, a gas station, and a health clinic that serves both the tribal and non-tribal
community; and
WHEREAS, the Tribe first pursued the promise of economic development
through gaming in 1999, by negotiating and entering a gaming compact with the
State as required by IGRA, specifically, the “Tribal-State Compact between the
State of California and the Shingle Springs Band of Miwok Indians, Shingle
Springs Rancheria,” which was executed by the State on October 8, 1999 and
executed by the Tribe on September 23, 1999 (1999 Compact); and
WHEREAS, after entering the 1999 Compact, the Tribe spent several years and
significant resources developing a Gaming Facility that would generate the
revenue stream needed to strengthen the Tribe’s government, and provide for the
health, housing, education, employment, and general welfare of its citizens; and
WHEREAS, the Tribe faced considerable challenges establishing the Gaming
Facility given the reservation’s limited access to a public access road, which, in
1
addition to obtaining pre-development entitlements and subsequent litigation
related to the pre-development entitlements, resulted in substantial delays and
project costs; and
WHEREAS, in or around December 2008, nearly a decade after entering its 1999
Compact with the State, the Tribe finished construction of a Gaming Facility and
the extensive public infrastructure needed to provide the general public access to
and from Shingle Springs Rancheria and thereby enable the Tribe to operate the
Gaming Facility on its reservation; and
WHEREAS, in 2008, the State and the Tribe entered into the Amendment to the
Tribal-State Compact Between the State and the Tribe (2008 Amendment), which,
among other things, significantly increased the revenue payments to the State,
while also increasing the number of Gaming Devices the Tribe could operate; and
WHEREAS, since the time that the State and the Tribe entered into the 2008
Amendment, circumstances in the economy and market competition have changed,
which have caused and will continue to cause a substantial reduction in revenues
generated at the Gaming Facility in comparison to those that were anticipated; and
WHEREAS, since the Tribe’s and State’s entry into the 2008 Amendment,
circumstances in the economy and market competition worsened, substantially
reducing revenues generated at the Gaming Facility, far below what had been
previously projected; and
WHEREAS, in order for the Tribe to improve its fiscal condition, while meeting
its short and long-term financial obligations, the State and the Tribe agreed in 2012
to re-structure the Tribe’s payment obligations to the State, thereby enabling the
Tribe to also restructure its financial arrangements with local governments and its
primary creditors and entered into the Amended and Restated Tribal-State
Compact Between the State of California and the Shingle Springs Band of Miwok
Indians (2012 Amended Compact); and
WHEREAS, the State and the Tribe recognize that the exclusive rights that the
Tribe will enjoy under this Compact create a unique opportunity for the Tribe to
operate a Gaming Facility in an economic environment free of non-tribal
competition from the operation of slot machines on non-Indian lands in California
and that this unique economic environment is of great value to the Tribe; and
WHEREAS, the Tribe remains committed to improving the environment,
education status, and the health, safety and general welfare of its citizenry, while
2
supporting local government agencies and enhancing the surrounding community;
and
WHEREAS, the Tribe reaffirms its commitment to provide to the State, on a
sovereign-to-sovereign basis, and to local jurisdictions, fair cost reimbursement
and mitigation pursuant to this Compact on a payment schedule; and
WHEREAS, the Tribe and the State share a joint sovereign interest in ensuring
that Gaming Activities are free from criminal and other undesirable elements; and
WHEREAS, this Compact will afford the Tribe primary responsibility over the
regulation of its Gaming Facility and will enhance the Tribe’s economic
development and self-sufficiency; and
WHEREAS, the State and the Tribe have therefore concluded that this Compact is
designed to enhance the Tribe’s economic development and self-sufficient and to
protect the interests of the Tribe and its citizens, the surrounding community, and
the California public, and will promote and secure long-term stability, mutual
respect, and mutual benefits; and
WHEREAS, upon publication of notice of approval in the Federal Register
pursuant to 25 U.S.C. § 2710(d)(8)(D), this Compact replaces and supersedes in its
entirety the 2012 Amended Compact; and
WHEREAS, the State and the Tribe agree that all terms of this Compact are
intended to be binding and enforceable.
NOW, THEREFORE, the Tribe and the State agree as set forth herein:
SECTION 1.0. PURPOSES AND OBJECTIVES.
The terms of this Compact are designed and intended to:
(a)
Evidence the goodwill and cooperation of the Tribe and the State in
fostering a mutually respectful government-to-government
relationship that will serve the mutual interests of the parties.
(b)
Enhance and implement a means of regulating Class III Gaming to
ensure its fair and honest operation in a way that protects the interests
of the Tribe, the State, its citizens, and local communities in
accordance with IGRA, and through that regulated Class III Gaming,
enable the Tribe to develop self-sufficiency, promote tribal economic
3
development, and generate jobs and revenues to support the Tribe’s
government and its governmental services and programs.
(c)
Promote ethical practices in conjunction with Class III Gaming,
through the licensing and control of persons and entities employed in,
or providing goods and services to, the Gaming Operation, protect
against the presence or participation of persons whose criminal
backgrounds, reputations, character, or associations make them
unsuitable for participation in gaming, thereby maintaining a high
level of integrity in tribal government gaming, and protect the patrons
and employees of the Gaming Operation and Gaming Facility and the
local communities.
(d)
Achieve the objectives set forth in the preamble.
SECTION 2.0. DEFINITIONS.
Sec. 2.1. “Applicable Codes” means the Shingle Springs Band of Miwok
Indians Gaming Facility Standards Ordinance, approved on August 22, 2013, and
the standards of the California Building Standards Code and the California Public
Safety Code applicable to the County, as set forth in titles 19 and 24 of the
California Code of Regulations, as those regulations may be amended during the
term of this Compact, including, but not limited to, codes for building, electrical,
energy, mechanical, plumbing, fire and safety. To the extent there is any conflict
between the Shingle Springs Band of Miwok Indians Gaming Facility Standards
Ordinance and the foregoing California laws and regulations, the California laws
and regulations shall apply.
Sec. 2.2. “Applicant” means an individual or entity that applies for a tribal
gaming license or for a State Gaming Agency determination of suitability.
Sec. 2.3. “Association” means an association of California tribal and state
gaming regulators, the membership of which comprises up to two (2)
representatives from each tribal gaming agency of those tribes with whom the State
has a Class III Gaming compact or Secretarial Procedures prescribed by the
Secretary of the Department of the Interior pursuant to 25 U.S.C.
§ 2710(d)(7)(B)(vii) under IGRA, and up to two (2) delegates each from the
California Department of Justice, Bureau of Gambling Control and the California
Gambling Control Commission.
Sec. 2.4. “City” means any incorporated city that may exist within ten (10)
miles of the Gaming Facility.
4
Sec. 2.5. “Class III Gaming” means the forms of class III gaming defined as
such in 25 U.S.C. § 2703(8) and by the regulations of the National Indian Gaming
Commission.
Sec. 2.6. “Commission” means the California Gambling Control
Commission, or any successor agency of the State.
Sec. 2.7. “Compact” means this Tribal-State Compact Between the State of
California and the Shingle Springs Band of Miwok Indians.
Sec. 2.8. “County” means the County of El Dorado, California, a political
subdivision of the State.
Sec. 2.9. “Financial Source” means any person or entity who, directly or
indirectly, extends financing in connection with the Tribe’s Gaming Facility or
Gaming Operation.
Sec. 2.10. “Gaming Activity” or “Gaming Activities” means the Class III
Gaming activities authorized under this Compact.
Sec. 2.11. “Gaming Device” means any slot machine within the meaning of
article IV, section 19, subdivision (f) of the California Constitution. For purposes
of calculating the number of Gaming Devices, each player station or terminal on
which a game is played constitutes a separate Gaming Device, irrespective of
whether it is part of an interconnected system to such terminals or stations.
“Gaming Device” includes, but is not limited to, video poker, but does not include
electronic, computer, or other technological aids that qualify as class II gaming (as
defined under IGRA).
Sec. 2.12. “Gaming Employee” means any natural person who (a) conducts,
operates, maintains, repairs, accounts for, or assists in any Gaming Activities, or is
in any way responsible for supervising such Gaming Activities or persons who
conduct, operate, maintain, repair, account for, assist, or supervise any such
Gaming Activities, (b) is in a category under federal or tribal gaming law requiring
licensing, or (c) is a person whose employment duties require or authorize access
to areas of the Gaming Facility in which any activities related to Gaming Activities
are conducted but that are not open to the public.
Sec. 2.13. “Gaming Facility” or “Facility” means any building in which
Gaming Activities or any Gaming Operations occur, or in which business records,
receipts, or funds of the Gaming Operation are maintained (excluding offsite
5
facilities primarily dedicated to storage of those records, and financial institutions),
and all rooms, buildings, and areas, including hotels, parking lots, and walkways, a
principal purpose of which is to serve the activities of the Gaming Operation and
Facility rather than providing that operation with an incidental benefit, provided
that nothing herein prevents the conduct of class II gaming (as defined under
IGRA) therein. Nothing herein shall be construed to apply in a manner that does
not directly relate to the operation of Gaming Activities.
Sec. 2.14. “Gaming Operation” means the business enterprise that offers
and operates Gaming Activities, whether exclusively or otherwise.
Sec. 2.15. “Gaming Ordinance” means a tribal ordinance or resolution duly
authorizing the conduct of Gaming Activities on the Tribe’s Indian lands in
California and approved under IGRA.
Sec. 2.16. “Gaming Resources” means any goods or services provided or
used in connection with Gaming Activities, whether exclusively or otherwise,
including, but not limited to, equipment, furniture, Gaming Devices and ancillary
equipment, implements of Gaming Activities such as playing cards, furniture
designed primarily for Gaming Activities, maintenance or security equipment and
services, and Class III Gaming consulting services. “Gaming Resources” does not
include professional accounting and legal services.
Sec. 2.17. “Gaming Resource Supplier” means any person or entity who,
directly or indirectly, does, or is deemed likely to, manufacture, distribute, supply,
vend, lease, purvey, or otherwise provide to the Gaming Operation or Gaming
Facility at least twenty-five thousand dollars ($25,000) in Gaming Resources in
any twelve (12)-month period, or who, directly or indirectly, receives, or is deemed
likely to receive, in connection with the Gaming Operation or Gaming Facility, at
least twenty-five thousand dollars ($25,000) in any consecutive twelve (12)-month
period, provided that the Tribal Gaming Agency may exclude a purveyor of
equipment or furniture that is not specifically designed for, and is distributed
generally for use other than in connection with, Gaming Activities, if, but for the
purveyance, the purveyor is not otherwise a Gaming Resource Supplier as defined
herein, the compensation received by the purveyor is not grossly disproportionate
to the value of the goods or services provided, and the purveyor is not otherwise a
person who exercises a significant influence over the Gaming Operation.
Sec. 2.18. “IGRA” means the Indian Gaming Regulatory Act of 1988 (PL
100-497, 18 U.S.C. §§ 1166-1168, 25 U.S.C. § 2701 et seq.), and any amendments
thereto, as interpreted by all regulations promulgated thereunder.
6
Sec. 2.19. “Interested Persons” means (i) all local, state, and federal
agencies in El Dorado County, the State, and the United States, which, if a Project
were not taking place on Indian lands, would have responsibility for approving the
Project or would exercise authority over the natural resources that may be affected
by the Project; (ii) any incorporated city within ten (10) miles of the Project; and
(iii) persons, groups, or agencies that request in writing a notice of preparation of a
draft tribal environmental impact report described in section 11.0, or have
commented on the Project in writing to the Tribe or the County.
Sec. 2.20. “Management Contractor” means any Gaming Resource Supplier
with whom the Tribe has contracted for the management of any Gaming Activity
or Gaming Facility, including, but not limited to, any person who would be
regarded as a management contractor under IGRA.
Sec. 2.21. “Net Win” means drop from Gaming Devices, plus the
redemption value of expired tickets, less fills, less payouts, less that portion of the
Gaming Operation’s payments to a third-party wide-area progressive jackpot
system provider that is contributed only to the progressive jackpot amount.
Sec. 2.22. “NIGC” means the National Indian Gaming Commission.
Sec. 2.23. “Project” means (i) the construction of a proposed Gaming
Facility, (ii) any renovation, expansion or modification of an existing Gaming
Facility, or (iii) any other activity occurring on the reservation, the principal
purpose of which is to serve the Gaming Activities or Gaming Operation, rather
than provide the Gaming Activities or Gaming Operation with an incidental
benefit, and which may cause a Significant Effect on the Off-Reservation
Environment. This definition shall be understood to include the addition of
Gaming Devices within an existing Gaming Facility if the addition of the Gaming
Devices may cause either a direct or reasonably foreseeable indirect significant and
adverse physical change in the off-reservation environment. For purposes of this
definition, section 11.0, and Appendix B, “reservation” refers to the Tribe’s Indian
lands within the meaning of IGRA or lands otherwise held in trust for the Tribe by
the United States. “Project” does not include an activity within the scope of the
“Shingle Springs Rancheria Hotel Project” as described in the “Final
Environmental Assessment - Shingle Springs Rancheria Hotel and Casino Project,
El Dorado County, California” dated December 2001, the “Final Environmental
Impact Report / Environmental Assessment,” dated September 2002, and the
“Shingle Springs Interchange Project Final Supplemental Environmental Impact
Report,” dated August 2006, and with respect to which impacts have been
addressed. Nor does “Project” include any activity otherwise meeting the
7
definition of “Project” for which a notice of preparation has been issued pursuant
to the 2012 Amended Compact prior to the effective date of this Compact, which
the parties agree shall be governed by section 11.0 of the 2012 Amended Compact.
Sec. 2.24. “Significant Effect(s) on the Off-Reservation Environment”
occur(s) if any of the following conditions exist:
(a)
A proposed Project has the potential to degrade the quality of the offreservation environment, curtail the range of the off-reservation
environment, or achieve short-term, to the disadvantage of long-term,
environmental goals.
(b)
The possible effects of a Project on the off-reservation environment
are individually limited but cumulatively considerable. As used
herein, “cumulatively considerable” means that the incremental
effects of an individual Project are considerable when viewed in
connection with the effects of past projects, the effects of other current
projects, and the effects of probable future projects.
(c)
The off-reservation environmental effects of a Project will cause
substantial adverse effects on human beings, either directly or
indirectly.
For purposes of this definition, “reservation” refers to the Tribe’s Indian lands
within the meaning of IGRA or lands otherwise held in trust for the Tribe by the
United States.
Sec. 2.25. “State” means the State of California or an authorized official or
agency thereof designated by this Compact or by the Governor.
Sec. 2.26. “State Designated Agency” means the entity or entities
designated or to be designated by the Governor to exercise rights and fulfill
responsibilities established by this Compact.
Sec. 2.27. “State Gaming Agency” means the entities authorized to
investigate, approve, regulate and license gaming pursuant to the Gambling
Control Act (chapter 5 (commencing with section 19800) of division 8 of the
California Business and Professions Code), or any successor statutory scheme, and
any entity or entities in which that authority may hereafter be vested.
8
Sec. 2.28. “Tribal Chairperson” means the person duly elected under the
Tribe’s constitution to perform the duties specified therein, including serving as the
Tribe’s official representative.
Sec. 2.29. “Tribal Gaming Agency” means the person, agency, board,
committee, commission, or council designated under tribal law with the primary
responsibility for carrying out the Tribe’s regulatory responsibilities under IGRA
and the Tribe’s Gaming Ordinance. No person employed in, or in connection with,
the management, supervision, or conduct of any Gaming Activity may be a
member or employee of the Tribal Gaming Agency.
Sec. 2.30. “Tribe” means the Shingle Springs Band of Miwok Indians, a
federally recognized Indian tribe listed in the Federal Register, or an authorized
official or agency thereof.
SECTION 3.0. SCOPE OF CLASS III GAMING AUTHORIZED.
(a)
The Tribe is hereby authorized and permitted to operate only the
following Gaming Activities under the terms and conditions set forth
in the Compact:
(1)
Gaming Devices.
(2)
Any banking or percentage card games.
(3)
Any devices or games that are authorized under state law to the
California State Lottery, provided that the Tribe will not offer
such games through use of the Internet unless others in the state
are permitted to do so under state and federal law.
(4)
Off-track wagering on horse races at a satellite wagering
facility pursuant to the requirements of Appendix D.
(c)
Nothing herein shall be construed to authorize or permit the operation
of any Class III Gaming that the State lacks the power to authorize or
permit under article IV, section 19, subdivision (f), of the California
State Constitution.
(d)
The Tribe shall not engage in Class III Gaming that is not expressly
authorized in this Compact.
9
SECTION 4.0. AUTHORIZED NUMBER OF GAMING DEVICES,
LOCATION OF GAMING FACILITIES, COST REIMBURSEMENT, AND
MITIGATION.
Sec. 4.1. Authorized Number of Gaming Devices.
The Tribe is entitled to operate up to a total of two thousand five hundred
(2,500) Gaming Devices pursuant to the conditions set forth in section 3.0 and
sections 4.2 through and including section 5.3.
Sec. 4.2. Authorized Gaming Facilities.
The Tribe may establish and operate not more than two (2) Gaming
Facilities and engage in Class III Gaming only on eligible Indian lands held in trust
for the Tribe located within the boundaries of the Tribe’s reservation and trust
lands, as those boundaries exist and on which Class III Gaming may lawfully be
conducted under IGRA as of the execution date of this Compact, as legally
described in, and represented on the map at Appendix A hereto.
Sec. 4.3. Special Distribution Fund.
(a)
The Tribe shall pay to the State on a pro rata basis the State’s 25
U.S.C. § 2710(d)(3)(C) costs incurred for the performance of all its
duties under this Compact, including the administration and
implementation of tribal-state Class III Gaming compacts and
Secretarial procedures prescribed by the Secretary of the Department
of the Interior pursuant to 25 U.S.C. § 2710(d)(7)(B)(vii) (Secretarial
Procedures), and funding for the Office of Problem Gambling, as
determined by the monies appropriated in the annual Budget Act each
fiscal year to carry out those purposes (Appropriation). The
Appropriation and the maximum number of Gaming Devices operated
by all federally recognized tribes in California pursuant to tribal-state
Class III Gaming compacts determined to be in operation during the
previous State fiscal year shall be reported annually by the State
Gaming Agency to the Tribe on or before December 15. The term
“operated” or “operation” as used in this Compact in relation to
Gaming Devices describes each and every Gaming Device available
to patrons (including slot tournament contestants) for play at any
given time.
10
(b)
The Tribe’s pro rata share of the State’s 25 U.S.C. § 2710(d)(3)(C)
regulatory costs in any given year this Compact is in effect shall be
calculated by the following equation:
The maximum number of Gaming Devices operated in the
Tribe’s Gaming Facilities during the previous State fiscal year
as determined by the State Gaming Agency, divided by the
maximum number of Gaming Devices operated by all federally
recognized tribes in California pursuant to tribal-state Class III
Gaming compacts or Secretarial Procedures during the previous
State fiscal year, multiplied by the Appropriation, equals the
Tribe’s pro rata share.
(1)
Beginning the first full quarter after the effective date of this
Compact, the Tribe shall pay its pro rata share to the State
Gaming Agency for deposit into the Indian Gaming Special
Distribution Fund established by the Legislature (Special
Distribution Fund). The payment shall be made in four (4)
equal quarterly installments due on the thirtieth (30th) day
following the end of each calendar quarter (i.e., by April 30 for
the first quarter, July 30 for the second quarter, October 30 for
the third quarter, and January 30 for the fourth quarter);
provided, however, that in the event this Compact becomes
effective during a calendar quarter, payment shall be prorated
for the number of days remaining in that initial quarter, in
addition to any remaining full quarters in the first calendar year
of operation to obtain a full year of full quarterly payments of
the Tribe’s pro rata share specified above. A payment year will
run from January through December. If any portion of the
Tribe’s quarterly pro rata share payment or payment pursuant to
section 4.3, subdivision (b) or section 4.5, is overdue, the Tribe
shall pay to the State for purposes of deposit into the
appropriate fund, the amount overdue plus interest accrued
thereon at the rate of one percent (1%) per month or the
maximum rate permitted by state law for delinquent payments
owed to the State, whichever is less. All quarterly payments
shall be accompanied by the report specified in section 4.5.
(2)
If the Tribe objects to the State’s determination of the Tribe’s
pro rata share, or to the amount of the Appropriation as
including matters not consistent with IGRA, the matter shall be
11
resolved in accordance with the dispute resolution provisions of
section 13.0. Any State determination of the Tribe’s pro rata
share challenged by the Tribe shall govern and must be paid by
the Tribe to the State when due, and the Tribe’s payment is a
condition precedent to invoking the section 13.0 dispute
resolution provisions.
(c)
(3)
Only for purposes of calculating the Tribe’s annual pro rata
share under section 4.3, subdivision (a), any increase in the
Appropriation for the current year shall be capped at an amount
equal to five percent (5%) from the Appropriation used to
calculate the Tribe’s pro rata share in the immediately
preceding year. The Appropriation, so capped, will be used to
calculate the Tribe’s pro rata share under the equation set forth
in section 4.3, subdivision (b) that exceeds its calculated pro
rata share from the immediately preceding year by more than
five percent (5%).
(4)
The foregoing payments have been negotiated between the
parties as a fair and reasonable contribution, based upon the
State’s costs of regulating and mitigating certain impacts of
tribal Class III Gaming Activities including problem gambling,
as well as the Tribe’s market conditions, its circumstances, and
the rights afforded and consideration provided by this Compact.
In any given State fiscal year, to the extent permissible and only as
may be provided under state law, the State Gaming Agency may
reduce, or eliminate, the Tribe’s pro rata share payment obligation to
the Special Distribution Fund.
Sec. 4.3.1. Use of Special Distribution Funds.
Revenue placed in the Special Distribution Fund shall be available for
appropriation by the Legislature for the following purposes:
(a)
Grants, including any administrative costs, for programs designed to
address and treat gambling addiction;
(b)
Grants, including any administrative costs and environmental review
costs, for the support of State and local government agencies impacted
by tribal government gaming;
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(c)
Compensation for regulatory costs incurred by the State including, but
not limited to, the State Gaming Agency, the California Department of
Justice, the Office of Problem Gambling, and State Designated
Agencies in connection with the implementation and administration of
Class III Gaming compacts or Secretarial Procedures in California;
and
(d)
Any other purposes specified by the Legislature that are consistent
with IGRA.
Sec. 4.4. Cost Reimbursement and Mitigation to Local Governments.
To the extent necessary or appropriate to provide a framework for payments,
services, or other activities that may constitute credits under section 5.3, the Tribe
shall maintain existing agreements or enter into new agreements with local
jurisdictions or state agencies, as appropriate, for such undertakings and services
that mitigate the impacts of the Gaming Facility, furthering the purposes of section
5.3, and thereby benefitting the Gaming Facility, the Tribe, and/or other local
jurisdictions and communities. Intergovernmental agreements are necessary and
appropriate for some, but not all, of the credits specified within section 5.3. The
Tribe has the discretion, within the parameters of section 5.3 and subject to State
approval, to determine how to appropriate funds in a manner consistent with
available credits. Copies of all agreements to be credited shall be provided to the
State if claimed as a credit as provided for in section 5.3. The agreements with
local jurisdictions or state agencies, as appropriate, required by this section are
distinct from those agreements associated with a specific Project and required by
section 11.0. Notwithstanding the foregoing, payments the Tribe makes to the
County pursuant to the “Memorandum of Understanding and Intergovernmental
Agreement Between the County of El Dorado and Shingle Springs Band of Miwok
Indians,” entered in September 2006, and as thereafter amended in 2012 and 2017
(County MOU), that are above and beyond the payments the Tribe is required to
pay to the County for mitigation of the off-reservation impacts of the Tribe’s
Gaming Facility project, may qualify for credit under section 5.3.
Sec. 4.5. Quarterly Payments and Quarterly Contribution Report.
(a)
(1)
The Tribe shall remit quarterly to the State Gaming Agency (i)
the payments described in section 4.3, for deposit into the
Special Distribution Fund and (ii) the payments described in
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section 5.2, for deposit into the Revenue Sharing Trust Fund or
the Tribal Nation Grant Fund.
(b)
(2)
If the Gaming Activities authorized by this Compact commence
during a calendar quarter, the first payment shall be due on the
thirtieth (30th) day following the end of the first full calendar
quarter of the Gaming Activities and shall cover the period
from the commencement of the Gaming Activities to the end of
the first full calendar quarter.
(3)
All quarterly payments shall be accompanied by the
certification specified in subdivision (b).
At the time each quarterly payment is due, regardless of whether any
monies are owed, the Tribe shall submit to the State Gaming Agency
a certification (the “Quarterly Contribution Report”) that specifies the
following:
(1)
calculation of the maximum number of Gaming Devices
operated in the Gaming Facility for each day during the given
quarter;
(2)
the Net Win calculation reflecting the quarterly Net Win from
the operation of all Gaming Devices in the Gaming Facility;
(3)
the amount due pursuant to section 4.3;
(4)
calculation of the amount due pursuant to section 5.2; and
(5)
the total amount of the quarterly payment paid to the State.
The Quarterly Contribution Report shall be prepared by the chief
financial officer of the Gaming Operation.
(c)
(1)
At any time after the fourth quarter, but in no event later than
April 30 of the following calendar year, the Tribe shall provide
to the State Gaming Agency an audited annual certification of
its Net Win calculation from the operation of Gaming Devices.
The audit shall be conducted in accordance with generally
accepted auditing standards, as applied to audits for the gaming
industry, by an independent certified public accountant who is
not employed by the Tribe, the Tribal Gaming Agency, the
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Management Contractor, or the Gaming Operation, is only
otherwise retained by any of these entities to conduct regulatory
audits or independent audits of the Gaming Operation, and has
no financial interest in any of these entities. The auditor used
by the Tribe for this purpose shall hold a valid license issued by
the California Accountancy Board or shall be approved by the
State Gaming Agency, or other State Designated Agency, but
the State shall not unreasonably withhold its consent.
(d)
(2)
If the audit shows that the Tribe made an overpayment from its
Net Win to the State during the year covered by the audit, the
Tribe’s next quarterly payment shall be reduced by the amount
of the overage. If the audit shows that the Tribe made an
underpayment to the State during the year covered by the audit,
the Tribe’s next quarterly payment shall be increased by the
amount of the underpayment.
(3)
The State Gaming Agency shall be authorized to confer with
the auditor at the conclusion of the audit process and to review
all of the independent certified public accountant’s final work
papers and documentation relating to the audit. The Tribal
Gaming Agency shall be notified of and provided the
opportunity to participate in and attend any such conference or
document review.
The State Gaming Agency may audit the calculations in subdivision
(b) and Net Win calculations specified in the audit provided pursuant
to subdivision (c). The State Gaming Agency shall have access to all
records deemed necessary by the State Gaming Agency to verify the
calculations in subdivision (b) and Net Win calculations, including
access to the Gaming Device accounting systems and server-based
systems and software, and to the data contained therein on a read-only
basis. If the State Gaming Agency determines that the Net Win is
understated or the deductions overstated, it will promptly notify the
Tribe and provide a copy of the audit. The Tribe within twenty (20)
days will either accept the difference or provide a reconciliation
satisfactory to the State Gaming Agency. If the Tribe accepts the
difference or does not provide a reconciliation satisfactory to the State
Gaming Agency, the Tribe must immediately pay the amount of the
resulting deficiency, plus accrued interest thereon at the rate of one
percent (1%) per month or the maximum rate permitted by state law
15
for delinquent payments owed to the State, whichever is less. If the
Tribe does not accept the difference but does not provide a
reconciliation satisfactory to the State Gaming Agency, the Tribe,
once payment is made, may commence dispute resolution under
section 13.0. The parties expressly acknowledge that the
certifications provided for in subdivision (b) are subject to section 8.4,
subdivision (h).
(e)
Notwithstanding anything to the contrary in section 13.0, any failure
of the Tribe to remit the payments referenced in subdivision (a), will
entitle the State to immediately seek injunctive relief in federal or
state court, at the State’s election, to compel the payments, plus
accrued interest thereon at the rate of one percent (1%) per month, or
the maximum rate permitted by State law for delinquent payments
owed to the State, whichever is less; and further, the Tribe expressly
consents to be sued in either court and waives its right to assert
sovereign immunity against the State in any such proceeding. Failure
to make timely payment shall be deemed a material breach of this
Compact.
(f)
If any portion of the payments under subdivision (a) of this section is
overdue after the State Gaming Agency has provided written notice to
the Tribe of the overdue amount with an opportunity to cure of at least
fifteen (15) business days, and if more than sixty (60) calendar days
have passed from the due date, then the Tribe shall cease operating all
of its Gaming Devices until full payment is made unless a claim has
been filed by the Tribe under the dispute resolution procedures in
section 13.0.
Sec. 4.6. Exclusivity.
In recognition of the Tribe’s agreement to make the payments specified in
sections 4.3 and 5.2, the Tribe shall have the following rights:
(a)
In the event the exclusive right of Indian tribes to operate Gaming
Devices in California is abrogated by the enactment, amendment, or
repeal of a State statute or constitutional provision, or the conclusive
and dispositive judicial construction of a statute or the State
Constitution by a California appellate court after the effective date of
this Compact that Gaming Devices may lawfully be operated by
another person, organization, or entity (other than an Indian tribe
16
operating pursuant to a Class III Gaming compact or Secretarial
Procedures) within California, the Tribe shall have the right to
exercise one (1) of the following options:
(1)
Terminate this Compact, in which case the Tribe will lose the
right to operate Gaming Devices and other Class III Gaming
authorized by this Compact; or
(2)
Continue under this Compact with an entitlement to a reduction
of the rates specified in section 5.2 following the conclusion of
negotiations, to provide for: (A) compensation to the State for
the costs of regulation, as set forth in section 4.3; (B)
reasonable payments to local governments impacted by tribal
government gaming, the amount to be determined based upon
any intergovernmental agreement entered into pursuant to
sections 4.4 or 11.7; (C) grants for programs designed to
address and treat gambling addiction; and (D) such assessments
as authorized or permitted at such time under federal law. Such
negotiations between the State and the Tribe shall commence
within thirty (30) days after receipt of a written request by a
party to enter into the negotiations, unless both parties agree in
writing to an extension of time. If the Tribe and the State fail to
reach agreement on the amount of reduction of such payments
within sixty (60) days following commencement of the
negotiations specified in this section, the amount shall be
determined by arbitration pursuant to section 13.2.
(b)
Nothing in this section is intended to preclude the California State
Lottery from offering any lottery games or devices that are currently
or may hereafter be authorized by state law.
(c)
Nothing in this section is intended to affect the terms of the County
MOU or to compel the County to enter negotiations under section 4.6,
subdivision (a)(2).
Sec. 4.7. Revenue Contributions.
The Tribe and the State acknowledge and agree that this Compact terminates
and eliminates the Tribe’s obligations to make, or liability for, payments pursuant
to section 4.4 of the 2012 Amended Compact that may accrue, or accrued, as a
result of the operation of the Tribe’s Gaming Devices from and after July 1, 2020.
The Tribe and the State further acknowledge and agree that this Compact does not
17
affect the Tribe’s obligations to make, or liability for, payments pursuant to section
4.4 of the 2012 Amended Compact that may accrue, or accrued, as a result of the
operation of the Tribe’s Gaming Devices before July 1, 2020. Section 4.4 of the
2012 Amended Compact provides that the Tribe shall pay the State fifteen percent
(15%) of Net Win generated from the operation of the Tribe’s Gaming Devices
(the “Section 4.4 Payment”). Section 4.5 of the 2012 Amended Compact provides,
among other things, that the Section 4.4 Payment was reduced to zero from July 1,
2012, through June 30, 2015, and was, and is, subject to a Repositioning Credit
from July 1, 2015, to June 30, 2020. The amount of the Section 4.4 Payment
arising from the operation of the Tribe’s Gaming Devices from July 1, 2020, until
the date this Compact becomes effective shall accrue as a contingent liability
payable to the State. Upon the effective date of this Compact, the contingent
liability shall be extinguished and have no further force or effect. If this Compact
does not become effective, the Tribe and State shall meet and confer to explore
further potential options and possible compact amendments involving the Section
4.4 Payment.
Sec. 4.8. Revenue Sharing Obligations Owed Under the 2012 Amended
Compact.
The Tribe and the State acknowledge and agree that the Tribe may apply any
unused excess annual “Repositioning Credit” for the fourth quarter of
“Repositioning Year” July 1, 2019 - June 30, 2020 as those terms are defined and
provided by section 4.5, subdivision (c) of the 2012 Amended Compact, against
any outstanding revenue sharing contributions still owed to the State from the third
quarter of the July 1, 2019 - June 30, 2020 Repositioning Year under section 4.4 of
the 2012 Amended Compact as of the execution date of this Compact. Nothing
herein permits the Tribe to apply the excess annual Repositioning Credit for any
other revenue sharing obligations under this Compact or to outstanding revenue
sharing obligations under sections 4.3 or 5.2 of the 2012 Amended Compact.
SECTION 5.0. REVENUE SHARING WITH NON-GAMING AND
LIMITED-GAMING TRIBES.
Sec. 5.1. Definitions.
For purposes of this section 5.0, the following definitions apply:
(a)
The “Revenue Sharing Trust Fund” is a fund created by the
Legislature and administered by the State Gaming Agency that, as a
limited trustee, is not a trustee subject to the duties and liabilities
18
contained in the California Probate Code, similar state or federal
statutes, rules or regulations, or under state or federal common law or
equitable principles, and has no duties, responsibilities, or obligations
hereunder except for the receipt, deposit, and distribution of monies
paid by gaming tribes for the benefit of Non-Gaming Tribes and
Limited-Gaming Tribes. The State Gaming Agency shall allocate and
disburse the Revenue Sharing Trust Fund monies on a quarterly basis
as specified by the Legislature. Each eligible Non-Gaming Tribe and
Limited-Gaming Tribe in the state shall receive the sum of one
million one hundred thousand dollars ($1,100,000) per year from the
Revenue Sharing Trust Fund. In the event there are insufficient
monies in the Revenue Sharing Trust Fund to pay one million one
hundred thousand dollars ($1,100,000) per year to each eligible NonGaming Tribe and Limited-Gaming Tribe, any available monies in
that fund shall be distributed to eligible Non-Gaming Tribes and
Limited-Gaming Tribes in equal shares. Monies deposited into the
Revenue Sharing Trust Fund in excess of the amount necessary to
distribute one million one hundred thousand dollars ($1,100,000) to
each eligible Non-Gaming Tribe and Limited-Gaming Tribe shall
remain in the Revenue Sharing Trust Fund available for disbursement
in future years, or deposited in the Tribal Nation Grant Fund but shall
not be diverted to any non-Revenue Sharing Trust Fund or any nonTribal Nation Grant Fund use or purpose. In no event shall the State’s
general fund be obligated to make up any shortfall in the Revenue
Sharing Trust Fund or to pay any unpaid claims connected therewith,
and, notwithstanding any provision of law, including any existing
provision of law implementing the State Gaming Agency’s
obligations related to the Revenue Sharing Trust Fund under any
Class III Gaming compact or Secretarial Procedures, Non-Gaming
Tribes and Limited-Gaming Tribes are not third-party beneficiaries of
this Compact and shall have no right to seek any judicial order
compelling disbursement of any Revenue Sharing Trust Fund monies
to them.
(b)
The “Tribal Nation Grant Fund” is a fund created by the Legislature to
make discretionary distribution of funds to Non-Gaming Tribes and
Limited-Gaming Tribes upon application of such tribes for purposes
related to effective self-governance, self-determined community, and
economic development. The fiscal operations of the Tribal Nation
Grant Fund are administered by the State Gaming Agency, which acts
19
as a limited trustee, not subject to the duties and liabilities contained
in the California Probate Code, similar state or federal statutes, rules
or regulations, or under state or federal common law or equitable
principles, and with no duties or obligations hereunder except for the
receipt, deposit, and distribution of monies paid by gaming tribes for
the benefit of Non-Gaming Tribes and Limited-Gaming Tribes, as
those payments are directed by a State Designated Agency. The State
Gaming Agency shall allocate and disburse the Tribal Nation Grant
Fund monies as specified by a State Designated Agency to one (1) or
more eligible Non-Gaming and Limited-Gaming Tribes upon a
competitive application basis. The State Gaming Agency shall
exercise no discretion or control over, nor bear any responsibility
arising from, the recipient tribes’ use or disbursement of Tribal Nation
Grant Fund monies. The State Designated Agency shall perform any
necessary audits to ensure that monies awarded to any tribe are being
used in accordance with their disbursement in relation to the purpose
of the Tribal Nation Grant Fund. In no event shall the State’s general
fund be obligated to pay any monies into the Tribal Nation Grant
Fund or to pay any unpaid claims connected therewith, and,
notwithstanding any provision of law, including any existing
provision of law implementing the State’s obligations related to the
Tribal Nation Grant Fund or the Revenue Sharing Trust Fund under
any Class III Gaming compact or Secretarial Procedures, NonGaming Tribes and Limited-Gaming Tribes are not third-party
beneficiaries of this Compact and shall have no right to seek any
judicial order compelling disbursement of any Tribal Nation Grant
Fund monies to them.
(c)
A “Non-Gaming Tribe” is a federally recognized tribe in California,
with or without a tribal-state Class III Gaming compact or Secretarial
Procedures, that has not engaged in, or offered, class II gaming or
Class III Gaming in any location whether within or without
California, as of the date of last distribution to such tribe from the
Revenue Sharing Trust Fund or the Tribal Nation Grant Fund, during
the immediately preceding three hundred sixty-five (365) days.
(d)
A “Limited-Gaming Tribe” is a federally recognized tribe in
California that has a Class III Gaming compact with the State or
Secretarial Procedures but is operating fewer than a combined total of
three hundred fifty (350) Gaming Devices in all of its gaming
20
operations wherever located, or does not have a Class III Gaming
compact or Secretarial Procedures but is engaged in class II gaming,
whether within or without California, during the immediately
preceding three hundred sixty-five (365) days.
Sec. 5.2. Payments to the Revenue Sharing Trust Fund or the Tribal
Nation Grant Fund.
(a)
In recognition of the predevelopment expenses incurred by the Tribe,
the needs of the Tribe’s citizens, the existence of binding and
enforceable intergovernmental agreements with the County providing
for mitigation, and other investments in the local community, if the
Tribe operates more than three hundred fifty (350) Gaming Devices at
any time in a given calendar year, it shall, thereafter, including that
calendar year, pay to the State Gaming Agency, for deposit into the
Revenue Sharing Trust Fund or the Tribal Nation Grant Fund, six
percent (6%) of its Net Win from the operation of Gaming Devices in
excess of three hundred fifty (350), commencing on the first day of
the first calendar quarter of the eighth calendar year in which Gaming
Activities occur.
(b)
The Tribe shall remit the payments referenced in subdivision (a) to the
State Gaming Agency in quarterly payments, which payments shall be
due thirty (30) days following the end of each calendar quarter (i.e.,
by April 30 for the first quarter, July 30 for the second quarter,
October 30 for the third quarter, and January 30 for the fourth
quarter). While the confidentiality provisions of section 8.4 apply to
the individual amount of the Tribe’s payments, the State Gaming
Agency may as necessary report the amount in the aggregate
combined with contributions of other compact tribes.
(c)
The quarterly payments referenced in subdivision (b) required by
subdivision (a) and (b), as appropriate, shall be determined by first
determining the total number of all Gaming Devices operated by the
Tribe during a given quarter (Quarterly Device Base). The Quarterly
Device Base is equal to the sum of the maximum number of Gaming
Devices in operation for each day of the calendar quarter divided by
the number of days in the calendar quarter that the Gaming Operation
operates any Gaming Devices during the given calendar quarter.
21
(d)
If any portion of the payments under subdivision (b) is overdue after
the State Gaming Agency has provided written notice to the Tribe of
the overdue amount with an opportunity to cure of at least fifteen (15)
business days, and if more than sixty (60) calendar days have passed
from the due date, then the Tribe shall cease operating all of its
Gaming Devices until full payment is made.
(e)
All payments made by the Tribe to the State Gaming Agency pursuant
to subdivision (b) shall be deposited into the Revenue Sharing Trust
Fund and the Tribal Nation Grant Fund in a proportion to be
determined by the Legislature, provided that if there are insufficient
monies in the Revenue Sharing Trust Fund to pay one million one
hundred thousand dollars ($1,100,000) per year to each eligible NonGaming Tribe and Limited-Gaming Tribe, the State Gaming Agency
shall deposit all payments into the Revenue Sharing Trust Fund.
(f)
Either party may request a reopening of negotiations, limited
exclusively to section 5.2, subdivision (a), if the balance of funds
within the Revenue Sharing Trust Fund or the Tribal Nation Grant
Fund either exceeds or falls short of the amount reasonably required
to meet the long-term obligations of either fund. Neither party is
obligated to accept a request to reopen negotiations under this
subdivision and either party may decline the request for any reason.
Notwithstanding any other provision of this Compact, in no event
shall the State’s general fund be obligated to make up any shortfall in the
Revenue Sharing Trust Fund or the Tribal Nation Grant Fund or to pay any
unpaid claims connected therewith. Notwithstanding any provision of law,
including any existing provision of law implementing the State Gaming
Agency’s obligations related to the Revenue Sharing Trust Fund or the
Tribal Nation Grant Fund under any Class III Gaming compact or Secretarial
Procedures, Non-Gaming Tribes and Limited-Gaming Tribes are not thirdparty beneficiaries of this Compact and shall have no right to seek any
judicial order compelling negotiation under subdivision (f), or disbursement
of any Revenue Sharing Trust Fund or Tribal Nation Grant Fund monies to
them.
22
Sec. 5.3. Provision for Credits Related to Payments Due Under
Section 5.2.
(a)
Notwithstanding anything to the contrary in section 5.2, during all
times the Compact is in effect, if the Tribe operates over three
hundred fifty (350), and up to two thousand two hundred and fifty
(2,250), Gaming Devices in any particular quarter, the State agrees to
provide the Tribe with annual credits for up to sixty-five percent
(65%) of the payments otherwise due under section 5.2 for the
purposes set forth herein. However, if the Tribe operates over two
thousand two hundred and fifty (2,250) and up to two thousand five
hundred fifty (2,500) Gaming Devices in any particular quarter, the
State agrees to provide the Tribe with credits for up to sixty percent
(60%) of the payments otherwise due the State under section 5.2 for
that quarter. If the Tribe operates over two thousand two hundred and
fifty (2,250) Gaming Devices at any point during a calendar year, the
Tribe agrees that the sixty percent (60%) credit shall apply for that
calendar year. In that event, the Tribe shall adjust payments owed the
State when the fourth quarter payments are calculated, and reflect this
in the annual report to the State. Payments the Tribe makes to the
County pursuant to the County MOU that are above and beyond the
payments the Tribe is required to pay to the County for mitigation of
the off-reservation impacts of the Tribe’s Gaming Facility project,
may qualify for credit under this section. The credits provided by this
subdivision (a) would be available to the Tribe for the following
purposes and shall not be derived from a direct or indirect County,
state or federal funding source, unless that source certifies in writing
that the funding originated from the Tribe:
(1)
The costs of services provided by the Tribe or payments by the
Tribe to the County, any state or local agency, local
jurisdiction, service provider, public benefit entity, and/or nonprofit or civic organization operating facilities or providing
services within the County or within counties contiguous
thereto, for purposes of fire suppression, search and rescue,
white water rescue, emergency medical services, law
enforcement, public transit, road improvements, education,
tourism and other services, environmental resource protection,
and infrastructure improvements that in part serve the offreservation needs of local residents or benefit the local
23
community, and are not otherwise required by section 11.0.
Such payments shall be subject to approval by the State. At
least twenty percent (20%) of the annual credits authorized by
this section 5.3 shall be utilized for the purposes described in
subdivisions (a) and (b). Likewise, in light of off-reservation
services provided County residents by the Tribe’s Fire
Department, payments to the El Dorado Fire Protection District
pursuant to an existing agreement for services qualify for credit
under this subdivision (a)(1);
(2)
Payments by the Tribe to reimburse the County of El Dorado or
any other non-tribal governmental entity for any loss of
property tax revenues or sales tax revenues that would
otherwise be due the County or said entity but for the Tribe’s
federally-recognized status. Such payments may include an inlieu payment to the County or non-tribal governmental entity,
and may be made pursuant to a written agreement. Such
reimbursements shall be subject to approval by the County, or
other non-tribal governmental entity if applicable;
(3)
Non-gaming related capital investments and economic
development projects by the Tribe on or off tribal trust lands
that the State or State Designated Agency agrees provide
mutual benefits to the Tribe and the State because, for instance,
they have particular cultural, social, educational, health or
environmental value, or diversify the sources of revenue for the
Tribe’s general fund;
(4)
Payments to support operating expenses and capital
improvements for non-tribal governmental agencies or nontribal facilities operating within the County;
(5)
Investments by the Tribe in, and any funds paid to the State for,
renewable energy projects that, in part, serve the Gaming
Facility or any improvements incorporating renewable energy
technology on real property owned by the Tribe, or its
members, and lineal descendants, and projects that incorporate
charging stations for electric or other zero emission vehicles
that are available to patrons and employees of the Gaming
Facility, and the Tribe, its members and lineal descendants. For
purposes of this subdivision (a)(5), “renewable energy project”
24
means a project that utilizes a technology other than a
conventional power source, as defined in section 2805 of the
Public Utilities Code, as it may be amended, and instead uses as
a power source biomass, waste, geothermal, small
hydroelectric, solar, or wind, as those power sources are defined
in section 1391, subdivision (c), of title 20 of the California
Code of Regulations, as they may be amended. The power
source must not utilize more than twenty-five percent (25%)
fossil fuel;
(6)
Costs and payments to support capital improvements, the
purchase of property, and operating expenses for facilities,
entities or operations located within California (including
facilities located on or off tribal trust land or on land owned by
the Tribe) that provide health care and/or educational services
to tribal members, Indians, and/or non-Indians;
(7)
Costs and payments made to support the preservation of
historical buildings, landmarks or objects within California that
have cultural significance to the Tribe;
(8)
Investments by the Tribe in, and any funds paid to the State for,
water treatment or conservation projects that, in part, serve the
Gaming Facility or any improvements incorporating water
conservation or treatment technology on real property owned by
the Tribe, or its members and lineal descendants;
(10) Payments made to provide or support general welfare services
or benefits for, among other things, educational, healthcare,
food assistance, cultural or vocational purposes, for Tribal
members, Native and/or non-Native people;
(11) Payments made to provide or support housing, including but
not limited to mortgage assistance, for Tribal members, Native
and/or non-Native people who are determined by the Tribe to
be financially in need, taking into account federal poverty
guidelines and local conditions, including the cost of living;
(12) Payments associated with improving the protection of wildlife
and habitat (e.g., property purchase costs, environmental
studies, permits, construction and other related expenses),
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increasing tourism, establishing or improving highways,
roadways, hiking trails, walkways and bike lanes, and other
beautification efforts throughout the County and/or on the
Shingle Springs Rancheria or other lands of the Tribe; and
(13) Payments by the Tribe to any non-profit or public benefit entity
providing education to Native American people, including, but
not limited to, the California Tribal College, established as a
public benefit corporation under California law and overseen by
federally-recognized Indian tribal governments.
(b)
On or before January 1 of each year, the Tribe shall provide to the
State its annual budget for items eligible for credits under this section
5.3. Upon receipt, the State shall have ninety (90) days within which
to review the items proposed and object if they do not meet the
purposes set out in this section. If the State does not object to the
items proposed within the ninety (90) days, the State shall not later
seek to disallow those credits except as provided below. During the
year, the Tribe shall take such credits during the first three (3) quarters
in prorated amounts based on the annual budget, but during the fourth
quarter shall take an adjusted amount based on actual amounts spent.
At the end of each year, the Tribe shall submit to the State a budget
reconciliation, reflecting the actual amounts expended compared to
the budgeted numbers. The State shall have the right to review the
credits taken and, if necessary, request additional information from
the Tribe. If the State determines that the information provided does
not substantiate the amount of credits taken, the State may reduce or
disallow such credits.
(c)
Any disputes shall be subject to the dispute resolution procedures set
forth in section 13.0 of this Compact. All excess credits that cannot
be applied in any one (1) year shall carry-forward to all following
years until completely exhausted. If in any year during the term of
this Compact, the Tribe is unable to take the full credit (sixty percent
(60%) or sixty-five percent (65%), as applicable) and all carryforward credits have been exhausted, the Tribe may request, and the
State shall agree to, a reopening of negotiations, limited to section 5.2,
subdivision (a).
(d)
On or before January 31, or other date as otherwise may be agreed to
by the parties, of each year, the Tribe shall provide to the State
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Gaming Agency a report of annual credits taken and contributions
made pursuant to sections 5.2 and 5.3. The reporting will include
sufficient detail to enable both parties to ensure that the funds are
being used in a manner consistent with the purposes set forth above.
SECTION 6.0. LICENSING.
Sec 6.1. Gaming Ordinance and Regulations.
(a)
All Gaming Activities conducted under this Compact shall, at a
minimum, comply (i) with a Gaming Ordinance duly adopted by the
Tribe and approved in accordance with IGRA, (ii) with all applicable
rules, regulations, procedures, specifications, and standards duly
adopted by the NIGC, the Tribal Gaming Agency, and the State
Gaming Agency, and (iii) with the provisions of this Compact.
(b)
The Tribal Gaming Agency shall make available for inspection by the
State Gaming Agency upon request a copy of the Gaming Ordinance,
and all of the Tribal Gaming Agency’s rules, regulations, procedures,
specifications, ordinances, or standards applicable to the Gaming
Activities and Gaming Operation, within twenty (20) days after the
State Gaming Agency’s request following the execution of this
Compact, or within twenty (20) days following their adoption or
amendment. The Tribal Gaming Agency shall give notice to the State
Gaming Agency of any material change or amendment to the Gaming
Ordinance, or the Tribal Gaming Agency’s rules, regulations,
procedures, specifications, ordinances, or standards applicable to the
Gaming Activities and Gaming Operation, no later than thirty (30)
days after the change or amendment.
(c)
The Tribe or the Tribal Gaming Agency shall make available an
electronic or hard copy of the following documents to any member of
the public upon request and in the manner requested: the Gaming
Ordinance; the rules of each Class III Gaming Activity operated by
the Tribe; the Tribe’s constitution or other governing document(s) to
the extent they impact the public in relation to the Gaming Activities
or Gaming Operation; the ordinance specified in section 12.5,
subdivision (b); the employment discrimination complaint ordinance
specified in section 12.3, subdivision (f); the regulations promulgated
by the Tribal Gaming Agency concerning patron disputes pursuant to
section 10.0; and the minimum internal control standards specified in
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section 9.1.1 and this Compact, including all appendices hereto, in the
event they are not available on the NIGC’s or the Commission’s
website. To the extent that any of the foregoing are available to the
public on a website maintained by an agency of the State of California
or the federal government, or by the Tribe or the Gaming Operation,
the Tribal Gaming Agency may refer requesters to such website(s) for
the requested information.
Sec. 6.2. Tribal Ownership, Management, and Control of Gaming
Operation.
The Gaming Operation authorized under this Compact shall be owned solely
by the Tribe.
Sec. 6.3. Prohibitions Regarding Minors.
(a)
The Tribe shall prohibit persons under the age of twenty-one (21)
years from being present in any room or area in which Gaming
Activities are being conducted unless the person is en route to a nongaming area of the Gaming Facility, or is employed at the Gaming
Facility in a capacity other than as a Gaming Employee.
(b)
If the Tribe permits the consumption of alcoholic beverages in the
Gaming Facility, the Tribe shall prohibit persons under the age of
twenty-one (21) years from purchasing, consuming, or possessing
alcoholic beverages. The Tribe shall also prohibit persons under the
age of twenty-one (21) years from being present in any room or area
in which alcoholic beverages may be consumed, except to the extent
permitted by the State Department of Alcoholic Beverage Control for
other commercial establishments serving alcoholic beverages.
Sec. 6.4. Licensing Requirements and Procedures.
Sec. 6.4.1. Summary of Licensing Principles.
All persons in any way connected with the Gaming Operation or Gaming
Facility who are required to be licensed or to submit to a background investigation
under IGRA, and any others required to be licensed under this Compact, including,
without limitation, all Gaming Employees, Gaming Resource Suppliers, Financial
Sources, and any other person having a significant influence over the Gaming
Operation, must be licensed by the Tribal Gaming Agency and cannot have had
any determination of suitability denied or revoked by the State Gaming Agency.
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The parties intend that the licensing process provided for in this Compact shall
involve joint cooperation between the Tribal Gaming Agency and the State
Gaming Agency, as more particularly described herein.
Sec. 6.4.2. Gaming Facility.
(a)
The Gaming Facility authorized by this Compact shall be licensed by
the Tribal Gaming Agency in conformity with the requirements of this
Compact, the Gaming Ordinance, IGRA, and any applicable
regulations adopted by the NIGC. The license shall be reviewed and
renewed every two (2) years thereafter. Verification that this
requirement has been met shall be provided by the Tribe to the State
by sending a copy of the initial license and each renewal license,
either electronically or by hard copy, to the State Gaming Agency
within thirty (30) days after issuance of the license or renewal. The
Tribal Gaming Agency’s certification that the Gaming Facility is
being operated in conformity with these requirements shall be posted
in a conspicuous and public place in the Gaming Facility at all times.
(b)
To assure the protection of the health and safety of all Gaming
Facility patrons, guests, and employees, the Tribe shall, as a matter of
tribal law, adopt or already have adopted, and shall maintain,
throughout the term of this Compact, an ordinance that requires any
Gaming Facility construction to meet or exceed the Applicable Codes.
The Gaming Facility and construction, expansion, improvement,
modification, or renovation will also comply with the federal
Americans with Disabilities Act, P.L. 101-336, as amended, 42 U.S.C.
§ 12101 et seq. Notwithstanding the foregoing, the Tribe need not
comply with any standard that specifically applies in name or in fact
only to tribal facilities. Without limiting the rights of the State under
this section, reference to Applicable Codes is not intended to confer
jurisdiction upon the State or its political subdivisions. For purposes
of this section, the terms “building official” and “code enforcement
agency” as used in titles 19 and 24 of the California Code of
Regulations mean the Tribal Gaming Agency, or such other tribal
government agency or official as may be designated by the Tribe’s
law. The building official and code enforcement agency designated
by the Tribe’s law may exercise authority granted to such individuals
and entities as specified within the Applicable Codes with regard to
the Gaming Facility.
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(c)
To assure compliance with the Applicable Codes, in all cases where
the Applicable Codes would otherwise require a permit, the Tribe
shall require inspections and, in connection therewith, shall employ
for any Gaming Facility construction qualified plan checkers or
review firms. To be qualified as a plan checker or review firm for
purposes of this Compact, plan checkers or review firms must be
either: (i) California licensed architects or engineers with relevant
experience, or (ii) California licensed architects or engineers on the
list, if any, of approved plan checkers or review firms provided by the
County or City in which the Gaming Facility is located. The Tribe
shall also employ qualified project inspectors. To be qualified as a
project inspector for purposes of this Compact, project inspectors
must possess the same qualifications and certifications as project
inspectors utilized by the County or the City. The plan checkers,
review firms, and project inspectors shall hereinafter be referred to as
“Inspector(s).” The Tribe shall require the Inspectors to report in
writing to the Tribal Gaming Agency and the State Gaming Agency
any failure to comply with the Applicable Codes within thirty (30)
days after giving notice of the lack of compliance to the Tribal
Gaming Agency, or such other government agency or official as may
be designated by the Tribe’s law.
(d)
The Tribe shall cause the design and construction calculations, and
plans and specifications that form the basis for the construction (the
“Design and Building Plans”) to be available to the State Gaming
Agency and the County for inspection and copying by the State
Gaming Agency or the County upon its request. Design and Building
Plans are confidential information and records, subject to the
protection of section 8.0.
(e)
In the event that material changes to a structural detail of the Design
and Building Plans will result from contract change orders or any
other changes in the Design and Building Plans, such changes shall be
reviewed and field-verified by the Inspectors for compliance with the
Applicable Codes.
(f)
The Tribe shall maintain during construction all contract change
orders for inspection and copying by the State Gaming Agency upon
its request.
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(g)
The Tribe shall maintain the Design and Building Plans depicting the
as-built Gaming Facility, which shall be available to the State Gaming
Agency for inspection and copying by the State Gaming Agency upon
its request, for the term of this Compact.
(h)
Upon final certification by the Inspectors that the Gaming Facility
meets the Applicable Codes, the Tribal Gaming Agency shall forward
the Inspectors’ certification to the State Gaming Agency within ten
(10) days of issuance. If the State Gaming Agency objects to that
certification, the Tribe shall make a good faith effort to address the
State’s concerns, but if the State Gaming Agency does not withdraw
its objection, the matter will be resolved in accordance with the
dispute resolution provisions of section 13.0.
(i)
Any failure to remedy within a reasonable period of time any material
and timely raised deficiency shall be deemed a violation of this
Compact, and furthermore, any deficiency that poses a serious or
significant risk to the health or safety of any occupant shall be
grounds for the State Gaming Agency to prohibit occupancy of the
affected portion of the Gaming Facility pursuant to a court order until
the deficiency is corrected. The Tribe shall not allow occupancy of
any portion of the Gaming Facility that is constructed or maintained in
a manner that endangers the health or safety of the occupants.
(j)
The Tribe shall also take all necessary steps to reasonably ensure the
ongoing availability of sufficient and qualified fire suppression
services to the Gaming Facility, and to reasonably ensure that the
Gaming Facility satisfies all requirements of titles 19 and 24 of the
California Code of Regulations applicable to similar facilities in the
County as set forth below:
(1)
Not less than thirty (30) days before the effective date of this
Compact, and not less than biennially thereafter, and upon at
least ten (10) days’ notice to the State Gaming Agency, the
Gaming Facility shall be inspected, at the Tribe’s expense, by
an independent qualified professional or a qualified tribal
inspection official (who must be certified in fire and life safety
inspection through the International Code Council or another
State approved certifying institution) for purposes of certifying
that the Gaming Facility meets a reasonable standard of fire
safety and life safety.
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(2)
The State Gaming Agency shall be entitled to designate and
have a qualified representative or representatives, which may
include local fire suppression entities, present during the
inspection. During such inspection, the State’s
representative(s) shall specify to the independent qualified
professional or qualified tribal inspection official any condition
which the representative(s) reasonably believes would preclude
certification of the Gaming Facility as meeting a reasonable
standard of fire safety and life safety.
(3)
The independent qualified professional or qualified tribal
inspection official shall issue to the Tribal Gaming Agency, the
County, and the State Gaming Agency a report on the
inspection within fifteen (15) days after its completion, or
within thirty (30) days after commencement of the inspection,
whichever first occurs, identifying any deficiency in fire safety
or life safety at the Gaming Facility or in the ability of the Tribe
to meet reasonably expected fire suppression needs of the
Gaming Facility.
(4)
Within twenty-one (21) days after the issuance of the report, the
independent qualified professional or qualified tribal inspection
official shall also require and approve a specific plan for
correcting deficiencies, whether in fire safety or life safety, at
the Gaming Facility or in the Tribe’s ability to meet the
reasonably expected fire suppression needs of the Gaming
Facility, including those identified by the State Gaming
Agency’s representatives. A copy of the report shall be
delivered to the State Gaming Agency, the County, and the
Tribal Gaming Agency.
(5)
Immediately upon correction of all material deficiencies
identified in the report, the independent qualified professional
or qualified tribal inspection official shall certify in writing to
the Tribal Gaming Agency and the State Gaming Agency that
all deficiencies have been corrected.
(6)
Any failure to correct all material deficiencies identified in the
report within a reasonable period of time shall be a violation of
this Compact, and any failure to promptly correct those
deficiencies that pose a serious or significant risk to the health
32
or safety of any occupants shall be a violation of this Compact
and grounds for the State Gaming Agency to seek a court order
prohibiting occupancy of the affected portion of the Gaming
Facility until the deficiency is corrected.
(7)
Consistent with its obligation to ensure the safety of those
within the Gaming Facility, the Tribe shall promptly notify the
State Gaming Agency of circumstances that pose a serious and
significant risk to the health or safety of occupants and take
prompt action to correct such circumstances. Any failure to
remedy within a reasonable period of time any serious and
significant risk to public safety shall be deemed a violation of
this Compact, and furthermore, any circumstance that poses a
serious or significant risk to the health or safety of any occupant
shall be grounds for the State Gaming Agency to prohibit
occupancy of the affected portion of the Gaming Facility
pursuant to a court order until the deficiency is corrected.
Sec. 6.4.3. Gaming Employees.
(a)
Every Gaming Employee shall obtain, and thereafter maintain current,
a valid tribal gaming license, and except as provided in subdivision
(b), shall obtain, and thereafter maintain current, a State Gaming
Agency determination of suitability, which license and determination
shall be subject to biennial renewal; provided that in accordance with
section 6.4.9, those persons may be employed on a temporary or
conditional basis pending completion of the licensing process and the
State Gaming Agency determination of suitability.
(b)
A Gaming Employee who is required to obtain and maintain current a
valid tribal gaming license under subdivision (a) is not required to
obtain or maintain a State Gaming Agency determination of suitability
if any of the following applies:
(1)
The employee is subject to the licensing requirement of
subdivision (a) solely because he or she is a person who
conducts, operates, maintains, repairs, or assists in Gaming
Activities, provided that this exception shall not apply if he or
she supervises Gaming Activities or persons who conduct,
operate, maintain, repair, assist, account for or supervise any
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such Gaming Activity, and is empowered to make discretionary
decisions affecting the conduct of the Gaming Activities.
(c)
(2)
The employee is subject to the licensing requirement of
subdivision (a) solely because he or she is a person whose
employment duties require or authorize access to areas of the
Gaming Facility that are not open to the public, provided that
this exception shall not apply if he or she supervises Gaming
Activities or persons who conduct, operate, maintain, repair,
assist, account for or supervise any such Gaming Activity, and
is empowered to make discretionary decisions affecting the
conduct of the Gaming Activities.
(3)
Members and employees of the Tribal Gaming Agency are
not subject to a finding of suitability from the State Gaming
Agency.
(4)
The State Gaming Agency, in consultation with the Tribal
Gaming Agency, exempts the Gaming Employee from the
requirement to obtain or maintain current a State Gaming
Agency determination of suitability.
Notwithstanding subdivision (b), where the State Gaming Agency
determines it is reasonably necessary, the State Gaming Agency is
authorized to review the tribal license application, and all materials
and information received by the Tribal Gaming Agency in connection
therewith, for any person whom the Tribal Gaming Agency has
licensed, or proposes to license, as a Gaming Employee. If the State
Gaming Agency determines that the person would be unsuitable for
issuance of a license or permit for a similar level of employment in a
gambling establishment subject to the jurisdiction of the State, it shall
notify the Tribal Gaming Agency of its determination and the reasons
supporting its determination. The Tribal Gaming Agency shall
thereafter conduct a hearing in accordance with section 6.5.5 to
reconsider issuance of the tribal gaming license and shall notify the
State Gaming Agency of its determination immediately after the
hearing, which shall be final unless made the subject of dispute
resolution pursuant to section 13.0 within thirty (30) days of such
notification.
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(d)
Except as provided in subdivision (e), the Tribe will not employ or
continue to employ any person whose application to the State Gaming
Agency for a determination of suitability, or for a renewal of such a
determination, has been denied or has expired without renewal.
(e)
Notwithstanding subdivision (d), the Tribe may employ or retain in its
employ a person whose application for a determination of suitability,
or for a renewal of such a determination, has been denied by the State
Gaming Agency, if the person is an enrolled member of the Tribe and
if:
(1)
The enrolled tribal member holds a valid and current license
issued by the Tribal Gaming Agency that must be renewed at
least biennially;
(2)
The denial of the application by the State Gaming Agency is
based solely on activities, conduct, or associations that antedate,
by at least five (5) years, the filing of the enrolled tribal
member’s initial application to the State Gaming Agency for a
determination of suitability; and
(3)
The enrolled member is not an employee or agent of any other
gaming operation.
(f)
At any time after five (5) years following the effective date of this
Compact, either party to this Compact may request renegotiation of
the scope of coverage of subdivision (b).
(g)
This section shall not apply to members of the Tribal Gaming Agency.
Sec. 6.4.4. Gaming Resource Suppliers.
(a)
Every Gaming Resource Supplier shall be licensed by the Tribal
Gaming Agency prior to the sale, lease, or distribution, or further sale,
lease, or distribution, of any Gaming Resources to or in connection
with the Tribe’s Gaming Operation or Gaming Facility. Unless the
Tribal Gaming Agency licenses the Gaming Resource Supplier
pursuant to subdivision (d), the Gaming Resource Supplier shall also
apply to, and the Tribe shall require it to apply to, the State Gaming
Agency for a determination of suitability at least thirty (30) days,
unless such thirty (30) days is shortened by the Tribal Gaming
35
Agency, prior to the sale, lease, or distribution, or further sale, lease,
or distribution, of any Gaming Resources to or in connection with the
Tribe’s Gaming Operation or Gaming Facility, except that for Gaming
Devices the period specified under section 7.1, subdivision (a), shall
govern. The period during which a determination of suitability as a
Gaming Resource Supplier is valid expires on the earlier of (i) the
date two (2) years following the date on which the determination is
issued, unless a different expiration date is specified by the State
Gaming Agency, or (ii) the date of its revocation by the State Gaming
Agency. If the State Gaming Agency denies or revokes a
determination of suitability, the Tribal Gaming Agency shall
immediately deny or revoke the license and shall not reissue any
license to that Gaming Resource Supplier unless and until the State
Gaming Agency makes a determination that the Gaming Resource
Supplier is suitable. The license and determination of suitability shall
be reviewed at least every two (2) years for continuing compliance.
For purposes of section 6.5.2, such a review shall be deemed to
constitute an application for renewal. In connection with such a
review, the Tribal Gaming Agency shall require the Gaming Resource
Supplier to update all information provided in the previous
application.
(b)
Any agreement between the Tribe and a Gaming Resource Supplier
shall include a provision for its termination without further liability on
the part of the Tribe, except for the bona fide payment of all
outstanding sums (exclusive of interest) owed as of, or payment for
services or materials received up to, the date of termination, upon
revocation or non-renewal of the Gaming Resource Supplier’s license
by the Tribal Gaming Agency based on a determination of
unsuitability by the State Gaming Agency. Except as set forth above,
the Tribe shall not enter into, or continue to make payments to a
Gaming Resource Supplier pursuant to, any contract or agreement for
the provision of Gaming Resources with any person or entity whose
application to the State Gaming Agency for a determination of
suitability has been denied or revoked or whose determination of
suitability has expired without renewal.
(c)
Notwithstanding subdivision (a), the Tribal Gaming Agency may
license a Management Contractor for a period of no more than seven
(7) years, but the Management Contractor must still apply for renewal
36
of a determination of suitability by the State Gaming Agency at least
every two (2) years and where the State Gaming Agency denies or
revokes a determination of suitability, the Tribal Gaming Agency
shall immediately deny or revoke the license and shall not reissue any
license to that Management Contractor unless and until the State
Gaming Agency makes a determination that the Management
Contractor is suitable. Subject to IGRA, and except where the
Management Contractor has been found unsuitable, nothing in this
subdivision shall be construed to bar the Tribal Gaming Agency from
issuing additional new licenses, renewing or extending any license to
the same Management Contractor following or in anticipation of the
expiration of a seven (7)-year license.
(d)
The Tribal Gaming Agency may elect to license a person or entity as a
Gaming Resource Supplier without requiring it to apply to the State
Gaming Agency for a determination of suitability under subdivision
(a) if the Gaming Resource Supplier has already been issued a
determination of suitability that is then valid. In that case, the Tribal
Gaming Agency shall immediately notify the State Gaming Agency of
its licensure of the person or entity as a Gaming Resource Supplier,
and shall identify in its notification the State Gaming Agency
determination of suitability on which the Tribal Gaming Agency has
relied in proceeding under this subdivision (d). Subject to the Tribal
Gaming Agency’s compliance with the requirements of this
subdivision, a Gaming Resource Supplier licensed under this
subdivision may, during and only during the period in which the
determination of suitability remains valid, engage in the sale, lease, or
distribution of Gaming Resources to or in connection with the Tribe’s
Gaming Operation or Facility, without applying to the State Gaming
Agency for a determination of suitability. The issuance of a license
under this subdivision is in all cases subject to any later determination
by the State Gaming Agency that the Gaming Resource Supplier is
not suitable or to a tribal gaming license suspension or revocation
pursuant to section 6.5.1, and does not extend the time during which
the determination of suitability relied on by the Tribal Gaming
Agency is valid. A license issued under this subdivision expires upon
the revocation or expiration of the determination of suitability relied
on by the Tribal Gaming Agency. Nothing in this subdivision affects
the obligations of the Tribal Gaming Agency, or of the Gaming
37
Resource Supplier, under section 6.5.2 and section 6.5.6 of this
Compact.
(e)
Except where subdivision (d) applies, within twenty-one (21) days of
the issuance of a license to a Gaming Resource Supplier, the Tribal
Gaming Agency shall transmit to the State Gaming Agency a copy of
the license. All tribal license application materials and information
received by the Tribal Gaming Agency from the Applicant that is not
otherwise prohibited or restricted from disclosure under applicable
state or federal law or regulation must be made available to the State
Gaming Agency upon request.
Sec. 6.4.5. Financial Sources.
(a)
Subject to subdivision (f) of this section 6.4.5, a Financial Source
shall be licensed by the Tribal Gaming Agency prior to extending
financing.
(b)
Every Financial Source required to be licensed by the Tribal Gaming
Agency shall, contemporaneously with the filing of its tribal license
application, apply to the State Gaming Agency for a determination of
suitability. In the event the State Gaming Agency denies the
determination of suitability, the Tribal Gaming Agency shall within
thirty (30) days from State Gaming Agency notification deny or
revoke the Financial Source’s license.
(c)
A license issued under this section shall be reviewed at least every
two (2) years for continuing compliance. In connection with such a
review, the Tribal Gaming Agency shall require the Financial Source
to update all information provided in the previous application on
renewal forms adopted by the Tribal Gaming Agency. For purposes
of section 6.5.2, such a review shall be deemed to constitute an
application for renewal.
(d)
Any agreement between the Tribe and a Financial Source shall
include, and shall be deemed to include, a provision for its termination
without further liability on the part of the Tribe, except for the bona
fide repayment of all outstanding sums owed as of the date of
termination upon revocation or non-renewal of the Financial Source’s
license by the Tribal Gaming Agency based on a determination of
unsuitability by the State Gaming Agency. The Tribe shall not enter
38
into, or continue to make payments pursuant to, any contract or
agreement for the provision of financing with any Financial Source
whose application to the State Gaming Agency for a determination of
suitability has been denied or revoked or whose determination of
suitability has expired without renewal.
(e)
A Gaming Resource Supplier who provides financing exclusively in
connection with the provision, sale, or lease of Gaming Resources
obtained from that Gaming Resource Supplier may be licensed solely
in accordance with the licensing procedures applicable, if at all, to
Gaming Resource Suppliers, and need not be separately licensed as a
Financial Source under this section. Any entity that is permitted to be
excluded from the licensing requirements of this section 4.5 under
subdivision (h), may be also excluded from the licensing requirements
of a Gaming Resource Supplier with respect to providing to the
Gaming Facility or Gaming Operation services generally referred to
as treasury management services (including, but not limited to, check
cashing, vault services, ATMs, interest rate hedging, and receivables
and payables services, whether or not a financing is extended in
connection therewith).
(f)
The Tribal Gaming Agency may elect to license a person or entity as a
Financial Source without requiring it to apply to the State Gaming
Agency for a determination of suitability under subdivision (b) if the
Financial Source has already been issued a determination of suitability
that is then valid. In that case, the Tribal Gaming Agency shall
immediately notify the State Gaming Agency of its licensure of the
person or entity as a Financial Source, and shall identify in its
notification the State Gaming Agency determination of suitability on
which the Tribal Gaming Agency has relied in proceeding under this
subdivision (f). Subject to the Tribal Gaming Agency’s compliance
with the requirements of this subdivision, a Financial Source licensed
under this subdivision may, during and only during the period in
which the determination of suitability remains valid, engage in
financing in connection with the Tribe’s Gaming Operation or
Facility, without applying to the State Gaming Agency for a
determination of suitability. The issuance of a license under this
subdivision is in all cases subject to any later determination by the
State Gaming Agency that the Financial Source is not suitable or to a
tribal gaming license suspension or revocation pursuant to section
39
6.5.1, and does not extend the time during which the determination of
suitability relied on by the Tribal Gaming Agency is valid. A license
issued under this subdivision expires upon the revocation or
expiration of the determination of suitability relied on by the Tribal
Gaming Agency. Nothing in this subdivision affects the obligations
of the Tribal Gaming Agency, or of the Financial Source, under
section 6.5.2 and section 6.5.6 of this Compact.
(g)
Except where subdivision (f) applies, within twenty-one (21) days of
the issuance of a license to a Financial Source, the Tribal Gaming
Agency shall transmit to the State Gaming Agency a copy of the
license. Upon issuance of a license, the Tribal Gaming Agency shall
direct the licensee to transmit to the State Gaming Agency a copy of
all license application materials and information submitted to the
Tribal Gaming Agency within twenty-one (21) days.
(h)
(1)
The Tribal Gaming Agency may, at its discretion, exclude from
the licensing requirements of this section, the following
Financial Sources under the circumstances stated.
(A)
A federally-regulated or state-regulated bank, savings
and loan association, or other federally- or state-regulated
lending institution and any fund or other investment
vehicle, including, without limitation, a bond indenture
or syndicated loan, which is administered or managed by
any such entity.
(B)
Any entity described in the Commission’s Uniform
Statewide Tribal Gaming Regulation CGCC-2,
subdivision (f) (as in effect on the date the parties
execute this Compact), when that entity is a Financial
Source solely by reason of being (i) a purchaser or a
holder of debt securities or other forms of indebtedness
issued directly or indirectly by the Tribe for a Gaming
Facility or for the Gaming Operation or (ii) the owner of
a participation interest in any amount of indebtedness for
which a Financial Source described in subdivision
(h)(1)(A), or any fund or other investment vehicle which
is administered or managed by any such Financial
Source, is the creditor.
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(2)
(C)
An investor who, alone or together with any person(s)
controlling, controlled by or under common control with
such investor, holds less than ten percent (10%) of all
outstanding debt securities issued directly or indirectly by
the Tribe for a Gaming Facility or for the Gaming
Operation.
(D)
An agency of the federal, the State, the Tribe, or local
government providing financing, together with any
person purchasing any debt securities or other forms of
indebtedness of the agency to provide such financing.
(E)
A real estate investment trust, as defined in 26 U.S.C.
§ 856(a), that is publicly traded on a stock exchange,
registered with the Securities and Exchange Commission,
and subject to regulatory oversight of the Securities and
Exchange Commission.
(F)
An entity or category of entities that the State Gaming
Agency and the Tribal Gaming Agency jointly determine
can be excluded from the licensing requirements of this
section without posing a threat to the public interest or
the integrity of the Gaming Operation.
In any case where the Tribal Gaming Agency elects to exclude
a Financial Source from the licensing requirements of this
section, the Tribal Gaming Agency shall give thirty (30) days’,
unless otherwise agreed to by the State Gaming Agency,
advance notice of any extension of financing by the Financial
Source in connection with the Tribe’s Gaming Operation or
Facility, and upon request of the State Gaming Agency, shall
provide it with all documentation supporting the Tribal Gaming
Agency’s exclusion of the Financial Source from the licensing
requirements of this section. The Tribal Gaming Agency and
the State Gaming Agency shall confer and make good-faith
efforts to promptly resolve any dispute regarding the Tribal
Gaming Agency’s decision to exclude a Financial Source from
the licensing requirements of this section. Any dispute
regarding a decision to exclude a Financial Source from the
licensing requirements of this section that cannot promptly be
resolved by the Tribal Gaming Agency and the State Gaming
41
Agency shall be resolved through the dispute resolution
provisions in section 13.0.
(i)
(3)
Notwithstanding subdivision (h)(1), the Tribal Gaming Agency
and the State Gaming Agency shall work collaboratively to
resolve any reasonable concerns regarding the ongoing
excludability of an individual or entity as a Financial Source.
Any dispute between the Tribal Gaming Agency and the State
Gaming Agency pertaining to the excludability of an individual
or entity as a Financial Source shall be resolved by the dispute
resolution provisions in section 13.0.
(4)
The following are not Financial Sources for purposes of this
section.
(A)
An entity identified by Regulation CGCC-2, subdivision
(h) (as in effect on July 1, 2006) of the California
Gambling Control Commission.
(B)
A person or entity whose sole connection with a
provision or extension of financing to the Tribe is to
provide loan brokerage or debt servicing for a Financial
Source at no cost to the Tribe or the Gaming Operation,
provided that no portion of any financing provided is an
extension of credit to the Tribe or the Gaming Operation
by that person or entity.
(C)
A person or entity that the State Gaming Agency has
determined does not require licensure pursuant to any
process the State Gaming Agency deems necessary due
to the nature of financing services provided, the existence
of current and effective federal or state agency oversight
or licensure, attenuated interests of the person or entity as
passive investors without the ability to exert significant
influence over the Gaming Operation, or other grounds
that alleviate the need for licensure that, subject to its
responsibilities under state law, the State Gaming
Agency determines are appropriate.
In recognition of changing financial circumstances, this section shall
be subject to good faith renegotiation upon request of either party in
42
or after five (5) years from the effective date of this Compact;
provided such renegotiation shall not retroactively affect transactions
that have already taken place where the Financial Source has been
excluded or exempted from licensing requirements.
Sec. 6.4.6. Processing Tribal Gaming License Applications.
(a)
Each Applicant for a tribal gaming license shall submit the completed
application along with the required information and an application fee,
if required, to the Tribal Gaming Agency in accordance with the rules
and regulations of that agency and the Gaming Ordinance.
(b)
At a minimum, the Tribal Gaming Agency shall require submission
and consideration of all information required under IGRA, including
part 556.4 of title 25 of the Code of Federal Regulations, for licensing
primary management officials and key employees.
(c)
For Applicants that are business entities, these licensing provisions
shall apply to the entity as well as: (i) each of its officers, limited
liability company members, and directors; (ii) each of its principal
management employees, including any chief executive officer, chief
financial officer, chief operating officer, and general manager; (iii)
each of its owners, or partners, if an unincorporated business; (iv)
each of its shareholders who owns more than ten percent (10%) of the
shares of the corporation, if a corporation, or who has a direct
controlling interest in the Applicant; and (v) each person or entity
(other than a Financial Source that the Tribal Gaming Agency has
determined does not require a license under section 6.4.5) that, alone
or in combination with others, has provided financing in connection
with any Gaming Operation or Class III Gaming authorized under this
Compact, if that person or entity provided more than ten percent
(10%) of either the start-up capital or the operating capital, or of a
combination thereof, over a twelve (12)-month period. For purposes
of this subdivision, where there is any commonality of the
characteristics identified in this section 6.4.6, subdivision (c)(i)
through (c)(v), inclusive, between any two (2) or more entities, those
entities may be deemed to be a single entity. For purposes of this
subdivision, a direct controlling interest in the Applicant referred to in
subdivision (c)(iv) excludes any passive investor or anyone who has
an indirect or only a financial interest and does not have the ability to
control, manage or direct the management decisions of the Applicant.
43
(d)
Nothing herein precludes the Tribe or Tribal Gaming Agency from
requiring more stringent licensing requirements.
(e)
In the event an Institutional Investor, as defined in subdivision
(e)(2)(A), directly or indirectly holds shares of a corporation or
membership interests in an Applicant or licensee or parent company
of an Applicant or licensee through its Affiliates, as defined in
subdivision (e)(2)(B), then the Tribal Gaming Agency may excuse
such Institutional Investor from the Licensing requirements under
section 6.0 to provide an application and submit to a background
investigation, unless such Institutional Investor indirectly holds,
through its Affiliates, more than fifteen (15%) of the issued and
outstanding shares or membership interests of an Applicant or
licensee, or parent company of an Applicant or licensee.
(1)
In any case where the Tribal Gaming Agency elects to excuse
an Institutional Investor from the licensing requirements of
section 6.0, the Tribal Gaming Agency shall provide the State
Gaming Agency with the documentation supporting the Tribal
Gaming Agency’s determination that the person or entity
qualifies as an Institutional Investor and that excusing the entity
from the licensing requirements of section 6.0 is in furtherance
of the public interest. The Tribal Gaming Agency shall require
the Institutional Investor to submit to the State Gaming Agency
documentation identifying the persons and entities involved and
the facts supporting the determination that the persons or
entities qualify as an Institutional Investor, and agreeing to be
bound by this Compact, the laws of the Tribe and the California
Gambling Control Act. The Tribal Gaming Agency and the
State Gaming Agency shall confer and make good-faith efforts
to promptly resolve any dispute regarding the Tribal Gaming
Agency’s decision to exclude an Institutional Investor from the
licensing requirements of this section. Any dispute regarding a
decision to exclude an Institutional Investor from the licensing
requirements of this section that cannot be promptly resolved
by the Tribal Gaming Agency and the State Gaming Agency
shall be resolved through the dispute resolution provisions in
section 13.0.
(2)
For purposes of this section, the following definitions shall
apply:
44
(A)
“Institutional Investor” means any: (i) bank as defined in
section 3(a)(6) of the Federal Securities Exchange Act;
(ii) banking, chartered, or licensed lending institution;
(iii) insurance company as defined in section 2(a)(17) of
the Investment Company Act of 1940, as amended; (iv)
chartered or licensed life insurance company or property
and casualty insurance company; (v) investment
company registered under section 8 of the Investment
Company Act of 1940, as amended; (vi) investment
advisor registered under section 203 of the Investment
Advisors Act of 1940, as amended; (vii) collective trust
funds as defined in section 3(c)(11) of the Investment
Company Act of 1940, as amended; (viii) closed end
investment trust; (ix) employee benefit plan or pension
fund that is subject to the Employee Retirement Income
Security Act of 1974, as amended; (x) a state or federal
government pension plan; or (xi) such other person that
the Commission determines is an Institutional Investor
that acquires voting or nonvoting units in the ordinary
course of its investment business and holds those units
for investment purposes only and not for the purpose of
causing, directly or indirectly, the election of a majority
of the board of directors or any change in the corporate
charter, bylaws, management, policies, or operations of
the business entity in which it holds those securities; and
(B)
“Affiliate” means, with respect to any specified person or
entity, whether a natural person, trustee, or corporation,
general partnership, limited partnership, limited liability
company, limited liability partnership, trust, the state,
business association, commission, instrumentality, firm,
joint venture, governmental authority or otherwise
(collectively, “Person”), any other Person that directly or
indirectly, through one (1) or more intermediaries,
controls, is or becomes controlled by, or is or comes
under common control with the specified Person. For
purposes of this definition, “control” means the
possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of a
Person, whether through the ownership of voting
45
securities or other interests, by contract, governmental
authority or otherwise.
Sec. 6.4.7. Suitability Standard Regarding Gaming Licenses.
(a)
In reviewing an application for a tribal gaming license, and in addition
to any standards set forth in the Gaming Ordinance, the Tribal
Gaming Agency shall consider whether issuance of the license is
inimical to public health, safety, or welfare, and whether issuance of
the license will undermine public trust that the Tribe’s Gaming
Operation is free from criminal and dishonest elements and would be
conducted honestly.
(b)
A license may not be issued unless, based on all information and
documents submitted, the Tribal Gaming Agency is satisfied that the
Applicant, and in the case of an entity, each individual identified in
section 6.4.6, meets all the following requirements:
(1)
The person is of good character, honesty, and integrity.
(2)
The person’s prior activities, criminal record (if any),
reputation, habits, and associations do not pose a threat to the
public interest or to the effective regulation and control of
gaming, or create or enhance the dangers of unsuitable, unfair,
or illegal practices, methods, or activities in the conduct of
gaming, or in the carrying on of business and financial
arrangements incidental thereto.
(3)
The person is in all other respects qualified to be licensed as
provided, and meets the criteria established in this Compact,
IGRA, NIGC regulations, the Gaming Ordinance, and any other
criteria adopted by the Tribal Gaming Agency or the Tribe;
provided, however, an Applicant shall not be found to be
unsuitable solely on the ground that the Applicant was an
employee of a tribal gaming operation in California that was
conducted prior to May 16, 2000.
Sec. 6.4.8. Background Investigations of Applicants.
(a)
The Tribal Gaming Agency shall conduct or cause to be conducted all
necessary background investigations reasonably required to determine
that the Applicant is qualified for a gaming license under the
46
standards set forth in section 6.4.7, and to fulfill all applicable
requirements for licensing under IGRA, NIGC regulations, the
Gaming Ordinance, and this Compact. The Tribal Gaming Agency
shall not issue a gaming license, other than a temporary license
pursuant to section 6.4.9, until a determination is made that those
qualifications have been met.
(b)
In lieu of completing its own background investigation, and to the
extent that doing so does not conflict with or violate IGRA or the
Tribe’s Gaming Ordinance, the Tribal Gaming Agency may contract
with the State Gaming Agency for the conduct of background
investigations, may rely on a State determination of suitability
previously issued under a Class III Gaming compact or Secretarial
Procedures involving another tribe and the State, or may rely on a
State Gaming Agency license previously issued to the Applicant, to
fulfill some or all of the Tribal Gaming Agency’s background
investigation obligations.
(c)
An Applicant for a tribal gaming license shall be required to provide
releases to the State Gaming Agency to make available to the Tribal
Gaming Agency background information regarding the Applicant.
The State Gaming Agency shall cooperate in furnishing to the Tribal
Gaming Agency that information, unless doing so would violate state
or federal law, would violate any agreement the State Gaming Agency
has with a source of the information other than the Applicant, or
would impair or impede a criminal investigation, or unless the Tribal
Gaming Agency cannot provide sufficient safeguards to assure the
State Gaming Agency that the information will remain confidential.
(d)
In lieu of obtaining summary criminal history information from the
NIGC, the Tribal Gaming Agency may, pursuant to the provisions in
subdivisions (d) through (i), obtain such information from the
California Department of Justice. If the Tribe adopts an ordinance
confirming that article 6 (commencing with section 11140) of chapter
1 of title 1 of part 4 of the California Penal Code is applicable to
members, investigators, and staff of the Tribal Gaming Agency, and
those members, investigators, and staff thereafter comply with that
ordinance, then, for purposes of carrying out its obligations under this
section, the Tribal Gaming Agency shall be eligible to be considered
an entity entitled to request and receive state summary criminal
47
history information, within the meaning of subdivision (b)(13) of
section 11105 of the California Penal Code.
(e)
The information received shall be used by the Tribal Gaming Agency
solely for the purpose for which it was requested and shall not be
reproduced for secondary dissemination to any other employment or
licensing agency. The unauthorized access and misuse of criminal
offender record information may affect an individual’s civil rights.
Additionally, any person intentionally disclosing information obtained
from personal or confidential records maintained by a state agency or
from records within a system of records maintained by a government
agency may be subject to prosecution.
(f)
For purposes of subdivision (d), the Tribal Gaming Agency shall
submit to the California Department of Justice fingerprint images and
related information required by the California Department of Justice
of all Applicants, as defined by section 2.2, for the purposes of
obtaining information as to the existence and content of a record of
state or federal convictions and state or federal arrests and also
information as to the existence and content of a record of state or
federal arrests for which the California Department of Justice
establishes that the person is free on bail or on his or her recognizance
pending trial or appeal.
(g)
When received, the California Department of Justice shall forward to
the Federal Bureau of Investigation requests for federal summary
criminal history information received pursuant to this section. The
California Department of Justice shall review the information returned
from the Federal Bureau of Investigation and compile and disseminate
a response to the Tribal Gaming Agency.
(h)
The California Department of Justice shall provide a state or federal
level response to the Tribal Gaming Agency pursuant to California
Penal Code section 11105, subdivision (p)(1).
(i)
The Tribal Gaming Agency shall request from the California
Department of Justice subsequent notification service, as provided
pursuant to section 11105.2 of the California Penal Code, for persons
described in subdivision (f) above.
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Sec. 6.4.9. Temporary Licensing of Gaming Employees.
(a)
If the Applicant has completed a license application in a manner
satisfactory to the Tribal Gaming Agency, and that agency has
conducted a preliminary background investigation, and the
investigation or other information held by that agency does not
indicate that the Applicant has a criminal history or other information
in his or her background that would either automatically disqualify the
Applicant from obtaining a tribal gaming license or cause a reasonable
person to investigate further before issuing a license, or that the
Applicant is otherwise unsuitable for licensing, the Tribal Gaming
Agency may issue a temporary tribal gaming license and may impose
such specific conditions thereon pending completion of the
Applicant’s background investigation, as the Tribal Gaming Agency
in its sole discretion shall determine.
(b)
Special fees may be required by the Tribal Gaming Agency to issue or
maintain a temporary tribal gaming license.
(c)
A temporary tribal gaming license shall remain in effect until
suspended or revoked, or a final determination is made on the
application, or for a period of up to one (1) year, whichever comes
first.
(d)
At any time after issuance of a temporary tribal gaming license, the
Tribal Gaming Agency shall or may, as the case may be, suspend or
revoke it in accordance with the provisions of sections 6.5.1 or 6.5.5,
and the State Gaming Agency may request suspension or revocation
before making a determination of unsuitability.
(e)
Nothing herein shall be construed to relieve the Tribe of any
obligation under part 558 of title 25 of the Code of Federal
Regulations.
Sec. 6.5.0. Tribal Gaming License Issuance.
Upon completion of the necessary background investigation, the Tribal
Gaming Agency may issue a tribal gaming license on a conditional or
unconditional basis. Nothing herein shall create a property or other right of an
Applicant in an opportunity to be licensed, or in a tribal gaming license itself, both
of which shall be considered to be privileges granted to the Applicant in the sole
discretion of the Tribal Gaming Agency.
49
Sec. 6.5.1. Denial, Suspension, or Revocation of Licenses.
(a)
Any Applicant’s application for a tribal gaming license may be
denied, and any license issued may be revoked, if the Tribal Gaming
Agency determines that the application is incomplete or deficient, or
if the Applicant is determined to be unsuitable or otherwise
unqualified for a tribal gaming license.
(b)
Pending consideration of revocation, the Tribal Gaming Agency may
suspend a tribal gaming license in accordance with section 6.5.5.
(c)
All rights to notice and hearing shall be governed by tribal law. The
Applicant shall be notified in writing of the hearing and given notice
of any intent to suspend or revoke the tribal gaming license.
(d)
Except as provided in subdivision (e), upon receipt of notice that the
State Gaming Agency has determined that a person would be
unsuitable for licensure in a gambling establishment subject to the
jurisdiction of the State Gaming Agency, the Tribal Gaming Agency
shall deny that person a tribal gaming license and promptly, and in no
event more than thirty (30) days from the State Gaming Agency
notification, revoke any tribal gaming license that has theretofore been
issued to that person; provided that the Tribal Gaming Agency may, in
its discretion, reissue a tribal gaming license to the person following
entry of a final judgment reversing the determination of the State
Gaming Agency in a proceeding in state court between the Applicant
and the State Gaming Agency conducted pursuant to section 1085 or
1094.5 of the California Code of Civil Procedure, as provided by the
California Gambling Control Act.
(e)
Notwithstanding a determination of unsuitability by the State Gaming
Agency, the Tribal Gaming Agency may, in its discretion, decline to
revoke a tribal gaming license issued to a person employed by the
Tribe pursuant to section 6.4.3, subdivision (e).
Sec. 6.5.2. Renewal of Licenses; Extensions; Further Investigation.
(a)
Except as provided in section 6.4.4, subdivision (c), the term of a
tribal gaming license shall not exceed two (2) years, and application
for renewal of a license must be made prior to its expiration.
Applicants for renewal of a license shall provide updated material, as
50
requested, on the appropriate renewal forms, but, at the discretion of
the Tribal Gaming Agency, may not be required to resubmit historical
data previously submitted or which is otherwise available to the Tribal
Gaming Agency. At the discretion of the Tribal Gaming Agency, an
additional background investigation may be required at any time if the
Tribal Gaming Agency determines the need for further information
concerning the Applicant’s continuing suitability or eligibility for a
license.
(b)
Prior to renewing a license, the Tribal Gaming Agency shall deliver to
the State Gaming Agency copies of all information and documents
received in connection with the application for renewal of the tribal
gaming license, which is not otherwise prohibited or restricted from
disclosure under applicable federal law or regulation, for purposes of
the State Gaming Agency’s consideration of renewal of its
determination of suitability.
(c)
At the discretion of the State Gaming Agency, an additional
background investigation may be required if the State Gaming
Agency determines the need for further information concerning the
Applicant’s continuing suitability for a license.
Sec. 6.5.3. Identification Cards.
(a)
The Tribal Gaming Agency shall require that all persons who are
required to be licensed wear, in plain view at all times while in the
Gaming Facility, identification badges issued by the Tribal Gaming
Agency. The Tribal Gaming Agency may allow temporary exceptions
to this provision for the purposes of authorizing investigators who are
actively investigating a matter within the Gaming Facility to monitor
Gaming Activities.
(b)
Identification badges must display information, including, but not
limited to, a photograph and the person’s name, which is adequate to
enable members of the public and agents of the Tribal Gaming
Agency to readily identify the person and determine the validity and
date of expiration of his or her license.
(c)
Upon request, the Tribe shall provide the State Gaming Agency with
the name, badge identification number (if any), and job title of all
Gaming Employees.
51
Sec. 6.5.4. Fees for Tribal Gaming License.
The fees for all tribal gaming licenses shall be set by the Tribal Gaming
Agency.
Sec. 6.5.5. Suspension of Tribal Gaming License.
The Tribal Gaming Agency shall summarily suspend the tribal gaming
license of any employee if the Tribal Gaming Agency determines that the
continued licensing of the person could constitute a threat to the public health or
safety or may summarily suspend the license of any employee if the Tribal Gaming
Agency determines that the continued licensing of the person may violate the
Tribal Gaming Agency’s licensing or other standards. Any right to notice or
hearing in regard thereto shall be governed by tribal law and comport with federal
procedural due process.
Sec. 6.5.6. State Determination of Suitability Process.
(a)
With respect to Applicants as to whom a determination of suitability
is required, upon receipt of an Applicant’s completed license
application and a determination to issue either a temporary or regular
license, the Tribal Gaming Agency shall transmit within twenty-one
(21) days to the State Gaming Agency for a determination of
suitability for licensure under the California Gambling Control Act a
notice of intent to license the Applicant, together with all of the
following:
(1)
A copy of all tribal license application materials and
information received by the Tribal Gaming Agency from the
Applicant, which is not otherwise restricted from disclosure
under applicable federal law or regulation.
(2)
An original complete set of fingerprint impressions, rolled by a
California state-certified fingerprint roller, or by a person
exempt from state certification pursuant to California Penal
Code section 11102.1, subdivision (a)(2), and which may be on
a fingerprint card or obtained and transmitted electronically.
(3)
A current photograph.
(4)
Except to the extent waived by the State Gaming Agency, such
releases of information, waivers, and other completed and
52
executed forms as have been obtained by the Tribal Gaming
Agency.
(b)
Upon receipt of a written request from a Gaming Resource Supplier or
a Financial Source for a determination of suitability, the State Gaming
Agency shall transmit an application package to the Applicant to be
completed and returned to the State Gaming Agency for purposes of
allowing it to make a determination of suitability for licensure.
(c)
Investigation and disposition of applications for a determination of
suitability shall be governed entirely by State law, and the State
Gaming Agency shall determine whether the Applicant would be
found suitable for licensure in a gambling establishment subject to the
State Gaming Agency’s jurisdiction. Additional information may be
required by the State Gaming Agency to assist it in its background
investigation, to the extent permitted under State law for licensure in a
gambling establishment subject to the State Gaming Agency’s
jurisdiction.
(d)
The Tribal Gaming Agency shall require a licensee to apply for
renewal of a determination of suitability by the State Gaming Agency
at such time as the licensee applies for renewal of a tribal gaming
license.
(e)
Upon receipt of completed license or license renewal application
information from the Tribal Gaming Agency, the State Gaming
Agency may conduct a background investigation pursuant to state law
to determine whether the Applicant is suitable to be licensed for
association with Class III Gaming operations. While the Tribal
Gaming Agency shall ordinarily be the primary source of application
information, the State Gaming Agency is authorized to directly seek
application information from the Applicant. The Tribal Gaming
Agency shall provide to the State Gaming Agency reports of the
background investigations conducted by the Tribal Gaming Agency
and the NIGC and related applications, if any, for Gaming Employees,
Gaming Resource Suppliers, and Financial Sources. If further
investigation is required to supplement the investigation conducted by
the Tribal Gaming Agency, the Applicant will be required to pay the
application fee charged by the State Gaming Agency pursuant to
California Business and Professions Code section 19951, subdivision
(a), but any deposit requested by the State Gaming Agency pursuant
53
to section 19867 of that Code shall take into account reports of the
background investigation already conducted by the Tribal Gaming
Agency and the NIGC, if any. Failure to provide information
reasonably required by the State Gaming Agency to complete its
investigation under State law or failure to pay the application fee or
deposit can constitute grounds for denial of the application by the
State Gaming Agency. The State Gaming Agency and Tribal Gaming
Agency shall cooperate in sharing as much background information as
possible, both to maximize investigative efficiency and thoroughness,
and to minimize investigative costs.
(f)
Upon completion of the necessary background investigation or other
verification of suitability, the State Gaming Agency shall issue a
notice to the Tribal Gaming Agency certifying that the State has
determined that the Applicant is suitable, or that the Applicant is
unsuitable, for licensure in a Gaming Operation and, if unsuitable,
stating the reasons therefore. Issuance of a determination of
suitability does not preclude the State Gaming Agency from a
subsequent determination based on newly discovered information that
a person or entity is unsuitable for the purpose for which the person or
entity is licensed. Upon receipt of notice that the State Gaming
Agency has determined that a person or entity is or would be
unsuitable for licensure, except as provided in section 6.4.3,
subdivision (e), the Tribal Gaming Agency shall deny that person or
entity a license and promptly, and in no event more than thirty (30)
days from the issuance of the State Gaming Agency notification,
revoke any tribal gaming license that has theretofore been issued to
that person or entity; provided that the Tribal Gaming Agency may, in
its discretion, reissue a tribal gaming license to the person or entity
following entry of a final judgment reversing the determination of the
State Gaming Agency in a proceeding in state court between the
Applicant and the State Agency conducted pursuant to section 1085 or
1094.5 of the California Code of Civil Procedure, as provided by the
California Gambling Control Act.
(g)
Prior to denying an application for a determination of suitability, or to
issuing notice to the Tribal Gaming Agency that a person or entity
previously determined to be suitable had been determined unsuitable
for licensure, the State Gaming Agency shall notify the Tribal Gaming
Agency and afford the Tribe an opportunity to be heard. If the State
54
Gaming Agency denies an application for a determination of
suitability, or issues notice that a person or entity previously
determined suitable has been determined unsuitable for licensure, the
State Gaming Agency shall provide that person or entity with written
notice of all appeal rights available under state law.
(h)
The Commission, or its successor, shall maintain a roster of Gaming
Resource Suppliers and Financial Sources that it has determined to be
suitable pursuant to the provisions of this section, or through separate
procedures to be adopted by the Commission. Upon application to the
Tribal Gaming Agency for a tribal gaming license, a Gaming
Resource Supplier that appears on the Commission’s suitability roster
may be licensed by the Tribal Gaming Agency under section 6.4.4,
subdivision (d), and a Financial Source that appears on the
Commission’s suitability roster may be licensed by the Tribal Gaming
Agency under subdivision (f), subject to any later determination by
the State Gaming Agency that the Gaming Resource Supplier or
Financial Source is not suitable or to a tribal gaming license
suspension or revocation pursuant to sections 6.5.1 or 6.5.5; provided
that nothing in this subdivision exempts the Gaming Resource
Supplier or Financial Source from applying for a renewal of a State
determination of suitability.
Sec. 6.6. Submission of New Application.
Nothing in section 6.0 shall be construed to preclude an Applicant who has
been determined to be unsuitable for licensure by the State Gaming Agency, or the
Tribe on behalf of such Applicant, from later submitting a new application for a
determination of suitability by the State Gaming Agency in accordance with
section 6.0, provided that the new application cannot be filed sooner than one (1)
year from when the State Gaming Agency’s finding of unsuitability has become
final under state law.
SECTION 7.0. APPROVAL AND TESTING OF GAMING DEVICES.
Sec. 7.1. Gaming Device Approval.
(a)
No Gaming Device may be offered for play unless all the following
occurs:
(1)
The manufacturer or distributor which sells, leases, or
distributes such Gaming Device (i) has applied for a
55
determination of suitability by the State Gaming Agency at
least fifteen (15) days before it is offered for play, (ii) has not
been found to be unsuitable by the State Gaming Agency, and
(iii) has been licensed by the Tribal Gaming Agency;
(b)
(2)
The software for the game authorized for play on the Gaming
Device has been tested, approved and certified by an
independent gaming test laboratory or state governmental
gaming test laboratory (the “Gaming Test Laboratory”) as
operating in accordance with technical standards that meet or
exceed industry standards;
(3)
A copy of the certification by the Gaming Test Laboratory,
specified in subdivision (a)(2), is provided to the State Gaming
Agency by electronic transmission or by mail, unless the State
Gaming Agency waives receipt of copies of the certification;
(4)
The software for the game authorized for play on the Gaming
Device is tested by the Tribal Gaming Agency to ensure each
game authorized for play on the Gaming Device has the correct
electronic signature prior to operation of the Gaming Device by
the public, or if already inserted, tested prior to being made
available for patron play on the gaming floor;
(5)
The hardware and associated equipment for each type of
Gaming Device has been tested by the Gaming Test Laboratory
prior to operation by the public to ensure operation in
accordance with the standards established by the Tribal Gaming
Agency that meet or exceed industry standards; and
(6)
The hardware and associated equipment for the Gaming Device
has been tested by the Tribal Gaming Agency to ensure
operation in accordance with the manufacturer’s specifications.
Where either the Tribe or the State Gaming Agency requests new
standards for testing, approval, and certification of the software for the
game authorized for play on the Gaming Device pursuant to
subdivision (a)(2), the party requesting the new standards shall
provide the other party with a detailed explanation of the reason(s) for
the request. If the party to which the request is made disagrees with
the request, the State Gaming Agency and the Tribal Gaming Agency
56
shall meet and confer in a good-faith effort to resolve the
disagreement, which meeting and conferring shall include
consultation with an independent Gaming Test Laboratory. If the
disagreement is not resolved within one hundred twenty (120) days of
the request, either party may submit the matter to dispute resolution
under section 13.0 of this Compact.
Sec. 7.2. Gaming Test Laboratory Selection.
(a)
The Gaming Test Laboratory shall be an independent or state
governmental gaming test laboratory recognized in the gaming
industry which (i) is competent and qualified to conduct scientific
tests and evaluations of Gaming Devices, and (ii) is licensed or
approved by any of the following states: Arizona, California,
Colorado, Illinois, Indiana, Iowa, Michigan, Missouri, Nevada, New
Jersey, or Wisconsin. The Tribal Gaming Agency shall submit to the
State Gaming Agency documentation that demonstrates the Gaming
Test Laboratory satisfies (i) and (ii) herein at least thirty (30) days
before the commencement of Gaming Activities pursuant to this
Compact, or if such use follows the commencement of Gaming
Activities, within fifteen (15) days prior to reliance thereon. If, at any
time, the Gaming Test Laboratory’s license and/or approval required
by (ii) herein is suspended or revoked by any of those states or the
Gaming Test Laboratory is found unsuitable by the State Gaming
Agency, then the State Gaming Agency may reject the use of such
Gaming Test Laboratory, and upon such rejection, the Tribal Gaming
Agency shall ensure that such Gaming Test Laboratory discontinues
its responsibilities under this section.
(b)
The Tribe and the State Gaming Agency shall inform the Gaming Test
Laboratory in writing that irrespective of the source of payment of its
fees, the Gaming Test Laboratory’s duty of loyalty runs equally to the
State and the Tribe; provided that if the State Gaming Agency
requests that the Gaming Test Laboratory perform additional work,
the State Gaming Agency shall be solely responsible for the cost of
that additional work.
Sec. 7.3. Maintenance of Records of Testing Compliance.
The Tribal Gaming Agency shall prepare and maintain records of its
compliance with section 7.1 while any Gaming Device is on the gaming floor and
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for a period of one (1) year after the Gaming Device is removed from the gaming
floor, and shall make those records available for inspection by the State Gaming
Agency upon request.
Sec. 7.4. State Gaming Agency Inspections.
(a)
The State Gaming Agency may inspect the Gaming Devices in
operation at the Gaming Facility on a random basis not to exceed four
(4) times annually to confirm that they operate and play properly
pursuant to the applicable technical standards. The State Gaming
Agency shall make a good-faith effort to work with the Tribal Gaming
Agency to minimize unnecessary disruption to the Gaming Operation
including, where appropriate, performing desk audits rather than onsite physical inspections. The inspections may include all Gaming
Device software, hardware, associated equipment, software
maintenance records, and components critical to the operation of the
Gaming Device. The Tribal Gaming Agency shall cooperate with the
State Gaming Agency’s reasonable efforts to obtain information that
facilitates the conduct of remote but effective inspections that
minimize disruption to Gaming Activities. The random inspections
conducted pursuant to this subdivision shall occur during normal
business hours outside of weekends and holidays and shall not remove
from play more than five percent (5%) of the Gaming Devices then in
operation at the Gaming Facility, provided that the five percent (5%)
limitation on removal of Gaming Devices shall not apply where a
Gaming Device, including but not limited to a progressive controller,
makes limiting removal from play to no more than five percent (5%)
infeasible or impossible.
Whenever practicable, the State Gaming Agency shall not require
removal from play any Gaming Device that the State Gaming Agency
determines may be fully and adequately tested while still in play.
(b)
The State Gaming Agency shall provide notice to the Tribal Gaming
Agency of such inspection at or prior to the commencement of the
random inspection, and the Tribal Gaming Agency may accompany
the State Gaming Agency inspector(s).
(c)
The State Gaming Agency may retain and use qualified consultants to
perform the functions authorized or specified herein but any such
consultants shall be bound by the confidentiality and information use
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and disclosure provisions applicable to the State Gaming Agency and
its employees. The State Gaming Agency shall ensure that any
consultants retained by it have met the standards and requirements,
including any background investigations, established by applicable
regulations governing contract employees prior to participating in any
matter under this Compact. The State Gaming Agency shall also take
all reasonable steps to ensure that consultants are free from
conflicting interests in the conduct of their duties under this Compact.
The Tribal Gaming Agency, in its sole discretion, may require a
member or staff of the Tribal Gaming Agency or a representative of
the State Gaming Agency to accompany any consultant at all times
that the consultant is in a non-public area of the Gaming Facility.
Sec. 7.5. Technical Standards.
The Tribal Gaming Agency shall provide to the State Gaming Agency
copies of its regulations for technical standards applicable to the Tribe’s Gaming
Devices at least thirty (30) days before the commencement of the Gaming
Operation and at least thirty (30) days before the effective date of any material
revisions to the regulations, unless exigent circumstances require that any revisions
to the regulations take effect sooner in order to ensure game integrity or otherwise
to protect the public or the Gaming Operation, in which event the revisions to the
regulations shall be provided to the State Gaming Agency as soon as reasonably
practicable.
Sec. 7.6. Transportation of Gaming Devices.
(a)
Subject to the provisions of subdivision (b), the Tribal Gaming
Agency shall not permit any Gaming Device to be transported to or
from the Tribe’s Indian lands except in accordance with procedures
established by agreement between the State Gaming Agency and the
Tribal Gaming Agency and upon at least ten (10) days’ notice to the
Sheriff’s Department for the County.
(b)
Transportation of a Gaming Device from a Gaming Facility within
California is permissible only if:
(1)
The final destination of the Gaming Device is a gaming facility
of any tribe in California that has a Class III Gaming compact
with the State or Secretarial Procedures that makes lawful the
receipt of such Gaming Device;
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(2)
The final destination of the Gaming Device is any other state in
which possession of the Gaming Device is made lawful by that
state’s law or by tribal-state compact or Secretarial Procedures;
(3)
The final destination of the Gaming Device is another country,
or any state or province of another country, wherein possession
of the Gaming Device is lawful; or
(4)
The final destination is a location within California for testing,
repair, maintenance, or storage by a person or entity that has
been licensed by the Tribal Gaming Agency and has been found
suitable for licensure by the State Gaming Agency.
Any Gaming Device transported from or to the Tribe’s Indian lands in
violation of this section 7.6, or in violation of any permit issued pursuant thereto, is
subject to summary seizure by California peace officers in accordance with
California law.
SECTION 8.0. INSPECTIONS.
Sec. 8.1. Investigation and Sanctions.
(a)
The Tribal Gaming Agency shall investigate any reported violation of
this Compact and shall require the Gaming Operation to correct the
violation upon such terms and conditions as the Tribal Gaming
Agency determines are necessary.
(b)
The Tribal Gaming Agency shall be empowered by the Gaming
Ordinance to impose fines or other sanctions within the jurisdiction of
the Tribe against gaming licensees who interfere with or violate the
Tribe’s gaming regulatory requirements and obligations under IGRA,
NIGC gaming regulations, the Gaming Ordinance, or this Compact as
long as the fines or sanctions comport with federal due process.
(c)
The Tribal Gaming Agency shall report violations of this Compact
that pose a substantial threat to gaming integrity, public health and
safety or the environment, or continued violations that, if isolated
might not require reporting, but cumulatively pose a substantial threat
to gaming integrity, public health and safety, or the environment, and
any failures to comply with the Tribal Gaming Agency’s orders to the
Commission and the Bureau of Gambling Control in the California
Department of Justice within ten (10) days of discovery.
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Sec. 8.2. Assistance by State Gaming Agency.
The Tribe may request the assistance of the State Gaming Agency whenever
it reasonably appears that such assistance may be necessary to carry out the
purposes described in section 8.1, or otherwise to protect public health, safety, or
welfare.
Sec. 8.3. Access to Premises by State Gaming Agency; Notification;
Inspections.
(a)
Notwithstanding that the Tribe and its Tribal Gaming Agency have
the primary responsibility to administer and enforce the regulatory
requirements of this Compact, the State Gaming Agency, including
but not limited to any consultants retained by it, shall have the right to
inspect the Tribe’s Gaming Facility, and all Gaming Operation or
Facility records relating to Class III Gaming as is reasonably
necessary to ensure Compact compliance, including such records
located in off-site facilities dedicated to their storage subject to the
conditions in subdivisions (b), (c), and (d). If the Tribe objects to the
State’s determination of the areas included within any inspection, the
matter shall be resolved in accordance with the dispute resolution
provisions of section 13.0. The State Gaming Agency shall ensure
that any consultants retained by it have met the standards and
requirements, including any background investigations, established by
applicable regulations governing contract employees prior to
participating in any matter under this Compact. The State Gaming
Agency shall also take all reasonable steps to ensure that consultants
are free from conflicting interests in the conduct of their duties under
this Compact. The Tribal Gaming Agency, in its sole discretion, may
require a member or staff of the Tribal Gaming Agency or a
representative of the State Gaming Agency to accompany any
consultant at all times that the consultant is in a non-public area of the
Gaming Facility.
(b)
Except as provided in section 7.4, the State Gaming Agency may
inspect public areas of the Gaming Facility at any time without prior
notice during normal Gaming Facility business hours.
(c)
Inspection of areas of the Gaming Facility not normally accessible to
the public may be made at any time the Gaming Facility is open to the
public, immediately after the State Gaming Agency’s authorized
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inspector notifies the Tribal Gaming Agency of his or her presence on
the premises, presents proper identification, and requests access to the
non-public areas of the Gaming Facility. The Tribal Gaming Agency,
in its sole discretion, may require a member of the Tribal Gaming
Agency to accompany the State Gaming Agency inspector at all times
that the State Gaming Agency inspector is in a non-public area of the
Gaming Facility. If the Tribal Gaming Agency imposes such a
requirement, it shall require such member to be available at all times
for those purposes and shall ensure that the member has the ability to
gain immediate access to all non-public areas of the Gaming Facility.
(d)
Nothing in this Compact shall be construed to limit the State Gaming
Agency to one (1) inspector during inspections.
Sec. 8.4. Inspection, Copying and Confidentiality of Documents.
(a)
Inspection and copying of Gaming Operation papers, books, and
records may occur at any time, immediately after the State Gaming
Agency gives notice to the Tribal Gaming Agency, during the hours
from 8:00 a.m. to 5:00 p.m. Monday through Friday, and at any other
time that a Tribal Gaming Agency employee, is available onsite with
physical access to offices, including off-site facilities, where the
papers, books, and records are kept. The Tribe shall cooperate with,
and cannot refuse, the inspection and copying, provided that the State
Gaming Agency inspectors cannot require copies of papers, books, or
records in such volume that it unreasonably interferes with the normal
functioning of the Gaming Operation or Gaming Facility.
(b)
In lieu of onsite inspection and copying of Gaming Operation papers,
books, and records by its inspectors, the State Gaming Agency may
request in writing that the Tribal Gaming Agency provide copies of
such papers, books, and records as the State Gaming Agency deems
necessary to ensure compliance with the terms of this Compact. The
State Gaming Agency’s written request shall describe those papers,
books, and records requested to be copied with sufficient specificity to
reasonably identify the requested documents. Within ten (10) days
after it receives the request, or such other time as the State Gaming
Agency may agree in writing, the Tribal Gaming Agency shall
provide one (1) copy of the requested papers, books, and records to
the requesting State Gaming Agency. An electronic version of the
requested papers, books, and records may be submitted to the State
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Gaming Agency in lieu of a paper copy so long as the software
required to access the electronic version is reasonably available to the
State Gaming Agency and the State Gaming Agency does not object.
(c)
Notwithstanding any other provision of California law, any
confidential information and records, as defined in subdivision (d),
that the State Gaming Agency obtains or copies pursuant to this
Compact shall be, and remain, the property solely of the Tribe;
provided that such confidential information and records and copies
may be retained by the State Gaming Agency as is reasonably
necessary to assure the Tribe’s compliance with this Compact or to
complete any investigation of suspected criminal activity; and
provided further that the State Gaming Agency may provide such
confidential information and records and copies to federal law
enforcement and other state agencies or consultants that the State
deems reasonably necessary in order to assure the Tribe’s compliance
with this Compact, in order to renegotiate any provision thereof, or in
order to conduct or complete any investigation of suspected criminal
activity in connection with the Gaming Activities or the operation of
the Gaming Facility or the Gaming Operation.
(d)
For the purposes of this section 8.4, “confidential information and
records” means any and all information and records received from the
Tribe pursuant to the Compact, except for information and documents
that are in the public domain.
(e)
The State Gaming Agency and all other state agencies and consultants
to which it provides information and records obtained pursuant to
subdivisions (a) or (b) of this section, which are confidential pursuant
to subdivision (d), will exercise care in the preservation of the
confidentiality of such information and records and will apply the
highest standards of confidentiality provided under California state
law to preserve such information and records from disclosure until
such time as the information or record is no longer confidential or
disclosure is authorized by the Tribe, by mutual agreement of the
Tribe and the State, or pursuant to the arbitration procedures under
section 13.2. The State Gaming Agency and all other state agencies
and consultants may disclose confidential information or records as
necessary to fully adjudicate or resolve a dispute arising pursuant to
the Compact, in which case the State Gaming Agency and all other
state agencies and consultants agree to preserve confidentiality to the
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greatest extent feasible and available. Before the State Gaming
Agency provides confidential information and records to a consultant
as authorized under subdivision (c), it shall enter into a confidentiality
agreement with that consultant that meets the standards of this
subdivision.
(f)
In the case of any disclosure of confidential information and records
compelled by judicial process, the State Gaming Agency will
endeavor to give the Tribe prompt notice of the order compelling
disclosure and a reasonable opportunity to interpose an objection
thereto with the court. The Tribe may avail itself of any and all
remedies under State law for the improper disclosure of confidential
information and records.
(g)
The Tribal Gaming Agency and the State Gaming Agency shall confer
regarding protocols for the release to law enforcement agencies of
information obtained during the course of background investigations.
(h)
Confidential information and records received by the State Gaming
Agency from the Tribe in compliance with this Compact, or
information compiled by the State Gaming Agency from those
confidential records, shall be exempt from disclosure under the
California Public Records Act, California Government Code section
6250 et seq.
(i)
Notwithstanding any other provision of this Compact, the State
Gaming Agency shall not be denied access to papers, books, records,
equipment, or places where such access is reasonably necessary to
ensure compliance with this Compact or to conduct or complete an
investigation of suspected criminal activity in connection with the
Gaming Activities or the operation of the Gaming Facility or the
Gaming Operation.
Sec. 8.5. Cooperation with Tribal Gaming Agency.
The State Gaming Agency shall meet periodically with the Tribal Gaming
Agency and cooperate in all matters relating to the enforcement of the provisions
of this Compact and its Appendices.
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Sec. 8.6. Compact Compliance Review.
The State Gaming Agency is authorized to conduct an annual Compact
compliance review (also known as a “site visit”) to ensure compliance with all
provisions of this Compact and any appendices hereto. Upon the discovery of an
irregularity that the State Gaming Agency reasonably determines may be a threat
to gaming integrity or public safety, and after consultation with the Tribal Gaming
Agency, the State Gaming Agency may conduct additional periodic reviews in
order to ensure compliance with all provisions of this Compact and its appendices.
Nothing in this section shall be construed to supersede any other audits,
inspections, investigations, and monitoring authorized by this Compact.
Sec. 8.7. Waiver of Materials.
The State Gaming Agency shall retain the discretion to waive, in whole or in
part, receipt of materials otherwise required by this Compact to be provided to the
State Gaming Agency by the Tribal Gaming Agency or the Tribe.
SECTION 9.0. RULES AND REGULATIONS FOR THE OPERATION
AND MANAGEMENT OF THE GAMING OPERATION AND FACILITY.
Sec. 9.1. Adoption of Regulations for Operation and Management;
Minimum Standards.
It is the responsibility of the Tribal Gaming Agency to conduct on-site
gaming regulation and control in order to enforce the terms of this Compact,
IGRA, NIGC gaming regulations, State Gaming Agency regulations, and the
Gaming Ordinance, to protect the integrity of the Gaming Activities and the
Gaming Operation for honesty and fairness, and to maintain the confidence of
patrons that tribal governmental gaming in California meets the highest standards
of fairness and internal controls. To meet those responsibilities, the Tribal Gaming
Agency shall be vested with the authority to promulgate, and shall promulgate,
rules and regulations governing, at a minimum, the following subjects pursuant to
the standards and conditions set forth therein:
(a)
The enforcement of all relevant laws and rules with respect to the
Gaming Activities, Gaming Operation, and Gaming Facility, and the
conduct of investigations and hearings with respect thereto, and to any
other subject within its jurisdiction.
(b)
The physical safety of Gaming Facility patrons and employees, and
any other person while in the Gaming Facility. Except as provided in
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section 12.2, nothing herein shall be construed, however, to make
applicable to the Tribe any State laws, regulations, or standards
governing the use of tobacco.
(c)
The physical safeguarding of assets transported to, within, and from
the Gaming Facility.
(d)
The prevention of illegal activity within the Gaming Facility or with
regard to the Gaming Operation or Gaming Activities, including, but
not limited to, the maintenance of employee procedures and a
surveillance system as provided in subdivision (e).
(e)
Maintenance of a closed-circuit television surveillance system
consistent with industry standards for gaming facilities of the type and
scale operated by the Tribe, which system shall be approved by, and
may not be modified without the approval of, the Tribal Gaming
Agency. The Tribal Gaming Agency shall have current copies of the
Gaming Facility floor plan and closed-circuit television system at all
times.
(f)
The recording of any and all occurrences within the Gaming Facility
that deviate from normal operating policies and procedures
(hereinafter “incidents”). The regulations shall provide that the Tribal
Gaming Agency shall transmit copies of incident reports that it
reasonably believes concern a significant or continued threat to public
safety or gaming integrity to the State Gaming Agency forthwith. The
procedure for recording incidents pursuant to the regulations shall also
do all of the following:
(1)
Specify that security personnel record all incidents, regardless
of an employee’s determination that the incident may be
immaterial (all incidents shall be identified in writing).
(2)
Require the assignment of a sequential number to each report.
(3)
Provide for permanent reporting in indelible ink in a bound
notebook from which pages cannot be removed and in which
entries are made on each side of each page and/or in electronic
form, provided the information is recorded in a manner so that,
once the information is entered, it cannot be deleted or altered
and is available to the State Gaming Agency pursuant to
sections 8.3 and 8.4.
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(4)
Require that each report include, at a minimum, all of the
following:
(A)
The record number.
(B)
The date.
(C)
The time.
(D)
The location of the incident.
(E)
A detailed description of the incident.
(F)
The persons involved in the incident.
(G)
The security department employee assigned to the
incident.
(g)
The establishment of employee procedures designed to permit
detection of any irregularities, theft, cheating, fraud, or the like,
consistent with industry practice.
(h)
Maintenance of a list of persons permanently excluded from the
Gaming Facility who, because of their past behavior, criminal history,
or association with persons or organizations, pose a threat to the
integrity of the Gaming Activities of the Tribe or to the integrity of
regulated gambling within the State. The Tribal Gaming Agency shall
transmit a copy of the list to the State Gaming Agency quarterly and
shall make a copy of the current list available to the State Gaming
Agency upon request. Notwithstanding anything in this Compact to
the contrary, the State Gaming Agency is authorized to make the
copies of the list available to other tribal gaming agencies, to licensees
of the Commission, the California Horse Racing Board, and other law
enforcement agencies. To the extent permissible under law, the State
Gaming Agency may share with the Tribal Gaming Agency
information about individuals permanently excluded from other tribal
gaming facilities or other gaming establishments within California.
(i)
The conduct of an audit, at the Tribe’s expense, of the annual financial
statements of the Gaming Operation by an independent certified
public accountant, in accordance with the auditing and accounting
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standards for audits of casinos of the American Institute of Certified
Public Accountants.
(j)
Submission to, and prior approval by, the Tribal Gaming Agency of
the rules and regulations of each Class III Gaming Activity to be
operated by the Tribe, and of any changes in those rules and
regulations. No Class III Gaming Activity may be played that has not
received Tribal Gaming Agency approval.
(k)
The obligation of the Gaming Facility and the Gaming Operation to
maintain a copy of the rules, regulations, and procedures for each
game as played, including, but not limited to, the method of play and
the odds and method of determining amounts paid to winners.
(l)
Specifications and standards to ensure that information regarding the
method of play, odds, and payoff determinations is visibly displayed
or available to patrons in written form in the Gaming Facility and to
ensure that betting limits applicable to any gaming station is displayed
at that gaming station.
(m)
Maintenance of a cashier’s cage in accordance with industry standards
for such facilities.
(n)
Specification of minimum staff and supervisory requirements for each
Gaming Activity to be conducted.
(o)
Technical standards and specifications in conformity with the
requirements of this Compact for the operation of Gaming Devices
and other games authorized herein to be conducted by the Tribe.
Sec. 9.1.1. Minimum Internal Control Standards (MICS).
(a)
The Tribe shall conduct its Gaming Activities pursuant to an internal
control system that implements minimum internal control standards
for Class III Gaming that are no less stringent than those contained in
the Minimum Internal Control Standards of the NIGC (25 C.F.R.
§ 542), as they existed on October 19, 2006, and as they may
thereafter be amended, without regard to the NIGC’s authority to
promulgate, enforce, or audit the standards. These standards are
posted on the State Gaming Agency website(s) and are referred to
herein as the “Compact MICS.” This requirement is met through
compliance with the provisions set forth in this section and in section
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9.1 or in the alternative by compliance with the statewide uniform
regulation CGCC-8, as it exists currently and as it may hereafter be
amended.
(b)
Before commencement of Gaming Operations, the Tribal Gaming
Agency shall, in accordance with the Gaming Ordinance, establish
written internal control standards for the Gaming Facility that shall:
(i) provide a level of control that equals or exceeds the minimum
internal control standards set forth in the Compact MICS, as they
exist currently and as they may be revised; (ii) contain standards for
currency transaction reporting that comply with title 31 Code of
Federal Regulations part 103, as it exists currently and as it may
hereafter be amended; (iii) satisfy the requirements of section 9.1;
(iv) be consistent with this Compact; and (v) require the Gaming
Operation to comply with the internal control standards.
(c)
The Gaming Operation shall operate the Gaming Facility pursuant to
a written internal control system. The internal control system shall
comply with and implement the internal control standards
established by the Tribal Gaming Agency pursuant to subdivision (b)
of this section 9.1.1. The internal control system, and any proposed
changes to the system, must be approved by the Tribal Gaming
Agency prior to implementation. The internal control system shall
be designed to reasonably assure that: (i) assets are safeguarded and
accountability over assets is maintained; (ii) liabilities are properly
recorded and contingent liabilities are properly disclosed; (iii)
financial records including reco
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