2010 California Code
Government Code
Chapter 1. The Tribal Government Gaming And Economic Self-sufficiency Act Of 1998

98000.  This chapter shall be known and may be cited as "The Tribal
Government Gaming and Economic Self-Sufficiency Act of 1998."



98001.  (a) The people of the State of California find that,
historically, Indian tribes within the state have long suffered from
high rates of unemployment and inadequate educational, housing,
elderly care, and health care opportunities, while typically being
located on lands that are not conducive to economic development in
order to meet those needs. Federal law provides a statutory basis for
conducting licensed and regulated tribal government gaming on, and
limited to, qualified Indian lands, as a means of strengthening
tribal self-sufficiency through the creation of jobs and tribal
economic development. Federal law also provides that certain forms of
gaming, known as "class III gaming," will be the subject of an
agreement between a tribe and the state (a "Tribal-State compact"),
pursuant to which that gaming will be governed.
   (b) The people of the state find that uncertainties have developed
over various issues concerning class III gaming and the development
of Tribal-State compacts between the state and tribes, and that those
uncertainties have led to delays and considerable expense. The
Tribal-State compact terms set forth in Section 98004 (the "Gaming
Compact"), including the geographic confinement of that gaming to
certain tribal lands, the agreement and limitations on the kinds of
class III gaming in which a tribe operating thereunder may be
engaged, and the regulation and licensing required thereunder, are
intended to resolve those uncertainties in an efficient and
cost-effective way, while meeting the basic and mutual needs of the
state and the tribes without undue delay. The resolution of
uncertainty regarding class III gaming in California, the generation
of employment and tribal economic development that will result
therefrom, and the limitations on the growth of gaming in California
that are inherent therein, are in the best and immediate interest of
all citizens of the state. This chapter has been enacted as a matter
of public policy and in recognition that it fulfills important state
needs. All of the factors the state could consider in negotiating a
Tribal-State compact under federal law have been taken into account
in offering to tribes the terms set forth in the Gaming Compact.
   (c) The people of the state further find that casinos of the type
currently operating in Nevada and New Jersey are materially different
from the tribal gaming facilities authorized under this chapter,
including those in which the gaming activities under the Gaming
Compact are conducted, in that the casinos in those states (1)
commonly offer their patrons a broad spectrum of house-banked games,
including but not limited to house-banked card games, roulette, dice
games, and slot machines that dispense coins or currency, none of
which games are authorized under this chapter; and (2) are owned by
private companies, individuals, or others that are not restricted on
how their profits may be expended, whereas tribal governments must be
the primary beneficiaries of the gaming facilities under this
chapter and the Gaming Compact, and are limited to using their gaming
revenues for various tribal purposes, including tribal government
services and programs such as those that address reservation housing,
elderly care, education, economic development, health care, and
other tribal programs and needs, in conformity with federal law.




98002.  (a) The Governor is authorized to execute on behalf of this
state a Gaming Compact containing the terms set forth in Section
98004, and shall do so as a ministerial act, without preconditions,
within 30 days after receiving a request from a tribe, accompanied by
or in the form of a duly enacted resolution of the tribe's governing
body, to enter into such a compact.
   (b) If any federally recognized tribe having jurisdiction over
Indian lands in California requests that the Governor enter into
negotiations for a Tribal-State compact under federal law, including
but not limited to the Indian Gaming Regulatory Act (25 U.S.C. Sec.
2701 et seq.) (hereafter "IGRA"), on terms different than those
prescribed in the Gaming Compact in Section 98004, the Governor shall
enter into those negotiations pursuant to that federal law and
without preconditions, and is authorized to reach agreement and
execute that compact on behalf of the state, which authority shall
not require action by the Legislature so long as the compact does not
expand the scope of class III gaming permitted under a Gaming
Compact under this chapter, create or confer additional powers on any
agency of this state that are inconsistent with the terms of a
Gaming Compact, or infringe upon the power of the Legislature to
appropriate and authorize the expenditure of funds from the State
Treasury. Any action by the Legislature that expands the scope of
class III gaming permitted in any Tribal-State compact between the
state and a tribe beyond that authorized and permitted in the Gaming
Compact set forth in Section 98004 may not be deemed to be in
conflict with, or prohibited by, this chapter.
   (c) The Governor is authorized and directed to execute, as a
ministerial act on behalf of the state, any additional documents that
may be necessary to implement this chapter or any Tribal-State
compact entered into pursuant to this chapter. In the event that
federal law regarding the process for entry into or approval of
Tribal-State gaming compacts is changed in any way that would require
a change in any procedure under this chapter in order for a
Tribal-State gaming compact to become effective, this chapter shall
be deemed amended to conform to and incorporate that changed federal
law.


98003.  Any state department or agency, or other subdivision of the
state, providing gaming regulatory services to a tribe pursuant to
the terms of this chapter, including a Gaming Compact entered into
hereunder, is authorized to require and receive reimbursement from
the tribe for the actual and reasonable costs of those services in
accordance with a fee schedule to be agreed to by the tribe and the
state that is based on what the state gaming agency reasonably
charges other government agencies for comparable services. Any funds
received from a tribe in reimbursement for those services are hereby
continuously appropriated to that department, agency, or subdivision
for those purposes. Any disputes concerning the reasonableness of any
claim for reimbursement shall be resolved in accordance with the
dispute resolution procedures set forth in the Gaming Compact.



98004.  The State of California hereby offers to any federally
recognized Indian tribe that is recognized by the Secretary of the
Interior as having jurisdiction over Indian lands in California that
are eligible for gaming under IGRA, and any such tribe may request,
and enter into with the state, a Gaming Compact containing the
following terms and conditions:


                           "TRIBAL-STATE GAMING COMPACT

                                   Between the

                            (OFFICIAL NAME OF TRIBE),

                       a federally recognized Indian Tribe,

                                     and the

                                STATE OF CALIFORNIA

   This Tribal-State Gaming Compact is entered into on a
government-to-government basis by and between the (Official Name of
Tribe), a federally recognized sovereign Indian tribe (hereafter
"Tribe"), and the State of California, a sovereign State of the
United States (hereafter "State"), pursuant to the Indian Gaming
Regulatory Act of 1988 (P.L. 100-497, codified at 18 U.S.C. Sec. 1166
et seq. and 25 U.S.C. Sec. 2701 et seq.) (hereafter "IGRA"), and any
successor statute or amendments, and the Tribal Government Gaming
and Economic Self-Sufficiency Act of 1998 (Chapter 1 (commencing with
Section 98000) of Title 16 of the Government Code).

   Section 1.0.  PURPOSES AND OBJECTIVES.  The terms of this Gaming
Compact are designed and intended to:
   (a) Evidence the good will and cooperation of the Tribe and State
in fostering a mutually respectful government-to-government
relationship that will serve the mutual interests of the parties.
   (b) Develop and implement a means of regulating class III gaming
on the Tribe's Indian lands to ensure its fair and honest operation
in accordance with IGRA, and, through that regulated class III
gaming, enable the Tribe to develop self-sufficiency, promote tribal
economic development, and generate jobs and revenues to support the
Tribe's government and governmental services and programs.
   (c) Promote ethical practices in conjunction with that gaming,
through the licensing and control of persons and entities employed
in, or providing goods and services to, the Tribe's gaming operation
and protecting 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 government gaming.
   Sec. 2.0.  DEFINITIONS
   Sec. 2.1.  "Act" means the Tribal Government Gaming and Economic
Self-Sufficiency Act of 1998 (Section 98000 et seq. of the Government
Code).
   Sec. 2.2.  "Applicant" means an individual or entity that applies
for a Tribal license or State certification.
   Sec. 2.3.  "Class III gaming" means the forms of class III gaming
defined as such in 25 U.S.C. Sec. 2703(8) and by regulations of the
National Indian Gaming Commission.
   Sec. 2.4.  "Gaming activities" means the class III gaming
activities authorized under this Gaming Compact.
   Sec. 2.5.  "Gaming Compact" means this compact.
   Sec. 2.6.  "Gaming device" means any electronic,
electromechanical, electrical, or video device that, for
consideration, permits: individual play with or against that device
or the participation in any electronic, electromechanical,
electrical, or video system to which that device is connected; the
playing of games thereon or therewith, including, but not limited to,
the playing of facsimiles of games of chance or skill; the possible
delivery of, or entitlement by the player to, a prize or something of
value as a result of the application of an element of chance; and a
method for viewing the outcome, prize won, and other information
regarding the playing of games thereon or therewith.
   Sec. 2.7.  "Gaming employee" means any person who (a) operates,
maintains, repairs, assists in any gaming activity, or is in any way
responsible for supervising gaming activities or persons who conduct,
operate, account for, or supervise any gaming activity, (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 that are not open to the public. In
defining those categories of persons who are required to be licensed
under tribal gaming law, the Tribe shall consider the inclusion of
persons who are required to be licensed pursuant to state gaming law.
   Sec. 2.8.  "Gaming facility" means any building or room in which
class III gaming activities or gaming operations occur, or in which
the business records, receipts, or other funds of the gaming
operation are maintained (but excluding offsite facilities primarily
dedicated to storage of those records, and financial institutions),
and all rooms, buildings, and areas, including parking lots,
walkways, and means of ingress and egress associated therewith,
provided that nothing herein prevents the conduct of class II gaming
(as defined under IGRA) therein.
   Sec. 2.9.  "Gaming operation" means the business enterprise that
offers and operates gaming activities.
   Sec. 2.10.  "Gaming ordinance" means a tribal ordinance or
resolution duly authorizing the conduct of gaming activities on the
Tribe's Indian lands and approved under IGRA.
   Sec. 2.11.  "Gaming resources" means any goods or services used in
connection with gaming activities, including, but not limited to,
equipment, furniture, gambling devices and ancillary equipment,
implements of gaming activities such as playing cards and dice,
furniture designed primarily for gaming activities, maintenance or
security equipment and services, and gaming consulting services.
"Gaming resources" does not include professional accounting and legal
services.
   Sec. 2.12.  "Gaming resource supplier" means any manufacturer,
distributor, supplier, vendor, lessor, or other purveyor of gaming
resources to the gaming operation or gaming facility, provided that
the Tribal gaming agency may exclude any such purveyor if the subject
equipment or furniture is not specifically designed for, and is
distributed generally for use other than in connection with, gaming
activities.
   Sec. 2.13.  "IGRA" means the Indian Gaming Regulatory Act of 1988
(P.L. 100-497, 18 U.S.C. Sec. 1166 et seq. and 25 U.S.C. Sec. 2701 et
seq.) any amendments and successors thereto, and all regulations
promulgated thereunder.
   Sec. 2.14.  "Management contractor" means any person 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. 2.15.  "Net win" means the wagering revenue from gaming
activities retained by the Tribe after prizes or winnings have been
paid to players or to pools dedicated to the payment of those prizes
and winnings, and prior to the payment of operating or other
expenses.
   Sec. 2.16.  "Players' pool prize system" means one or more
segregated pools of funds that have been collected from player
wagers, that are irrevocably dedicated to the prospective award of
prizes in authorized gaming activities, and in which the house
neither has nor can acquire any interest. The Tribe may set and
collect a fee from players on a per play, per amount wagered, or
time-period basis, and may seed the player pools in the form of loans
or promotional expenses, provided that seeding is not used to pay
prizes previously won.
   Sec. 2.17.  "State" means the State of California.
   Sec. 2.18.  "State gaming agency" means the person, agency, board,
commission, or official that the State duly authorizes to fulfill
the functions assigned to it under this Gaming Compact. As of the
effective date of this Act, this agency is the entity or entities
authorized to investigate, approve, and regulate gaming licenses
pursuant to the Gambling Control Act (Chapter 5 (commencing with
Section 19800) of Division 8 of the Business and Professions Code) or
its successors. In the event no agency is authorized to conduct this
function, the State shall designate such an agency by statute. If
the State fails to designate an agency authorized to investigate,
approve, and regulate gaming licenses, any function assigned to the
State gaming agency in this Gaming Compact shall be assumed by the
Tribal gaming agency until the State so designates an agency as
provided herein.
   Sec. 2.19.  "Tribal Chairperson" means the person duly elected or
selected under the Tribe's organic documents, customs, or traditions
to serve as the primary spokesperson for the Tribe.
   Sec. 2.20.  "Tribal gaming agency" means the person, agency,
board, committee, commission, or council designated under tribal law,
including, but not limited to, an intertribal gaming regulatory
agency approved to fulfill those functions by the National Indian
Gaming Commission, as primarily responsible for carrying out the
Tribe's regulatory responsibilities under IGRA and the Tribal 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. 2.21.  "Tribal gaming terminal" means a gaming device that
does not dispense coins or currency and is not activated by a handle.
   Sec. 2.22.  "Tribe" means the Ýofficial name of Tribe], a
federally recognized Indian tribe.
   Sec. 3.0.  CLASS III GAMING AUTHORIZED AND PERMITTED.  The Tribe
is hereby authorized and permitted to engage in the gaming activities
expressly referred to in Section 4.0.
   Sec. 4.0.  SCOPE OF CLASS III GAMING
   Sec. 4.1.  Authorized and Permitted Class III Gaming.  To the
extent regarded as forms or types of class III gaming, the Tribe is
hereby authorized and permitted to operate the following gaming
activities under the terms and conditions set forth in this Gaming
Compact:
   (a) The operation of Tribal gaming terminals, provided that such
devices shall meet the technical standards adopted pursuant to
Section 8.1.15 and shall pay prizes solely in accordance with a
players' pool prize system.
   (b) The operation of any card games that were actually operated in
any tribal gaming facility in California on or before January 1,
1998, and are not within class II of IGRA (which class II games are
not affected by this Gaming Compact), provided that such non-class II
card games shall pay prizes solely in accordance with a players'
pool prize system.
   (c) The operation of any lottery game, including, but not limited
to, drawings, raffles, match games, and instant lottery ticket games.
   (d) The simulcasting and offering of off-track betting on horse
races, if offered in accordance with the terms and conditions of the
Tribal-State compact between the State and the Sycuan Band of Mission
Indians that existed on March 31, 1997 ("Sycuan compact"), the terms
of which shall be adjusted for northern California racing if
required by the geographic location of the Tribe, and which compact
is hereby incorporated by reference on the effective date of this
Gaming Compact, unless the Tribe elects to adopt the provisions of an
existing compact pursuant to the next sentence. If the Tribe and the
State have already entered into a compact governing off-track
wagering, that compact, at the Tribe's option, may continue in full
force and effect as the off-track wagering provisions intended by
this section, or the Sycuan compact terms and conditions may be
substituted therefor. The Tribe may notify the State, at the time the
notice under Section 98002 of the Act is given, or at any later date
as the Tribe may deem appropriate, of its election with regard to
which off-track wagering compact it has elected to incorporate
herein. With regard to any Tribal-State compact governing off-track
wagering, including this Gaming Compact, if the State lacks
jurisdiction under federal law to collect a license fee or other
charge on wagers placed at a tribal facility, which fee or charge
would ordinarily be collected on wagers at nontribal facilities, an
amount equal to that fee or charge shall be deducted from any
off-track wagers made at the Tribe's facility and shall be
distributed to the Tribe.
   Sec. 4.2.  Authorized Gaming Facilities.  The Tribe may establish
and operate gaming facilities in which the gaming activities
authorized under this Gaming Compact may be conducted, provided that
the facilities are located on Indian lands within California over
which the Tribe has jurisdiction, and qualify under federal law as
lands upon which gaming can lawfully be conducted. The Tribe may
combine and operate in those gaming facilities any forms and kinds of
gaming permitted under law, except to the extent limited under IGRA
or the Tribe's gaming ordinance.
   Sec. 5.0.  TRIBAL, STATE, AND LOCAL TRUST FUNDS
   Sec. 5.1.  Conditional Obligation to Contribute to Trust Funds;
Contribution Formula.  (a) The parties acknowledge that the operation
of Tribal gaming terminals authorized under this Gaming Compact is
expected to occupy a unique place in gaming within the State that is
material to the ability of the Tribe and other tribal governments
operating under similar compacts to achieve the economic development
and other goals intended by IGRA. The Tribe therefore agrees to make
the contributions to the trust funds described in Sections 5.2, 5.3,
and 5.4, only for as long as it and other tribes that have entered
into Gaming Compacts are not deprived of that unique opportunity.
Accordingly, in the event that any other person or entity, including,
but not limited to, the California State Lottery, lawfully operates
gaming devices within the State at any time after January 2, 1998,
any and all obligations by the Tribe to make the trust fund
contributions required under Sections 5.2, 5.3, and 5.4 shall
immediately and permanently cease and terminate. For the purposes of
this section only, no equipment or type of game played thereon or
therewith that was offered by the California State Lottery or any
race track in California prior to January 2, 1998, may be deemed to
cause the cessation and termination of those trust fund
contributions.
   (b) The contributions due under Sections 5.2, 5.3, and 5.4 shall
be determined and made on a calendar quarter basis, by first
determining the total number of all Tribal gaming terminals operated
by a Tribe during a given quarter ("Quarterly Terminal Base").
Notwithstanding anything in this Section 5.0 to the contrary, the
Tribe shall have no obligation to make any contribution to any trust
fund on the net win derived from the first 200 terminals in the
Quarterly Terminal Base; shall contribute at one-half of the
percentage rates specified in Sections 5.2, 5.3, and 5.4 on the net
win derived from the next 200 terminals in the Quarterly Terminal
Base; and shall contribute at the full percentage rates specified in
the above sections on the net win derived from any additional
terminals in the Quarterly Terminal Base. In making those
computations, the total net win from all terminals in the Quarterly
Terminal Base during a given quarter shall be included and evenly
divided among all such terminals ("Average Terminal Net Win"),
regardless of the actual performance or net win of any particular
terminal. The Average Terminal Net Win shall be used as the basis for
calculating the foregoing exclusions or reductions that are based on
the number of terminals in the Quarterly Terminal Base.
   Sec. 5.2.  Nongaming Tribal Assistance Fund.
   Sec. 5.2.1.  The Tribe shall participate in a trust fund with all
other tribes, if any, that enter into Gaming Compacts under Section
98004 of the Act, into which it shall deposit 2 percent of its net
win from Tribal gaming terminals each calendar quarter. The trust
fund shall be distributed on an equitable basis for education,
economic development, cultural preservation, health care, and other
tribal purposes to federally recognized tribes located in California
that have not participated in any form of gaming within the 12-month
period preceding the anticipated receipt of such trust funds.
   Sec. 5.2.2.  The trust shall have a board of 12 trustees,
consisting of one representative from each of three federally
recognized tribes in each federal judicial district in California,
elected by nomination as set forth below and majority vote of those
tribal representatives attending a meeting at which all federally
recognized tribes in the district have been given at least 15 days'
written notice to attend. Each such tribe shall have one vote. The
State shall assist the trust fund in assuring that adequate notice is
given to all tribes who are to be represented at the meeting. Two of
the trustees from each district shall consist of representatives of
tribes in the district that have entered into Gaming Compacts under
the Act, and one trustee shall be from a nongaming tribe. If there
are no tribes that fit into one category, the trustee positions shall
be filled by the other category of tribes. Gaming tribes shall
nominate and elect the gaming tribe representatives, and nongaming
tribes shall nominate and elect the nongaming tribe representative.
Trustees shall serve for two-year terms, and shall receive
reimbursement for reasonable costs actually incurred to attend
meetings and serve as a trustee that have been approved by the board
of trustees.
   Sec. 5.2.3.  All contributions to the fund shall be combined on a
statewide basis and shall be distributed from the trust fund on a
quarterly basis statewide in accordance with a fair and equitable
formula established by the trustees by majority vote. All moneys in
the trust fund shall be distributed annually, less reasonable costs
of administering the trust fund, which may not exceed 5 percent of
the moneys contributed to the trust fund in each year, and pursuant
to a budget approved by the board of trustees.
   Sec. 5.2.4.  The first meeting of the trustees shall take place
within the earlier of 60 days after at least three Gaming Compacts
have become effective in the applicable federal judicial district, or
six months following the effective date of the first Gaming Compact
in that district. Distributions that are due from the Tribe prior to
the formal creation of the trust fund specified herein shall be held
in trust by the Tribe for such purposes.
   Sec. 5.2.5.  Contributions to the fund from the Tribe shall be
made on the 15th day of the month following the close of the second
calendar quarter in which this Gaming Compact has been in effect,
based on the net win in the first calendar quarter of operations
under the Gaming Compact derived from all Tribal gaming terminals in
the Quarterly Terminal Base, and on the 15th day of the month
following the close of each calendar quarter thereafter (July 15,
October 15, January 15, and April 15; hereafter "contribution dates")
based on the second preceding calendar quarter net win. For example,
if this Gaming Compact becomes effective on October 10, the first
contribution will be due on April 15, based on the total net win from
Tribal gaming terminals in the Quarterly Terminal Base for the
calendar quarter ending December 31. The next contribution date will
be July 15, for the quarter ending March 31, and so forth.
   Sec. 5.3.  Statewide Trust Fund.
   Sec. 5.3.1.  The Tribe shall participate in a trust fund with the
other Gaming Compact tribes, if any, into which it shall deposit, on
a quarterly basis on each contribution date, an amount equal to 3
percent of the net win from the Tribal gaming terminals in the
Quarterly Terminal Base. Except as otherwise provided herein, the
creation of the trust, board of trustees, and method for making
contributions and distributions shall be identical to the manner in
which contributions are made, trust funds are distributed, and the
board of trustees is created and administered under Section 5.2,
provided that nongaming tribes may not be represented or vote for
trustees on the board.
   Sec. 5.3.2.  For each quarter, the board of trustees shall
determine, based on a formula, established with the approval of the
State, that takes into account the population, ratio, and emergency
medical needs of persons over 55 years of age in each county, a
method for distributing annually all funds in the trust, except for
reasonable administrative expenses (including said trustee costs) not
to exceed 5 percent of the amounts contributed to the trust fund in
each year, and pursuant to a budget approved by the board of
trustees. The funds in trust shall be used solely to supplement
emergency medical care resources within each county, including, but
not limited to, those provided by any federally recognized tribes
within the county, provided that, without increasing said 3 percent
amount, one-half of 1 percent of the net win on which said
contribution is based shall be used to establish or supplement
programs within the county that address compulsive and addictive
gambling.
   Sec. 5.4.  Local Benefits Grant Fund.
   Sec. 5.4.1.  The Tribe shall establish a trust fund into which it
shall deposit, on a quarterly basis on each contribution date, an
amount equal to 1 percent of the net win from Tribal gaming terminals
in the Tribe's gaming operation.
   Sec. 5.4.2.  Within 60 days after commencing operations under this
Gaming Compact, the Tribe shall invite discussion, on a
government-to-government basis, with governmental representatives of
any city or county within the boundaries of which the Tribe's gaming
facilities are located. Those discussions shall address community
needs that could be met by grants of funds from the trust to any such
cities and counties. Any federally recognized tribes within the
county that are also providing services to meet those community needs
shall also be included in those discussions and shall be eligible
for those grants. The procedure and criteria for receiving such funds
shall be submitted in writing to, and approved by, a committee
comprised of representatives of each of the eligible local community
and tribal governments and the Tribe. The Tribe shall distribute
annually all of such trust funds, less reasonable administrative
costs of no more than 5 percent, in accordance with a distribution
plan agreed upon by the committee that is fair and equitable. Funds
not distributed in any year despite good faith efforts to do so shall
be carried over to the following year.
   Sec. 6.0.  REGULATION OF GAMING
   Sec. 6.1.  Tribal Gaming Ordinance.  All gaming activities
conducted under this Gaming Compact shall at a minimum comply with a
Tribal gaming ordinance duly adopted by the Tribe and approved in
accordance with IGRA.
   Sec. 6.2.  Tribal Ownership, Management, and Control of Gaming
Facility and Gaming Operation.  All gaming operations and facilities
authorized under this Gaming Compact shall be owned solely by the
Tribe. The parties acknowledge that most tribal gaming operations and
facilities within the State presently are controlled and conducted
solely by a tribe, and that a goal of the Act is to enable all tribes
to control and conduct their own gaming operations and facilities,
provide tribal job training and employment, and achieve tribal
self-sufficiency. Therefore, although the Tribe shall be entitled to
contract for the management of the gaming facility and operation in
accordance with IGRA, any such management contract shall provide
that, to the extent permitted by law, members of the Tribe will be
trained for and advanced to key management positions, and that a goal
of the management contractor is to prepare the Tribe to assume the
control and conduct of the operation and facility.
   Sec. 6.3.  Prohibition Regarding Minors.  Tribal gaming facilities
operated pursuant to this Gaming Compact shall be subject to the
same minimum-age restrictions for patrons that currently apply to the
California State Lottery. If alcoholic beverages are served in any
area of a Tribal gaming facility operated pursuant to this Gaming
Compact, prohibitions regarding age limits in that area shall be
governed by applicable law.
   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 facility who are required
to be licensed under IGRA and any others required to be licensed
under this Gaming Compact, including, but not limited to, all gaming
employees and gaming resource suppliers, must be licensed by the
Tribal gaming agency. The Tribal gaming agency shall have the primary
responsibility for licensing those persons and entities and for the
regulation of the gaming operation and facility. The Tribal gaming
agency shall also certify, through the use of experts and with
participation by the State gaming agency if it so desires, that the
gaming facility and any construction to be undertaken in regard
thereto meet specified building and safety standards. The State
gaming agency shall be provided with licensing application
information and reports regarding facility inspections and
compliance. The State gaming agency may review that information and
object or refrain from objecting thereto. In the event that the State
gaming agency fails to object to a gaming license application within
90 days after receipt of that information and notification that the
Tribal gaming agency intends to issue a temporary or permanent
license, the State gaming agency is deemed to have certified that it
has no objection to that issuance, but the State gaming agency shall
be free at any time to revoke that certification, or to request the
Tribal gaming agency to suspend or revoke a gaming license. The
dispute resolution processes between the State and the Tribe provided
for herein shall be available to resolve disputes between the Tribe
and the State regarding such requests and building and safety
certifications. The parties intend that the licensing process
provided for in this Gaming 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 Gaming Compact shall be licensed by the Tribal gaming agency
in conformity with the requirements of this Gaming Compact, the
Tribal gaming ordinance, and IGRA. The license shall be reviewed and
renewed, if appropriate, every two years thereafter. Verification
that this requirement has been met shall be provided to the State
gaming agency. The Tribal gaming agency's certification to that
effect shall be posted in a conspicuous and public place in the
gaming facility at all times.

                                                (b) In order to
protect the health and safety of all gaming facility patrons, guests,
and employees, all gaming facilities of the Tribe constructed after
the effective date of this Gaming Compact shall meet the building and
safety codes of the Tribe, which, as a condition for engaging in
that construction, shall amend its existing building and safety codes
if necessary, or enact such codes if there are none, so that they
meet the standards of either the building and safety codes of any
county within the boundaries of which the site of the facility is
located, or the Uniform Building Codes, including all uniform fire,
plumbing, electrical, mechanical, and related codes then in effect,
provided that nothing herein shall be deemed to confer jurisdiction
upon any county or the State with respect to any reference to such
building and safety codes.
   (c) Any gaming facility in which gaming authorized by this Gaming
Compact is conducted shall be licensed by the Tribal gaming agency
prior to occupancy if it was not used for any gaming activities under
IGRA prior to the effective date of this Gaming Compact, or, if it
was so used, within one year thereafter. The issuance of this license
shall be reviewed and renewed every two years thereafter.
Inspections by qualified building and safety experts shall be
conducted under the direction of the Tribal gaming agency as the
basis for issuing or renewing any license hereunder. The Tribal
gaming agency shall determine and certify that, as to new
construction or new use for gaming, the facility meets the Tribe's
building and safety code, or, as to facilities or portions of
facilities that were used for the Tribe's gaming activities prior to
this Gaming Compact, that the facility or portions thereof do not
endanger the health or safety of occupants or the integrity of the
gaming operation.
   (d) The State gaming agency shall be given at least 30 days'
notice of each inspection by those experts, and, after 10 days'
notice to the Tribe, may accompany any such inspection. The Tribe
agrees to correct any facility condition noted in an inspection that
does not meet the standards set forth in subdivision (b). The Tribal
gaming agency and State gaming agency shall exchange any reports of
an inspection within 10 days after its completion, which reports
shall also be separately and simultaneously forwarded by both
agencies to the Tribal Chairperson. Upon certification by those
experts that a facility meets applicable standards, the Tribal gaming
agency shall forward the experts' certification to the State within
10 days of issuance. If the State objects to that certification, the
Tribe shall make a good faith effort to address the State's concerns,
but if the State does not withdraw its objection, the matter will be
resolved in accordance with the dispute resolution provisions of
Section 9.0.
   Sec. 6.4.3.  Suitability Standard Regarding Gaming Licenses.  In
reviewing an application for a gaming license, and in addition to any
standards set forth in the Tribal 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
operations, or tribal government gaming generally, are free from
criminal and dishonest elements and would be conducted honestly. A
license may not be issued unless, based on all information and
documents submitted, the Tribal gaming agency is satisfied that the
applicant is all of the following, in addition to any other criteria
in IGRA or the Tribal gaming ordinance:
   (a) A person of good character, honesty, and integrity.
   (b) A person whose 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
gambling, or create or enhance the dangers of unsuitable, unfair, or
illegal practices, methods, or activities in the conduct of gambling
or in the carrying on of the business and financial arrangements
incidental thereto.
   (c) A person who is in all other respects qualified to be licensed
as provided in this Gaming Compact, IGRA, the Tribal gaming
ordinance, and any other criteria adopted by the Tribal gaming agency
or the Tribe, provided that any applicant who supplied services or
equipment to a tribal gaming operation prior to the effective date of
this Act, such as, but not limited to, a person who would be deemed
to be a gaming employee or gaming resource supplier under this Gaming
Compact, or any person who may have been deemed to have violated a
law in the exercise of or protection of a tribe's sovereignty rights
in connection with fishing, hunting, protection of burial grounds,
repatriation of remains or artifacts, or gaming, may not, for that
reason, be deemed unsuitable. Nothing herein may be deemed to exempt
any such applicant from otherwise qualifying for licensing or
certification under this Gaming Compact.
   Sec. 6.4.4.  Gaming Employees.  Every gaming employee shall
obtain, and thereafter maintain, a valid Tribal gaming license, which
shall be subject to biannual 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.
   Sec. 6.4.5.  Gaming Resource Supplier.  Any gaming resource
supplier who provides, has provided, or is deemed likely to provide
at least twenty-five thousand dollars ($25,000) in gaming resources
in any 12-month period shall be licensed by the Tribal gaming agency
prior to the sale, lease, or distribution, or further sale, lease, or
distribution, of any such gaming resources to or in connection with
the Tribe's operation or facility. These licenses shall be renewed at
least every two years.
   Sec. 6.4.6.  Financial Sources.  Any party extending financing,
directly or indirectly, to the Tribe's gaming facility or gaming
operation shall be licensed by the Tribal gaming agency prior to
extending that financing. Licensing shall be effective for no more
than two years before a renewal must be obtained, provided that, if a
lender's gaming license is revoked or not renewed, reasonable
arrangements may be made with regard to payment of any balance due to
that lender so as to not impose undue hardship on the Tribe,
provided that reasonable attempts shall be made to avoid ongoing
conflicts with any licensing standard herein. A gaming resource
supplier who provides financing in connection with the sale or lease
of gaming resources obtained from that supplier may be licensed
solely in accordance with licensing procedures applicable, if at all,
to gaming resource suppliers. The Tribal gaming agency may, at its
discretion, exclude, from the licensing requirements of this section,
financing provided by a federally regulated or state-regulated bank,
savings and loan, or other lending institution, a federally
recognized tribal government or tribal entity thereof, or any agency
of the federal, state, or local government.
   Sec. 6.4.7.  Processing Tribal Gaming License Applications.  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. At a minimum, the Tribal gaming
agency shall require submission and consideration of all information
required under IGRA, including Section 556.4 of Title 25 of the Code
of Federal Regulations, for licensing primary management officials
and key employees. For applicants who are business entities, these
licensing provisions shall apply to the entity as well as: (i) each
of its officers and directors; (ii) each of its principal management
employees, including any chief executive officer, chief financial
officer, chief operating officer, or general manager; (iii) each of
its owners or partners, if an unincorporated business; (iv) each of
its shareholders who owns more than 10 percent of the shares of the
corporation, if a corporation; and (v) each person or entity (other
than a financial institution that the Tribal gaming agency has
determined does not require a license under the preceding section)
that has provided financing in connection with any gaming authorized
under this Gaming Compact, if that person or entity provided more
than 10 percent of (a) the start-up capital, (b) the operating
capital over a 12-month period, or (c) a combination thereof. For
purposes of this section, where there is any commonality of the
characteristics identified in clauses (i) to (iv), inclusive, between
any two or more entities, those entities may be deemed to be a
single entity. Nothing herein precludes the Tribe or Tribal gaming
agency from requiring more stringent licensing requirements.
   Sec. 6.4.8.  Background Investigations of Applicants.  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 standards set
forth in Section 6.4.3, and to fulfill all requirements for licensing
under IGRA, the Tribal gaming ordinance, and this Gaming Compact.
The Tribal gaming agency may not issue a license until a
determination is made that those qualifications have been met. In
lieu of completing its own background investigation, and to the
extent that doing so does not conflict with or violate IGRA and the
Tribal gaming ordinance, the Tribal gaming agency may rely on a State
certification of nonobjection previously issued under a Gaming
Compact involving another tribe, or a State gaming license previously
issued to the applicant, to fulfill some or all of the Tribal gaming
agency's background investigation obligation. 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 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.
   Sec. 6.4.9.  Temporary Licensing.  Notwithstanding anything herein
to the contrary, 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 license or cause a
reasonable person to investigate further before issuing a license, or
is otherwise unsuitable for licensing, the Tribal gaming agency may
issue a temporary 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. Special fees may be required by the Tribal gaming
agency to issue or maintain a temporary license. A temporary license
shall remain in effect until suspended or revoked, or a final
determination is made on the application. At any time after issuance
of a temporary license, the Tribal gaming agency may suspend or
revoke it in accordance with Sections 6.5.1 and 6.5.5, and the State
gaming agency may request suspension or revocation in accordance with
subdivision (d) of Section 6.5.6.
   Sec. 6.5.  Gaming License Issuance.  Upon completion of the
necessary background investigation (including any reliance in whole
or in part on a State certification of nonobjection, or a State
gaming license under Section 6.4.8), receipt and review of such
further information as the Tribal gaming agency may require, and as
to applicants who are not Tribal members, actual or constructive
receipt by the Tribal gaming agency of a certificate of nonobjection
by the State gaming agency, and payment of all necessary fees by the
applicant, the Tribal gaming agency may issue a 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 license itself, both of which shall be considered
to be privileges granted to the applicant in the sole discretion of
the Tribal gaming agency.
   Sec. 6.5.1.  Denial, Suspension, or Revocation of Licenses.  Any
application for a 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, the applicant is
determined to be unsuitable or otherwise unqualified for a gaming
license, or the State objects to the issuance of that license
pursuant to subdivision (c) of Section 6.5.6. Pending consideration
of revocation, the Tribal gaming agency may suspend a license in
accordance with Section 6.5.5. All rights to notice and hearing shall
be governed by Tribal law, as to which the applicant will be
notified in writing along with notice of an intent to suspend or
revoke the license.
   Sec. 6.5.2.  Renewal of Licenses; Extensions; Further
Investigation.  In the event a licensee has applied for renewal prior
to expiration of a license and the Tribal gaming agency has, through
no fault of the applicant, been unable to complete the renewal
process prior to that expiration, the license shall be deemed to be
automatically extended until formal action has been taken on the
renewal application or a suspension or revocation has occurred.
Applicants for renewal of a license shall provide updated material as
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 that 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.
   Sec. 6.5.3.  Identification Cards.  The Tribal gaming agency shall
require that all persons who are required to be licensed shall wear,
in plain view at all times while in the gaming facility,
identification badges issued by the Tribal gaming agency.
Identification badges must include information including, but not
limited to, a photograph and an identification number, which is
sufficient to enable agents of the Tribal gaming agency to readily
identify the employees and determine the validity and date of
expiration of their license.
   Sec. 6.5.4.  Fees for Tribal License.  The fees for all tribal
licenses shall be set by the Tribal gaming agency.
   Sec. 6.5.5.  Suspension of Tribal License.  The Tribal gaming
agency may summarily suspend the license of any employee if the
Tribal gaming agency determines that the continued licensing of the
person or entity could constitute a threat to the public health or
safety or may be in violation of the Tribe's licensing standards. Any
right to notice or hearing in regard thereto shall be governed by
Tribal law.
   Sec. 6.5.6.  State Certification Process.  (a) Except for enrolled
members of a federally recognized California tribe, who shall be
licensed exclusively by the Tribe, upon receipt of a completed
license application and a determination by the Tribal gaming agency
that it intends to issue the earlier of a temporary or permanent
license, the Tribal gaming agency shall transmit to the State gaming
agency a copy of all Tribal license application materials together
with a set of fingerprint cards, a current photograph, and such
releases of information, waivers, and other completed and executed
forms as have been obtained by the Tribal gaming agency, unless the
State gaming agency waives some or all of those submissions, together
with a notice of intent to license that applicant. Additional
information may be required by the State gaming agency to assist it
in its background investigation, provided that such State gaming
agency requirement shall be no greater than that which is typically
required of applicants for a State gaming license in connection with
nontribal gaming activities and at a similar level of participation
or employment. The State gaming agency and the Tribal gaming agency
(together with Tribal gaming agencies under other Gaming Compacts)
shall cooperate in developing standard licensing forms for Tribal
gaming license applicants, on a statewide basis, that reduce or
eliminate duplicative or excessive paperwork, which forms and
procedures shall take into account the Tribe's requirements under
IGRA and the expense thereof.
   (b) Temporary License Objection.  The State gaming agency shall
notify the Tribal gaming agency as promptly as possible if it has an
objection to the issuance of a temporary license, but the Tribal
gaming agency may not be required to await objection or nonobjection
by the State gaming agency in issuing a temporary license. Any
objection shall be made in good faith, and shall be given prompt and
thorough consideration in good faith by the Tribal gaming agency.
Nothing herein prevents the State gaming agency from at any time
requesting suspension or revocation of a temporary license pursuant
to subdivision (d) of Section 6.5.6. Any dispute over the issuance of
a temporary license shall be resolved in accordance with the
procedures set forth in Section 9.0.
   (c) Background Investigations of Applicants.  Upon receipt of
completed license application information from the Tribal gaming
agency, the State gaming agency may conduct a background
investigation to determine whether the applicant is suitable to be
licensed in accordance with the standards set forth in Section 6.4.3.
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. 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 no objection to the issuance of a license to the
applicant by the Tribal gaming agency ("certification of nonobjection"
), or that it objects to that issuance. If notice of objection is
given, a statement setting forth the grounds for the objection shall
be forwarded to the Tribal gaming agency together with the
information upon which the objection was based, unless doing so would
violate a confidentiality agreement or compromise a pending criminal
investigation. If a notice of objection or a certificate of
nonobjection is not received by the Tribal gaming agency within 90
days of the first receipt by the State gaming agency of the
application information and intent to issue a temporary or permanent
license, as provided herein, the State gaming agency shall be deemed
to have issued a certificate of nonobjection.
   (d) Grounds for Requesting Tribal License Revocation or Suspension
or Denying State Certification of Nonobjection.  The State gaming
agency may revoke a State certification of nonobjection if it
determines at any time that the applicant or license holder does not
meet the standards for suitability set forth in Section 6.4.3. Upon
the Tribal gaming agency's receipt of notice of that action, it shall
immediately and in good faith consider the action of the State
gaming agency and, if the circumstances warrant it, take action to
suspend or revoke the licensee's Tribal license, unless within seven
days of receipt of that notice it has notified the State gaming
agency that good cause exists to defer taking that action, including
the need for further investigation. Disputes regarding the action
taken or not taken in response to the State gaming agency request
shall be resolved pursuant to Section 9.0. If at any time the State
gaming agency becomes aware of information that would constitute good
cause to deny or revoke the Tribal license of any person, including
members of federally recognized Indian tribes in California who are
exempt from the State review process, it shall convey that
information to the Tribal gaming agency promptly after being made
aware of that information, and may request that appropriate action be
taken by the Tribal gaming agency as to that person.
   Sec. 6.5.  Licenses Required.  A person may not be employed by, or
act as a gaming resource supplier to, any gaming activity or
facility of the Tribe unless that person, if required to be licensed,
has obtained all licenses required hereunder.
   Sec. 7.0.  TRIBAL ENFORCEMENT OF GAMING COMPACT PROVISIONS
   Sec. 7.1.  On-Site Regulation.  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 Gaming Compact, IGRA, and the
Tribal gaming ordinance with respect to gaming operation and facility
compliance, and to protect the integrity of the gaming activities,
the reputation of the Tribe and the gaming operation for honesty and
fairness, and the confidence of patrons that tribal government gaming
in California meets the highest standards of regulation and internal
controls. To meet those responsibilities, the Tribal gaming agency
shall adopt regulations, procedures, and practices as set forth
herein.
   Sec. 7.2.  Investigation and Sanctions.  The Tribal gaming agency
shall investigate any reported violation of this Gaming Compact and
shall require the gaming operation to correct the violation upon such
terms and conditions as the Tribal gaming agency determines are
necessary. The Tribal gaming agency shall be empowered by the Tribal
ordinance to impose fines or other sanctions within the jurisdiction
of the Tribe against gaming licensees or other persons who interfere
with or violate the Tribe's gaming regulatory requirements and
obligations under IGRA, the Tribal gaming ordinance, or this Gaming
Compact. The Tribal gaming agency shall report continued violations
or failures to comply with its orders to the State gaming agency,
provided that the continued violations and compliance failures have
first been reported to the Tribe and no corrective action has been
taken within a reasonable period of time.
   Sec. 7.3.  Assistance by State Gaming Agency.  If requested by the
Tribal gaming agency, the State gaming agency shall assist in any
investigation initiated by the Tribal gaming agency and provide other
requested services to ensure proper compliance with this Gaming
Compact. The State shall be reimbursed for its reasonable costs of
that assistance provided that it has received approval from the Tribe
in advance for those expenditures.
   Sec. 7.4.  Access to Premises by State Gaming Agency;
Notification; Inspections.  Notwithstanding that the Tribe has the
primary responsibility to administer and enforce the regulatory
requirements, the State gaming agency shall have the right to inspect
the Tribe's gaming facilities with respect to class III gaming
activities only, and all gaming operation or facility records
relating thereto, subject to the following conditions:
   Sec. 7.4.1.  Inspection of public areas of a gaming facility may
be made at any time without prior notice during normal gaming
facility business hours.
   Sec. 7.4.2.  Inspection of private areas of a gaming facility not
accessible to the public may be made at any time during normal gaming
facility business hours, immediately after the State gaming agency's
authorized inspector notifies the Tribal gaming agency and gaming
facility management of his or her presence on the premises, presents
proper identification, and requests access to the nonpublic areas of
the gaming facility. The Tribal gaming agency, in its sole
discretion, may require an employee of the gaming facility or the
Tribal gaming agency to accompany the State gaming agency inspector
at all times that the State gaming agency inspector is on the
premises of a gaming facility. If the Tribal gaming agency imposes
such a requirement, it shall require such an employee of the gaming
facility or the Tribal gaming agency to be available at all times for
those purposes.
   Sec. 7.4.3.  Inspection and copying of gaming operation records
may occur at any time, immediately after notice to the Tribal gaming
agency, during the normal hours of the facility's business office,
provided that the inspection and copying of those records may not
interfere with the normal functioning of the gaming operation or
facility. Notwithstanding any other provision of the law of this
State, all information and records, and copies thereof, that the
State gaming agency obtains, inspects, or copies pursuant to this
Gaming Compact shall be and remain the property solely of the Tribe,
and may not be released or divulged for any purpose without the Tribe'
s prior written consent, except that the production of those records
may be compelled by subpoena in a criminal prosecution or in a
proceeding for violation of this Gaming Compact without the Tribe's
prior written consent, and provided further that, prior to the
disclosure of the contents of any such records, the Tribe shall be
given at least 10 court days' notice and an opportunity to object or
to require the redaction of trade secrets or other confidential
information that is not relevant to the proceeding in which the
records are to be produced.
   Sec. 7.4.4.  Whenever a representative of the State gaming agency
enters the premises of the gaming facility for any such inspection,
that representative shall immediately identify himself or herself to
security or supervisory personnel of the gaming facility.
   Sec. 7.4.5.  Any person associated with the State gaming agency
who is expected to have access to nonpublic areas of the gaming
facility shall first be identified to the Tribal gaming agency as so
authorized, and following a sufficient period of time for the Tribal
gaming agency to conduct a reasonable inquiry into the person's
character and background, and to grant approval to that person's
presence, which approval may not be unreasonably withheld.
   Sec. 8.0.  RULES AND REGULATIONS FOR THE OPERATION AND MANAGEMENT
OF THE TRIBAL GAMING OPERATION
   Sec. 8.1.  Adoption of Regulations for Operation and Management;
Minimum Standards.  In order to meet the goals set forth in this
Gaming Compact and required of the Tribe by law, the Tribal gaming
agency shall be vested with the authority

                          to promulgate, at a minimum, rules and
regulations governing the following subjects, and to ensure their
enforcement in an effective manner:
   Sec. 8.1.1.  The enforcement of all relevant laws and rules with
respect to the gaming operation and facility, and the power to
conduct investigations and hearings with respect thereto and to any
other subject within its jurisdiction.
   Sec. 8.1.2.  The physical safety of gaming operation patrons,
employees, and any other person while in the gaming facility.
   Sec. 8.1.3.  The physical safeguarding of assets transported to,
within, and from the gaming facility.
   Sec. 8.1.4.  The prevention of illegal activity from occurring
within the facility or with regard to the gaming operation,
including, but not limited to, the maintenance of employee procedures
and a surveillance system as provided below.
   Sec. 8.1.5.  The detention of persons who may be involved in
illegal acts for the purpose of notifying appropriate law enforcement
authorities.
   Sec. 8.1.6.  The recording of any and all occurrences within the
gaming facility that deviate from normal operating policies and
procedures (hereafter "incidents"). The procedure for recording
incidents shall (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 (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.
   Sec. 8.1.7.  The establishment of employee procedures designed to
permit detection of any irregularities, theft, cheating, fraud, or
the like.
   Sec. 8.1.8.  Maintenance of a list of persons barred 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 gaming within the State.
   Sec. 8.1.9.  The conduct of an audit of the gaming operation, not
less than annually, by an independent certified public accountant, in
accordance with the auditing and accounting standards for audits of
casinos of the American Institute of Certified Public Accountants.
   Sec. 8.1.10.  Submission to and prior approval from the Tribal
gaming agency of the rules and regulations of each class III game to
be operated by the Tribe, and of any changes in those rules and
regulations. No class III game may be played that has not received
Tribal gaming agency approval.
   Sec. 8.1.11.  Maintenance of a copy of the rules, regulations, and
procedures for each game as presently played, including, but not
limited to, the method of play and the odds and method of determining
amounts paid to winners. Information regarding the method of play,
odds, payoff determinations, and player pool balances shall be
visibly displayed or available to patrons in written form in the
gaming facility. Betting limits applicable to any gaming station
shall be displayed at that gaming station. In the event of a patron
dispute over the application of any gaming rule or regulation, the
matter shall be handled in accordance with the Tribal gaming
ordinance and any rules and regulations promulgated by the Tribal
gaming agency.
   Sec. 8.1.12.  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, and any modifications thereof first
shall be approved by the Tribal gaming agency.
   Sec. 8.1.13.  Maintenance of a cashier's cage in accordance with
industry standards for such facilities.
   Sec. 8.1.14.   A description of minimum staff and supervisory
requirements for each gaming activity to be conducted.
   Sec. 8.1.15.  Regulations specific to technical standards for the
operation of Tribal gaming terminals and other games authorized
herein to be adopted by the Tribe, which technical specifications may
be no less stringent than those approved by a recognized gaming
testing laboratory in the gaming industry.
   Sec. 8.2.  Criminal Jurisdiction.  Nothing in this Gaming Compact
affects the criminal jurisdiction of the State under Public Law 280
(18 U.S.C. Sec. 1162) or IGRA, to the extent applicable, provided
that no gaming activity conducted in compliance with this Gaming
Compact and the Act may be deemed to be a civil or criminal violation
of any law of the State. Except as otherwise provided herein, to the
extent the State contends that a violation of this Gaming Compact or
any law of the State regarding the regulation or conduct of gambling
has occurred at or in relation to the Tribe's gaming operation or
facility, the violation shall be treated solely as a civil matter to
be resolved pursuant to Section 9.0.
   Sec. 9.0.  DISPUTE RESOLUTION PROVISIONS
   Sec. 9.1.  Voluntary Resolution; Reference to Other Means of
Resolution.  In recognition of the government-to-government
relationship of the Tribe and the State, the parties shall make their
best efforts to resolve disputes that occur under this Gaming
Compact by good faith negotiations whenever possible. Therefore,
without prejudice to the right of either party to seek injunctive
relief against the other when circumstances require that immediate
relief, the parties hereby establish a threshold requirement that
disputes between the Tribe and the State first be subjected to a
process of meeting and conferring in order to foster a spirit of
cooperation and efficiency in the administration and monitoring of
performance and compliance by each other with the terms, provisions,
and conditions of this Gaming Compact, as follows:
   (a) Either party shall give the other, as soon as possible after
the event giving rise to the concern, a written notice setting forth
the issues to be resolved.
   (b) The parties shall meet and confer in a good faith attempt to
resolve the dispute through negotiation not later than 10 days after
receipt of the notice, unless both parties agree in writing to an
extension of time.
   (c) If the dispute is not resolved to the satisfaction of the
parties within 20 days after the first meeting, then a party may seek
to have the dispute resolved by an arbitrator in accordance with
this section. "Dispute," for purposes of this subdivision, means any
disagreement between the State gaming agency and the Tribal gaming
agency in reference to the provisions of Sections 4.0 to 8.1.15,
inclusive.
   (d) Disagreements other than disputes as defined in subdivision
(c) shall be resolved in federal district court and all applicable
courts of appeal (or, if those federal courts lack jurisdiction, in
any court of competent jurisdiction and its related courts of
appeal). The disputes to be submitted to court action include, but
are not limited to, any other dispute, including, but not limited to,
claims of breach or failure to negotiate in good faith. In no event
may the Tribe be precluded from pursuing any arbitration or judicial
remedy against the State on the grounds that the Tribe has failed to
exhaust its state administrative remedies.
   Sec. 9.2.  Arbitration Rules.  Arbitration shall be conducted in
accordance with the policies and procedures of the Commercial
Arbitration Rules of the American Arbitration Association, and shall
be held on the Tribe's reservation. Each side shall bear its own
costs, attorneys' fees, and one-half the cost of the arbitration.
Only one arbitrator may be named, unless the Tribe and the State
agree otherwise. The decision of the arbitrator shall be binding.
   Sec. 9.3.  No Waiver or Preclusion of Other Means of Dispute
Resolution.  This section may not be construed to waive, limit, or
restrict any remedy that is otherwise available to either party, nor
may this section be construed to preclude, limit, or restrict the
ability of the parties to pursue, by mutual agreement, any other
method of dispute resolution, including, but not limited to,
mediation or utilization of a technical advisor to the Tribal and
State gaming agencies, provided that neither party is under any
obligation to agree to such alternative method of dispute resolution.
   Sec. 9.4.  Limited Waiver of Sovereign Immunity.  (a) In the event
that a dispute is to be resolved in federal court or a court of
competent jurisdiction as provided in Section 9.1, the State and the
Tribe expressly consent to be sued therein and waive any immunity
therefrom that they may have, provided that:
   (1) The dispute is limited solely to issues arising under this
Gaming Compact;
   (2) Neither side makes any claim for monetary damages (that is,
only injunctive, specific performance, or declaratory relief is
sought); and
   (3) No person or entity other than the Tribe and the State are
parties to the action.
   (b) In the event of intervention by any additional party into any
such action without the consent of the Tribe and the State, the
waivers of both the Tribe and State provided for herein shall be
deemed to be revoked and void.
   (c) The waivers and consents provided for under this Section 9.0
shall extend to any actions to compel arbitration, any arbitration
proceeding herein, any action to confirm or enforce any arbitration
award as provided herein, and any appellate proceedings emanating
from a matter in which an immunity waiver has been granted. Except as
stated herein, no other waivers or consents to be sued, either
express or implied, are granted by either party.
   Sec. 10.0.  PUBLIC HEALTH, SAFETY, AND LIABILITY
   Sec. 10.1.  Compliance.  For the purposes of this Gaming Compact,
the Tribal gaming operation shall comply with and enforce standards
no less stringent than the following with respect to public health
and safety:
   (a) Public health standards for food and beverage handling in
accordance with United States Public Health Service requirements.
   (b) Federal water quality and safe drinking water standards.
   (c) The building and safety standards set forth in Section 6.4.
   (d) A requirement that the Tribe carry no less than two million
dollars ($2,000,000) in public liability insurance for patron claims,
and that the Tribe provide reasonable assurance that those claims
will be promptly and fairly adjudicated, and that legitimate claims
will be paid, provided that nothing herein requires the Tribe to
agree to liability for punitive damages or attorneys' fees.
   (e) Tribal codes and other applicable federal law regarding public
health and safety.
   (f) The creation and maintenance of a system that provides redress
for employee work-related injuries, disabilities, and unemployment
through requiring insurance or self-insurance, or by other means,
which system includes the right to notice, hearings, and a means of
enforcement and provides benefits comparable to those mandated for
comparable workplaces under State law.
   Sec. 10.2.  Emergency Service Accessibility.  The Tribal gaming
operation shall ensure that it has made reasonable provisions for
adequate emergency fire, medical, and related relief and disaster
services for patrons and employees of the facility.
   Sec. 10.3.  Alcoholic Beverage Service.  Standards for alcohol
service shall be subject to applicable law.
   Sec. 11.0.  AMENDMENTS, DURATION, AND EFFECTIVE DATE
   Sec. 11.1.  Effective Date.  This Gaming Compact shall constitute
the agreement between the State and the Tribe pursuant to IGRA and
may be amended and modified only under the provisions set forth
herein. This Gaming Compact shall take effect upon publication of
notice of approval by the United States Secretary of the Interior in
the Federal Register in accordance with applicable federal law (25
U.S.C. Sec. 2710(d)(3)(B)).
   Sec. 11.2.  Voluntary Termination.  Once effective, this Gaming
Compact shall be in effect until terminated either by the written
agreement of both parties or by the Tribe unilaterally upon 60 days'
written notice to the Governor.
   Sec. 12.0.  AMENDMENTS; RENEGOTIATIONS
   Sec. 12.1.  The terms and conditions of this Gaming Compact may be
amended at any time by the mutual and written agreement of both
parties, and such amendment is approved hereby as part of the Act.
   Sec. 12.2.  In the event that federal or State law is changed or
is interpreted, by enactment, a final court decision, a practice of
the State gaming agency, or the inclusion of such gaming in a
tribal-state compact, to permit gaming in California that is not now
permitted to any person or entity for any purpose, or, if permitted,
is being lawfully offered for the first time, this Gaming Compact
shall be automatically amended to include that permitted or offered
gaming, which shall be deemed to be included within the definition of
"gaming activities" hereunder.
   Sec. 12.3.  This Gaming Compact is subject to renegotiation in the
event the Tribe wishes to engage in forms of class III gaming other
than those games authorized or automatically included herein and
requests renegotiation for that purpose, provided that, except for a
change in law or a court ruling that establishes the right of the
Tribe to engage in other forms of gaming, no such renegotiation may
be sought for 12 months following the effective date of this Gaming
Compact.
   Sec. 12.4.  Process and Negotiation Standards.  All requests to
amend or renegotiate shall be in writing, addressed to the State
gaming agency, and shall include the activities or circumstances to
be negotiated together with a statement of the basis supporting the
request. If the request meets the requirements of this section, the
parties shall confer promptly and determine a schedule for commencing
negotiations within 30 days of the request. Unless expressly
provided otherwise herein, all matters involving negotiations or
other amendatory processes under this section shall be governed,
controlled, and conducted (a) in conformity with the provisions and
requirements of IGRA, including those provisions regarding the
obligation of the State to negotiate in good faith and the
enforcement of that obligation in federal court, as to which
obligation and actions in federal court the State hereby agrees and
consents to be sued in that court system, and (b) in conformity with
the authority of the Secretary of the Interior to adopt procedures
for the Tribe's engagement in class III gaming if no agreement in a
Gaming Compact can be reached and the State has failed to negotiate
in good faith. The Chairperson of the Tribe and the Governor of the
State are hereby authorized to designate the person or agency
responsible for conducting the negotiations, and shall execute any
documents necessary as a result thereof.
   Sec. 13.0.  NOTICES.  Unless otherwise indicated by this Gaming
Compact, all notices required or authorized to be served shall be
served by first-class mail at the following addresses:

   Governor Tribal Chairperson
   State of California ÝFormal Name of Tribe]
   State Capitol
   Sacramento, California

   Sec. 14.0.  SEVERABILITY.  In the event that any section or
provision of this Gaming Compact is held invalid, or its application
to any particular activity is held invalid, it is the intent of the
parties that the remaining sections of this Gaming Compact continue
in full force and effect, provided that, in the event provisions must
be added to this Gaming Compact in order to preserve the intentions
of the parties in light of that invalidity, the parties shall
promptly negotiate those provisions in good faith.
   Sec. 15.0.  CHANGES IN IGRA.  This Gaming Compact is intended to
meet the requirements of IGRA or any successor statute, as in effect
on the date this Gaming Compact becomes effective. Subsequent changes
to IGRA that diminish the rights of the State or the Tribe may not
be applied retroactively to this Gaming Compact, except to the extent
that federal law validly mandates that diminishment without the
State's or the Tribe's respective consent.
   Sec. 16.0.  MISCELLANEOUS
   Sec. 16.1.  The parties agree that, in order to further the intent
of the parties and the goals of the Act, and to implement this
Gaming Compact in a manner consistent therewith, this Gaming Compact
shall be amended by mutual consent, arrived at as the result of good
faith negotiations, if necessary to clarify or effectuate the goals
and intent of this Gaming Compact and the Act, to the extent that the
goals and intent are not addressed, or are ambiguously or
incompletely provided for herein, provided that nothing in this
section may delay the effective date or implementation of this Gaming
Compact.
   Sec. 16.2.  Any State agency or other subdivision of the State
providing regulatory or other services to the Tribe pursuant to this
Gaming Compact shall be entitled to reimbursement from the Tribe for
the actual and reasonable cost of those services, and the Tribe shall
promptly pay that reimbursement to that agency or subdivision upon
receipt of itemized invoices therefor. Any disputes concerning the
reasonableness of any claim for reimbursement shall be resolved in
accordance with the dispute resolution procedures set forth in
Section 9.0.
   Sec. 16.3.  This Gaming Compact sets forth the full and complete
agreement of the parties and supersedes any prior agreements or
understandings with respect to the subject matter hereof.

   ÝFORMAL NAME OF TRIBE]
   By ___________ DATED: __ day of __, __
    Chairperson

   THE STATE OF CALIFORNIA
   By ___________ DATED: __ day of __, __."
    Governor



98005.  The Gaming Compact offered in Section 98004 shall, to the
extent permitted by law, be deemed agreed to, approved, and executed
by the State of California in the event a request therefor is duly
made by a federally recognized Indian tribe in accordance with
Section 98002 and it is not executed by the Governor within the time
prescribed in this chapter, provided that, in the event this
provision is deemed to be unlawful or ineffective for any reason, or
if the tribe in its discretion seeks to compel execution of the
Gaming Compact through court action, the State of California hereby
submits to the jurisdiction of the courts of the United States in any
action brought against the state by any federally recognized Indian
tribe asserting any cause of action arising from the state's refusal
to execute the Gaming Compact offered in Section 98004 upon a tribe's
request therefor. Without limiting the foregoing, the State of
California also submits to the jurisdiction of the courts of the
United States in any action brought against the state by any
federally recognized California Indian tribe asserting any cause of
action arising from the state's refusal to enter into negotiations
with that tribe for the purpose of entering into a different
Tribal-State compact pursuant to IGRA or to conduct those
negotiations in good faith, the state's refusal to enter into
negotiations concerning the amendment of a Tribal-State compact to
which the state is a party, or to negotiate in good faith concerning
that amendment, or the state's violation of the terms of any
Tribal-State compact to which the state is or may become a party.



98006.  The gaming authorized pursuant to this chapter, including,
but not limited to, the gaming authorized pursuant to the Gaming
Compact set forth in Section 98004, is not subject to any prohibition
in state law now or hereafter enacted. Without limiting the
foregoing, and notwithstanding any other provision of law, the
following forms of gaming specifically are permitted and authorized
to be conducted on Indian lands by a tribe that has entered into a
Tribal-State compact with the state pursuant to this chapter, IGRA,
or any other law:
   (a) Any card games that were operated on any Indian reservation in
California on or before January 1, 1998, provided that, with respect
to card games that are not within class II of IGRA (which class II
games are not affected by this chapter), those card games shall pay
prizes solely in accordance with a players' pool prize system in
which one or more segregated pools of funds that have been collected
from player wagers are irrevocably dedicated to the prospective award
of prizes in those card games or other lottery games, promotions, or
contests and in which the house neither has acquired nor can acquire
any interest. The tribe may set and collect a fee from players on a
per play, per amount wagered, or time-period basis, and may seed the
pools in the form of loans or promotional expenses, provided that the
seeding is not used to pay prizes previously won.
   (b) Any gaming or gambling device, provided that the devices do
not dispense coins or currency and are not activated by handles, and
prizes therefrom are awarded solely from one or more segregated pools
of funds (1) that have been collected from player wagers, (2) that
are irrevocably dedicated to the prospective award of prizes in such
games or in other lottery games, contests, tournaments, or prize pool
promotions, and (3) in which the house neither has acquired nor can
acquire any interest. The tribe may set and collect a fee from
players on a per play, per amount wagered, or time-period basis, and
may seed the pools in the form of loans or promotional expenses,
provided that the seeding is not used to pay prizes previously won.
The introduction, possession, manufacture, repair, or transportation
of gaming devices that are authorized by the terms of any
Tribal-State gaming compact between the State of California and any
federally recognized Indian tribe exercising jurisdiction over Indian
lands in California is lawful in this state.
   (c) The operation of any lottery game, including, but not limited
to, drawings, raffles, match games, and instant lottery ticket games.



98007.  If any provision of this chapter or the application thereof
to any person or circumstance is held invalid, that invalidity may
not affect other provisions or applications of this chapter that can
be given effect without the invalid provision or application, and to
this end the provisions of this chapter are severable.




98008.  The Governor is authorized and directed to execute any
documents that may be necessary to implement this chapter.



98009.  The provisions of the Gaming Compact set forth in Section
98004 are hereby incorporated into state law, and all gaming
activities, including but not limited to gaming devices, authorized
therein are expressly declared to be permitted as a matter of state
law to any Indian tribe entering into the Gaming Compact in
accordance with this chapter.



98010.  Nothing in this chapter may be construed to limit the
ability of a federally recognized Indian tribe to request that a
Tribal-State compact be negotiated with the state on terms that are
different from those set forth in the Gaming Compact under this
chapter, or the ability of the state to engage in those negotiations
and to reach agreement under IGRA. Nothing in this chapter may be
construed to mean that, in offering the Gaming Compact to Indian
tribes in California under Section 98004, and, except for assessments
by the state as provided therein of such amounts as are necessary to
defray its costs of regulating activities as provided under the
Gaming Compact, (a) the state is imposing any tax, fee, charge, or
other assessment upon an Indian tribe or upon any other person or
entity authorized by an Indian tribe as a condition to engaging in a
class III activity, or (b) the state is refusing to enter into
Tribal-State compact negotiations based upon the lack of authority of
the state, or of any political subdivision of the state, to impose
such a tax, fee, charge, or other assessment.



98011.  No amendment to the Gaming Compact as provided for therein
or under this chapter requires further approval by the Legislature or
the electorate.


98012.  This chapter may be amended by a two-thirds vote of the
Legislature, but only to further the purposes of this Act.