Loading...
HomeMy Public PortalAbout04-20-2004LPFAThis Agenda contains a b#ef general description of each item to be considered. Copies of the Staff reports or other wrfften documentation relating to each item of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the City Manager at (31 O) 603-0220, ext. 200. Procedures for Addmssin,q the C(~uncll IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA ITEMS ON FILE FOR CONSIDERATION AT THE REGULAR MEETING OF THE LYNWOOD PUBLIC FINANCI~ AUTHORITY TO BE HELD ON APRIL 20, 2004 6:00 P.M. COUNCIL CHAMBERS 11330 BULLIS ROAD, LYNWOOD, CA 90262 LOUIS BYRD PRESIDENT LETIClA VASQUEZ VICE PRESIDENT IVED CITY OF LYNW00D CITY ~.l F~'~'q t3FFICE FERNANDO PEDROZA MEMBER MARIA T. SANTILLAN MEMBER RAMON RODRIGUEZ MEMBER CHIEF ADMINISTRATIVE OFFICER LORRY HEMPE FINANCE DIRECTOR ALFRETTA EARNEST SECRETARY ANDREA L. HOOPER CITY TREASURER lEIS PYGA'~I' OPENING CEREMONIES CALL TO ORDER ROLL CALL OF MEMBERS Femando Pedroza Ramon Roddguez Mafia T. Santillan Leticia Vasquez Louis Byrd CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBUC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICA'F~ONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Para~.vh 5.) CONSENT CALENDAR MINUTES OF PREVIOUS MEETINGS: NONE 5. GAMING REVENUE ACT OF 2004 Comments: The purpose of this item is to inform the President & Members of the Authority of a ballot initiative currently being circulated that could provide additional funding to local governments. Recommendation: Staff recommends that the President & Members of the Lynwood Public Finance Authority receive and file this item. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON MAY 4, 2004 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. DATE: TO: FROM: BY: SUBJECT: 20, 200 HONORABLE PRESIDENT AND MEMBERS OF THE LYNWOOD PUBItC FZNANCE AUTHORT[Y Lorry Hempe, Chief Administrative Officer'~ Autra C. Adams, Special Assistant~Intergovemmental Relations Gaming Revenue Act of 20D4 PURPOSE: The purpose of this item is to inform the President & Members of the Authority of a ballot initiative currently being circulated that could provide additional public safety funding to local governments. BACKGROUND: Existing law within the State of California permits certain types of gambling. Wagering on horse races and specified games in licensed card rooms are allowed. Additionally, Indian tribes with tribal-state gaming compacts are authorized to operate slot machines and other casino-style gambling. ANALYSZS: The Gaming Revenue Act of 2004 authorizes the Governor to renegotiate ~bal-state compacts to require that tribes share 25% of their revenues with the State for allocation through the Gaming Revenue Trust Fund. NI tribes currently with a compact would have to agree to specific conditions contained within the initiative. Specifically, this would include agreement to be bound by state court judgments and compliance with the California Environmental Quality ACt. Nso, the tribal govemments would have to agree to make their books public and be subject to audits by the State Gambling Control Commission. The initiative also includes a provision wherein if the tribal govemments do not reach such an agreement within 90 days of approval of the initiative by the voters, then certain racetracks and card clubs would be authorized to operate 30,000 machines statewide at site specific locations, including five specified racetracks and eleven specified card clubs throughout the state. Under this scenario, 33% of the revenue generated from the gambling activities of the racetracks and card clubs would be allocated as follows: 30% would be paid to the Gaming Revenue Trust Fund, 2% to the city in which they are located, and 1% to the county where they are located. AGENDA ITEM Under both of the indicated scenarios revenue would be deposited into the Gaming Revenue Trust Fund. This money would be di~bibuted as follows: · $1.2 million to each non-gaming Tndian tribe · $3 million for responsible gaming programs · 50% of the remaining funds to county offices of education to provide services for abused and neglected children in foster care · 35% of the remaining funds to local govemments for additional neighborhood sheriffs and police officers · :t5% of the remaining funds to local govemments for addiUonal fireflghters Proponents of the Act contend that redistribution of gaming revenue in the state is critical to generating additional revenues for education, police protection and fire safety in California. Proponents include Sheriff Lee Baca and Sheriff Lou Blanas (Sacramento County). Opponents of the Act contend that casino gambling cause serious threats to public safety and that these threats outweigh the new revenue that will be generated. The California Police Chiefs Association strongly opposes the Act. Proponents of the Gaming Revenue Act of 200~ are currently circulating the initiative for signatures and hope to have this initiative qualified for the November 200z[ statewide election. Impact on Lvnwood Nine of the eighteen locations that are being proposed under the second scenario are located within Los Angeles County and are within a close proximity to the City of Lynwood. Based upon estimates provided by proponents of the initiative, under the first Scenado (a renegodation of current tribal-state compacts) Lynwood would receive approximately $1.2 million annually for additional public safety services. Under the second scenado (allowing racetracks and card clubs to operate slot machines) Lynwood would receive approximately $2 million annually for additional public safety services. RECOMMENDA'I'~ON: Staff recommends that the President & Hembers of the Lynwood Public Rnance Authority receive and file this item. A'I-FACHMENT 03-~-=-04P04: ;3 ~ ~ Mar~h 5, 2004 City Manager Lorry Hempe City of Lynwood 11330 Bullis Road Lynwood, CA 90262 Dear City Manager Hempe: As leaders of law enfomement weighing the pain of stalTand service cutbacks in our own depmh,ents, we are sadly all too familiar with the challenges facing local communities because of California's fiscal crisis. It is also why we are supporting the Gaming Revenue Act of 2004 that is expected to be on the November ballot. If approved by the voters, the initiative would provide more than $1 billion dollars per year to local California communities to put new police, sheriffs and firefighters on the job and to educate neglected and abused children. The revenue would be generated by either gaming tribes agreeing to provide 25% of their slot machine wivnings or, if they don't agree, allowing slot machines in 16 designated card clubs and racetracks across the state with 33% of those winnings going to local communities. A recently completed study by Dr. William Harem, the former Legislative Analyst, estimates how much revenue would flow to each California city and county if this initiative passes. The revenue will be distributed on a per capita basis across the state. If card clubs and racetracks are allowed to operate machines, cities and counties where the machines are located will receive an additional 2% and 1% of the wlnniqgs respectively. According to Dr. Hamm's estimates, the City of Lynwood couM receive as much as $2,032,281 annually. This is a win-win financial situation for public safety, education and more important, your city- without placing further tax burdens on residents. Ir'you have questions or would like further information, please feel flee to contact Sophia Cazanis at (916) 491-4094. Sincerely, Sheriff Lou Blanas Sacramento County Sheriff Lee Baca Los Angeles County 171718treet, S~u:ramento, OAg5814 916.5B1.2538 C~#oml~forl~ul~lcSa~t~ln{IEdacallon Sul30~tt~byHorseRac~ngandC~lClu~ ~C..a~n. IDNo1260733 ~,. THE GAMING REVENUE ACT OF 2004 SECTION 1. Title. This Act shall be known as and may be cited as "The Gaming Revenue Act of 2004." This Act may also be cited as "The Gaming Revenue Act" or the "Act." SECTION 2. Findings and Purpose. The People of the State of California hereby make the following findings and declare that their purpose in enacting this Act is as follows: (a) California now faces an unprecedented budget deficit of billions of dollars that particularly threatens funding for education, police protection, and fire safety. As a result of California's budget crisis, the State needs to find new ways to generate revenues without raising taxes. In March 2000, Proposition lA was enacted, which triggered an unprecedented expansion of Indian casino gaming, gave Indian tribes a monopoly on casino gaming, and has led to billions of dollars in profits for Indian ~ibes, but little or no taxes to the State. Moreover, local governments and communities have not been adequately protected, the State does not have sufficient regulation and oversight of (a-ibal casino gaming, and tribal casinos have not complied with state laws applicable to other businesses and designed to protect California citizens, such as laws regarding the environment and political contributions. Gaming tribes also have failed to fully fund a trust fund to promote the welfare of Indian tribes that do not operate large casinos. Some Indian tribes have attempted to acquire land far away fi.om their reservations or traditional lands to be used as casinos and not for usc as traditional reservations. Tribes have expended over $120 million dollars in political contributions but have refused to comply with disclosure requirements. Co) California should request that all Indian gaming tribes voluntarily share some of their gaming profits with the State that can be used to support public education, and local police and fire services, and address other problems associated with tribal casino gaming, and in the event all Indian gaming tribes do not do so, California should grant gaming rights to other persons who will share substantial revenue with the State that can be used to support public education, and local police and fire services. (c) The Governor should be authorized to negotiate amendments to all existing compacts with Indian tribes to allow these Indian ~ibes to continue to have the exclusive right to operate gaming devices in the State of California if the Indian ~ibes agree to pay twenty-five percent (25%) of their winnings fi.om such devices to a gaming revenue trust fund and agree to comply with State laws, including laws governing environmental protection, gaming regulation and campaign contributions and their public disclosure. (d) In the event all Indian tribes with existing compacts do not agree to these terms, five existing horseracing tracks and eleven existing gambling establishments, where forms of legal gambling and wagering already occur, should have the right to operate a limited number of gaming devices, provided they pay thirty-three percent (33%) of their winnings fi.om the operation of such gaming devices to cities, counties, and a gaming revenue trust fund to be used for education, and police and fire services, and provided they comply with strict legal requirements on the operation and location of such gaming devices. (e) In addition to paying substantial taxes, the owners of gambling establishments and horseracing tracks authorized to operate gaming devices would have to be licensed by the State Gambling Control Commission under the Gambling Control Act, which requires that they be persons of good character, honesty and integrity, and persons whose prior activities, reputation and associations entitle them to receive a license from the State. (f) P~smitfing five existing horseracing tracks and eleven licensed gambling establishments to operate gaming devices and requiring them to pay thirty-three percent (33%) of their winnings from these gaming devices will generate revenues estimated to exceed $1 billion annually. These funds will help alleviate California's dire fiscal crisis, which particularly threatens funding for education, police protection and fire safety, and will help mitigate the impact on cities and counties where gaming occurs. (g) The Gaming Revenue Act will establish the Gaming Revenue Trust Fund, the sole purpose of which will be to ensure that the revenues raised by tiffs Act are distributed in accordance with the Act. The Act will also establish a Board of Trustees consisting of individuals who are engaged in public school education, law enforccnient, and fire protection. (h) The Gaming Revenue Act will provide funding for the existing Division of Gambling Control and the existing California Gambling Control Commission for the purpose of regulating gaming authorized by this Act. (i) The Gaming Revenue Act will increase the monies distributed to non-gaming Indian Tribes by guaranteeing that each such tribe will receive at least $1.2 million annually, and will award $3 million annually to responsible gambling programs. (j) The Gaming Revenue Act Trust Fund will dislribute fifty percent (50%) of the net revenues directly to county boards of education to be used to improve educational services for abused and neglected children and children in foster care. (k) The Gaming Revenue Act Trust Fund will distribute thirty-five percent (35%) of the net revenues directly to local governments for additional neighborhood sheriffs and police officers. (1) The Gaming Revenue Act Trust Fund will dis~ibute fifteen percent (15%) of the net revenues directly to local governments for additional firefighters. (m) The revenues generated for county offices of education for improving the educational outcomes of abused and neglected children and children in foster care and local governments for police protection and fire safety by this Act are not to be used as substitute funds but rather shall supplement the total amount of money allocated for county offices of education and local governments. (n) Indian tribes have attempted to acquire land at locations off of their reservations or distant Eom their traditional Indian lands to be used solely as casinos and not for use as traditional reservations. Gaming on these newly acquired lands would be detrimental to the surrounding communities. Therefore, the Gaming Revenue Act prohibits the location of gaming establishments by Indian tribes on newly or recently acquired lands. (o) In order to reasonably restrict the growth of non-Indian gaming, non-Indian gaming authorized by this Act will be limited to the sites of five existing horseracing tracks located in the counties of Alameda, Los Angeles, Orange and San Mateo, and the sites of eleven existing gambling establishments located in the Counties of Los Angeles, San Diego, Contra Costa, and San Mateo. To insure that there are no new gambling establishments other than those in existence as of the enactment of the Act, the current limitation on the issuance of new gambling licenses, which expires in 2007, will be made pm:,anent. The purpose of such restrictions is to exercise control over the proliferation of gambling. (p) The expansion of Indian gaming has led to conflicts between Ixibes and local governments. In some cases, tribes have failed to take sufficient steps to address local concerns and impacts. Therefore, this Act will authorize the Governor to negotiate amendments to all existing compacts pursuant to which all tribes agree to enter into good faith negotiations with county and city governments to address and mitigate community impacts. (q) To clarify legal jurisdiction over Indian casinos, state courts should have jurisdiction over any criminal or civil proceeding arising under this Act, under a compact, or related to a tribal casino. Therefore, this Act will authorize the Governor to negotiate amendments to all existing compacts pursuant to which all tribes agree that state courts will have jurisdiction over such disputes. (r) Indian tribes have used their gambling profits to spend well over $120 million on campaign contributions and political activities in California. But some Indian tribes maintain that they are sovereign nations and do not have to comply with California's laws and regulations relating to political contributions and reporting. Because these tribal political expenditures result substantially from, and often concern, gaming activities in California, this Act will authorize the Governor to negotiate amendments to all existing compacts pursuant to which all tribes agree to comply with the California Political Refom: Act. (s) While some terms of this Act concern conditions tribal casinos must meet if Indian tribes are to retain a monopoly over slot machines, it is the express intent of the voters to raise revenues immediately through this initiative to help solve California's current fiscal crisis, regardless of whether those revenues come from tribal or non-tribal gaming, regardless of court decisions regarding Indian gaming, regardless of changes in federal law, or regardless of any challenges or efforts by the Indian tribes or others to delay or circumvent this Act. Therefore, if all Indian tribes with existing compacts do not agree to share with the State twenty-five pement (25%) of their winnings from gaming devices and do not agree to the other conditions on tribal gaming set forth in this Act within the time limits provided in this Act, it is the express intent of the voters to immediately allow licensed gambling establishments and authorized homeracing tracks to operate a limited number of gaming devices, provided they pay thirty-three percent (33%) of their winnings from the operation of such gaming devices to cities, counties, and the Gaming Revenue Trust Fund. SECTION 3. read: Section 19 of Article IV of the California Constitution is amended to SEC. 19 (a) The Legislature has no power to authorize lotteries and shall prohibit the sale of lottery tickets in the State. (b) The Legislature may provide for the regulation of home races and horse race meetings and wagering on the results. (c) Notwithstanding subdivision (a), the Legislature by statute may authorize cities and counties to provide for bingo games, but only for charitable purposes. (d) Notwithstanding subdivision (a), there is authorized the establishment of a California State Lottery. (e) The Legislature has no power to authorize, and shall prohibit casinos of the type currently operating in Nevada and New Jersey. (f) Notwith.~tanding subdivisions (a) and (e), and any other provision of state law, the Governor is authorized to negotiate and conclude compacts, subject to ratification by the Legislature, for the operation of stot--mm~ah~ gaming devices and for the conduct of lottery games and banking and percentage card games by federally recognized Indian tribes on Indian lands in California in accora~rice with federal law. Accordingly, shR--maohia~ gaming devices, lottery games, and banking and percentage card games are hereby permitted to be conducted and operated on tribal lands subject to those compacts. (/)(g) Notwithstanding subdivision (a), the Legislature may authorize private, nonprofit, eligible organizations, as defined by the Legislature, to conduct raffles as a funding mechanism to provide support for their own or another private, nonprofit, eligible organization's beneficial and charitable works, provided that (1) at least 90 percent of the gross receipts from the raffle go directly to beneficial or charitable purposes in California, and (2) any person who receives compensation in connection with thc operation of a raffle is an employee of the private nonprofit organizafton that is conducting the raffle. Thc Legislature, two-thirds of thc membership of each house concurring, may amend the percentage of gross receipts required by this subdivision to be dedicated to beneficial or charitable purposes by means of a statute that is signed by the Governor. (la) Notwithstanding subdivisions (e) and (fi. and any other provision of state law, the Governor is authorized to negotiate and conclude amendments to all existing compacts with all Indian ~bes in accordance with the provisions of this subdivision (h). An "existing compact" means a gaming compact entered into between the State and an Indian tribe prior to the effective date of the Gaming Revenue Act of 2004. All compacts amended pursuant to this subdivision (h) shall include the following terms, conditions and requirements: (1) The Indian tribe shall agree to pay twenty-five percent (25%) of its net win from all gaming devices operated by it or on its behalf to the Gaming Revenue Trust Fund. Such payments shall be made monthly and shall be due within 30 days of the end of each month. "Net win" means the wagering revenue from all gamin.~ devices operated by the Indian tribe or on its behalf retained after prizes or winnings have been paid to players or to pools dedicated to the payment of such prizes and winnings, and prior to the payment of operating or other expenses. Such payments shall commence immediately after federal approval of the amended compact. (2) The Indian tribe shall agree to report to the Division of Gambling Control the net win on all gaming devices operated by or on behalf of it. Such reports shall be submitted monthly, shall be due within 30 days of the end of each month, and shall be available to the public upon request. (3) The Indian tribe shall agree to pay for an annual audit performed by an independent faro of certified public accountants approved by the California Gambling Control Commission to ensure that the net win is properly reported and the payment is properly paid to the Gaming Revenue Trust Fund. The audit report shall be available to the public upon request. (4) The Indian tribe shall agree to comply with the California Political Reform Act. ($) The Indian tribe shall agree that its casino facilities shall comply with the California Environmental Quality Act. (6) The Indian tribe shall agree to enter into good faith negotiations with any city or county within which the Indian lands are located wh¢~ Class 1TI (7) (s) Earning is conduct_ed to miti~te local Earni-~' related impacts within a reasonable time following the State's execution of the compact. The state courts shall have exclusive jurisdiction to resolve any dispute regarding the failure to reach an agreement or the enforcement of the agreea~ent. The Indian tribe shall agree to comply with all provisions of the Gambling Control Act, and shall agree to be subject to the jurisdiction of the California Gambling Control Commission and Division of Gambling Control. The Indian tribe shall agree that state courts shall have exclusive jurisdiction over any criminal or civil proceeding arising f~om or related to the Gaming Revenue Act, arising from or related to the compact, or arising fi'om or related to any act or incident occurring on the premises of a tribal casino. The powers of the State and the applicability of state law to Indian tribes and Indian casinos pursuant to this subdivision (h) are to be construed consistently with the fullest extent of State's rights and powers under federal law to reach agreements with Indian tribes with tribal consent. No tribe with an existing compact is required by this subdivision (h) to agree to amend its existing compact. Nothing in this Act waives or restricts the civil or criminal jurisdiction of the State under Public Law 280 (18 U.S.C. Sec. 1162), and the State may not waive such jurisdiction in any compacts. (i) Notwithstanding subdivisions (a) and (e), and any other provision of state or local law, in the event amendments to all existing compacts with all Indian tribes as provided in subdivision {h) are not entered into and submitted to the Secretary of Interior within 90 days of the effective date of the Gaming Revenue Act of 2004, owners of authorized gambling establishments and owners of authorized horseracing tracks shall immediately thereafter be authorized to operate not more than a combined total of 30,000 gaming devices. In the event tribal monopolies are adjudicated to be illegal, in the event the amended compacts are not approved or considered approved pursuant to the Indian Gaming Regulatory Act, or in the event subdivision (h) is invalidated, or delayed more than 90 days after this Act would otherwise take effect, by the State, the federal government, or any court, owners of authorized gambling establishments and owners of authorized horseracing tracks shall immediately thereafter be authorized to operate the gaming devices authorized by this section. For purposes of this Act, "authorized gambling establishment" shall mean a site in the counties of Los Angeles, San Diego, Contra Costa or San Mateo at which 14 or more gaming tables were authorized to be operated as of September 1, 2003 purs-ant to the Gambling Control Act, except such sites that were act~_lally taken into trust for an Indian tribe or Indians after September 1, 2003. For purposes of this Act, "authorized horseracing track" shall mean a site in the counties of Alameda, Los Angeles, Orange or San Mateo at which horseracing was conducted by a thoroughbred racing association or qt~_~rter horse racing association that was licensed pursuant to the Horse Racing Law to conduct more than 50 days or nights of racing in 2002. For purposes of this Act, "site" shall mean the real property on which an authorized horseracing track or an authorized gambling establishment was located as of September 1, 2003 and shall include real property adjacent to the site. The operation of these gaming devices shall be subiect to the following provisions: (1) Payments. bo co Owners of authorized gambling establishments and authorized horseracing tracks shall pay thirty percent (30%) of the net win from gaming devices operated by thera to the Gaming Revenue Trust Fund created pursuant to this section. Such payments shall be made monthly and shall be due wjthi~ 30 days of the end of each month. "Net win" means the wagerin~ revenue from gaming devices operated pursuant to this Act retained after prizes or winnings have been paid to players or to pools dedicated to the payment of such prizes and wipnir~gs, and prior to the payment of operating or other expenses. Owners of authorized gambling establishments and authorized horseracing tracks shall report to the Division of Gambling Control the net win on all gawing devices operated by or on behalf of them, Such reports shall be submitted monthly, shall be due within 30 days of the end of each month, and shall be available to the public upon request. Owners of authorized gambling establishments and authorized horseracing tracks shall pay for an anm~_al audit pvrformed by an independent ~'ai of certified public accountants approved by the California Gambling Control Commission to ensure that the net win is properly reported and the payment is properly paid to the Gaming Revenue Trust Fund. The audit report shall be available to the public upon request. Owners of authorized gambling establishments and authorized horseracing tracks shall pay two percent (2%) of their respective net win from gaming devices operated by them to the city in which each authorized horseracing track and authorized gambling establishment is located. In the event an authorized gambling establishment or an authorized horse~acing track is not located within the boundaries of a city, the payment imposed by this Act shall be made to the county in which the authorized gambling establishment or authorized horseracing track is located. Such payments shall be made monthly and shall be due within 30 days of the end of each month. Owners of authorized gambling establishments and authorized horseracing tracks shall pay one percent (1%) of their respective 6 net win bom gaming devices operated by them to the county in which each authorized ~ambling establishment and authorized horseracing track is located. Such payments shall be made monthly and shall be due within 30 days of the end of each month. Number and Location of Authorized Gaming Devices. ao A total of 30,000 gam'mg devices are authorized to be operated by owners of authorized horseracing tracks and owners of authorized gambling establishments, which are allocated as follows: i. For authorized horseracing tracks: Three thousand gaming devices for each authorized horseracing track. In order to ensure the maximum generation of revenue for the Gaming Revenue Trust Fund, in the event that the owners of an authorized horseracing ii. track for any reason cease to have or lose the right to operate any of the gaming devices authorized by this Act, the gaming devices allocated to that authorized horseracing track shall be reallocated equally among the remaining authorized horseracing tracks. Notwithstanding the limit of 3,000 gamin~ devices, owners of authorized horseracing tracks may also transfer, sell, lieeuse, or assign their fights to own and operate one or more gaming devices to other authorized horseracing tracks or authorized gambling establishments, but in no event shall the total number of gaming devices authorized to be operated at an authorized horseraeing track exceed 3,800. The owners of gaming devices that are realloeated, or are tran.~ferred, sold, licensed, or assigned pursuant to this subdivision, shall make the distributious required by California Business and Professions Code Section 19609. For authorized gambling establishments: ao Authorized gambling establishments located in Los Angeles County authorized as of September 1, 2003 to operate 100 or more gaming tables shall be authorized to operate 1700 gaming devices eachl authorized gambling establishments in Los Angeles County authorized as of September 1, 2003 to operate between 14 and 99 gaming tables shall be authorized to operate 1000 gaming devices eachl and all other authorized gambling establishments bo shall be authorized to operate 800 gaming devices each. Licensed gambling establishments that are not authorized gambling establishments under this section shall be licensed for 4 gaming devices for each table authorized purs-Ant to the Gambling Control Act as of September 1, 2003 up to a maximum of 2000 gaming devices in total, which they cannot operate at their gambling establishments, but may transfer, sell, or assign the fights to own or operate such gaming devices to authorized gambling establishments. In order to ensure the maximum generation of revenue for the Gaming Revenue Trust Fund, in the event the owners of an authorized gambling establishment described in subdivision (a) for any reason cease to have or lose the right to operate any of the gaming devices authorized by this Act, such gaming devices shall be transferred or allocated to authorized gambling establishments pro rata according to the allocation in subdivision (i)(2)(a)(ii)(a). Notwithstanding the limitation on gaming devices imposed by subdivision (i)(2)(a~(ii)fa~. authorized I~amblin~ establishments may also transfer, sell, license, or assign their rights to own and operate one or more gaming devices to other authorized gambling establishments or authorized horseracing tracks, but in no event shall the total number of gaming devices authorized to be operated at an authorized gambling establishment exceed 1,900. In the event that the allocation of gaming devices set forth in subdivision (i)(2)(a)(ii) exceeds 15,000, the gaming devices authorized pursuant to subdivision (i){2){a)(ii)Co) shall be reduced ratably to bring the total number of gaming devices allocated to all authorized gambling establishments to 15,000 or less. bo The owners of an authorized horseracing track may, in accordance with provisions of applicable law, relocate its racing meeting to another site whether or not it is an authorized horseracing track, or discontinue its racing operation. In the event they do so, however, the gaming devices authorized to be operated by them may only be operated at an authorized horseracing track or an authorized gambling establishment. Co In order to ensure the maximum geneeation of revenue for the Gaming Revenue Trust Fund, the owner or operator of an authorized hors¢~acing track and the owner or operator of an authorized gambling establishment whose facilities are located in the same city may agree upon the maximum number of gaming devices that may be operated at each such facility subject to approval of any such agreement by the Gambling Control Commission, which shall make its decision of whether to approve any such agreement based upon a det=m, ination that any such agreement is in the interests of regulated gaming in the State of California. Any such agre~,,ent approved by the Gambling Control Commission shall not exceed three years in duration. (3) Suspension of Authorization. The authorization to operate gaming devices and to transfer, sell, or assign rights to gaming devices purs-ant to this subdivision may be suspended by the Gambling Control Commission for failure to make the payments imposed by this subdivision within 30 days of such payments becoming due. (4) Prohibition on Additional Fees~ Taxe~ and Levies. The payments imposed pursuant to this Act are in lieu of any and all other fees, taxes or levies, including but not limited to revenue, receipt or personal property taxes, that may be charged or imposed, directly or indirectly, against authorized horseracing tracks or authorized gambling establishments, their patrons, gaming devices, employers or suppliers, by the State, cities or counties, excepting fees, taxes or levies that were in effect and imposed prior to September 1, 2003 that applied to horse~acing and con'uolled games with cards or tiles, or that are applied generally to conunercial activities, including sales and use, income, corporate or real property taxes. The physical expansion of gaming facilities or the operation of gaming devices authorized by this Act shall not be considered an enlargement of gaming operations under any local ordinance related to fees, taxes, or levies. Licenses. The owne,~ of authorized gamblin~ establishments and the owners of authorized horseracing tracks shall be licensed by the State Gambling Control Commission under the Gambling Control Act. 0) (6) Other Laws. The Act shall supercede any inconsistent provisions of state, city or county law relating to gaming devices including~ but not limited to, laws regarding the transportation, manufacture, operation, sale, lease, storage. ownership, licensing, repair or use of gaming devices authorized in this Act. In order to encourage the maximum generation of revenue for the Gaming Revenue Trust Fund, the operation of gaming devices authorized pursuant to this Act is not subject to any pwhibition in state or local law now existing or hereafter enacted. Gamine Revenue Trust Fund. (1) (2) There is hereby established the Gaming Revenue Trust Fgnd in the State Treasury that shall receive all payments pursuant to the requirements of subdivisions (h) and (i). There is hereby established the Board of Trust.s to administer the Gaming Revenue Trust Fund. The Board of Trustees shall be comprised of 5 m~mbers appointed by the Gowmor. Of the 5 members, 2 shall be engaged in public school education, 1 shall be engaged in law enforcement, 1 shall be engaged in fire protection and 1 shall be a certified public accountant. Each m~rnber shall be a citizen of the United States and a resident of this state. No more than 3 of the 5 members shall be (3) members of the same political party. Of the members initially avvointed. 2 shall be appointed for a t=~m of two years, 2 shall be appointed for a term of three years, and 1 shall be appointed for a t~,u of four years. After the initial te~ttts, the term of office of each member shall be four years. The Governor shall appoint the members and shall designate one member to serve as the initial chairperson. The initial chairperson shall serve as chairperson for the length of his or her term. Thereafter, the ctmirperson shall be selected by the Board of Trustees. The initial appointments shall be made within three months of the operative date of this Act. The Board of Trustees shall approve all transfers ofmouies from the Gaming Revenue Trust Fund. The Board of Trustees shall engage an independent firm of certified public accountants to conduct an annual audit of all accounts and transactions of the Gaming Revenue Trust Fund. The monies in the Gaming Revenue Trust Fund shall be distributed as follows: (a) Not more than one percent of the monies annu_ally to the Division of Gambling Control and the California Gambling Control Commission for the cost of carrying out its administrative duties pursuant to this Act, and for reimbursement of any State depa~huent or agency that provides any service pursuant to the provisions of this Act. (b) Monies sufficient to R~mrantee that each non-gamin~ tribe shall receive $1.2 million annually from the Indian Gaming Revenue 10 Sharing Trust Fund as codified in the California Government (c) (d) Code. "Non-gaming tribe" shall mean a federally reco..~nized Indian tribe which operates fewer than 350 gaming devices. $3 million to be awarded almually by the Board of Trustees to responsible gambling programs. After the distributions required pursuant to subdivisions (3)(a).(b). and (e), the t~,,~aining monies shall be distributed as follows: 1. Fifty percent (50%) to county offices of education to provide services for abused and neglected children and children in foster care. These monies shall be allocated to each county office of education according to each county's proportionate share of the annual statewide total of child abuse referral reports for the prior calendar year and shall be used to improve educational outcomes of abused and neglected children and children in foster care. Each county office of education shall allocate these funds to county (e) (0 child protective services agencies to provide these services. Funds received by each county child protective service agency shall be used for the following purposes: i. Out-stationing county child protective services social workers in schools; ii. Providing appropriate caseloads to ensure that professional staff will have sufficient time to provide services necessary to improve the educational outcomes of abused and neglected children and children in foster care; iii. Providing services to children in foster care to minimize mid-year transfers from school to school; iv. Hiring juvenile court workers whose responsibility it is to ensure the implementation of court orders issued by juvenile court judges affecting a foster child's educational performance. Each county child protective service agency shall be subject to all accountability standards including student performance, enrollment, school stability and peffoz'atance measured by the percentage of children at grade level on standardized tests as provided by state and federal law. Each county child protective agency shall use funds received pursuant to this section in a manner that maximizes the counties' ability to obtain federal matchin~ dollars for services to children in the child protective services system. Thirty-five percent (35%) to local governments on a per capita basis for additional neighborhood sheriffs and police officers. Fifteen percent (15%) to local governments on a per capita basis for additional firefighters 11 (k) The Governor shall not consent, concur or agree to the location of any tribal casinos on newly acquired [and pursuant to 25 U.S.C. §2719(b~(l)(a). Further, any compact entered into by the State pursuant to 25 U.S.C. §2710(d) shall only be for class III ~amin~ on indian lands actually taken into trust by the United States for the benefit of an Indian tribe prior to September 1, 2003, except for land contiguous to reservations existing as of that date. SECTION 4. as follows: Section 19609 is added to the Business and Professions Code to read 19609. (a) Unless othenvise defined in this chapter, the terms used in this section shall have the meaning ascribed to th~m in the Gaming Revenue Act of 2004 ("the Act"). Co) Three quarters of one percent (.75%) of the net win from all gaming devices operated by, or on behalf of, owners of authorized homeracing tracks upon which a thoroughbred racin~ meeting was conducted in 2002 shall be distributed for thoroughbred incentive awards and shall be payable to the applicable official registering agency and thereafter distributed as provided in the California Horse Racing Law. (c) One and one-half percent (1 ~%) of the net win from all gaming devices operated by, or on behalf of, owners of authorized homeracing tracks upon which a thoroughbred racin~ meetin~ was conducted in 2002 shall be distributed to each of those thoroughbred racing associations and racing fairs that are not authorized horseracing tracks in the same relative proportions that such thoroughbred racing associations or racing fairs generated commissions during the preceding calendar year. A lessee of an authorized homeracing track as of the effective date of the Act shall not be deemed to be an authorized horseracing track for the purposes of this Section. (d) Seventeen and three quarters percent (17.75%) of the net win from all gaming devices operated by, or on behalf of, owners of authorized horseracing tracks upon which a thoroughbred racing meeting was conducted in 2002 shall be pooled ("the pooled net win") and shall be disltibuted in the form of purses for thoroughbred homes in accordance with the provisions of this subdivision (d). (i) The pooled net win shall be allocated to thoroughbred racing associations and racing fairs throughout the State of California and shall be distributed among each of them in such manner as to equalize on an average daily basis purses for thoroughbred races other than stakes and special events. Notwithstanding the fore~oin~, pooled net win may be allocated to supplement purses for thowughbred races so the thoroughbred racing associations and racing fairs may maintain up to their historic relative proportions between overnight races, and stakes races and special events. Increases in the aggregate amount of purses for stakes races of thoroughbred racing associations and racing fairs resulting from pooled net win contributions shall be determined in accordance with an agreement signed by all the thoroughbred racing associations and the organization responsible for negotiating thoroughbred purse agreements on behalf of thoroughbred horsemen. 12 (ii) Notwithstanding the provisions of subdivision (d) (i) of this Section~ the funds distributable to thoroughbred racing associations and racing fairs fi'om the pooled net win shall be allocated in such a manner as to cause average daily purses for thoroughbred races, other than stakes races and special events, to be the percentages of the average daily purses for such races conducted by thoroughbred racing associations in the Central and Southern zone as set forth below: (a) 90% for thoroughbred racing associations in the Northern zone; Co) 65% for a racing fair in the Central zone~ (c) 50% for racing fairs in the Northern zone other than the Hnmboldt County Fair; 7½% for the Humboldt County Fair. (iii) Notwithstanding the provisions of this subdivision (d) to the contrary, the allocation of purses among the thoroughbred racing associations and the racing fairs may be altered upon approval of the California Horse Racing Board, in accordance with an agreement signed by all of the thoroughbred racing associations and the organization responsible for negotiating thoroughbred purse agreements on behalf of horsemen. (iv) The California Horse Racing Board shall be responsible for the ows4ght of the distribution of the pooled net win in accordance with the provisions of this subdivision (d). (e) Eighteen and one-half percent (18.5%) of the net win from all ;zamin~ devices operated by owners of an authorized horseracing track upon which a quarter horse racing meeting was conducted in 2002 shall be paid to supplement purses of races conducted by a qnarter horse racing association. (0 One and four tenths percent (1.4%) of the net win from gaming devices operated by owners of an authorized horse racing track described in subdivision (e) above shall be paid to supplement the purses of harness races conducted by a hame.ss racing association that conducts at least 150 days or nights of harness racing annually at the California Exposition and State Fair, and on-tenth of one percent (. 1%) of such net win shall be paid to the harness racing association described in this subdivision (0- SECTION 5. as follows: Section 19805.5 is added to the Business and Professions Code to read Sec. 19805.5. As used in this chapter, and in the Gaming Revenue Act of 2004, "gaming device" shall mean and include a slot machine under state law or any Class 1TI device under the Indian Gamin~ Regulatory Act. The operation of a gaming device by a tribe, entity or person authorized to operate gaming devices under the Gaming Revenue Act shall constitute controlled gamin~ under State law. 13 SECTION 6. Section 19863 of the Business and Professions Code is amended to read as follows: See. 19863. A publicly traded racing association or a q, alified racing association, or their successors in interest, shall be allowed to operate only one g~m.k':g gambling establishment, and the g=mk:~ gambling establishment shall be located on the same prr.:---:::: site as the entity's racetrack was located in 2002. SECTION 7. as follows: Section 19985 is added to the Business and Professions Code to read Sec. 19985. (a) Except as provided in this section, the GambYmg Control Act, including, but not limited to, the jurisdiction and powers of the Division and Commission to enact regulations, to enforce applicable law, to conduct background investigations and to issue licenses and work permits, shall apply to authorized horseracing tracks as defined in the Gaming Revenue Act, and to the operators of gaming devices thereon, including their successors in interest, in and to the same extent the Gambling Contxol Act aoplies to gambling establishments. Co) Employees of authorized horseracing tracks who are not owners, shareholders, nartners or key employees, and whose iob responsibilities do not involve controlled games, shall not be required to obtain work permits pursuant to this Chapter. SECTION 8. read as follows: Section 19962 of the Business and Professions Code is amended to 19962. (a) On and after the effeetive date of this chapter, neither the governing body nor the eleetors of a county, city, or city and county that has not authorized legal gaming within its boundaries prior to January 1, 1996, shall authorize legal gaming. (b) No ordinance in effect on January 1, 1996, that authorizes legal gaming within a city, county, or city and county may be amended to expand gaming in that jurisdiction beyond that permitted on January 1, 1996. (c) This seetion is not intended to prohibit gaming authorized by the Gaming Revenue Act of 2004. 14 SECTION 9. Section 19963 of the Business and Professions Code is amended to read as follows: 19963. (a) In addition to any other limitations on the expansion of gambling imposed by Section 19962 or any provision of this chapter, and except as provided in the Gaming Revenue Act of 2004, the commission shall not issue a gambling license for a gambling establishment that was not licensed to operate on December 31, 1999, unless an application to operate that establishment was on file with the division prior to September 1, 2000. SECTION 10. Section 19817 of the Business and Professions Code is amended to read as follows: The commission shall establish and appoint a Gaming Policy Advisory Committee of 10 members. The committee shall be composed of representatives of controlled gambling licensees, authorized horse racing tracks under the Gaming Revenue Act, representatives of ~amin~ tribes, and members of the general public. The executive director shall, fi~om time to time, convene the committee for the purpose of discussing matters of controlled gambling regulatory policy and any other relevant gambling-related issue. The recommendations concerning gambling policy made by the committee shall be presented to the commission, but shall be deemed advisory and not binding on the commission in the performance of its duties or functions. '~' ..... :~' ........ , ..4..1.. ,!. ..... 1.~1 .... T--,.I; ..... -'-. SECTION 11. Section 12012.6 is added to the Government Code to read as follows: (a) Notwithstanding Gow. anent Code sections 12012.25 and 12012.5, and any other provision of law, the Governor is the designated state officer responsible for negotiating and executing, on behalf of the state, tribal-state gaming compacts with federally recognized Indian tribes located within the State of California pursuant to the federal Indian Gaming Regulatory Act of 1988 (18 U.S.C. Sec. 1166 to 1168, incl., and 25 U.S.C. Sec. 2701 et seq.) for the purpose of authorizing class m gaming, as defined in that act, on Indian lands within this state. Nothing in this section shall be construed to deny the existence of the Governor's authority to have negotiated and executed tribal-state gaming compacts prior to the effective date of this section. Co) The Governor shall submit a copy of any executed tribal-state compact to the Secretary of State who shall forward a copy of the executed compact to the Secretary of the Interior for his or her review and approval, in accordance with paragralmh (8) of subsection (d) of Section 2710 of Title 25 of the United States Code. 15 SECTION 12. Section 12012.75 of the Government Code is amended to rend as follows: There is hereby created in the State Treasury a special fund called the "Indian Gaming Revenue Sharing Trust Fund" for the receipt and deposit of moneys derived from gaming device license fees that are paid into the fund pursuant to the terms of tribal-state gaming compacts, and monies received from the Gaming Revenue Trust Fund, for the purpose of making dislributions to noncompact tribes. Moneys in the Indian Gaming Revenue Sharing Trust Fund shall be available to the California Gambling Control Commission, upon appropriation by the Legislature, for the purpose of making distributions to noncompact tribes, in accordance with the Gaming Revenue Act and tribal-state gaming compacts. SECTION 13. rend ns follows: Section 8.3 is added to Article XVI of the California Constitution to Sec. 8.3 (a) Funds appropriated pursuant to the Gaming Revenue Act of 2004 shall not he deemed to be part of "total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIIIR" as that t~,m is used in ~aram-at~hs (2) and (3) of subdivision Co) of Section 8. Co) Revenues derived from payments made pursu_n~t to the Gaming R~venue Act of 2004 shall not be deemed to be "General Fund revenues which may be appropriated pursuant to Article XIlIR" as that twin is used in paragraph fl) of subdivision (b) of Section 8 nor shall they be considered in the detctudnation of"per capita General Fund revenues" as that term is used in l~ara~raoh (3) of subdivision Co) and in subdivision (e) of Section 8. SECTION 14. rend ns follows: Section 14 is added to Article XIII B of the California Constitution to Sec. 14 (a) For purposes of this article, "proceeds of taxes" shall not include the revenues created by the Gaming Revenue Act of 2004. (b) For purposes of this article, "appropriations subject to limitation" of each entity of government shall not include appropriations of revenues from the Gamin~ Revenue Trust Fund created by the Gaming Revenue Act of 2004. SECTION 15. Amendment The statutory provisions of this Act may be amended only by a vote of two-thirds of the membership of both houses of the Legislature. All statutory amendments to this Act shall be to further the Act and must be consistent with its purposes. 16 SECTION 16. Consistency With Other Ballot Measures The provisions of this Act are not in conflict with any initiative measure that appears on the same ballot that amends the California Constitution to authorize gaming of any kind. In the event that this Act and another measure that amends the California Constitution to permit gaming of any kind are adopted at the same election, the courts are hereby directed to reconcile their respective statutory provisions to the greatest extent possible and to give effect to every provision of both measures. SECTION 17. Additional Funding No monies in the Gaming Revenue Trust Fund shall be used to supplant federal, state or local funds used for child protective and foster care services, neighborhood sheriffs and police officers and firefighters but shall be used exclusively to supplement the total amount of federal, state and local funds allocated for child protective services and foster care which improve the educational outcomes of abused and neglected children and children in foster care and for additional sheriffs, police officers and firefighters. SECTION 18. Judicial Proceedings In any action for declaratory or injunctive relief, or for relief by way of any extraordinary writ, wherein the construction, application, or validity of Section 3 of this Act or any part thereof is called into question, a court shall not grant any temporary restraining order, preliminary or permanent injunction, or any peremptory writ of mandate, certiorari, or prohibition, or other provisional or p~..anent order to restrain, stay, or oth~u~vise interfere with the operation of the Act except upon a finding by the court, based on clear and convincing evidence, that the public interest will not be prejudiced thereby, and no such order shall be effective for more than 15 calendar days. A court shall not restrain any part of this Act except the specific provisions that are challenged. SECTION 19. Severability If any provision of this Act or the application thereof to any person or circumstances is held invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Act that can be given effect without the invalid or unconstitutional provision or application, and to this end the provisions of this Act are severable. 17 City or Co~Bty Appendix IV.a - Scenario I Annual Allocation of Trust Fund Revenue to Cities and Counties in California Appendix IV.b - Scenario II Annual Allocation of Trust Fund Revenue to Cities and Counties in California California Police Chiefs Association Memorandum PRESS RELEASE Contact: Rick TerBorch, President California Police Chiefs Association 805-473-5121 Police Chiefs Condemn Casino Gambling Initiative Public Safety at Risk - Voters Urged Not to Sign Ballot-Qualifying Petitions January 26, 2004-- The California Police Chiefs Association has taken the following position on the casino gambling initiative whose proponents are expected to begin the signature- gathering process today to place the measure on the November ballot: The California Police Chiefs Association strongly opposes the casino gambling initiative proposed for the November 2004 ballot. The association's Board of Directors recently voted unanimously to oppose the initiative because of the serious and well-documented threats to public safety associated with casino gambling. Passage of this initiative will dramatically expand casino gambling in California. Thirty thousand slot machines will be placed in 16 different locations in six California counties. These casinos will all be in urban areas, and they will all be large, with even the smallest casinos having several hundred slot machines. In fact, there is a special section in the initiative that will turn one location, Hollywood Park in Inglewood, into the one of the largest casinos in the world! Make no mistake; there is a serious link between large scale casino gambling and crime. That is why we opposed the Indian gaming initiatives and why we oppose this casino initiative. The experience of Atlantic City provides a sobering preview of the crime problems that await California if the casino initiative is adopted. According to 2002 Federal Bureau of Investigation crime reports, Atlantic City, none of whose casinos are as big as the proposed Hollywood Park location, has an 16 overall crime index of 12,924 crimes per 100,000 people. The Atlantic City crime rate is over three times the national average. The California Police Chiefs Association's 336 members are responsible for providing direct public safety services for over 70% of California. We take our responsibility of protecting the public very, very seriously. It is for this reason that we are alarmed by the public safety threats created by the proposed casino initiative. Proponents of the casino gambling initiative want to buy your vote by promising much- needed tax revenue to California. But the threat to public safety is too high a price to pay in return. On behalf of our members, we call on California voters not to be fooled by the paid petition pushers hired by the gambling industry to qualify this measure for the ballot. Californians can protect public safety by refusing to sign the casino petitions. In the event the measure does qualify for the ballot, the California Police Chiefs Association will make its defeat a top priority, and we intend to take the lead in urging all Californians to soundly reject this threat to public safety. For further information about the California Police Chiefs Association position on the casino initiative and the related crime problems, please call Rick TerBorch, President of the California Police Chiefs Association, at 805-473-5121. # # # 17