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Tribes make payments to several state government accounts under the terms of the tribal-state compacts. Under the compacts, non-compact tribes are those federally recognized tribes operating or fewer Class III gaming devices.
These moneys help relieve the General Fund of a potential cost to repay the transportation funds. Combined, these two revenue sources equaled just over 0.
Unless the Legislature ratifies additional compacts or amendments early in , state revenues in will grow slightly above the levels. In addition to funds paid pursuant to the compacts, tribes and their members pay certain state taxes.
The laws surrounding the taxability of tribes, tribal members, and related enterprises are complex. Tribes and their members are not subject to several types of taxation due to the lack of authority granted to states for this purpose under federal law.
Tribal members living on reservations, for example, are not subject to state income tax, and tribal casinos do not pay the corporate income tax.
Regarding the sales and use tax, tribes are generally expected to collect taxes on purchases made by nontribal members for consumption or use off of reservations.
A few local governments receive significant funds directly from tribes under mitigation agreements reached with tribes for such things as traffic and law enforcement costs.
In addition to the funds described above, local governments also receive some revenue from the taxation of certain tribal activities and transactions.
As in the case of the state, local government has only a limited ability to tax such enterprises. Property taxes and hotel occupancy taxes, for example, do not apply to reservations.
Purpose of the RSTF. Under the various tribal-state compacts, tribes make payments to the RSTF in exchange for licenses to operate up to 2, slot machines.
The compacts were among the first in the country to share casino revenues with tribes that do not have compacts. These payments are based on the number of slot machines that the tribes operate.
Subsequent compacts and amendments have specified other levels of payments. Through , RSTF funds were insufficient to fund the full annual payment to each non-compact tribe.
Purpose of the SDF. The law ranks other allowable uses of the SDF in descending order after this priority use, as follows:. Payments Into the SDF.
These payments are a percentage of the average slot machine net win a measure of slot machine revenues on machines operated by the tribe on September 1, Most recent compacts or amendments have not required tribal payments into the SDF.
Over the last several years, the SDF has collected more revenues each year than the Legislature has spent out of the fund. We discuss the potential effects on the SDF of compacts pending before the Legislature later in this report.
It is not known when or if the bonds will be sold. Under current law, the administration may use the annual payments to 1 repay the transportation loans or 2 support the planned bond issue that would repay the transportation loans.
The Legislature, however, may amend the law and direct that the funds be used for any other purpose. As a result, the amount of bond proceeds to be generated from the sale are likely even lower than previously estimated.
Trailer bill language also modified the allocation of future bond sale revenues, providing that they would fund projects under the Traffic Congestion Relief Program.
This action would further reduce the amount of any future bond. In this section, we will focus principally on the five proposed compact amendments that we refer to as the compacts, given that they recently have generated the most discussion among legislators and the public.
How Are They Similar to the Compacts? Earlier in this report, we compared the compacts and the compacts. The compacts are similar in many respects to the compacts.
Like the compacts, the compacts would allow tribes to operate more than 2, slot machines. The tribes would be able to operate the machines at one, two, or three gambling facilities on Indian lands depending on the tribe and the compact amendment involved after negotiating with local government officials on measures to mitigate effects of casino development.
The agreements contain similar language allowing state regulators to inspect casino facilities and machines. While the compacts allow tribes to operate an unlimited number of slot machines in exchange for certain payments to the state, the compacts allow tribes to operate up to 5, or 7, machines depending on the compact.
Legislation implementing the compacts directed a large portion of the revenues that these tribes pay to the state to repay state transportation loans.
The minimum annual payments under the compacts, by contrast, would go to the General Fund. Estimated to average 15 percent of added machines revenue as of Added payments of 15 percent of revenues from machines 2,, and 25 percent from machines 5,, What are some key compact provisions concerning labor relations?
Tribal neutrality required during organization process. Tribal neutrality not required. Should the Legislature ratify all of the proposed compacts, SDF revenues likely would drop substantially as several tribes with large casinos would cease making payments into the SDF.
Under the terms of several of the proposed compacts, RSTF shortfalls then would be offset by tribal revenues that otherwise would be paid to the General Fund.
Therefore, if the Legislature ratifies the proposed compacts, it may need to consider the current funding priorities of the SDF in statute, as well as the appropriation amounts for various purposes included in the annual budget act.
General Fund Revenue Projections Overstated. This projection is not realistic. Additional expansion of General Fund revenues would depend largely on how fast the tribes with and compacts bring new slot machines online.
Given the pace at which the compact tribes have expanded and the economics of the casino industry, we expect that expansion of casino operations would be gradual, rather than sudden and dramatic.
Such an increase in only a few months, however, is very unlikely. Even in the longer term, tribes may not opt for aggressive business expansion strategies, and it is possible that some tribes will find that it is not in their best interests to expand to the maximum number of slot machines allowed under the compacts.
Other businesses, for example, may offer a greater rate of return for some tribes and a chance for them to diversify their portfolios.
Offsetting the growth of General Fund revenues would be the requirement in the compacts that the state use some of the new revenues to address shortfalls in the RSTF.
This requirement could increase General Fund costs in the tens of millions of dollars annually. In addition, as a result of declining SDF revenues, the Legislature could face funding shortfalls for gambling addiction, regulatory, and local government programs.
The billions of dollars are only possible if one sums decades worth of annual payments. Even assuming that all of the compacts are ratified and a few more similar compacts are ratified in the future, we expect that compact-related sources will provide the General Fund with less than 0.
Employees of at least six tribal casinos are unionized. Organizing efforts have occurred at some other California casinos.
In this section, we discuss the labor relations provisions of the , , and compacts. Unions are granted access to eligible employees to discuss organization and representation issues.
The union must win a majority of those eligible employees voting in the secret ballot election. Should such a union win certification, it would then bargain collectively for employees in its bargaining unit.
The compact tribes without existing collective bargaining relationships with a union agreed to adopt an amended TLRO. Under the required amendments, a union has the option of offering a tribe that it will not strike or picket tribal facilities and will submit all issues to binding arbitration.
In contrast to the provisions of the compacts, there are no secret ballot election requirements. This process may make it easier for unions to be certified as the exclusive representative of employees of tribal casinos and related facilities.
The IGRA permits casino operations on Indian lands, which it defines as 1 reservation lands, 2 lands held in trust by the U. Tribes, therefore, may seek to rebuild a land base by having the federal government acquire lands in trust for their use through a lengthy, complex process.
In some cases, this can mean that tribes seek to establish a land base in areas such as urban or suburban areas not associated with the tribes in recent history.
Throughout the nation and in California, conflicts occasionally have arisen between tribes wishing to establish a casino particularly on recently acquired trust lands and nearby communities resisting such development.
The rules governing where tribes may operate casinos are extraordinarily complex. In recent years, however, the general trend seems to have been for federal and state policymakers to make it more difficult for tribes to open casinos on recently acquired trust lands.
DOI has not approved many pending requests of tribes to acquire trust lands for the purpose of establishing casinos and has established rules requiring environmental reviews and support from nearby community leaders before approval will be granted.
Such criticisms have been one reason why the Legislature has not yet ratified some proposed compacts. To date, much of this funding has been used to provide grants to problem gambling telephone services including publicity for these lines and to fund research activities related to problem gambling in the state.
Our Summer Concert Series will be coming up soon, so please be sure to check out the schedule. We look forward to you taking the extra 30 minutes to visit our beautiful Resort.
We stayed at this hotel for the weekend because it is a very nice hotel. It is clean, most of the staff is friendly and it is close to home.
We like Thunder Valley very much. This will not deter us from returning, but I know for sure I will not have the lady that did my message ever do mine again.
Good Afternoon, It was a pleasure speaking with you the other day. Our Spa Manager will be reaching out to you in the near future to discuss your concerns.
Thank you again for your time. Lots of little extras. However the blow dryers are terrible. Takes forever to dry hair. They need to put in a hot tub for year round use.
The hotel is across from a dump so when your outside for concerts and lounging at the pool, you can smell the dump. It would be a really nice touch if they did.
The cost of the hotel is more expensive than Best Western and they offer free breakfast!! Good Morning kristygiles, Thank you so much for taking the time to give Thunder Valley your comments and feedback.
We are truly delighted to hear that you enjoyed our beautiful 4 Diamond Hotel. I will certainly pass on the blow dryer information to our Housekeeping management.
Since we do not have a hot tub available during the winter I might suggest enjoying some of our Spa amenities which are included in your hotel stay.
We have a dry cedar sauna, eucalyptus steam room and mediation room complimentary for your enjoyment. Since we are a 4 Diamond Resort the other hotels in the area are not able to offer the amentias and luxuries that our hotel has available to our guests.
Be sure to always use your card when you are playing so that you can earn points and promotions. We look forward to welcoming you back soon.
The hotel rooms are spacious rooms and very well maintained. I believe it has 17 floors rising up above the attached casino.
The Seafood Buffet on Friday nights is very good but can be crowded. The hotel room itself is recently renovated with a huge bathroom which has both a massive shower and separate deep tub for soaking.
They do offer room service but I elected to eat down in the casino. Overall a very nice experience. Good Morning and thank you so much for taking the time to give Thunder Valley your feedback and comments.
Yes, our Four Diamond Resort has 17 floors with newly renovated and or new rooms, and we are delighted to hear that you enjoyed your stay!
With 14 bars and restaurants throughout we have something for everyone. Also our beautiful Spa runs specials and we have free entertainment every Friday and Saturday night for all our guest to enjoy.
We look forward to welcoming you back in the very near future. My wife and I spent a one night get-away. This is professionally run, well managed property.
The staff at the front desk was excellent answering my questions and taking care of details. The room was very well done. It was very, very, clean and the amenities were first class.
The hotel has earned its travel awards and I highly recommend it to visitors to this area. When you couple the hotel with restaurants, you have the basis for a pleasant visit.
If only the slots would pay a bit more!!! Regardless, we will be back! Good Morning OldPilotOld, Thank you so much for taking the time to give us your valuable comments and feedback.
We appreciate you choosing our Four Diamond Resort for your get-away. Our Team strieves to give our guest a memorable stay with each visit and we are delighted to hear that you will be coming back.
We wish you the best of luck on your next visit!