THE QUESTIONShould the California Constitution be modified to allow, on Indian tribal lands only, slot machines, lottery games, and banked and percentage card games under compacts made between the tribes and the Governor? THE SITUATIONThe federal Indian Gaming Regulatory Act (IGRA) of 1988 requires a compact between state and tribe whenever Class III gaming is involved. About 40 of some 100 Indian rancherias and reservations in California are engaged in gambling operations that include some form of Class III gambling. Only 11, the Pala Band and others, are currently eligible for federal approval because of valid compacts with the state. The 1998 Pala compacts are on hold awaiting the voters' decision on Proposition 1A and Proposition 29. In November 1998, voters approved Proposition 5 providing for various types of gambling on Indian lands in California, including video slot machines, a form of Class III game. The State Supreme Court declared the proposition unconstitutional less than a year later because video slot machines were found to be Nevada- and New Jersey-type gambling. This is expressly prohibited in the State Constitution, consistent with the state's history of discouraging casino gambling. Proposition 1A would put an authorization of this type of Class III gambling into the State Constitution. The Governor and 57 tribes, including those with Pala compacts, have since negotiated new tribal-state gaming compacts. The new compacts are generally less restrictive than the Pala compacts. They await passage of this proposal. THE PROPOSALProposition 1A would amend the State Constitution to: · allow the Governor and federally recognized Indian tribes to negotiate compacts permitting specified gambling activities on tribal lands in California, with ratification of the State Legislature · authorize slot machines, lottery games, and banked and percentage card games only on tribal lands and only under the terms of duly-negotiated and ratified compacts. Passage of Proposition 1A would put into effect the new tribal-state compacts negotiated between the Governor and 57 tribes, provided the federal government gives its approval. These new compacts would replace all previously approved compacts, including the Pala compacts. FISCAL EFFECTAccording to the Legislative Analyst, Proposition 1A would likely result in some increased economic activity for California. However, tribes do not pay certain taxes, so some potential state revenues would not be realized. State and local governments would receive a portion of trust funds that could total in the low tens of millions of dollars annually. State and local governments would also receive revenues from taxes paid by non-tribal employees of casinos and by tribal employees living on non-tribal land. SUPPORTERS SAY· Indian casinos on tribal lands permit Native Americans to be self-reliant, and all Californians benefit from the 50,000 jobs they provide for Indians and non-Indians. · This measure allows for the sharing of revenues with non-gaming tribes to use for vital services including education, housing and health care. OPPONENTS SAY· The number of slot machines would increase to possibly 113,000, placing California second only to Nevada in the total allowed in a state. · There are about 700,000 problem and pathological gamblers in the state, with another 1.8 million "at risk" who need help to stop - not to start - gambling. For more information: Supporters: (800) 258-7471, www.yeson1A.net (Analysis prepared by the League of Women Voters of California Education Fund  
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