Posted on 08/29/2006 1:52:11 PM PDT by NormsRevenge
LOS ANGELES
A deal signed Tuesday by Gov. Arnold Schwarzenegger would allow two of California's richest Indian tribes to vastly expand the number of slot machines in their casinos in return for paying billions of dollars to the state.
The agreement amends existing gaming compacts with the Temecula-based Pechanga Band of Luiseno Indians and the San Manuel Band of Mission Indians in San Bernardino County.
"These compacts are a great deal for the state, the tribe and the local communities," Schwarzenegger said in a statement.
The deal must also be approved by the Legislature.
The announcement came just a day after the state Assembly rejected a similar deal between the governor and the Agua Caliente Band of Cahuilla Indians in Palm Springs.
Labor unions lobbied against that agreement because it failed to guarantee the right to organize casino workers.
The latest deals call for the Pechanga and San Manuel tribes to pay more money to the state in exchange for being allowed to operate 7,500 slot machines each, up from the current 2,000 each. The Department of Finance estimated the deal could provide as much as $14.2 billion to the state through 2030.
In addition, the tribes each agreed to pay $2 million a year into a fund for tribes without casinos.
The deal also calls for tribes to prepare environmental impact reports before building new casinos or expanding current facilities, and to allow binding arbitration to resolve any disputes with workers, visitors or surrounding communities.
Calls to tribal representatives seeking comment were not immediately returned.
The compacts must be approved by the state Legislature, which has held up the past five compacts negotiated by the governor's office.
On Monday night, the state Assembly fell eight votes short of approving a new compact for the Agua Caliente tribe. The agreement was given a second chance for a vote Tuesday only two days before the Legislature adjourns for the year.
Agua Caliente is the only tribe in the state with two casinos. The compact negotiated with Schwarzenegger would allow the tribe to open a third casino and operate 3,000 more slots. The tribe now has the maximum 2,000 slots permitted under its 1999 compact.
The deal also required the tribe to pay the state increased revenues that could total $1.9 billion.
"The governor still supports the compact with the Agua Caliente tribe that will bring tens of millions of dollars to the state every year," said Darrel Ng, a spokesman for the governor.
"He will continue working with the Legislature to pass this compact this year," Ng said.
The Agua Caliente tribe spent nearly $14 million two years ago supporting a proposition that Schwarzenegger opposed. The ballot initiative would have allowed unlimited gambling for the next century on the tribe's land.
Schwarzenegger has maintained since his campaign during the 2003 recall election that the state's tribes should pay their "fair share" in taxes.
In addition, the tribes each agreed to pay $2 million a year into a fund for tribes without casinos.
Besides the obvious massive scale of corruption that is going on - what a bunch a penny pinchers...
As far as I can tell, it's just a tax and transfer scheme.
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