RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE OPPOSING SENATE BILL 549 BY SENATOR JOSH NEWMAN WHEREAS, Senate Bill 549 by State Senator Josh Newman would give sovereign tribal governments a new “private right of action" to sue their competitors – California cardrooms. Under SB 549, gaming tribes could sue cardrooms and seek an injunction to prohibit playing hundreds of state-approved card games, thus destroying the cardroom industry in California and having a direct impact on our city; and WHEREAS, this legislation negates their continued failed attempts over the years to eliminate lawful cardrooms. They have lost again and again in the courts and have failed to compel any of the recent Attorney Generals to side with them or the Legislature.
WHEREAS, this legislation will allow for the potential for frivolous lawsuits that could “negatively affect cardrooms and cities that rely on the tax revenues from cardrooms. The reduction in revenues would impact essential resident services. In addition, the state and local governments would experience decreased revenue; and WHEREAS, cardrooms are a critical economic engine in our city, directly and indirectly contributing millions of dollars annually to the city’s general fund; and WHEREAS, these funds are essential for our city’s ability to provide unrestricted funding for city programs and services that residents rely on such as homeless services, fire, emergency services, public safety, senior and housing programs; and WHEREAS, cardrooms employ many of residents in our city and in our neighboring communities that provide additional general fund contributions; and WHEREAS, any initiative or policy that will harm cardroom revenues will also negatively impact our community and residents; and WHEREAS, tribal casinos also want to give themselves a monopoly on gaming even if it means closing down an entire industry. SB 549 would reward gaming tribes who stayed open during COVID while cardrooms were closed as it was then that the gaming tribes sponsoring this bill realized they could generate an extra $100 million in profits in addition to their $9 billion in annual revenue if cardrooms stay closed.
WHEREAS, SB 549 allows one-way access to California courts creating an unlevel playing field. SB 549 creates a PAGA provision for tribes to sue card clubs for playing card games approved by the Attorney General while it does not allow tribes to be sued by cardrooms for playing illegal roulette and craps; WHEREAS; SB 549 forces the courts to ignore multiple prior Attorney General approvals issued to cardrooms and bypasses the Attorney General’s statutory authority to regulate the cardroom industry and his current proposed regulations; WHEREAS; SB 549 ignores the will of the voters who rejected these same PAGA provisions in Proposition 26 in 2022; WHEREAS, California tribal casinos are an $9 billion-a-year industry, but are not subject to state income taxes, property taxes, or local sales taxes; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Commerce does hereby resolve, declare, and determine as follows:
Section 1. The City Council of the City of Commerce formally opposes SB 549 and urges the California State Legislature to reject it.
Section 2. Authorize the Mayor to execute the Resolution for and on behalf of the City of Commerce.
Section 3. This Resolution shall take full force and effect immediately upon adoption by the City Council.
PASSED, APPROVED, and ADOPTED this 13th day of August 2024. ________________________
Hugo Argumedo, Mayor
ATTEST:
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Lena Shumway, City Clerk