CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
TO: Honorable City Council
FROM: City Manager
SUBJECT: Letter of Opposition for SB 549 (Newman) GAMING: TRIBAL NATIONS ACCESS TO JUSTICE ACT Meeting Date: August 13, 2024
RECOMMENDATION:
The City Council will consider for adoption of a Resolution authorizing staff to send an opposition letter signed by the Mayor to the State of California for SB 549 (Newman).
BACKGROUND:
Senate Bill (SB) 549 is a “gut and amend” bill by Senator Newman which is sponsored by tribal gaming interests. It seeks to give sovereign tribal governments a new Private Attorney General Act (PAGA), that allows wealthy tribes to submit civil lawsuits against cardrooms for operating certain card games that have been legal and regulated by Federal, State, and Local laws for decades. Supporters of this bill aim to bury cardrooms under endless and expensive lawsuits, an attempt to hurt cardroom businesses and essentially shut down cardrooms and eliminate competition.
SB 549 mirrors the same past attempts by the same few wealthy gaming tribes to harm cardrooms that have been rejected. In November 2022, voters overwhelmingly rejected these few wealthy tribes’ attempts to be allowed to endlessly file lawsuits against cardrooms with the failure of Prop 26. Furthermore, in the past, there have been four different court decisions that have been rejected by these same tribes’ attempts to eliminate cardrooms.
ANALYSIS:
This bill would authorize a Californian Indian tribe that is party to a current tribal-state gaming compact or that is party to current secretarial procedures, to bring an action in superior court filed solely against licensed gambling enterprises (card clubs) and third-party providers of proposition player services to seek a declaration and may also seek injunctive relief as to whether a controlled game operated by a licensed California card club and banked by a licensed third party providers of proposition player services constitutes a banking card game that violates state law and tribal gaming exclusivity. The bill would require that any review of such a challenge be conducted de novo, which means that the court will have full authority to order a robust discovery process and thoroughly examine all evidence offered by all parties to determine the legality of existing card room practices.
By allowing any current ratified tribal-state gaming compact to file solely against licensed card clubs who have been operating these games for decades to the superior court, the court can make a binding declaration in either affirmative or negative form to card clubs. There will likely be over 100 parties to the action, including card clubs, third-party providers, gaming tribes, the Attorney General, local governments, and others.
ALTERNATIVES:
Approve staff recommendation; or
Provide further direction to staff
FISCAL IMPACT:
The fiscal impact is unknown at this time.
RELATIONSHIP TO STRATEGIC GOALS:
The agenda item relates to the 2016 Strategic Plan
Economic Growth
Guiding Principle #4:
This guiding principle calls for a focus on economic development pursuits that will increase local jobs, generate revenue, and create a demand for supporting businesses.
Respectfully submitted: Ernie Hernandez, City Manager
Prepared by: Gisselle S. Delgado, Management Analyst
Approved as to form: Noel Tapia, City Attorney
ATTACHMENTS:
Attachment A: Resolution
Attachment B: Sample Letter