AgdaPkt 2004-09-13 - Laserfiche WebLink

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g��-� Legislative AnalysYs Office 7/15/04:8:50 am FINAL Related Provisions in Proposition 70 Proposition 70 on this ballot also contains provisions affecting the number of slot machines authorized in the state. That measure would allow tribes entering a new or amended compact to expand the types of games authorized at casinos. It would also eliminate the existing limits on the number of slot machines and facilities a tribe can operate. In exchange for the exclusive right to these types of gambling, tribes would pay the state a percentage of their net income from gambling activities. The State Constitution provides that if the provisions of two approved propositions are in conflict, only the provisions of the measure with the higher number of yes votes at the statewide election take effect. FISCAL EFFECT The fiscal effect of the measure on state and local governments would depend on whether current compacts are revised or if racetracks and card rooms operate slot machines. The fiscal effect under each scenario is disrussed below. i ;: � .�. � �� f"��'� ��''� �� «��- ��,.� � �� :: Reviseac� �f the �urrerrt ��'abat St�e Com�cf� � �, .� � � } # � �. , . �- `N'et TN'in �a men�s:�hiT`�`�fribes do not ubhc�T � �re ort �oima� �° � �� y_ p y p �n on t�teir s`Yot � �� mach�ne revenues, it �s eshmated that the machules are generahn� net win of over � � � ,�..� �.. � � ,�, � �5 bi�I�on an��ua „� �n �I��"�#� ��bes�a�ree � th� m��ur��,p�t��..��, �ibes �� � �cv€�ulci pay 25 p�rcent ��Iot r,�ac.�ines`�t.�,r� �ie �'� ,g�er�wl� ��r • '� . � , ; � i ,:.:-,. � $1 billion annuaIIy:`These payments would be provided pnmari�y`to locar �vemments��`�� to increase funding for child protective, police, and firefighting services. Existing Payments to the State. As described above, tribes under the 1999 and 2004 compacts pay hundreds of millions of dollars annually to the state for both specific and general purposes. This measure does not specifically address whether these payments would continue or cease under the compact revision process. As a result, it appears that . the continuation of the payments would be subject to negotiation between the tribes and the Governor. If the revised compacts do not include a continuation of these payments, the state would experience a reduction in payments—potentially totaling hundreds of millions of dollars annually. Expansion of Gambiing at Card Rooms and Racetracks Net Win Payments. If the tribes do not agree to revise their compacts within the time required, specific card rooms and horse racing tracks would be authorized to operate up to 30,000 slot machines. These entities would pay 30 percent of the net win to the GRTF. The amount of these payments would depend on the number of slot machines in operation and their net win. These revenues could potentially be over $1 billion annually. These revenues would be provided primarily to local governments to increase funding for child protecrive, police, and firefighting services. ,,, . , __ _ - -�- -. �... �. - - — _ _ ,�.:' _ .,. _, . . . .. . . .,. • .-. <sa' � '\ � r=� r.., : -� . ; r- E•'y '► �..� 4 � � � � �i '��.: ��"a�;;�: �ar ;:� �., : �.:�:m 1 Page 5 of 6