RINCON, Calif., May 2 /PRNewswire/ -- A San Diego federal district
court magistrate has found the Schwarzenegger administration's demands for
large payments by the Rincon Band of Luiseno Indians to the state's general
fund, in return for a gaming compact amendment that allows the tribe to add
additional slot machines, to be an illegal tax in violation of federal law.

    Judge William McCurrine Jr. found that the state was negotiating in bad
faith and awarded remedies under the federal Indian Gaming Regulatory Act
(IGRA), which governs the Class III compacting rules between tribes and
states. Judge McCurrine has ordered that the parties reach an agreement
within the next 60 days, and if the tribe and state fail to reach agreement
each side will submit their best offer to a court-appointed mediator. The
mediator will choose the offer that most closely conforms to the court's
findings and IGRA.

    "This is an incredibly important decision and one that potentially
changes the whole landscape of tribal and state gaming negotiations," said
Bo Mazzetti, vice chairman of the Rincon Tribal Council. "'Bad faith' has
haunted California tribal negotiations with the state since 1991 under
then-Governor Pete Wilson, who refused to negotiate regardless of federal
mandates. Until this decision, the courts have not enforced it, and not
until this case has the benchmark been established for fair and legally
negotiated fees versus an illegal tax on tribal gaming revenues."

    Mazzetti emphasized that the Rincon Tribal Council is looking forward
to working with the governor's office in the next 60 days to produce a
compact that complies with federal law, provides for local mitigations,
participates in the public safety and environmental concerns of neighbors,
and continues to support an improved quality of life in all of California's
tribal communities.

    "This case means a great deal, not just to Rincon, but all tribes
because it confirms one of the basic foundations between American Indian
tribes and states: Indian tribes are sovereign governments, which, like
other governments, may not be taxed. The judge makes it clear that federal
law, specifically IGRA, prevents states from using compact negotiations to
assess a tax on tribal government gaming revenues," he added.

    In his April 29, 2008 decision, Judge McCurrine points out that tribal
government gaming was meant to benefit tribal governments and aid tribal
economic development, not to balance state budgets. "Compact negotiations,"
he reminded the state, "are between equal sovereigns and fees paid under
the terms of a Tribal-State Compact are only to be used to mitigate
impacts, protect public safety and to establish a framework of the
regulation of gaming with the tribes."

    The level of taxation that the state was demanding to amend their
compact would have amounted to 79 percent of the Harrah's Rincon Casino
profits.

    "That's not right and it's not fair. No taxpayer would stand to have
over two thirds of their income taken by the state. There would be a
Sacramento Tea Party," said Mazzetti, adding, "Throughout history, some
people have had the opinion that fair doesn't apply to tribes. However,
Rincon has honored its agreement with the state and is willing to pay our
fair share, but we have opposed revenue sharing that exceeds what is
allowed under federal law or that goes for impermissible purposes."

    Rincon's immediate goal remains to add 400 machines to the existing
1600 gaming devices to reach the 2,000 maximum promised in the 1999 Tribal
State Compact. The tribe has repeatedly refused to accept a compact that
does not respect the mutual agreements and terms of the promised
2,000-machine allowance. "The 1999 compact is a legal document. It's still
binding and cannot be swept under the Sacramento carpet because the state's
fiscal circumstances have changed," explained Mazzetti.

    "Additionally, Rincon recognizes that to add machines beyond the 2,000
limit will require new terms, but terms that meet the requirements of IGRA
and good faith negotiations."

    "How many times, and in how many ways must tribes prove that we are
governments before people hear and respect what this means? How often must
we spend our precious resources to protect this constitutional status and
our right to govern our own lands?" Stephanie Spencer, Rincon tribal
council member asked.

    "Indian gaming was meant to assure that tribes become self-reliant and
would no longer have to beg for handouts from the federal government, the
state or taxpayers. To stand on our own feet and to generate the revenues
that allow us to do for our communities what taxpayers take for granted
from their local governments is what we sought to validate in this lawsuit.
It's what we want for all tribal governments," she explained.

    "To this end," Mazzetti added, "We have requested that the governor's
office commence negotiations in earnest to achieve the goals of the Indian
Gaming Regulatory Act and the wishes of the citizens of California when
they amended the state constitution to allow casino gaming on tribal lands.
If this administration chooses, instead, to oppose us legally, we will
continue to fight for tribal sovereignty."

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