California governor and tribes discuss deal to keep casinos open

SACRAMENTO, Calif. - Gov. Gray Davis and leaders of 25 California tribes are trying to negotiate an agreement that would allow Indian casinos to continue operating following court rejection of Proposition 5.

Davis met for three hours Wednesday with the tribal representatives, two days after the state Supreme Court rejected Proposition 5, the voter-approved initiative that sought to expand legalized gambling at tribal casinos.

The justices ruled Monday that the proposition is invalid because it would let tribes operate video slot machines and other Nevada-style games banned by the state constitution.

Some of the tribes already have started circulating petitions for another initiative next March to reenact Proposition 5 as a constitutional amendment, rather than as a statute, which presumably would overcome the court's ruling that it violated the constitution.

Davis' discussions Wednesday included the possibility of an interim compact that would give legal standing to tribes now operating casinos until a constitutional amendment that would permit the gambling goes to voters, Davis spokesman Michael Bustamante said.

A federal judge in Los Angeles deemed the slot machines at several Southern California tribal casinos illegal, but the 9th U.S. Circuit Court of Appeals agreed to let the tribes keep the machines pending the state court's ruling. Tribes now have until early October before the original order goes into effect.

The U.S. attorney's spokesman in Los Angeles said late Wednesday that such a compact may make the order moot. The U.S. attorney moved to seize the machines because the tribes were operating without a gambling compact with the state, as required under a 1988 federal Indian gambling law.

"If indeed a lawful compact is approved prior to the implementation of the permanent injunction here in our district, it would appear that they would then be allowed to continue operating," spokesman Thom Mrozek said. "Our litigation has revolved around the absence of a compact."

Bustamante said Davis and tribal officials also discussed proposed language for a constitutional amendment that would be more restrictive than Proposition 5, which would have eliminated nearly all state restrictions on the number of tribal casinos allowed in California or the games they may have.

"Proposition 5 allowed for a significant expansion of gaming," Bustamante said. "The governor isn't a big fan of gaming, but perhaps a modest expansion of gaming might be in order."

Mark Macarro, chairman for the Pechanga Indian Reservation in Temecula, east of Riverside in Southern California, said his tribe will consider both proposals.

"Any option that preserves our ability to continue on a status-quo basis has to be considered," Macarro said. "We need to preserve the level of employment we have now and the level of tribal services we have right now."

Davis' proposal would allow tribes to double the number of slot machines in their casinos, from 18,000 to 36,000, over the next five years, with about a third of that designated for expansion of existing casinos and the rest for new casinos, the San Francisco Chronicle reported today, quoting unidentified sources.

Davis spokesman Michael Bustamante said no concrete numbers were discussed in the meeting. A state senator who was not in the meeting but is authoring casino legislation on behalf of the tribes said Davis does has a specific plan.

"There is such a document. I haven't seen it, but I understand it's very detailed," said Sen. Richard Polanco, D-Los Angeles.

Davis aide Phil Trounstine said that when asked about the prospect of federal action, Davis assured tribal officials: "We're working with U.S. Attorney General Janet Reno. We're trying to solve this issue in Sacramento and would appreciate her cooperation in doing that."

Bustamante said Davis and tribal officials also discussed timing, including what period an interim compact might cover, and briefly touched on environmental issues and worker rights. Davis favors letting casino workers unionize, and environmental issues have been raised by neighbors of many prospective casinos.

"It was important that they sat down with him face-to-face and understood he is truly sincere about resolving this," Bustamante said.

Asked if agreement was likely, Senate President Pro Tem John Burton, D-San Francisco, who also took part in the meeting, replied, "It has a shot."

"The real decision is going to be by tribal members and what road they want to take," Burton added.

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