AB 1389 does two distinct things. First, it ratifies the second amendment to the tribal‑state gaming compact between California and the Yurok Tribe (executed December 18, 2025) and explicitly declares that certain compact‑related actions — including execution of the amendment and specified intergovernmental agreements, and the on‑reservation impacts of complying with the amended compact — are not "projects" under CEQA.
The measure takes effect immediately as an urgency statute.
Second, the bill amends Business and Professions Code section 19596.2 to add the New York Stakes to the statutory list of named races that are exempt from the statewide 75 imported‑race‑per‑day limitation for thoroughbred associations and fairs. The change alters the statewide simulcast/wagering landscape by allowing New York Stakes races to be imported for wagering even when the 75‑race cap would otherwise bind.
At a Glance
What It Does
Ratifies a Yurok Tribe compact amendment that extends the compact’s term and carves specified compact actions and on‑reservation compliance impacts out of CEQA’s definition of a "project." It also amends wagering law to exempt races that are part of the New York Stakes race card from the statewide 75 imported‑race limit.
Who It Affects
Directly affects the Yurok Tribe and state compacting authorities, counties and cities negotiating intergovernmental agreements referenced in the compact, Caltrans and other state agencies, thoroughbred associations and fairs that import out‑of‑state races, and harness/quarter horse associations that have statutory consent rights for late‑starting races.
Why It Matters
The CEQA carve‑out accelerates implementation of the compact amendment and sets a narrow precedent for treating certain tribal‑compact actions as outside CEQA review. The racing change shifts wagering availability and competitive dynamics by allowing New York Stakes imports beyond the usual cap, with downstream effects for wagering handle, track schedules, and competing racing codes.
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What This Bill Actually Does
The bill ratifies a specific second amendment to the tribal‑state gaming compact between California and the Yurok Tribe that the parties executed on December 18, 2025; the amendment extends the compact’s term. Rather than simply ratifying the amendment, the statute adds a targeted CEQA rule: it says that executing the amendment, executing the amended compact, certain intergovernmental agreements negotiated under authority of that compact, and the on‑reservation impacts of complying with the compact are not "projects" subject to CEQA.
That carve‑out is framed as an act of deference to tribal sovereignty and is limited in express language, but the bill also stresses that it does not broadly exempt cities, counties, Caltrans, or other state or local agencies from CEQA except as stated.
The measure is enacted as an urgency statute, so the ratification and the CEQA carve‑out take effect immediately. The urgency clause states the aim is to expedite economic development and stability for the Yurok Tribe and to protect tribal and local interests without delay.
Practically, the immediate effect means compact implementation and any tribal actions that fall inside the statutory carve‑outs can proceed without the usual CEQA timeline.Separately, AB 1389 amends section 19596.2 of the Business and Professions Code. Current law already allows California thoroughbred associations and fairs to distribute audiovisual signals and accept wagers on out‑of‑state thoroughbred races during their meeting periods, subject to a statewide cap of 75 imported races per day on days when live racing occurs.
The amendment inserts the New York Stakes into the enumerated list of exceptions to that 75‑race cap. In short, races that are part of the New York Stakes race card no longer count toward the statewide 75 imported races limit.
Existing operational rules remain in place: the statute continues to restrict late evening imports (after 7 p.m. PST) without consent and imposes additional consent requirements when statewide imports reach certain thresholds.Taken together, the bill accelerates a tribal compact change by narrowing CEQA coverage for specific compact‑related activities while also altering how thoroughbred racing operators can import and accept wagers on a high‑profile out‑of‑state race card.
The two halves of the bill are legally distinct but each imposes clear, immediate regulatory effects that will shape project timelines, local environmental review questions, and wagering availability across California.
The Five Things You Need to Know
The bill ratifies the Yurok Tribe’s second compact amendment executed December 18, 2025, whose stated purpose is to extend the compact’s term.
Section 12012.121 declares that executing the amendment, executing the amended compact, certain intergovernmental agreements tied to the compact (including those with counties, cities, and Caltrans), and on‑reservation impacts of compliance are not "projects" under CEQA.
AB 1389 is an urgency statute and takes effect immediately upon enactment.
The amendment to Business and Professions Code section 19596.2 adds the New York Stakes to the list of named races exempt from the statewide limit of 75 imported thoroughbred races per day.
Existing wagering time and consent rules remain: imports starting after 7 p.m. PST still require consent from the harness or quarter horse association then racing in Orange or Sacramento counties, and when statewide imported races are between 51 and 75, imports after 5 p.m. PST require consent.
Section-by-Section Breakdown
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Ratification of the Yurok compact amendment and CEQA carve‑outs
This section expressly ratifies the Yurok Tribe’s second amendment to its tribal‑state gaming compact (executed December 18, 2025) for the limited purpose of extending the compact term. It then lists five categories that the statute declares are not "projects" under CEQA: executing the amendment, executing the amended compact, intergovernmental agreements between the tribe and city/county negotiated pursuant to or referenced in the compact, intergovernmental agreements between the tribe and Caltrans or other state agencies negotiated under the compact’s authority, and the on‑reservation impacts of complying with the amended compact. Practically, ratification clears the way for immediate compact implementation and the statutory language narrows CEQA exposure for many actions the tribe and the state might otherwise treat as projects.
Limits on the CEQA exemption
The section simultaneously places a boundary on its own reach: it states that, except as expressly provided, the subdivision does not exempt cities, counties, Caltrans, other state agencies, or local jurisdictions from CEQA. That hedging creates a conditional legal posture: certain compact‑linked activities are designated non‑projects, but agencies retain CEQA obligations for actions not specifically carved out. Implementation will require agencies and courts to parse which compact‑related actions fall inside the statutory list versus those that remain reviewable under CEQA.
Immediate effective date
The bill declares it is necessary for the immediate preservation of public peace, health, or safety and thus takes effect immediately upon enactment. The stated policy rationale is to accelerate economic development and stability for the Yurok Tribe, and to protect tribal and nearby community interests without delay. Because of this clause, ratification and the CEQA carve‑outs are not subject to the ordinary waiting period that allows for administrative or project‑level CEQA sequencing prior to action.
Wagering rules: New York Stakes removed from 75‑race cap
The amendment retains the core framework that lets thoroughbred associations and fairs distribute audiovisual signals and accept wagers on out‑of‑state races during their race meeting periods and preserves the statewide cap of 75 imported races per day on days with live racing. It adds the New York Stakes to the statute’s enumerated exceptions, meaning any races that are part of the New York Stakes race card do not count toward the 75‑race cap. The section keeps existing operational restrictions in place—late imports after 7 p.m. PST still require consent from the harness or quarter horse association racing in Orange or Sacramento counties, and when statewide imports reach 51–75, imports after 5 p.m. PST require consent—so the change is targeted to the counting rule rather than the timing or consent regime.
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Explore Government in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Yurok Tribe — Gains a faster path to implement the compact amendment because the statute ratifies the amendment and narrows CEQA review for designated compact‑related activities, reducing the risk of delay from environmental review.
- Thoroughbred associations and fairs that import out‑of‑state races — Can import races that are part of the New York Stakes without those races counting toward the 75 imported‑race cap, increasing simulcast options and potential wagering revenue on those events.
- Tribal and local economic stakeholders near the Yurok Reservation — Stand to benefit from accelerated compact implementation if the compact leads to tribal economic activity described in the urgency findings.
- Remote wagering platforms and bettors — Obtain expanded access to New York Stakes race‑card wagering statewide on days when the 75‑race cap would otherwise limit imports, increasing choice and handle opportunities.
Who Bears the Cost
- Harness and quarter horse associations — May see competitive pressure on late‑evening wagering slots and could face dilution of handle for their live races if more high‑profile thoroughbred imports are available without counting toward the cap.
- Horsemen organizations representing participants in California race meetings — The statute preserves operator ability to import without horsemen consent in many circumstances, which could weaken negotiating leverage around purses and track economics.
- Cities, counties, and state agencies near tribal lands — Face uncertainty about when CEQA applies; although the statute carves out certain compact‑linked activities, local jurisdictions may still confront practical costs and legal uncertainty in sorting environmental review obligations.
- Regulators and racing integrity programs — May need to handle increased simulcast volume and associated regulatory oversight, including monitoring compliance with time/consent rules and managing any cross‑code disputes.
Key Issues
The Core Tension
The bill balances two competing values: accelerating tribal economic self‑determination by reducing environmental review burdens tied to compact implementation, versus preserving CEQA’s role in protecting local off‑reservation environmental and community impacts; simultaneously it expands wagering access for a high‑profile thoroughbred card while preserving time and consent limits designed to protect other racing codes—so it improves market access for some participants while imposing competitive and regulatory stress on others.
The CEQA carve‑out is narrowly worded but raises several implementation ambiguities. The statute excludes "on‑reservation impacts of compliance" from CEQA and exempts certain intergovernmental agreements negotiated pursuant to the compact from being considered projects.
That combination can blur the line between on‑reservation construction or operations (which the bill intends to insulate) and foreseeable off‑reservation impacts (traffic, roadway improvements, water, or public services) that typically trigger CEQA. The provision that purports not to exempt cities, counties, or Caltrans from CEQA muddies the legal picture further: agencies and litigants will need to interpret whether an intergovernmental agreement negotiated under the compact is categorically a non‑project or whether separate off‑reservation consequences still require analysis.
Expect litigation or declaratory relief requests seeking judicial clarification of those boundaries.
On the racing side, adding the New York Stakes to the exception list changes the daily accounting of imported races without altering the existing time‑of‑day consent structure. That targeted approach avoids wholesale disruption but invites tactical shifts: associations could schedule more New York Stakes imports on high‑handle days, potentially siphoning wagering from other live sessions or imported races.
The statute does not create new enforcement mechanisms to track which imports
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