BILL ANALYSIS Ó
Bill No: AB
1417
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
AB 1417 Author: Committee on Governmental Organization
As Introduced: March 21, 2011
Hearing Date: June 14, 2011
Consultant: Art Terzakis
SUBJECT
Tribal Gaming
DESCRIPTION
AB 1417 reorganizes statutes pertaining to Indian gaming
compacts primarily by moving them to a newly created Title
16.5 on Tribal Gaming in the Government Code. AB 1417 also
makes other technical, nonsubstantive changes.
EXISTING LAW
Existing federal law, the Indian Gaming Regulatory Act of
1988, provides for the negotiation and execution of
compacts for the purpose of authorizing class III gaming on
Indian lands within a state. Existing law, the California
Constitution, authorizes the Governor to negotiate and
conclude compacts, subject to ratification by the
Legislature.
Existing law establishes the Indian Gaming Special
Distribution Fund (SDF) in the State Treasury for the
receipt of revenue contributions made by tribal governments
pursuant to the terms of the 1999 model Tribal-State Gaming
Compacts (compacts).
Existing law authorizes the Legislature to appropriate
money from the SDF as follows: (1) Grants for programs
designed to address gambling addiction; (2) Grants for the
support of state and local government agencies impacted by
tribal government gaming; (3) Compensation for regulatory
costs incurred by the California Gambling Control
Commission (CGCC) and the Department of Justice (DOJ) in
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connection with the implementation and administration of
compacts; (4) Payment of shortfalls that may occur in the
Indian Gaming Revenue Sharing Trust Fund (RSTF); (5)
Disbursements for the purpose of implementing the terms of
tribal labor relations ordinances promulgated in accordance
with the terms of the 1999 compacts; and, (6) Any other
purpose specified by law.
Existing law provides that the priority for funding from
the SDF is in the following descending order: (1) To make
payments of any shortfalls that may occur in the RSTF; (2)
Grants for programs designed to address gambling addiction;
(3) Compensation to the CGCC and DOJ for regulatory
functions that directly relates to Indian gaming; and, (4)
Grants for the support of local government agencies
impacted by tribal gaming.
Existing law establishes the RSTF in the State Treasury for
the receipt and deposit of moneys derived from gaming
device license fees paid by Indian tribes with 1999
compacts. Money in that fund is available to the CGCC,
upon appropriation by the Legislature, for distribution to
non-compact tribes, according to the terms of the compacts.
Existing law requires the CGCC to annually determine the
aggregate amount necessary to make up the difference
between $1.1 million and the actual amount paid to each
eligible recipient Indian tribe during the Fiscal Year from
the RSTF. The CGCC must report the amount of the
deficiency to the Budget Committees in each house of the
Legislature. Upon appropriation by the Legislature, the
CGCC shall make payments to eligible recipient tribes, as
specified.
BACKGROUND
Currently, Indian gaming laws are found in two separate
chapters in the Government Code. Government Code Title 2,
Part 2, Chapter 1, Article 1 contains laws related to: (1)
Tribal-State Gaming Compacts, (2) the Indian Gaming Revenue
Sharing Trust Fund (RSTF), (3) the Indian Gaming Special
Distribution Fund (SDF); and (4) the methodology for the
backfill of shortfalls in revenues in the RSTF from the
SDF. Government Code Title 2, Part 2, Chapter 7.5 contains
the laws related to Grants of Indian Gaming Revenue to
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Local Government Agencies.
Purpose of AB 1417: This measure is a code maintenance
proposal that was developed in consultation with the
Legislative Counsel's office for the purpose of
consolidating all of the laws related to Indian gaming into
one stand-alone Title in the Government Code.
PRIOR/RELATED LEGISLATION
SB 827 (Governmental Organization), 2009-10 Session. Would
have established a stand-alone article within the
Government Code for compacts. (Gutted and amended in
Assembly G.O. Committee)
AB 3072 (Governmental Organization), 2007-2008 Session .
Would have established a stand-alone article within the
Government Code for compacts. (Gutted and amended on the
Senate Floor)
AB 1275 (J. Horton), 2003-2004 Session . Would have
established a stand-alone chapter within the Government
Code for compacts. (Died on Senate Third Reading file)
AB 2286 (J. Horton), 2001-2002 Session . Would have
established a stand-alone chapter within the Government
Code for compacts enacted and approved under Proposition
1A. (Died on Senate Inactive file)
SUPPORT: None on file as of June 10, 2011.
OPPOSE: None on file as of June 10, 2011.
FISCAL COMMITTEE: Senate Appropriations Committee
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