California Legislature—2013–14 Regular Session

Assembly Bill No. 328

Introduced by Assembly Member V. Manuel Pérez

February 13, 2013

An act to amend Section 12012.90 of the Government Code, relating to tribal gaming.

LEGISLATIVE COUNSEL’S DIGEST

AB 328, as introduced, V. Manuel Pérez. Tribal gaming: revenue sharing.

Existing law creates in the State Treasury the Indian Gaming Revenue Sharing Trust Fund and the Indian Gaming Special Distribution Fund for the receipt and deposit of moneys received by the state from certain Indian tribes pursuant to the terms of tribal-state gaming compacts, and authorizes moneys in those funds to be used for specified purposes, including making distributions to noncompact tribes. Existing law requires, for specified fiscal years, that the California Gambling Control Commission determine the anticipated total amount of shortfalls in payments likely to occur in the Indian Gaming Revenue Sharing Trust Fund for the upcoming fiscal year and provide that figure to the Senate and Assembly for the purpose of establishing an estimate of the amount needed to transfer from the Indian Gaming Special Distribution Fund to backfill the Indian Gaming Revenue Sharing Trust Fund. Existing law requires the Legislature to transfer moneys from the Indian Gaming Special Distribution Fund to the Indian Gaming Revenue Sharing Trust Fund an amount sufficient for each eligible recipient tribe to receive a total not to exceed $275,000 for each quarter the tribe is eligible to receive moneys. If the transfer is insufficient the commission is required to submit a request for a budget augmentation.

This bill would require the commission, if it is determined that there is an insufficient amount in the Indian Gaming Revenue Sharing Trust Fund in a fiscal year to distribute the quarterly payments pursuant to these provisions to each eligible recipient Indian tribe, to direct a portion of a specified revenue contribution pursuant to certain tribal-state gaming compacts that would otherwise be deposited into the General Fund, to instead be deposited into the Indian Gaming Revenue Sharing Trust Fund to increase the revenue contribution to that fund in an amount sufficient to ensure the fund has sufficient resources for each eligible recipient Indian tribe to receive the full $275,000 quarterly payments.

This bill would conform these provisions to changes made by the Governor’s Reorganization Plan 2.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 12012.90 of the Government Code is
amended to read:

12012.90.  

(a) (1) For each fiscal year commencing with the
2002-03 fiscal year to the begin delete 2004-05 end delete begin insert 2004-05 end insert fiscal year, inclusive,
the California Gambling Control Commission shall determine the
aggregate amount of shortfalls in payments that occurred in the
Indian Gaming Revenue Sharing Trust Fund pursuant to Section
4.3.2.1 of the tribal-state gaming compacts ratified and in effect
as provided in subdivision (f) of Section 19 of Article IV of the
California Constitution as determined below:

(A) For each eligible recipient Indian tribe that received money
for all four quarters of the fiscal year, the difference between one
million one hundred thousand dollars ($1,100,000) and the actual
amount paid to each eligible recipient Indian tribe during the fiscal
year from the Indian Gaming Revenue Sharing Trust Fund.

(B) For each eligible recipient Indian tribe that received moneys
for less than four quarters of the fiscal year, the difference between
two hundred seventy-five thousand dollars ($275,000) for each
quarter in the fiscal year that a recipient Indian tribe was eligible
to receive moneys and the actual amount paid to each eligible
recipient Indian tribe during the fiscal year from the Indian Gaming
Revenue Sharing Trust Fund.

(2) For purposes of this section, “eligible recipient Indian tribe”
means a noncompact tribe, as defined in Section 4.3.2(a)(i) of the
tribal-state gaming compacts ratified and in effect as provided in
subdivision (f) of Section 19 of Article IV of the California
Constitution.

(b) The California Gambling Control Commission shall provide
to the committee in the Senate and Assembly that considers the
State Budget an estimate of the amount needed to backfill the
Indian Gaming Revenue Sharing Trust Fund on or before the date
of the May budget revision for each fiscal year.

(c) An eligible recipient Indian tribe may not receive an amount
from the backfill appropriated following the estimate made
pursuant to subdivision (b) that would give the eligible recipient
Indian tribe an aggregate amount in excess of two hundred
seventy-five thousand dollars ($275,000) per eligible quarter. Any
funds transferred from the Indian Gaming Special Distribution
Fund to the Indian Gaming Revenue Sharing Trust Fund that result
in a surplus shall revert back to the Indian Gaming Special
Distribution Fund following the authorization of the final payment
of the fiscal year.

(d) Upon a transfer of moneys from the Indian Gaming Special
Distribution Fund to the Indian Gaming Revenue Sharing Trust
Fund and appropriation from the trust fund, the California
Gambling Control Commission shall distribute the moneys without
delay to eligible recipient Indian tribes for each quarter that a tribe
was eligible to receive a distribution during the fiscal year
immediately preceding.

(e) For each fiscal year commencing with the 2005-06 fiscal
year, all of the following shall apply and subdivisions (b) to (d),
inclusive, shall not apply:

(1) On or before the day of the May budget revision for each
fiscal year, the California Gambling Control Commission shall
determine the anticipated total amount of shortfalls in payment
likely to occur in the Indian Gaming Revenue Sharing Trust Fund
for the upcoming fiscal year, and shall provide to the begin delete committee end delete
begin insert committees end insert in the Senate and Assembly that begin delete considers end delete begin insert consider end insert
the State Budget an estimate of the amount needed to transfer from
the Indian Gaming Special Distribution Fund to backfill the Indian
Gaming Revenue Sharing Trust Fund for the next fiscal year. The
anticipated total amount of shortfalls to be transferred from the
Indian Gaming Special Distribution Fund to the Indian Gaming
Revenue Sharing Trust Fund shall be determined by the California
Gambling Control Commission as follows:

(A) The anticipated number of eligible recipient tribes that will
be eligible to receive payments for the next fiscal year, multiplied
by one million one hundred thousand dollars ($1,100,000), with
that product reduced by the amount anticipated to be paid by the
tribes directly into the Indian Gaming Revenue Sharing Trust Fund
for the fiscal year.

(B) This amount shall be based upon actual payments received
into the Indian Gaming Revenue Sharing Trust Fund the previous
fiscal year, with adjustments made due to amendments to existing
tribal-state compacts or newly executed tribal-state compacts with
respect to payments to be made to the Indian Gaming Revenue
Sharing Trust Fund.

(2) The Legislature shall transfer from the Indian Gaming
Special Distribution Fund to the Indian Gaming Revenue Sharing
Trust Fund an amount sufficient for each eligible recipient tribe
to receive a total not to exceed two hundred seventy-five thousand
dollars ($275,000) for each quarter in the upcoming fiscal year an
eligible recipient tribe is eligible to receive moneys, for a total not
to exceed one million, one hundred thousand dollars ($1,100,000)
for the entire fiscal year. The California Gambling Control
Commission shall make quarterly payments from the Indian
Gaming Revenue Sharing Trust Fund to each eligible recipient
Indian tribe within 45 days of the end of each fiscal quarter.

(3) If the transfer of funds from the Indian Gaming Special
Distribution Fund to the Indian Gaming Revenue Sharing Trust
Fund results in a surplus, the funds shall remain in the Indian
Gaming Revenue Sharing Trust Fund for disbursement in future
years, and if necessary, adjustments shall be made to future
distributions from the Indian Gaming Special Distribution Fund
to the Revenue Sharing Trust Fund.

(4) In the event the amount appropriated for the fiscal year is
insufficient to ensure each eligible recipient tribe receives the total
of two hundred seventy-five thousand dollars ($275,000) for each
fiscal quarter, the Department of Finance, after consultation with
the California Gambling Control Commission, shall submit to the
Legislature a request for a budget augmentation for the current
fiscal year with an explanation as to the reason why the amount
appropriated for the fiscal year was insufficient.

(5) At the end of each fiscal quarter, the California Gambling
Control Commission’s Indian Gaming Revenue Sharing Trust
Fund report shall include information that identifies each of the
eligible recipient tribes eligible to receive a distribution for that
fiscal quarter, the amount paid into the Indian Gaming Revenue
Sharing Trust Fund by each of the tribes pursuant to the applicable
sections of the tribal-state compact, and the amount necessary to
backfill from the Indian Gaming Special Distribution Fund the
shortfall in the Indian Gaming Revenue Sharing Trust Fund in
order for each eligible recipient tribe to receive the total of two
hundred seventy-five thousand dollars ($275,000) for the fiscal
quarter.

begin delete

(6) Based upon the projected shortfall in the Indian Gaming
Revenue Sharing Trust Fund, for the 2005-06 fiscal year, the sum
of fifty million dollars ($50,000,000) is hereby transferred from
the Indian Gaming Special Distribution Fund to the Indian Gaming
Revenue Sharing Trust Fund and is hereby appropriated from that
fund to the California Gambling Control Commission for
distribution to each eligible recipient tribe pursuant to this section.

end delete begin insert

(f) (1) If it is determined that there is an insufficient amount in
the Indian Gaming Revenue Sharing Trust Fund in a fiscal year
to distribute the quarterly payments pursuant to this section to
each eligible recipient Indian tribe, then the California Gambling
Control Commission shall direct a portion of the revenue
contribution in Section 4.3.1(b)(i) of the tribal-state gaming
compacts specified in paragraph (2), which are ratified and in
effect as provided in subdivision (f) of Section 19 of Article IV of
the California Constitution, to be deposited into the Indian Gaming
Revenue Sharing Trust Fund to increase the revenue contribution
to that fund in an amount sufficient to ensure the fund has sufficient
resources for each eligible recipient Indian tribe to receive the
full two-hundred-seventy-five-thousand-dollar ($275,000) quarterly
payments pursuant to this section.

end insert begin insert

(2) This subdivision shall apply only to those tribal-state gaming
compacts that include Section 4.3.1(b)(i), or any comparable
provision, as it appears in the tribal-state gaming compacts entered
into by the following tribes, and amended in 2006:

end insert begin insert

(A) The San Manuel Band of Mission Indians.

end insert begin insert

(B) The Morongo Band of Mission Indians.

end insert begin insert

(C) The Pechanga Band of Luiseño Indians.

end insert