BILL ANALYSIS Ó AB 1916 Page 1 Date of Hearing: April 30, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 1916 (Hall) - As Introduced: February 19, 2014 Policy Committee: Governmental Organization Vote: 19-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill creates the Tribal Nation Grant Fund (TNGF) in the State Treasury, to be administered by the California Gambling Control Commission (CGCC), for the receipt and deposit of funds received from Indian tribes pursuant to the terms of tribal-state gaming compacts. The bill authorizes funds, upon appropriation by the Legislature, to be used for discretionary distribution to non-gaming and limited gaming tribes on a competitive application basis for purposes related to effective self-governance, self-determined community, and economic development. FISCAL EFFECT Annual costs of approximately $100,000 to the Indian Gaming Special Distribution Fund for work by the CGCC in connection with administering the TNGF. The CGCC anticipates costs will not be incurred until after the Indian Gaming Revenue Sharing Trust Fund is fully funded (see comments 2 and 3 below). COMMENTS 1) Purpose. This bill codifies a provision from a recently-ratified tribal-state gaming compact between the State of California and the Federated Indians of Graton Rancheria and subsequent compacts, including those with the North Fork Rancheria Band of Mono Indians, the Ramona Band of Cahuilla, and the Coyote Valley Band of Pomo Indians. AB 1916 Page 2 2) Current Indian Gaming Funds. The two primary funds related to Indian gaming are the Indian Gaming Revenue Sharing Trust Fund (RSTF) and the Indian Gaming Special Distribution Fund (SDF). The RSTF redistributes funds derived from Indian gaming to non-gaming or limited gaming tribes (i.e., those with less than 350 gaming devices or machines), with each tribe receiving $1.1 million per year. The SDF was created to distribute grant funds to the California Attorney General as well as local communities and governments for projects designed to mitigate the impacts of the Indian casinos, including problem gambling programs. Shortfalls in RSTF funds are currently covered with funds redirected from the SDF before any other SDF distributions are made. 3) Tribal Nation Grant Fund. The new fund was first referenced in state gaming compacts negotiated with the Graton Rancheria and North Fork Rancheria, though the provisions differ in the level of specificity given to priority among the three Indian gaming funds. The operative provision of the North Fork compact prioritizes funds for the RSTF, requiring any funds for the TNGF first be deposited in the RSTF to cover any shortfalls before depositing funds in the TNGF. By contrast, the Graton compact allows the Legislature to determine the proportion of funds to be deposited in the RSTF and TNGF. In estimating the fiscal impact from administering the TNGF, the CGCC anticipates that costs will not be incurred before the RSTF has returned to full funding. Analysis Prepared by : Joel Tashjian / APPR. / (916) 319-2081