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