BILL ANALYSIS Ó
Bill No: AB
1916
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Lou Correa, Chair
2013-2014 Regular Session
Staff Analysis
AB 1916 Author: Hall
As Introduced: February 19, 2014
Hearing Date: June 24, 2014
Consultant: Art Terzakis
SUBJECT
Tribal Gaming
DESCRIPTION
AB 1916 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 moneys received by the state from Indian tribes;
pursuant to the terms of tribal-state gaming compacts.
EXISTING LAW
Existing federal law, the Indian Gaming Regulatory Act
(IGRA) of 1988 provides a statutory basis for the operation
and regulation of gaming on Indian lands. IGRA provides
that an Indian tribe may conduct gaming activity on Indian
lands if the activity "is not specifically prohibited by
federal law and is conducted within a State which does not
prohibit such gaming activity."
The statute divides gaming activities into three classes
(Class I, Class II, and Class III), each subject to
different regulations. Class III gaming includes such
things as slot machines, casino games and banked card games
such as black jack and baccarat. Class III gaming may only
be conducted under terms of a compact negotiated between an
Indian tribe and a State. Class II gaming is defined to
include bingo and card games that are explicitly authorized
by the laws of the state, or that are not explicitly
prohibited by the laws of the state and are played at any
location in the State, so long as the card games are played
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in conformity with those laws and regulations.
Before 2000, The California Constitution prohibited Class
III gaming. In 2000, California voters approved
Proposition 1A which had been proposed by the Governor and
passed by the Legislature. Proposition 1A amended the
California Constitution to permit the State (the Governor)
to negotiate and conclude compacts with federally
recognized Indian tribes for certain Class III gaming
activities, subject to ratification by the Legislature.
Because non-Indian parties were still forbidden from
operating gaming facilities, Proposition 1A granted Indian
tribes a "constitutionally protected monopoly on most types
of Class III games in California."
Existing law ratifies a number of tribal-state gaming
compacts between the State of California and specified
Indian tribes. Existing law also creates in the State
Treasury the Indian Gaming Special Distribution Fund (SDF)
for the receipt of revenue contributions made by tribal
governments pursuant to the terms of the 1999 model
Tribal-State Gaming Compacts and authorizes the Legislature
to appropriate money from the SDF for the following
purposes: (a) grants for programs designed to address
gambling addiction; (b) grants for the support of state
and local government agencies impacted by tribal government
gaming; (c) compensation for regulatory costs incurred by
the California Gambling Control Commission (CGCC) and the
Department of Justice (DOJ) in connection with the
implementation and administration of compacts; (d) payment
of shortfalls that may occur in the Indian Gaming Revenue
Sharing Trust Fund (RSTF); (e) disbursements for the
purpose of implementing the terms of tribal labor relations
ordinances promulgated in accordance with the terms of the
1999 compacts; and, (f) any other purpose specified by law.
(Pursuant to compact renegotiations that took place with
several of the larger gaming tribes during the
Schwarzenegger administration, revenue from those tribes is
directed into the state General Fund, instead of the SDF.)
Existing law also creates in the State Treasury the RSTF
for the receipt and deposit of moneys derived from gaming
device license fees that are paid into the RSTF pursuant to
the terms of specified tribal-state gaming compacts for the
purpose of making distributions to non-compacted Tribes
(e.g., federally-recognized non-gaming and tribes that
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operate casinos with fewer than 350 slot machines).
Revenue in the RSTF is available to the CGCC, upon
appropriation by the Legislature, for making distributions
of $1.1 million annually to non-compact tribes.
BACKGROUND
Purpose of AB 1916 : According to the author's office, this
measure is intended to codify in statute a provision from a
recently ratified tribal-state gaming compact entered into
between the State of California and the Federated Indians
of Graton Rancheria and subsequent compacts (e.g., North
Fork Rancheria Band of Mono Indians, Ramona Band of
Cahuilla, and Coyote Valley Band of Pomo Indians).
Specifically, the Tribal Nation Grant Fund was created in
the Graton Rancheria compact, as a new destination for
gaming revenue for distribution of funds to non-gaming and
limited-gaming tribes, upon application of such tribes for
purposes related to effective self-governance,
self-determined community, and economic development. The
TNGF currently does not receive funding and does not have
an authorizing statute.
The author's office states that the TNGF was created to
complement the RSTF. This new fund is intended to be
fluid, and payments are intended to be made to specified
tribes on a "need" basis, upon application by non-gaming
and limited gaming tribes. Under the terms of the Graton
Rancheria compact, the TNGF would not be funded
significantly until after year seven.
According to the Governor's office, the TNGF reflects a
vision of facilitating the development of tribal
institutions and improving the quality of life of tribal
people throughout the State of California.
PRIOR/RELATED LEGISLATION
AB 1245 (V. Manuel Perez), Chapter 462, Statutes of 2013.
Ratified the tribal-state gaming compact entered into
between the State of California and the Ramona Band of
Cahuilla Indians located in Riverside County, executed on
June 10, 2013.
AB 277 (Hall), Chapter 277, Statutes of 2013. Ratified two
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new compacts entered into between the State of California
and the following tribes: North Fork Rancheria, executed on
August 31, 2012 and the Wiyot Tribe, executed on March 20,
2013.
AB 1042 (Hall), Chapter 746, Statutes of 2013. Required
the Department of Finance, in consultation with the CGCC,
to calculate the total revenue in the SDF that will be
available for the current budget year for local government
agencies impacted by tribal gaming. In addition,
appropriated $13 million from the SDF to the CGCC to
provide grants to local agencies for the 2013-14 fiscal
year.
AB 1267 (Hall), Chapter 6, Statutes of 2013. Ratified the
amended tribal-state gaming compact entered into between
the State of California and the Shingle Springs Band of
Miwok Indians, executed on November 15, 2012.
SB 668 (Fuller), Chapter 67, Statutes of 2013. Ratified
the tribal-state gaming compact entered into between the
State of California and the Fort Independence Indian
Community of Paiute Indians, executed on February 28, 2013.
AB 517 (Hall), Chapter 12, Statutes of 2012. Ratified the
tribal-state gaming compact entered into between the State
of California and the Federated Indians of Graton Rancheria
of Sonoma County, executed on March 27, 2012.
AB 787 (Chesbro), Chapter 340, Statutes of 2012. Ratified
the amendment to the tribal-state gaming compact entered
into between the State of California and the Coyote Valley
Band of Pomo Indians, executed on July 25, 2012.
SUPPORT: As of June 20, 2014:
Ramona Band of Cahuilla
Santa Ynez Band of Chumash Indians
OPPOSE: None on file as of June 20, 2014.
FISCAL COMMITTEE: Senate Appropriations Committee
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