BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       AB 1355|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                      CONSENT 


          Bill No:  AB 1355
          Author:   Gray (D) 
          Introduced:2/27/15  
          Vote:     21 

           SENATE GOVERNMENTAL ORG. COMMITTEE:  13-0, 6/28/16
           AYES:  Hall, Berryhill, Bates, Block, Gaines, Galgiani, Glazer,  
            Hernandez, Hill, Hueso, Lara, McGuire, Vidak

           ASSEMBLY FLOOR:  72-0, 1/15/16 (Consent) - See last page for  
            vote

           SUBJECT:   Gaming:  Tribal Nation Grant Fund


          SOURCE:    Author
          
          DIGEST:    This bill specifies that the Tribal Nation Grant Fund  
          reflects a vision of facilitating the development of tribal  
          institutions and improving the quality of life of tribal people  
          throughout the state.

          ANALYSIS:
          
          Existing law:
          
          1)Provides, under the federal Indian Gaming Regulatory Act of  
            1988, for the negotiation and execution of compacts for the  
            purpose of authorizing class III gaming on Indian lands within  
            a state.  Additionally, the California Constitution authorizes  
            the Governor to negotiate and conclude compacts, subject to  
            ratification by the Legislature.

          2)Creates the Indian Gaming Special Distribution Fund (SDF) in  
            the State Treasury for the receipt of revenue contributions  








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            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 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.   

          3)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 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.  The RSTF was created as part of the  
            1999 compacts, which, in conjunction with the passage of  
            Proposition 1A, created gaming compacts with approximately 60  
            California tribes.  Non-compact tribes are considered  
            third-party beneficiaries of the 1999 compacts.

          4)Creates in the State Treasury the Tribal Nation Grant Fund  
            (TNGF) to complement the RSTF and provides for the  
            distribution of funds to non-gaming tribes, upon application  
            of such tribes for purposes related to effective  
            self-governance, self-determined community, and economic  
            development.  This fund is designed to be fluid and payments  
            are intended to be made to non-gaming tribes on a "need"  
            basis, upon application by non-gaming tribes.

          This bill specifies that the Tribal Nation Grant Fund (TNGF)  
          reflects a vision of facilitating the development of tribal  








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          institutions and improving the quality of life of tribal people  
          throughout the state.

          Background

          Purpose of AB 1355.  According to the author's office, this bill  
          will further the vision of creating a competitive grant fund for  
          non-gaming tribes or those with very limited gaming for economic  
          development, infrastructure, health care, education and other  
          projects.  The goal of this bill is to help establish an  
          effective structure for the TNGF and to increase the impact of  
          gaming revenues on non-gaming and limited gaming tribes.
          
          The author's office notes that the TNGF was initially created in  
          the Graton Rancheria Compact of 2012 and included in subsequent  
          compacts 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.  Currently, the TNGF is not being funded  
          due to shortfalls in the RSTF.

          According to the author'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.
           
           Related/Prior Legislation
          
          AB 1916 (Hall, Chapter 600, Statutes of 2014) created the TNGF  
          in the State Treasury, to be administered by the CGCC, for the  
          receipt and deposit of moneys received by the state from Indian  
          tribes, pursuant to the terms of tribal-state gaming compacts.

          FISCAL EFFECT:                 Appropriation:  No    Fiscal  
          Com.:             No           Local:          No


          SUPPORT:  (Verified 6/28/16)

          None received









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          OPPOSITION:  (Verified 6/28/16)

          None received

          ASSEMBLY FLOOR:  72-0, 1/15/16
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bonilla,  
            Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau,  
            Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd,  
            Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia,  
            Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley,  
            Harper, Roger Hernández, Irwin, Jones, Jones-Sawyer, Kim,  
            Lackey, Levine, Lopez, Low, Maienschein, Mathis, Mayes,  
            McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,  
            O'Donnell, Olsen, Patterson, Quirk, Rendon, Rodriguez, Salas,  
            Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner,  
            Waldron, Weber, Williams, Wood, Atkins
          NO VOTE RECORDED:  Bloom, Chávez, Eduardo Garcia, Holden,  
            Linder, Ridley-Thomas, Wilk


          Prepared by:Arthur Terzakis / G.O. / (916) 651-1530
          7/29/16 12:20:32


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