BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1355| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 AB 1355 Page 2 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 AB 1355 Page 3 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 AB 1355 Page 4 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 **** END ****