BILL ANALYSIS                                                                                                                                                                                                    



                                                                    AB 1540


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          Date of Hearing:  May 6, 2015


                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION


                                  Adam Gray, Chair


          AB 1540  
          (Committee on Governmental Organization) - As Introduced March  
          26, 2015


          SUBJECT:  Tribal gaming


          SUMMARY:  Repeals and renumbers sections of the Government Code  
          related to Indian gaming into one stand-alone Title in the  
          Government Code.  Makes other technical non-substantive changes.


          EXISTING LAW:  


          1)  Existing federal law, the Indian Gaming Regulatory Act of  
          1988, provides 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)  Establishes the Indian Gaming Special Distribution Fund  
          (SDF) in the State Treasury for the receipt of revenue  
          contributions made by tribal governments pursuant to the terms  
          of the 1999 model Tribal-State Gaming Compacts (compacts).

          3)  Authorizes the Legislature to appropriate money from the SDF  
          as follows: (1) Grants for programs designed to address gambling  








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          addiction; (2) Grants for the support of state and local  
          government agencies impacted by tribal government gaming; (3)  
          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; (4) Payment of shortfalls that may occur in the  
          Indian Gaming Revenue Sharing Trust Fund (RSTF); (5)  
          Disbursements for the purpose of implementing the terms of  
          tribal labor relations ordinances promulgated in accordance with  
          the terms of the 1999 compacts; and, (6) Any other purpose  
          specified by law.
            
          4)  Provides that the priority for funding from the SDF is in  
          the following descending order: (1) To make payments of any  
          shortfalls that may occur in the RSTF; (2) Grants for programs  
          designed to address gambling addiction; (3) Compensation to the  
          CGCC and DOJ for regulatory functions that directly relates to  
          Indian gaming; and, (4) Grants for the support of local  
          government agencies impacted by tribal gaming.

          5)  Establishes the RSTF in the State Treasury for the receipt  
          and deposit of moneys derived from gaming device license fees  
          paid by Indian tribes with 1999 compacts.  Money in that fund is  
          available to the CGCC, upon appropriation by the Legislature,  
          for distribution to non-compact tribes, according to the terms  
          of the compacts.  

          6)  Requires the CGCC to annually determine the aggregate amount  
          necessary to make up the difference between $1.1 million and the  
          actual amount paid to each eligible recipient Indian tribe  
          during the Fiscal Year from the RSTF.  The CGCC must report the  
          amount of the deficiency to the Budget Committees in each house  
          of the Legislature.  Upon appropriation by the Legislature, the  
          CGCC shall make payments to eligible recipient tribes, as  
          specified.


           FISCAL EFFECT  :   This bill is keyed non-fiscal by Legislative  
          Counsel.








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           COMMENTS  :  
          
           Purpose of the bill  :  This measure is a code maintenance  
          proposal that was developed in consultation with the Legislative  
          Counsel's office to consolidate all of the laws related to  
          Indian gaming into one stand-alone Title in the Government Code.

          Currently, Indian gaming laws are found in two separate chapters  
          in the Government Code.  Government Code Title 2, Part 2,  
          Chapter 1, Article 1 contains laws related to: (1) Tribal-State  
          Gaming Compacts, (2) the Indian Gaming Revenue Sharing Trust  
          Fund (RSTF), (3) the Indian Gaming Special Distribution Fund  
          (SDF); and (4) the methodology for the backfill of shortfalls in  
          revenues in the RSTF from the SDF.  Government Code Title 2,  
          Part 2, Chapter 7.5 contains the laws related to Grants of  
          Indian Gaming Revenue to Local Government Agencies.  AB 1426 is  
          a code maintenance proposal that will consolidate all Indian  
          gaming related laws into one stand-alone Title in the Government  
          Code, namely, Title 16.5 - Tribal Gaming.  
          


          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on file




          Opposition










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          None on file




          Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531