BILL ANALYSIS                                                                                                                                                                                                    



          SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                              Senator Isadore Hall, III
                                        Chair
                                2015 - 2016  Regular 

          Bill No:           AB 1540          Hearing Date:    6/29/2015
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          |Author:    |Committee on Governmental Organization               |
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          |Version:   |3/26/2015     Introduced                             |
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          |Urgency:   |No                     |Fiscal:      |No              |
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          |Consultant:|Arthur Terzakis                                      |
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          SUBJECT: Tribal gaming


            DIGEST:    This bill reorganizes statutes pertaining to Indian  
          gaming compacts primarily by moving them to a newly created  
          Title 16.5 on Tribal Gaming in the Government Code.  

          ANALYSIS:
          
          Existing law:
          
          1)The federal 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.

          3)Authorizes the Legislature to appropriate money from the SDF  
            as follows: (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  







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            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.

          4)Provides that the priority for funding from the SDF is in the  
            following descending order: (a) To make payments of any  
            shortfalls that may occur in the RSTF; (b) Grants for programs  
            designed to address gambling addiction; (c) Compensation to  
            the CGCC and DOJ for regulatory functions that directly  
            relates to Indian gaming; and, (d) 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.  
           
          This bill:

            1)Repeals, reorganizes and recasts various statutory provisions  
            related to tribal compacts and Indian gaming into one  
            stand-alone Title 16.5 in the Government Code. 

          2)Makes other minor, technical, and nonsubstantive changes to  
            these provisions. 

          Background

          Purpose of AB 1540.  Currently, Indian gaming statutes are found  








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          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  
          RSTF, (3) the Indian Gaming 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.  

          According to the author's office, this bill 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, namely, Title 16.5 - Tribal Gaming.  
          Prior/Related Legislation
          
          AB 1426 (Governmental Organization, 2013) would have reorganized  
          statutes pertaining to Indian gaming compacts primarily by  
          moving them to a newly created Title 16.5 on Tribal Gaming in  
          the Government Code.  (Died on Senate Inactive File)

          AB 2695 (Governmental Organization, 2012) would have reorganized  
          statutes pertaining to Indian gaming compacts primarily by  
          moving them to a newly created Title 16.5 on Tribal Gaming in  
          the Government Code.  Also would have made other minor,  
          technical changes to these provisions.  (Died on Senate Inactive  
          File)
           
           AB 1417 (Governmental Organization, Chapter 736, Statutes of  
          2011) as introduced, this bill would have reorganized statutes  
          pertaining to Indian gaming compacts primarily by moving them to  
          a newly created Title 16.5 on Tribal Gaming in the Government  
          Code.  (AB 1417 was subsequently gutted in this committee to  
          become the vehicle for the distribution of $9.1 million from the  
          SDF to the CGCC to provide grants to local agencies.) 
           
           AB 2794 (Governmental Organization, 2010) would have established  
          a stand-alone article within the Government Code for tribal  
          compacts.  (Died at Senate Desk)
           
           SB 827 (Wright, Chapter 206, Statutes of 2009) as introduced,  
          would have established a stand-alone article within the  
          Government Code for tribal compacts.  (Gutted and amended in the  
          Assembly to become a bill dealing with the South Coast Air  








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          Quality Management District)

          AB 1576 (Chesbro, 2009) as introduced, would have established a  
          stand-alone article within the Government Code for tribal  
          compacts.  (Gutted in the Senate to be the ratification vehicle  
          for the Habematolel Pomo of Upper Lake Compact, executed on  
          September 2, 2009)

          AB 3072 (Price, Chapter 334, Statutes of 2008) as introduced,  
          would have established a stand-alone article within the  
          Government Code for tribal compacts.  (Gutted and amended on the  
          Senate Floor to ratify an amended tribal-state gaming compact  
          entered into by the State of California and the Shingle Springs  
          Band of Miwok Indians)

          AB 1275 (J. Horton, 2003) would have established a stand-alone  
          chapter within the Government Code for tribal compacts.  (Died  
          on Senate Third Reading file)
                                                            
          AB 2286 (J. Horton, 2002) would have established a stand-alone  
          chapter within the Government Code for compacts enacted and  
          approved under Proposition 1A.  (Died on Senate Inactive File)

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


            SUPPORT:  

          None received

          OPPOSITION:

          None received