BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1540| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1540 Author: Committee on Governmental Organization Introduced:3/26/15 Vote: 21 SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 6/29/15 AYES: Hall, Berryhill, Block, Gaines, Glazer, Hernandez, Hill, Hueso, Lara, McGuire, Runner, Vidak NO VOTE RECORDED: Galgiani ASSEMBLY FLOOR: 78-0, 5/14/15 (Consent) - See last page for vote SUBJECT: Tribal gaming SOURCE: Author 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; and makes other minor, technical, nonsubstantive changes to these provisions ANALYSIS: 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. Existing law: 1)Establishes the Indian Gaming Special Distribution Fund (SDF) in the State Treasury for the receipt of revenue contributions AB 1540 Page 2 made by tribal governments pursuant to the terms of the 1999 model Tribal-State Gaming Compacts. 2)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 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. 3)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. 4)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. 5)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 repeals, reorganizes and recasts various statutory AB 1540 Page 3 provisions related to tribal compacts and Indian gaming into one stand-alone Title 16.5 in the Government Code; and makes other minor, technical, and nonsubstantive changes to these provisions. Background Purpose of AB 1540. Currently, Indian gaming statutes are found in two separate chapters in the 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. Title 2, Part 2, Chapter 7.5 contains the laws related to Grants of Indian Gaming Revenue to Local Government Agencies. 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 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. (The bill died on the 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. (The bill died on the Senate Inactive File) FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No AB 1540 Page 4 SUPPORT: (Verified 6/30/15) None received OPPOSITION: (Verified 6/30/15) None received ASSEMBLY FLOOR: 78-0, 5/14/15 AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins NO VOTE RECORDED: Linder, Medina Prepared by:Arthur Terzakis / G.O. / (916) 651-1530 7/7/15 10:35:19 **** END ****