BILL ANALYSIS Ó
AB 2102
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Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Adam Gray, Chair
AB 2102
(Roger Hernández) - As Amended March 15, 2016
SUBJECT: Tribal gaming: Indian Gaming Local Community Benefit
Committee
SUMMARY: Modifies an existing provision of law governing the
award of local mitigation grants from the Indian Gaming Special
Distribution Fund (IGSDF). Specifically, this bill:
1) Requires the Indian Gaming Local Community Benefit Committee
to adopt and approve a Conflict of Interest Code and provides
that any existing conflict of interest code must be reviewed and
amended as necessary to bring it into compliance with these
requirements.
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
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authorizes the Governor to negotiate and conclude compacts,
subject to ratification by the Legislature.
2) Establishes the IGSDF 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
IGSDF as follows: (1) Grants for programs designed to address
gambling 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 IGSDF 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 relate to
Indian gaming; and, (4) Grants for the support of local
government agencies impacted by tribal gaming.
5) Requires the State Auditor to conduct an audit every three
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years and report its findings to the Legislature regarding the
allocation and use of SDF grant monies.
6) 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.
7) 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: Unknown
COMMENTS:
Local Benefit Committees : Existing law establishes Indian
Gaming Local Community Benefit Committees with specified local
government and tribal representation that are responsible for
establishing SDF grant application policies and procedures,
determining grant eligibility, and selecting grants from
Individual Tribal Casino Accounts or County Tribal Casino
Accounts based on "nexus test criteria" that mainly takes into
consideration the geographical proximity of an applicant local
government jurisdiction to the tribal casino.
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All grants from Individual Tribal Casino Accounts are required
to be made only upon the affirmative sponsorship of the tribe
paying into the IGSDF from whose Individual Tribal Casino
Account grants are available for distribution. Priority uses
for the receipt of grant money from Individual Tribal Casino
Accounts are as follows: law enforcement; fire services;
emergency medical services; environmental impacts; water
supplies; waste disposal; behavioral; health; planning and
adjacent land use; public health; roads; recreation and youth
programs; and, childcare programs.
Conflict of Interest Code : Existing law specifies that every
agency promulgate and adopt a Conflict of Interest Code, which
will have the force of law, and any violation is deemed a
violation of state law. Such a "code" shall require that each
designated employee file statements disclosing reportable
investments, business positions, interests in real property and
income. It also sets forth specific circumstances under which
designated employees or categories of designated employees must
disqualify themselves from making, participating in the making,
or using their official position to influence the making of any
decision.
Purpose of the bill : According to the author's office, this
bill is intended to address several Bureau of State Audits (BSA)
recommendations stemming from its 2011 review of the SDF and the
benefit committees by ensuring that benefit committees'
conflict-of-interest codes comply with the Political Reform Act
by reviewing the act and their codes, and changing the codes as
necessary to meet the act's requirements.
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The BSA report revealed that members of benefit committees do
not always make the financial disclosures required by state law.
Although each member is required to file a statement of
economic interest that helps to identify conflicts of interest
that he or she might have, the review found that 12 of the
49-committee members in four of the seven counties whose grants
were reviewed failed to file their statements. Further, two
members filed statements more than a year late. Several factors
contributed to these omissions, including the failure of some
benefit committees to establish conflict-of-interest codes that
include each of the elements required by state law as well as
the failure of filing officers who collect such forms to follow
guidelines for administering the process.
Prior legislation : AB 2515 (Hall), Chapter 704, Statutes of
2012. Modifies the procedures governing the award of local
mitigation grants from the IGSDF to require grant applications
to the Indian Gaming Local Community Benefit Committee to
clearly show how the grant will mitigate the impact of the
specified casino and appropriates $9.1 million from the IGSDF.
AB 158 (Torrico) Chapter 754, Statutes of 2008. Enacted several
recommendations proposed by the State Auditor relative to the
allocation and uses of proceeds from the IGSDF.
SB 621 (Battin) Chapter 858, Statutes of 2003. Among other
things, established, until 1/1/2009, priorities and procedures
for specified funding to local governments from the IGSDF for
mitigating impacts from tribal casinos. In addition,
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appropriated $25 million from the IGSDF to mitigate the impact
of tribal gaming on local governments.
AB 673 (J. Horton) Chapter 210, Statutes of 2003. Specified
that money in the IGSDF may be used to make payment of
shortfalls that may occur in the RSTF and specified that payment
for those shortfalls in the RSTF shall be the priority use of
moneys in the IGSDF. Also, established a mechanism by which
funds may be transferred from the IGSDF to the RSTF pursuant to
specified provisions of the tribal-state compacts and
appropriated the sum of $50,568,787.99 for the purpose of making
payments to eligible Indian tribes for the preceding fiscal
year. In addition, established and provided for the funding of
the Office of Problem and Pathological Gambling in the
Department of Alcohol and Drug Programs.
AB 1385 (Battin) Chapter 874, Statutes of 1999. Among other
things, ratified 57 tribal-state gaming compacts and created two
special funds in the State Treasury (IGSDF and RSTF) for the
deposit of revenues derived from Indian gaming and gaming device
licensing fees. In addition, designated the Governor as the
state officer responsible for negotiating and executing compacts
between the State and federally recognized Indian tribes located
in the State.
REGISTERED SUPPORT / OPPOSITION:
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Support
None on file
Opposition
None on file
Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531