BILL ANALYSIS Ó AB 2102 Page 1 Date of Hearing: May 11, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2102 (Roger Hernández) - As Amended March 15, 2016 ----------------------------------------------------------------- |Policy |Governmental Organization |Vote:|21 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: Yes SUMMARY: This bill requires Indian Gaming Local Community Benefit Committees (Benefit Committees) 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. FISCAL EFFECT: AB 2102 Page 2 One-time, reimbursable state costs of up to $130,000 for Benefit Committees to adopt and approve of Conflict of Interest Code. COMMENTS: 1)Purpose. According to the author the intent of this bill is to address Bureau of State Audits (BSA) recommendations stemming from its review of the Indian Gaming Special Distribution Fund (SDF) and the Benefit Committees. This review recommended that local committees ensure that their conflict-of-interest codes comply with the Political Reform Act (ACT) by reviewing the Act and their codes, and changing the codes as necessary to meet the Act's requirements. The author contends, this bill will clarify existing law and provide direction to local benefit committees attempting to implement the distribution of SDF grant funds. 2)Background. Benefit Committees establish SDF grant application policies and procedures, determine grant eligibility, and select grants from Individual Tribal Casino Accounts or County Tribal Casino Accounts. All grants from Individual Tribal Casino Accounts are required to be made only upon the affirmative sponsorship of the tribe paying into the SDF 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. 3)Conflict of Interest Code: Existing law specifies that every AB 2102 Page 3 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. 4)Previous legislation. AB 2515 (Hall), Chapter 704, Statutes of 2012, modified the procedures governing the award of local mitigation grants from the SDF to require grant applications to Benefit Committees to clearly show how the grant will mitigate the impact of the specified casino and appropriates $9.1 million from the SDF. Earlier versions of that bill had a provision related to Conflict of Interest Codes, but that provision was removed in the Senate. Analysis Prepared by:Luke Reidenbach / APPR. / (916) 319-2081