BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2102


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          Date of Hearing:  May 11, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2102 (Roger Hernández) - As Amended March 15, 2016


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          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


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          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


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            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