BILL NUMBER: AB 2914 CHAPTERED
BILL TEXT
CHAPTER 110
FILED WITH SECRETARY OF STATE JULY 25, 2016
APPROVED BY GOVERNOR JULY 25, 2016
PASSED THE SENATE JUNE 30, 2016
PASSED THE ASSEMBLY MAY 12, 2016
INTRODUCED BY Committee on Governmental Organization (Assembly
Members Gray (Chair), Bigelow (Vice Chair), Alejo, Bonta, Campos,
Cooley, Cooper, Daly, Gallagher, Gipson, Jones-Sawyer, Levine,
Linder, Maienschein, Salas, and Wilk)
MARCH 17, 2016
An act to amend Sections 12012.75 and 12012.90 of the Government
Code, relating to gaming.
LEGISLATIVE COUNSEL'S DIGEST
AB 2914, Committee on Governmental Organization. Gaming: Indian
Gaming Revenue Sharing Trust Fund.
Existing federal law, the Indian Gaming Regulatory Act of 1988,
provides for the negotiation and execution of tribal-state gaming
compacts for the purpose of authorizing certain types of gaming on
Indian lands within a state. The California Constitution authorizes
the Governor to negotiate and conclude compacts, subject to
ratification by the Legislature. Existing law expressly ratifies a
number of tribal-state gaming compacts, and amendments of
tribal-state gaming compacts, between the State of California and
specified Indian tribes.
Existing law establishes the Indian Gaming Revenue Sharing Trust
Fund within the State Treasury for the receipt and deposit of moneys
derived from gaming device license fees that are received from tribes
pursuant to the terms of tribal-state gaming compacts for the
purpose of making distributions to noncompact tribes. Existing law
provides that moneys in that fund are available to the California
Gambling Control Commission, upon appropriation by the Legislature,
for the purpose of making those distributions in accordance with
plans specified in tribal-state gaming compacts.
This bill would clarify that the purpose of the fund is for making
distributions to eligible recipient Indian tribes.
Existing law requires the California Gambling Control Commission
to, on or before the day of the May budget revision for each fiscal
year, determine the anticipated total amount of shortfalls in payment
likely to occur in the Indian Gaming Revenue Sharing Trust Fund for
the next fiscal year, and to provide to the committee in the Senate
and Assembly that considers the State Budget an estimate of the
amount needed to transfer from the Indian Gaming Special Distribution
Fund to backfill the Indian Gaming Revenue Sharing Trust Fund for
the next fiscal year. Existing law requires, at the end of each
fiscal quarter, the commission's Indian Gaming Revenue Sharing Trust
Fund report to include specified information, including, among other
things, the amount paid into the Indian Gaming Revenue Sharing Trust
Fund by each of the tribes pursuant to the applicable sections of the
tribal-state gaming compact.
This bill would provide that tribes contributing to the Indian
Gaming Revenue Sharing Trust Fund on a net win or gross gaming
revenue basis may be aggregated in the quarterly report described
above.
Existing law requires the California Gambling Control Commission
to determine the amount of money needed to be transferred from the
Indian Gaming Special Distribution Fund to the Indian Gaming Revenue
Sharing Trust Fund to ensure that each eligible recipient Indian
tribe receives a specified amount of the funds. Existing law defines
"eligible recipient tribe" for those purposes to mean a noncompact
tribe, as defined in the tribal-state gaming compacts ratified and in
effect, as specified. Those compacts define "noncompact tribe" to
mean a federally recognized tribe that operates fewer than 350 gaming
devices.
This bill would clarify that "eligible recipient Indian tribe"
means a noncompact, nongaming, or limited-gaming tribe, as defined in
the tribal-state gaming compacts ratified and in effect, as
provided. The bill would delete other related, obsolete provisions.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 12012.75 of the Government Code is amended to
read:
12012.75. There is hereby created in the State Treasury a special
fund called the "Indian Gaming Revenue Sharing Trust Fund" for the
receipt and deposit of moneys received by the state from Indian
tribes pursuant to the terms of tribal-state gaming compacts for the
purpose of making distributions to eligible recipient Indian tribes.
Moneys in the Indian Gaming Revenue Sharing Trust Fund shall be
available to the California Gambling Control Commission, upon
appropriation by the Legislature, for the purpose of making
distributions to eligible recipient Indian tribes, in accordance with
distribution plans specified in tribal-state gaming compacts.
SEC. 2. Section 12012.90 of the Government Code is amended to
read:
12012.90. For each fiscal year commencing with the 2016-17 fiscal
year, all of the following shall apply:
(a) On or before the day of the May budget revision for each
fiscal year, the California Gambling Control Commission shall
determine the anticipated total amount of shortfalls in payment
likely to occur in the Indian Gaming Revenue Sharing Trust Fund for
the next fiscal year, and shall provide to the committee in the
Senate and Assembly that considers the State Budget an estimate of
the amount needed to transfer from the Indian Gaming Special
Distribution Fund to backfill the Indian Gaming Revenue Sharing Trust
Fund for the next fiscal year. The anticipated total amount of
shortfalls to be transferred from the Indian Gaming Special
Distribution Fund to the Indian Gaming Revenue Sharing Trust Fund
shall be determined by the California Gambling Control Commission as
follows:
(1) The anticipated number of eligible recipient Indian tribes
that will be eligible to receive payments for the next fiscal year,
multiplied by one million one hundred thousand dollars ($1,100,000),
with that product reduced by the amount anticipated to be paid by the
tribes directly into the Indian Gaming Revenue Sharing Trust Fund
for the next fiscal year.
(2) For purposes of this section and Section 12012.75, "eligible
recipient Indian tribe" means a noncompact, nongaming, or
limited-gaming tribe, as defined in the tribal-state gaming compacts
ratified and in effect as provided in subdivision (f) of Section 19
of Article IV of the California Constitution.
(3) This amount shall be based upon actual payments received into
the Indian Gaming Revenue Sharing Trust Fund the previous fiscal
year, with adjustments made due to amendments to existing
tribal-state gaming compacts or newly executed tribal-state gaming
compacts with respect to payments to be made to the Indian Gaming
Revenue Sharing Trust Fund.
(b) The Legislature shall transfer from the Indian Gaming Special
Distribution Fund to the Indian Gaming Revenue Sharing Trust Fund an
amount sufficient for each eligible recipient Indian tribe to receive
a total not to exceed two hundred seventy-five thousand dollars
($275,000) for each quarter in the next fiscal year that an eligible
recipient Indian tribe is eligible to receive moneys, for a total not
to exceed one million one hundred thousand dollars ($1,100,000) for
the entire fiscal year. The California Gambling Control Commission
shall make quarterly payments from the Indian Gaming Revenue Sharing
Trust Fund to each eligible recipient Indian tribe within 45 days of
the end of each fiscal quarter.
(c) If the transfer of funds from the Indian Gaming Special
Distribution Fund to the Indian Gaming Revenue Sharing Trust Fund
results in a surplus, the funds shall remain in the Indian Gaming
Revenue Sharing Trust Fund for disbursement in future years, and if
necessary, adjustments shall be made to future distributions from the
Indian Gaming Special Distribution Fund to the Revenue Sharing Trust
Fund.
(d) In the event the amount appropriated for the fiscal year is
insufficient to ensure each eligible recipient Indian tribe receives
the total of two hundred seventy-five thousand dollars ($275,000) for
each fiscal quarter, the Department of Finance, after consultation
with the California Gambling Control Commission, shall submit to the
Legislature a request for a budget augmentation for the current
fiscal year with an explanation as to the reason why the amount
appropriated for the fiscal year was insufficient.
(e) At the end of each fiscal quarter, the California Gambling
Control Commission's Indian Gaming Revenue Sharing Trust Fund report
shall include information that identifies each of the eligible
recipient Indian tribes for that fiscal quarter, the amount paid into
the Indian Gaming Revenue Sharing Trust Fund by each of the tribes
pursuant to the applicable sections of the tribal-state gaming
compact, provided that tribes contributing on a net win or gross
gaming revenue basis may be aggregated in the report, and the amount
necessary to backfill from the Indian Gaming Special Distribution
Fund the shortfall in the Indian Gaming Revenue Sharing Trust Fund in
order for each eligible recipient Indian tribe to receive the total
of two hundred seventy-five thousand dollars ($275,000) for the
fiscal quarter.