BILL ANALYSIS Ó AB 2914 Page 1 Date of Hearing: May 5, 2016 ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION Adam Gray, Chair AB 2914 (Committee on Governmental Organization) - As Introduced March 17, 2016 SUBJECT: Gaming: Indian Gaming Revenue Sharing Trust Fund SUMMARY: Clarifies provisions in current law relating to the Indian Gaming Revenue Sharing Trust Fund (IGRSTF) for the purpose of making distributions to eligible recipient Indian tribes. Specifically, this bill: 1) Clarifies that the purpose of the IGRSTF is for making distributions to eligible recipient Indian tribes, in accordance with distribution plans specified in tribal-state gaming compacts. 2) Provides that tribes contributing to the IGRSTF on a net win or gross gaming revenue basis may be aggregated in the quarterly report, as described. 3) Clarifies that "eligible recipient Indian tribe" means a non-compact, nongaming, or limited-gaming tribe, as defined in the tribal-state gaming compacts ratified and in effect, as provided. AB 2914 Page 2 4) Deletes other related, obsolete provisions. 5) Makes technical and clarifying changes. EXISTING LAW: 1) 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. 2) Ratifies a number of tribal-state gaming compacts, and amendments of tribal-state gaming compacts, between the State of California and specified Indian tribes. 3) Establishes the Indian Gaming Revenue Sharing Trust Fund (IGRSTF) 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 non-compact tribes. 4) Provides that moneys in that fund are available to the California Gambling Control Commission (CGCC), upon AB 2914 Page 3 appropriation by the Legislature, for the purpose of making those distributions in accordance with plans specified in tribal-state gaming compacts. 5) Requires CGCC 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 IGRSTF 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 (IGSDF) to backfill the IGRSTF for the next fiscal year. 6) Requires, at the end of each fiscal quarter, CGCC's IGRSTF report to include specified information, including, among other things, the amount paid into the IGRSTF by each of the tribes pursuant to the applicable sections of the tribal-state gaming compact. 7) Requires CGCC to determine the amount of money needed to be transferred from the IGSDF to the IGRSTF 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 non-compact tribe, as defined in the tribal-state gaming compacts ratified and in effect, as specified. Those compacts define "non-compact tribe" to mean a federally recognized tribe that operates fewer than 350 gaming devices. FISCAL EFFECT: This bill is keyed non-fiscal by Legislative Counsel. COMMENTS: This bill represents the annual Assembly Governmental Organization Committee bill that makes technical, clarifying, AB 2914 Page 4 conforming, and non-controversial changes to the Government Code, relating to gaming. The amendments contained in this bill have been put forth by the CGCC. AB 2914 updates Government Code Sections §12012.75 and 12012.90 related to the Indian Gaming Revenue Sharing Trust Fund (IGRSTF) which was established to implement specific provisions within the 1999 tribal-state gaming compacts. AB 2914 does the following: 1) Updates the statute to incorporate specific provisions in new and recently amended compacts, including the definition of the IGRSTF; 2) Deletes obsolete provisions in the Government Code relating to the methodology for determining IGRSTF shortfalls and making IGRSTF distributions, as defined; 3) Provides that tribes contributing to the IGRSTF on a net win or gross gaming revenue basis may be reported in aggregated amounts by the CGCC. This amendment would protect tribal information that is confidential pursuant to the terms of tribal-state gaming compacts; 4) Clarifies that the purpose of the IGRSTF is for making distributions to eligible recipient Indian tribes: and, 5) Deletes other related, obsolete provisions. Related legislation : AB 1355 (Gray) of 2015. Would specify that the Tribal Nation Grant Fund reflect a vision of facilitating the development of tribal institutions and improving the quality of life of tribal people throughout the state. (Pending in Senate G.O. Committee) REGISTERED SUPPORT / OPPOSITION: AB 2914 Page 5 Support None on file Opposition None on file Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531