BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Isadore Hall, III Chair 2015 - 2016 Regular Bill No: AB 2914 Hearing Date: 6/14/2016 ----------------------------------------------------------------- |Author: |Committee on Governmental Organization | |-----------+-----------------------------------------------------| |Version: |3/17/2016 Introduced | ----------------------------------------------------------------- ------------------------------------------------------------------ |Urgency: |No |Fiscal: |No | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Felipe Lopez | | | | ----------------------------------------------------------------- SUBJECT: Gaming: Indian Gaming Revenue Sharing Trust Fund DIGEST: This bill clarifies provisions in current law relating to the Indian Gaming Revenue Sharing Trust Fund (RSTF) for the purpose of making distribution to eligible recipient Indian tribes. ANALYSIS: Existing law: 1)Provides, under the Indian Gaming Regulatory Act of 1988, 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. 2)Authorizes, under the California Constitution, the Governor to negotiate and conclude compacts, subject to ratification by the Legislature. 3)Ratifies a number of tribal-state gaming compacts, and amendments of tribal-state gaming compacts, and amendments of tribal-state gaming compacts, between the State of California and specified Indian tribes. 4)Establishes the RSTF 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 AB 2914 (Committee on Governmental Organization) Page 2 of ? tribal-state gaming compacts for the purpose of making distributions to noncompact tribes. Funds deposited into the RSTF are distributed to certain federally recognized Indian tribes that either do not operate casinos or operate casinos with less than 350 slot machines. These tribes generally receive $1.1 million annually. 5)Provides that moneys in the RSTF are available to the California Gambling Control Commission (CGCC), upon appropriation by the Legislature, for the purpose of making those distributions in accordance with plans specified in tribal-state gaming compacts. 6)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 in the RSTF for the next fiscal year, and to provide to the committee in the Senate and Assembly that consider the State Budget an estimate of the amount needed to transfer from the Indian Gaming Special Distribution Fund (SDF) to backfill the RSTF for the next fiscal year. 7)Requires, at the end of each fiscal quarter, the CGCC's RSTF report to include specified information, including, among other things, the amount paid into the RSTF by each of the tribes pursuant to the applicable sections of the tribal-state gaming compact. 8)Requires the CGCC to determine the amount of money needed to be transferred from the SDF to the RTSF to ensure that each eligible recipient Indian tribe receives a specified amount of the funds. 9)Defines "eligible recipient tribe" for the purposes to mean a noncompact tribe, as specified. Those compacts define "noncompact tribe" to mean a federally recognized tribe that operates fewer than 350 gaming devices. This bill: 1)Clarifies provisions in current law relating to the RTSF for the purpose of making distributions to eligible recipient Indian tribes, in accordance with distribution plans specified in tribal-state gaming compacts. AB 2914 (Committee on Governmental Organization) Page 3 of ? 2)Provides that tribes contributing to the RTSF on a net win or gross revenue basis may be aggregated in the quarterly report, as described. 3)Clarifies that an "eligible recipient Indian tribe" means a concompact, nongaming, or limited-gaming tribe, as defined in the tribal-state gaming compacts ratified and in effect, as provided. 4)Deletes other related, obsolete provisions. 5)Makes technical and clarifying changes. Background Purpose of the bill. The bill represents the annual Assembly Governmental Organization Committee bill that makes technical, clarifying, 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. Indian Gaming Revenue Sharing Trust Fund. Pursuant to the various tribal-state gaming compacts, tribes are requires to make payments to the RSTF. The CGCC, as the trustee of the RSTF, is required to make quarterly distributions from the RSTF to eligible recipient Indian tribes that include noncompact tribes or nongaming and limited-gaming Tribes. Each eligible tribe receives $275,000 quarterly, for an annual total distribution of $1.1 million per eligible tribe. Existing law authorize moneys in the SDF to be used to make payments to eligible recipient Indian tribes for shortfalls that occur in the RSTF. For Fiscal Year 2016-17, the CGCC estimates that 73 tribes will be eligible for RSTF distributions of $1.1 million each, for total estimated RSTF payments of $80.3 million. RSTF revenues for FY 2016-17 are projected to total approximately $64.8 million. Prior/Related Legislation AB 1355 (Gray, 2015) specifies 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 Governmental AB 2914 (Committee on Governmental Organization) Page 4 of ? Organization Committee) FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No SUPPORT: None received OPPOSITION: None received