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
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          |Author:    |Committee on Governmental Organization               |
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          |Version:   |3/17/2016    Introduced                              |
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          |Urgency:   |No                     |Fiscal:      |No              |
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          |Consultant:|Felipe Lopez                                         |
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          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  







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            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