BILL ANALYSIS
Bill No: AB
2794
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
AB 2794 Author: Committee on Governmental Organization
As Amended: April 14, 2010
Hearing Date: June 29, 2010
Consultant: Art Terzakis
SUBJECT
Tribal Gaming
DESCRIPTION
AB 2794 repeals and renumbers sections of the Government
Code related to Indian gaming into one stand-alone Title
(Title 16.5 TRIBAL GAMING) in the Government Code; also,
makes other technical, nonsubstantive changes.
EXISTING LAW
Existing federal law, the Indian Gaming Regulatory Act of
1988, provides for the negotiation and execution of
compacts for the purpose of authorizing class III gaming on
Indian lands within a state.
Existing law, the California Constitution, authorizes the
Governor to negotiate and conclude compacts, subject to
ratification by the Legislature.
Existing law ratifies 68 compacts between the State of
California and specified Indian tribes.
Existing law establishes the Indian Gaming Special
Distribution Fund (SDF) in the State Treasury for the
receipt of revenue contributions made by tribal governments
pursuant to the terms of the 1999 model Tribal-State Gaming
Compacts (compacts).
AB 2794 (Committee on Governmental Organization)
continuedPage 2
Existing law authorizes the Legislature to appropriate
money from the SDF for the following purposes:
1) Grants for programs designed to address
gambling addiction.
2) Grants for the support of state and local
government agencies impacted by tribal government
gaming.
3) Compensation for regulatory costs incurred by
the California Gambling Control Commission (CGCC)
and the Department of Justice (DOJ) in connection
with the implementation and administration of
compacts.
4) Payment of shortfalls that may occur in the
Indian Gaming Revenue Sharing Trust Fund (RSTF).
This shall be the priority use of moneys in the SDF.
5) Disbursements for the purpose of implementing
the terms of tribal labor relations ordinances
promulgated in accordance with the terms of the 1999
compacts.
6) Any other purpose specified by law.
Existing law provides that the priority for funding from
the SDF is in the following descending order:
1) To make payments of any shortfalls that may
occur in the RSTF.
2) Grants for programs designed to address
gambling addiction.
3) Compensation to CGCC and DOJ for regulatory
functions that directly relates to Indian gaming.
4) Grants for the support of local government
agencies impacted by tribal gaming.
Existing law establishes the RSTF in the State Treasury for
the receipt and deposit of moneys derived from gaming
device license fees paid by Indian tribes with 1999
compacts. Money in that fund is available to CGCC, upon
appropriation by the Legislature, for distribution to
non-compact tribes, according to the terms of the compacts.
Existing law requires CGCC to annually determine the
aggregate amount necessary to make up the difference
between $1.1 million and the actual amount paid to each
eligible recipient Indian tribe during the Fiscal Year from
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continuedPage 3
RSTF. CGCC must report the amount of the deficiency to the
Budget Committees in each house of the Legislature. Upon
appropriation by the Legislature, CGCC shall make payments
to eligible recipient tribes, as specified.
Existing law establishes the methodology for the allocation
of SDF monies to local governments that have tribal
government gaming in its jurisdiction. Authorizes eligible
local governments to establish Benefit Committees to award
SDF monies to fund grant projects pursuant to specified
criteria.
BACKGROUND
Purpose of AB 2794: This is a code maintenance proposal
that was developed in consultation with the Legislative
Counsel's office to consolidate all of the laws related to
Indian gaming into one stand-alone Title in the Government
Code.
Currently, Indian gaming laws are found in two separate
chapters in the Government Code. Government Code Title 2,
Part 2, Chapter 1, Article 1 contains laws related to: (1)
Tribal-State Gaming Compacts, (2) the Indian Gaming Revenue
Sharing Trust Fund (RSTF), (3) the Indian Gaming Special
Distribution Fund (SDF); and (4) the methodology for the
backfill of shortfalls in revenues in the RSTF from the
SDF. Government Code Title 2, Part 2, Chapter 7.5 contains
the laws related to Grants of Indian Gaming Revenue to
Local Government Agencies. AB 2794 is a code maintenance
proposal that will consolidate all Indian gaming related
laws into one stand-alone Title in the Government Code,
namely, Title 16.5 - Tribal Gaming.
PRIOR/RELATED LEGISLATION
SB 827 (Governmental Organization) 2009-10 Session. Would
have established a stand-alone article within the
Government Code for compacts. (Gutted and amended in the
Assembly)
AB 3072 (Governmental Organization) 2007-2008 Session .
Would have established a stand-alone article within the
Government Code for compacts. (Gutted and amended on the
Senate Floor)
AB 2794 (Committee on Governmental Organization)
continuedPage 4
AB 1275 (J. Horton) 2003-2004 Session . Would have
established a stand-alone chapter within the Government
Code for compacts. (Died on Senate Third Reading file)
AB 2286 (J. Horton) 2001-2002 Session . Would have
established a stand-alone chapter within the Government
Code for compacts enacted and approved under Proposition
1A. (Died on Senate Inactive file)
SUPPORT: None on file as of June 25, 2010.
OPPOSE: None on file as of June 25, 2010.
FISCAL COMMITTEE: No.
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