BILL ANALYSIS
SB 357
Page 1
Date of Hearing: July 1, 2009
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Joe Coto, Chairman
SB 357 (Ducheny) - As Amended: April 1, 2009
SENATE VOTE : 35-0
SUBJECT : Tribal gaming: grants to local jurisdictions
SUMMARY : Extends the sunset date from January 1, 2010 to
January 1, 2021, on the law which specifies how the Indian
Gaming Special Distribution Fund (SDF) local mitigation grants
monies are distributed.
EXISTING LAW :
1) Creates, in the State Treasury, the SDF for the receipt
and deposit of moneys by the state from certain Indian
tribes pursuant to the terms of gaming compacts entered
into with the state.
2) Authorizes moneys in the SDF to be used for the
following:
a. Grants for programs designed to address
problem gambling.
b. Grants for the support of state and local
government agencies impacted by tribal government
gaming.
c. Compensation for regulatory costs incurred by
the California Gambling Control Commission (CGCC) and
the California Department of Justice (DOJ) in the
implementation and administration of compacts.
d. Payment of shortfalls that may occur in the
Indian Gaming Revenue Sharing Trust Fund (RSTF). This
shall be the priority use of monies in the SDF.
e. Disbursements for the purpose of implementing
the terms of tribal labor agreements promulgated in
accordance with the terms of the 1999 compacts.
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f. Any other purpose as specified by law.
3) Provides that the priority for funding from the SDF is
in the following descending order:
a. To make payments for any shortfalls that may
occur in the RSTF.
b. Grants for programs designed to address
gambling addiction.
c. Compensation to the CGCC and DOJ for
regulatory functions that directly relates to Indian
gaming.
d. Grants for the support of local government
agencies impacted by Indian gaming.
4) Requires the Department of Finance, in consultation with
the CGCC, to calculate the total revenue in the SDF that
will be available for the budget year for those local
government agencies who were impacted by Indian gaming.
Requires this information to be included in the May Budget
revision.
5) Establishes, until January 1, 2010, the methodology for
the allocation of SDF monies to local governments that have
Indian gaming in its jurisdiction. Authorizes eligible
local governments to establish Benefit Committees to award
SDF monies to fund grant projects pursuant to specified
criteria.
6) Requires each county that administers grants from the
SDF to provide an annual report to the chairs of the Joint
Legislative Budget Committee, the Assembly and Senate
Committees on Governmental Organization, and the CGCC by
October 1 of each year detailing the specific projects
funded by all projects funded by all grants in its
jurisdictions. Counties that do not provide the annual
report to the Legislature and the CGCC are ruled ineligible
to receive funding from the SDF for the following year.
7) Requires the State Auditor to conduct an audit every
three years and reports its findings to the Legislature
regarding all allocation and use of SDF grant monies.
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8) Authorizes and requires the CGCC to collect and account
for all SDF contributions under the tribal gaming compacts
[Executive Order D-66-03].
FISCAL EFFECT : Unknown
COMMENTS : This bill seeks to extend the sunset on the Indian
Gaming Special Distribution Fund local government grant statute
from January 1, 2010 to January 1, 2021. This extension ensures
that the grant allocation statute will be available for the
remaining life of the 1999 compacts.
In Support . According to the Barona Band of Mission Indians, SB
357 "will help to ensure that the local government mitigation
grants provided for under the compacts are honored by the
state." Also, the supporters point out, "With respect to the
local government grants provided for in the 1999 compact, the
compact also states: "It is the intent of the parties that
Compact Tribes will be consulted in the process if identifying
purposes for grants made to local governments."
Related legislation . AB 158 (Torrico), Chapter 754, Statutes of
2008 . Appropriates $30 million from the Indian Gaming Special
Distribution Fund to be allocated by the California Gambling
Control Commission for local projects to mitigate the impacts of
tribal gaming. Extends the sunset of the program from January
1, 2009 to January 1, 2010 to local jurisdictions for local
projects that mitigate the impacts of tribal gaming.
Prior legislation . AB 132 (Garcia), 2007-2008 Legislative
Session . Would likewise incorporate many of the
recommendations of the recent California State Auditor on the
Indian Gaming Special Distribution Fund, as well as appropriate
$30 million from the Indian Gaming Special Distribution Fund for
local government grants in augmentation of the amount
appropriated in the 2007 Budget Act (Died in the Assembly).
AB 1265 (Cook), 2007-2008 Legislative Session . Would have
authorized a local benefit committee to select grants to the
California Department of Transportation (Died in the
Assembly).
SB 288 (Battin), Chapter 13, Statutes of 2006 . Appropriates $20
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million from the Indian Gaming Special Distribution Fund for
grants to local jurisdictions impacted by tribal gaming.
Modifies the annual reporting requirement of counties that
receive Indian Gaming Special Distribution Fund grant monies in
the following manner: (1) Changes the annual reporting deadline
from April 1 to October 1 of each year, (2) Changes the entities
to which the counties are required to submit annual reports by
replacing the Legislature with the chairperson of the Joint
Legislative Budget Committee, the chairpersons of the Senate and
Assembly committees on governmental organization, and California
Gambling Control Commission, and (3) Requires the annual reports
to provide detailed information on: (a) The amount of grant
funds received by the county, (b) A description of each project
that is funded, (c) A description of how each project mitigates
the impact of tribal gaming, (d) The total expenditures for each
project, (4) All administrative costs related to each project,
excluding the county's administrative fee, The funds
remaining at the end of the fiscal year for each project, (5) An
explanation regarding how any remaining funds will be spent for
each project, including the estimated time for expenditure, and
(6) A description of whether each project is funded once or on a
continuing basis.
SB 621 (Battin), Chapter 858, Statutes of 2003 . Establishes,
among other things, priorities and procedures for specified
funding to local governments from the Indian Gaming Special
Distribution Fund for mitigating impacts from tribal casinos.
AB 673 (J. Horton), Chapter 210, Statutes of 2003 . Provides
for the allocation of funds from the Indian Gaming Special
Distribution Fund for the purpose of backfilling the shortfalls
to the Revenue Sharing Trust Fund, and establishes and provides
for the funding of the Office of Problem and Pathological
Gambling in the Department of Alcohol and Drug Programs.
AB 1385 (Battin), Chapter 874, Statutes of 1999 . Designates
the Governor as the state officer responsible for negotiating
and executing compacts between the State and federally
recognized Indian tribes located in the State. Ratifies 57
tribal-state gaming compacts and creates two special funds in
the State Treasury (Indian Gaming Special Distribution Fund and
the Indian Gaming Revenue Sharing Trust Fund) for the deposit of
revenues derived from Indian gaming and gaming device licensing
fees. Implementation of the compacts is subject to approval of
Proposition 1A - the Indian Self-Reliance Initiative - which
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appeared on the March 2000 Ballot and was approved by the
voters.
REGISTERED SUPPORT / OPPOSITION :
Support
Agua Caliente Band of Cahuilla Indians
Barona Band of Mission Indians
California Nations Indian Gaming Association
California State Sheriffs Association
City of Coachella
County of Riverside
County of Santa Barbara
Fresno County Board of Supervisors
Habematolel Pomo of Upper Lake
Ione Band of Miwok Indians
League of California Cities
Placer County Board of Supervisors
Redding Rancheria
Regional Council of Rural Counties
Resighini Rancheria
San Diego County Board of Supervisors
Santa Rosa Rancheria Tachi Tribe
Susanville Indian Rancheria
Sycuan Band of Kumeyaay Nation
Table Mountain Rancheria
Viejas Band of Kumeyaay Indians
Opposition
None on file
Analysis Prepared by : Rod Brewer / G. O. / (916) 319-2531