BILL ANALYSIS �
AB 2515
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2515 (Hall)
As Amended August 21, 2012
Majority vote
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|ASSEMBLY: |73-0 |(May 10, 2012) |SENATE: |35-0 |(August 23, |
| | | | | |2012) |
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Original Committee Reference: G.O.
SUMMARY : Strengthens procedures governing the awarding of
grants from the Indian Gaming Special Distribution Fund (SDF) to
ensure that the funds are properly used to mitigate costs
associated with tribal gaming. In addition, appropriates $9.1
million from the SDF to the California Gambling Control
Commission (CGCC) to provide grants to local agencies for the
purpose of mitigating the adverse impacts of tribal gaming.
The Senate amendments :
1)Delete a requirement that an Indian Gaming Local Community
Benefit Committee adopt and approve a Conflict of Interest
Code and provides that any existing conflict of interest code
must be reviewed and amended as necessary to bring it into
compliance with these requirements.
2)Appropriate $9,100,000 from SDF to the CGCC to provide grants
to local agencies for the 2012-13 fiscal year.
EXISTING LAW :
1)Creates the 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.
2)Authorizes the Legislature to appropriate money from the SDF
for the following purposes:
a) Grants for programs designed to address gambling
addiction.
b) Grants for the support of state and local government
agencies impacted by tribal government gaming.
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c) Compensation for regulatory costs incurred by California
Gambling Control Commission (CGCC) and the Department of
Justice (DOJ) in connection with the implementation and
administration of compacts.
d) Payment of shortfalls that may occur in the Indian
Gaming Revenue Sharing Trust Fund (RSTF).
e) Disbursements for the purpose of implementing the terms
of tribal labor relations ordinances promulgated in
accordance with the terms of the 1999 compacts.
f) Any other purpose specified by law.
3)Establishes a method of calculating the distribution of
appropriations from the SDF for grants to local government
agencies impacted by tribal gaming. This method includes a
requirement that the State Controller, in consultation with
the Commission, deposit funds into County Tribal Casino
Accounts and Individual Tribal Casino Accounts based upon a
process that takes into consideration whether the county has
tribes that pay, or not pay, into the SDF. The distribution
formula "sunsets" on January 1, 2021.
4)Establishes an Indian Gaming Local Community Benefit Committee
in each county in which gaming is conducted, specifies the
composition and responsibilities of that committee, and
requires that committee to make the selection of grants from
the casino accounts. Among other things, the committee is
responsible for establishing all application policies and
procedures for grants from the casino accounts.
5)Requires the State Auditor to conduct an audit every three
years and report its findings to the Legislature regarding the
allocation and use of SDF grant monies.
6)Creates in the State Treasury the RSTF for the receipt and
deposit of moneys derived from gaming device license fees that
are paid into the RSTF pursuant to the terms of specified
tribal-state gaming compacts for the purpose of making
distributions to non-compact Tribes (i.e.,
federally-recognized non-gaming and tribes that operate
casinos with fewer than 350 slot machines). Revenue in the
RSTF is available to CGCC, upon appropriation by the
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Legislature, for making distributions of $1.1 million annually
to non-compact tribes.
AS PASSED BY THE ASSEMBLY , this bill modified the procedures
governing the award of local mitigation grants from the SDF to
require grant applications to the Indian Gaming Local Community
Benefit Committee to clearly show how the grant will mitigate
the impact of the specified casino and requires the Indian
Gaming Local Community Benefit Committee to adopt and approve a
Conflict of Interest Code.
FISCAL EFFECT : According to the Senate Appropriations
Committee, appropriates $9.1 million from the SDF (Special fund)
to the CGCC to provide grants to local agencies for the purpose
of mitigating the adverse impacts of tribal gaming.
COMMENTS : In February of 2011, the Bureau of State Audits
issued a report on the Indian Gaming Special Distribution Fund
(Report 2010-036). Existing law requires the State Auditor to
conduct an audit every three years regarding the allocation and
use of SDF moneys by grant recipients. The report examined the
allocation and expenditure of grants from the funds. It
concluded that local benefit committees have difficulty in
complying with grant requirements and related law. In many
instances, grant recipients were unable to quantify, or provide
evidence of, the impact of the casino. Some counties failed to
award local governmental entities that were proximate to the
casino operation, the minimum amounts that the law specifies for
those entities. Some members on the benefit committees in four
of seven counties reviewed also failed to file required
statements of economic interests.
Purpose of the bill : According to the author, this bill is in
response to a Bureau of State Audits report from February 2011,
titled "The Indian Gaming Special Distribution Fund (Report
2010-036).
The author states that the intent of this bill is to address one
of the Auditor recommendations stemming from its review of the
SDF and the benefit committees, relating to: "More rigorously
review applications that are to be administered and spent by an
entity other than the local government that applies for the
funds." Specifically, benefit committees should require that
each grant application clearly show how the grant will mitigate
the impact of the casino on the applicant agency.
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In addition, this bill ensures a statewide appropriation of $9.1
million from the SDF for local mitigation monies for fiscal year
2012-2013. The author points out, that under current law this
appropriation is made via a Special Fund (SDF) not the General
Fund.
According to the author, "as a function of the original 1999
tribal-state compacts, these local mitigation funds are
important to many local communities and counties throughout the
state, as they support critically important allowable purposes
such as public safety, fire and transportation. In this lean
budgetary year, local governments are depending on this money to
mitigate the costs associated with having casinos within their
jurisdictions."
The author further states, "this appropriation represents a
reasonable request to provide local mitigation funds to
communities surrounding the 21 tribes who still pay into the SDF
as provided by the existing 1999 compacts - pursuant to a
longstanding statutory allocation formula.
Background :
Local benefit committees : Existing law establishes Indian
Gaming Local Community Benefit Committees with specified local
government and tribal representation that are responsible for
establishing SDF grant application policies and procedures,
determining grant eligibility, and selecting grants from
Individual Tribal Casino Accounts or County Tribal Casino
Accounts based on "nexus test criteria" that mainly takes into
consideration the geographical proximity of an applicant local
government jurisdiction to the tribal casino.
All grants from Individual Tribal Casino Accounts are required
to be made only upon the affirmative sponsorship of the tribe
paying into the SDF from whose Individual Tribal Casino Account
grants are available for distribution. Priority uses for the
receipt of grant money from Individual Tribal Casino Accounts
are as follows: law enforcement; fire services; emergency
medical services; environmental impacts; water supplies; waste
disposal; behavioral; health; planning and adjacent land use;
public health; roads; recreation and youth programs; and,
childcare programs.
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SDF contributing tribes : (1) Barona Band of Mission Indians; (2)
Big Sandy Band of Mono Indians; (3) Big Valley Rancheria; (4)
Bishop Paiute Tribe; (5) Cabazon Band of Mission Indians; (6)
Cahuilla Band of Indians; (7) Chicken Ranch Rancheria; (8)
Colusa Indian Community; (9) Hopland Band of Pomo Indians; (10)
Jackson Rancheria Band of Miwuk Indians; (11) Mooretown
Rancheria; (12) Redding Rancheria; (13) Robinson Rancheria; (14)
Santa Rosa Rancheria; (15) Santa Ynez Band of Chumash Indians;
(16) Soboba Band of Luiseno Indians; (17) Sycuan Band of
Kumeyaay Indians; (18) Table Mountain Rancheria; (19) Tule River
Indian Tribe; (20) Twenty-Nine Palms Band of Mission Indians;
and, (21) Tyme Maidu Tribe Berry Creek Rancheria.
SDF budget actions : The Budget Act of 2003-04 appropriated $25
million from the SDF to local jurisdictions impacted by Indian
gaming. The Budget Acts of 2004-05, 2005-06, and 2006-07, each
appropriated $30 million from the SDF to local governments
impacted by Indian gaming. The Budget Act of 2007-08 included a
$30 million appropriation from the SDF to local governments
impacted by Indian gaming; however, the Governor blue-penciled
that appropriation. In 2008, AB 158 (Torrico), appropriated $30
million from the SDF to counties for mitigating Indian casino
impacts. In 2010, SB 856 (Senate Budget and Fiscal Review
Committee), appropriated $30 million from the SDF to restore $30
million in funding vetoed by the Governor in the 2007-08 Budget
Act. The bill required the funds to be divided amongst the
locals based on the amounts paid into the SDF in the 2006-07
fiscal year. In 2011, AB 1417 (Hall), Chapter 736, Statutes of
2011, appropriated $9.1 million from the SDF to the CGCC to
provide grants to local agencies for the purpose of mitigating
the adverse impacts of tribal gaming.
In May 2012, the Department of Finance projected that at the end
of FY 2012-13, the SDF fund balance will be $23.7 million
(excluding any reserve and funding for mitigation grants to
local government agencies). Under the 2007 compact amendments,
the state is obligated to cover any shortfall in the RSTF if the
SDF cannot.
Prior legislation : AB 1417 (Hall), Chapter 736, Statutes of
2011. Appropriated $9.1 million from the SDF to the CGCC to
provide grants to local agencies for the purpose of mitigating
the adverse impacts of tribal gaming.
SB 856 (Senate Budget and Fiscal Review Committee), Chapter 719,
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Statutes of 2010. Appropriated $30 million from the SDF to
restore $30 million in funding vetoed by the Governor in the
2007-08 Budget Act. The language would require the funds be
divided amongst the locals based on the amounts paid into the
SDF in the 2006-07 fiscal year.
SB 357 (Ducheny), Chapter 181, Statutes of 2009. Extends the
sunset date to January 1, 2021 for the law governing the method
of calculating the distribution of appropriations from the SDF
for grants to local government agencies impacted by tribal
gaming.
AB 158 (Torrico), Chapter 754, Statutes of 2008. Enacted
several recommendations proposed by the State Auditor relative
to the allowable allocation and uses of grants to local
government agencies to mitigate the impact of tribal gaming in
local jurisdictions. Appropriated $30 million from the Indian
Gaming Special Distribution Fund to be allocated by the
California Gambling Control Commission for local projects that
mitigate the impacts of tribal gaming.
SB 621 (Battin), Chapter 858, Statutes of 2003. Establishes
priorities and procedures for funding to local governments from
the SDF for the purpose of mitigating impacts from tribal
casinos.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0005407