BILL ANALYSIS �
Bill No: AB
2695
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
AB 2695 Author: Committee on Governmental Organization
As Introduced: March 15, 2012
Hearing Date: June 26, 2012
Consultant: Art Terzakis
SUBJECT
Tribal Gaming
DESCRIPTION
AB 2695 reorganizes statutes pertaining to Indian gaming
compacts primarily by moving them to a newly created Title
16.5 on Tribal Gaming in the Government Code. AB 2695 also
makes other minor, technical, nonsubstantive changes to
these provisions.
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. Additionally, the California
Constitution authorizes the Governor to negotiate and
conclude compacts, subject to ratification by the
Legislature.
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).
Existing law authorizes the Legislature to appropriate
money from the SDF as follows: (1) Grants for programs
AB 2695 (Committee on Governmental Organization)
continuedPage 2
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); (5)
Disbursements for the purpose of implementing the terms of
tribal labor relations ordinances promulgated in accordance
with the terms of the 1999 compacts; and, (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 the CGCC and DOJ for regulatory
functions that directly relates to Indian gaming; and, (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 the CGCC,
upon appropriation by the Legislature, for distribution to
non-compact tribes, according to the terms of the compacts.
Existing law requires the 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
the RSTF. The CGCC must report the amount of the
deficiency to the Budget Committees in each house of the
Legislature. Upon appropriation by the Legislature, the
CGCC shall make payments to eligible recipient tribes, as
specified.
BACKGROUND
Purpose of AB 2695: This measure 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
AB 2695 (Committee on Governmental Organization)
continuedPage 3
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 2695 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
AB 1417 (Governmental Organization) Chapter 736, Statutes
of 2011. As introduced, this measure would have
reorganized statutes pertaining to Indian gaming compacts
primarily by moving them to a newly created Title 16.5 on
Tribal Gaming in the Government Code. AB 1417 was
subsequently gutted in this committee to become the vehicle
for the distribution of $9.1 million from the SDF to the
CGCC to provide grants to local agencies.
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 2794 (Governmental Organization) 2009-10 Session. Would
have established a stand-alone article within the
Government Code for compacts. (Died at Senate Desk)
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 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
AB 2695 (Committee on Governmental Organization)
continuedPage 4
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 22, 2012.
OPPOSE: None on file as of June 22, 2012.
FISCAL COMMITTEE: No.
**********