BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1916
                                                                  Page  1

          Date of Hearing:   April 2, 2014

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                              Hall III, Isadore, Chair
                  AB 1916 (Hall) - As Introduced:  February 19, 2014
           
          SUBJECT  :   Tribal Gaming.

           SUMMARY  :   Creates the Tribal Nation Grant Fund (TNGF) in the  
          State Treasury, to be administered by the California Gambling  
          Control Commission (CGCC), for the receipt and deposit of moneys  
          received by the state from Indian tribes, pursuant to the terms  
          of tribal-state gaming compacts. This bill would authorize  
          moneys in this fund, upon appropriation by the Legislature, to  
          be used for discretionary distribution to nongaming tribes and  
          limited gaming tribes for purposes related to effective  
          self-governance, self-determined community, and economic  
          development.

           EXISTING LAW  :

          1)  Provides, under the federal Indian Gaming Regulatory Act  
          (IGRA) of 1988, for the negotiation and conclusion of compacts  
          between federally recognized Indian tribes and the state for the  
          purpose of conducting Class III gaming activities on Indian  
          lands within a state as a means of promoting tribal economic  
          development, self-sufficiency, and strong tribal governments.   

          2)  Ratifies a number of tribal-state gaming compacts between  
          the State of California and specified Indian tribes.  The State  
          of California has signed and ratified tribal-state gaming  
          compacts with 71 Tribes and there are Secretarial Procedures in  
          effect with one Tribe.  There are currently 59 casinos operated  
          by 58 Tribes.

          3)  Creates in the State Treasury the Indian Gaming Special  
          Distribution Fund (SDF) and the Indian Gaming Revenue Sharing  
          Trust Fund (RSTF) for the receipt and deposit of moneys received  
          by the state from Indian tribes pursuant to the terms of gaming  
          compacts and authorizes moneys in those funds to be used for  
          certain purposes.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   








                                                                  AB 1916
                                                                  Page  2


           Purpose of the bill  :  According to the author, this bill will  
          codify in statute a provision from a recently ratified  
          tribal-state gaming compact (Chapter 12, Statutes of 2012)  
          entered into between the State of California and the Federated  
          Indians of Graton Rancheria and subsequent compacts (North Fork  
          Rancheria Band of Mono Indians, Ramona Band of Cahuilla, and  
          Coyote Valley Band of Pomo Indians).

          The "Tribal Nation Grant Fund" was created in the Graton  
          Rancheria compact, as a new destination for gaming revenue for  
          distribution of funds to non-gaming and limited-gaming tribes,  
          upon application of such tribes for purposes related to  
          effective self-governance, self-determined community, and  
          economic development.  The TNGF currently does not receive  
          funding and does not have an authorizing statute.

          The author states that the TNGF was created to complement the  
          RSTF.  This new fund is intended to be fluid, and payments are  
          intended to be made to specified tribes on a "need" basis, upon  
          application by non-gaming and limited gaming tribes.  Under the  
          terms of the Graton Rancheria compact, the TNGF would not be  
          funded significantly until after year seven.  It is important to  
          note that the TNGF would be a distinct from the General Fund  
          (GF) and the allocation of these funds would not have an impact  
          on the GF.
           
           The author further states that the goal of this bill is to  
          establish a well thought out TNGF in the State Treasury, which  
          maintains proper administration and criterion to meet several  
          important objectives that will improve the wellbeing of  
          California's tribes for generations to come.

          According to the Governor's office, the TNGF reflects a vision  
          of facilitating the development of tribal institutions and  
          improving the quality of life of tribal people throughout the  
          State of California.  

           Background  :

           Indian Tribes in California with Tribal-state Gaming Compacts  :   
          In 1999 the governor negotiated and the Legislature approved  
          legislation ratifying a number of tribal state gaming compacts  
          (based on a model compact) between the State and federally  
          recognized Indian tribes. Eventually, the State entered into 61  








                                                                  AB 1916
                                                                  Page  3

          of these compacts.  During fiscal years 2003-04 through 2012-13,  
          the Legislature ratified nine new tribal state compacts and made  
          amendments to 13 existing compacts (1999 model compacts), which  
          the U.S. Department of the Interior's assistant secretary for  
          Indian Affairs approved.  Additionally, in February 2013 the  
          Rincon Band of Luiseno Mission Indians of the Rincon Reservation  
          began operating under Secretarial Procedures, which are the  
          result of mediation between the tribe and the State and are a  
          full substitute for a gaming compact.

           Tribal Nation Grant Fund  : The TNGF is a fund in the Graton  
          Rancheria compact to be created by the Legislature to make  
          discretionary distribution of funds to non-gaming and  
          limited-gaming tribes upon application of such tribes for  
          purposes related to effective self-governance, self-determined  
          community, and economic development.  The fiscal operations of  
          the TNGF are administered by the State Gaming Agency, which acts  
          as limited trustee, with no duties or obligations hereunder  
          except for the receipt, deposit, and distribution of monies paid  
          by gaming tribes for the benefit of specified tribes, as  
          defined.

          The State Gaming Agency shall allocate and disburse the TNGF  
          monies as specified by a State Designated Agency to one or more  
          eligible tribes upon a competitive application basis.  The State  
          Gaming Agency shall exercise no discretion or control over, nor  
          bear any responsibility arising from, the recipient tribes' use  
          or disbursement of TNGF monies. 

           Indian Gaming Special Distribution Fund (SDF)  :  Existing law  
          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 and authorized  
          the Legislature to appropriate money from the SDF for the  
          following purposes: 1) supporting the RSTF to ensure that it can  
          distribute $1.1 million annually to each tribe that does not  
          have a compact or that has a compact and operates fewer than 350  
          devices; 2) funding problem-gambling prevention programs managed  
          by the Department of Alcohol and Drug  Programs; 3) paying the  
          operating costs for the Indian gaming regulatory functions of  
          the CGCC and the Department of Justice (DOJ); and, 4) supporting  
          local governments impacted by tribal gambling.  The law  
          establishes a method of calculating the distribution of  
          appropriations from the SDF for grants to local government  
          agencies impacted by tribal gaming.  The distribution formula  








                                                                  AB 1916
                                                                  Page  4

          "sunsets" on January 1, 2021.

           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.
           
          Indian Gaming Revenue Sharing Trust Fund (RSTF)  :  Existing law  
          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-compacted Tribes (e.g., federally  
          recognized non-gaming tribes that operate casinos with fewer  
          than 350 slot machines).  Revenue in the RSTF is available to  
          CGCC, upon appropriation by the Legislature, for making  
          distributions of $1.1 million annually to eligible tribes.

           Related legislation  :  AB 277 (Hall), Chapter 51, Statutes of  
          2013.  Ratified tribal-state gaming compacts entered into  
          between the State of California and the North Fork Rancheria  
          Band of Mono Indians of California, executed on August 31, 2012,  
          and the State of California and the Wiyot Tribe, executed on  
          March 20, 2013.

          AB 1042 (Hall), Chapter 746, Statutes of 2013.  Requires the  
          Department of Finance (DOF), in consultation with the California  
          Gambling Control Commission (CGCC) to calculate the total  
          revenue in the SDF that will be available for the current budget  
          year for local government agencies impacted by tribal gaming.   
          In addition, the bill appropriates $9.1 million from the SDF to  
          the CGCC to provide grants to local agencies for the 2013-14  
          fiscal year.

          AB 787 (Chesbro), Chapter 340, Statutes of 2012.  Ratified the  
          amendment to the tribal-state gaming compact entered into  
          between the State of California and the Coyote Valley Band of  








                                                                  AB 1916
                                                                  Page  5

          Pomo Indians, executed on July 25, 2012.

          AB 1245 (V. Manuel P�rez), Chapter 462, Statutes of 2013.   
          Ratified a tribal-state gaming compact between the State of  
          California and the Ramona Band of Cahuilla, executed on June 10,  
          2013.

          AB 1267 (Hall), Chapter 6, Statutes of 2013.  Ratified the  
          amendment to a tribal-state gaming compact entered into between  
          the State of California and the Shingle Springs Band of Miwok  
          Indians, executed on November 15, 2012.

          AB 517 (Hall), Chapter 12, Statutes of 2012.  Ratified the  
          tribal-state gaming compact entered into between the State of  
          California and the Federated Indians of Graton Rancheria,  
          executed on March 27, 2012.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Santa Ynez Band of Chumash Indians

           Opposition 
           
          None on file
           

          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531