BILL ANALYSIS �
AB 1916
Page 1
ASSEMBLY THIRD READING
AB 1916 (Hall)
As Introduced February 19, 2014
Majority vote
GOVERNMENTAL ORGANIZATION 19-0
APPROPRIATIONS 16-0
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|Ayes:|Hall, Nestande, |Ayes:|Gatto, Bigelow, |
| |Achadjian, Bigelow, | |Bocanegra, Bradford, Ian |
| |Campos, Chesbro, Cooley, | |Calderon, Campos, Eggman, |
| |Dababneh, Gray, Roger | |Gomez, Holden, Jones, |
| |Hern�ndez, Jones, | |Linder, Pan, Quirk, |
| |Jones-Sawyer, Levine, | |Ridley-Thomas, Wagner, |
| |Medina, Perea, V. Manuel | |Weber |
| |P�rez, Salas, Waldron, | | |
| |Wilk | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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
AB 1916
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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 : According to the Assembly Appropriations
Committee, annual costs of approximately $100,000 to the SDF for
work by the CGCC in connection with administering the TNGF. The
CGCC anticipates costs will not be incurred until after the RSTF
is fully funded, as specified.
COMMENTS :
Purpose of the bill: According to the author, this bill will
codify in statute a provision from a recently ratified
tribal-state gaming compact (AB 517 (Hall), 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 distinct from the General Fund (GF)
and the allocation of these funds would not have an impact on
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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.
Background:
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
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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
"sunsets" on January 1, 2021.
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.
Prior 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
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 1916
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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.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0003279