BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
AB 1916 (Hall) - Tribal Gaming
Amended: As Introduced Policy Vote: GO 10-0
Urgency: No Mandate: No
Hearing Date: August 4, 2014
Consultant: Maureen Ortiz
This bill does not meet the criteria for referral to the
Suspense file.
Bill Summary: AB 1916 creates the Tribal Nation Grant Fund, to
be administered by the California Gambling Control Commission
(CGCC), for the receipt of moneys pursuant to the terms of
tribal-state gaming compacts.
Fiscal Impact:
Annual administration costs of $98,500 to the CGCC (Special
Fund)
The CGCC indicates the need for 1 PY (Associate Management
Auditor) for administering the funds in the Tribal Nation Grant
Fund. These costs will not occur until such time that funds are
directed into the Tribal Nation Grant Fund, currently not
anticipated for several years.
Background: Existing law ratifies a number of tribal-state
gaming compacts between the State of California and specified
Indian tribes. The Indian Gaming Special Distribution Fund
(SDF) was created for the receipt of revenue contributions made
by tribal governments pursuant to the terms of the 1999 model
compacts. The Legislature is authorized 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; (c) compensation for regulatory costs
incurred by the Gambling Control Commission and the Department
of Justice; (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
AB 1916 (Hall)
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the terms of the 1999 compacts; and, (f) any other purpose
specified by law. However, pursuant to compact renegotiations
that took place with several of the larger gaming tribes during
the Schwarzenegger administration, revenue from those tribes is
now directed into the state General Fund instead of the SDF.
The Revenue Sharing Trust Fund was created for the receipt and
deposit of moneys derived from gaming device license fees that
are used for making distributions to non-compacted tribes
(non-gaming tribes and tribes that operate casinos with fewer
than 350 slot machines). Upon appropriation by the Legislature,
distributions of $1.1 million are paid annually to non-compact
tribes. Shortfalls in the fund are redirected from the SDF
before any other SDF distributions are made.
Proposed Law: AB 1916 creates the Tribal Nation Grant Fund, to
be administered by the California Gambling Control Commission
(CGCC), for the receipt of moneys pursuant to the terms of
tribal-state gaming compacts. The funds will be used, upon
appropriation by the Legislature, for discretionary distribution
to nongaming tribes and limited gaming tribes for purposes
related to effective self-governance, self-determined community,
and economic development.
Staff Comments: AB 1916 codifies a provision from a
recently-ratified tribal-state gaming compact between the State
of California and the Federated Indians of Graton Rancheria and
subsequent compacts, including those with the North Fork
Rancheria Band of Mono Indians, the Ramona Band of Cahuilla, and
the Coyote Valley Band of Pomo Indians.
The new 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
for purposes related to effective self-governance,
self-determined community, and economic development. The grant
fund was created to complement the RSTF and payments are
intended to be made to specified tribes on a competitive "need"
basis, upon application by non-gaming and limited gaming tribes.
Under the terms of the Graton Rancheria compact, the Tribal
Nation Grant Fund will not be funded until the RSTF has been
fully funded.
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The Gambling Control Commission expenses to administer the new
grant fund will not be incurred until after the Indian Gaming
Revenue Sharing Trust Fund is fully funded.