California Legislature—2013–14 Regular Session

Assembly BillNo. 2066


Introduced by Assembly Member Hall

February 20, 2014


An act to amend Section 12715 of the Government Code, relating to tribal gaming.

LEGISLATIVE COUNSEL’S DIGEST

AB 2066, as introduced, Hall. Tribal gaming: local agencies.

Existing law creates in the State Treasury the Indian Gaming Special Distribution Fund for the receipt and deposit of moneys received by the state from certain Indian tribes pursuant to the terms of gaming compacts entered into with the state. Existing law authorizes moneys in that fund to be used for specified purposes, including for grants for the support of state and local government agencies impacted by tribal government gaming. Existing law, until January 1, 2021, creates a County Tribal Casino Account in the treasury of each county that contains a tribal casino, which is funded according to specified formulas. Existing law requires the Controller to divide the County Tribal Casino Account for each county that has gaming devices that are subject to an obligation to make contributions to the Indian Gaming Special Distribution Fund into a separate account, known as an Individual Tribal Casino Account, for each tribe that operates a casino within the county. Each Individual Tribal Casino Account is required to be funded in proportion to the amount that each individual tribe paid in the prior fiscal year to the Indian Gaming Special Distribution Fund, and used for grants to local agencies impacted by tribal casinos, as specified. Existing law 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.

Existing law requires funds not allocated from a County Tribal Casino Account or an Individual Tribal Casino Account for the grants by the end of each fiscal year to revert back to the Indian Gaming Special Distribution Fund, except for moneys allocated for specified fiscal years, which are required to be eligible for expenditure through the calendar year.

This bill would delete the obsolete provisions relating to allocations made in those specified fiscal years.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 12715 of the Government Code is
2amended to read:

3

12715.  

(a) The Controller, acting in consultation with the
4California Gambling Control Commission, shall divide the County
5Tribal Casino Account for each county that has gaming devices
6that are subject to an obligation to make contributions to the Indian
7Gaming Special Distribution Fund into a separate account for each
8tribe that operates a casino within the county. These accounts shall
9be known as Individual Tribal Casino Accounts, and funds may
10be released from these accounts to make grants selected by an
11Indian Gaming Local Community Benefit Committee pursuant to
12the method established by this section to local jurisdictions
13impacted by tribal casinos. Each Individual Tribal Casino Account
14shall be funded in proportion to the amount that each individual
15tribe paid in the prior fiscal year to the Indian Gaming Special
16Distribution Fund.

17(b) (1) There is hereby created in each county in which Indian
18gaming is conducted an Indian Gaming Local Community Benefit
19Committee. The selection of all grants from each Individual Tribal
20Casino Account or County Tribal Casino Account shall be made
21by each county’s Indian Gaming Local Community Benefit
22Committee. In selecting grants, the Indian Gaming Local
23Community Benefit Committee shall follow the priorities
P3    1established in subdivision (g) and the requirements specified in
2subdivision (h). This committee has the following additional
3responsibilities:

4(A) Establishing all application policies and procedures for
5grants from the Individual Tribal Casino Account or County Tribal
6Casino Account. Each grant application shall clearly show how
7the grant will mitigate the impact of the casino on the grant
8applicant.

9(B) Assessing the eligibility of applications for grants from local
10jurisdictions impacted by tribal gaming operations.

11(C) Determining the appropriate amount for reimbursement
12from the aggregate county tribal account of the demonstrated costs
13incurred by the county for administering the grant programs. The
14reimbursement for county administrative costs may not exceed 2
15percent of the aggregate county tribal account in any given fiscal
16year.

17(2) Except as provided in Section 12715.5, the Indian Gaming
18Local Community Benefit Committee shall be composed of seven
19representatives, consisting of the following:

20(A) Two representatives from the county, selected by the county
21board of supervisors.

22(B) Three elected representatives from cities located within four
23miles of a tribal casino in the county, selected by the county board
24of supervisors. In the event that there are no cities located within
25four miles of a tribal casino in the county, other local
26representatives may be selected upon mutual agreement by the
27county board of supervisors and a majority of the tribes paying
28into the Indian Gaming Special Distribution Fund in the county.
29When there are no cities within four miles of a tribal casino in the
30county, and when the Indian Gaming Local Community Benefit
31Committee acts on behalf of a county where no tribes pay into the
32Indian Gaming Special Distribution Fund, other local
33representatives may be selected upon mutual agreement by the
34county board of supervisors and a majority of the tribes operating
35casinos in the county. However, if only one city is within four
36miles of a tribal casino and that same casino is located entirely
37within the unincorporated area of that particular county, only one
38elected representative from that city shall be included on the Indian
39Gaming Local Community Benefit Committee.

P4    1(C) Two representatives selected upon the recommendation of
2a majority of the tribes paying into the Indian Gaming Special
3Distribution Fund in each county. When an Indian Gaming Local
4Community Benefit Committee acts on behalf of a countybegin delete whereend delete
5begin insert in whichend insert no tribes pay into the Indian Gaming Special Distribution
6Fund, the two representatives may be selected upon the
7recommendation of the tribes operating casinos in the county.

8(c) Sixty percent of each Individual Tribal Casino Account shall
9be available for nexus grants on a yearly basis to cities and counties
10 impacted by tribes that are paying into the Indian Gaming Special
11Distribution Fund, according to the four-part nexus test described
12in paragraph (1). Grant awards shall be selected by each county’s
13Indian Gaming Local Community Benefit Committee and shall
14be administered by the county. Grants may be awarded on a
15multiyear basis, and these multiyear grants shall be accounted for
16in the grant process for each year.

17(1) A nexus test based on the geographical proximity of a local
18government jurisdiction to an individual Indian land upon which
19a tribal casino is located shall be used by each county’s Indian
20Gaming Local Community Benefit Committee to determine the
21relative priority for grants, using the following criteria:

22(A) Whether the local government jurisdiction borders the Indian
23lands on all sides.

24(B) Whether the local government jurisdiction partially borders
25Indian lands.

26(C) Whether the local government jurisdiction maintains a
27highway, road, or other thoroughfare that is the predominant access
28route to a casino that is located within four miles.

29(D) Whether all or a portion of the local government jurisdiction
30is located within four miles of a casino.

31(2) Fifty percent of the amount specified inbegin insert thisend insert subdivisionbegin delete (c)end delete
32 shall be awarded in equal proportions to local government
33jurisdictions that meet all four of the nexus test criteria in paragraph
34(1). If no eligible local government jurisdiction satisfies this
35requirement, the amount specified in this paragraph shall be made
36available for nexus grants in equal proportions to local government
37jurisdictions meeting the requirements of paragraph (3) or (4).

38(3) Thirty percent of the amount specified inbegin insert thisend insert subdivision
39begin delete (c)end delete shall be awarded in equal proportions to local government
40jurisdictions that meet three of the nexus test criteria in paragraph
P5    1(1). If no eligible local government jurisdiction satisfies this
2requirement, the amount specified in this paragraph shall be made
3available for nexus grants in equal proportions to local government
4jurisdictions meeting the requirements of paragraph (2) or (4).

5(4) Twenty percent of the amount specified inbegin insert thisend insert subdivision
6begin delete (c)end delete shall be awarded in equal proportions to local government
7jurisdictions that meet two of the nexus test criteria in paragraph
8(1). If no eligible local government jurisdiction satisfies this
9requirement, the amount specified in this paragraph shall be made
10available for nexus grants in equal proportions to local government
11jurisdictions meeting the requirements of paragraph (2) or (3).

12(d) Twenty percent of each Individual Tribal Casino Account
13shall be available for discretionary grants to local jurisdictions
14impacted by tribes that are paying into the Indian Gaming Special
15Distribution Fund. These discretionary grants shall be made
16available to all local jurisdictions in the county irrespective of any
17nexus to impacts from any particular tribal casino, as described in
18paragraph (1) of subdivision (c). Grant awards shall be selected
19by each county’s Indian Gaming Local Community Benefit
20Committee and shall be administered by the county. Grants may
21be awarded on a multiyear basis, and these multiyear grants shall
22be accounted for in the grant process for each year.

23(e) (1) Twenty percent of each Individual Tribal Casino Account
24shall be available for discretionary grants to local jurisdictions
25impacted by tribes that are not paying into the Indian Gaming
26Special Distribution Fund. These grants shall be made available
27to local jurisdictions in the county irrespective of any nexus to
28impacts from any particular tribal casino, as described in paragraph
29(1) of subdivision (c), and irrespective of whether the impacts
30presented are from a tribal casino that is not paying into the Indian
31Gaming Special Distribution Fund. Grant awards shall be selected
32by each county’s Indian Gaming Local Community Benefit
33Committee and shall be administered by the county. Grants may
34be awarded on a multiyear basis, and these multiyear grants shall
35be accounted for in the grant process for each year.

36(A) Grants awarded pursuant to this subdivision are limited to
37addressing service-oriented impacts and providing assistance with
38one-time large capital projects related to Indian gaming impacts.

39(B) Grants shall be subject to the sole sponsorship of the tribe
40that pays into the Indian Gaming Special Distribution Fund and
P6    1the recommendations of the Indian Gaming Local Community
2Benefit Committee for that county.

3(2) If an eligible county does not have a tribal casino operated
4by a tribe that does not pay into the Indian Gaming Special
5Distribution Fund, the moneys available for discretionary grants
6under this subdivision shall be available for distribution pursuant
7to subdivision (d).

8(f) (1) For each county that does not have gaming devices
9subject to an obligation to make payments to the Indian Gaming
10Special Distribution Fund, funds may be released from the county’s
11County Tribal Casino Account to make grants selected by the
12county’s Indian Gaming Local Community Benefit Committee
13pursuant to the method established by this section to local
14jurisdictions impacted by tribal casinos. These grants shall be made
15available to local jurisdictions in the county irrespective of any
16nexus to any particular tribal casino. These grants shall follow the
17priorities specified in subdivision (g) and the requirements specified
18in subdivision (h).

19(2) Funds not allocated from abegin delete county tribal casino accountend delete
20begin insert County Tribal Casino Accountend insert by the end of each fiscal year shall
21revert back to the Indian Gaming Special Distribution Fund.
22begin delete Moneys allocated for the 2003-04 fiscal year shall be eligible for
23expenditure through December 31, 2004.end delete

24(g) The following uses shall be the priorities for the receipt of
25grant moneys from Individual Tribal Casino Accounts: law
26 enforcement, fire services, emergency medical services,
27environmental impacts, water supplies, waste disposal, behavioral,
28health, planning and adjacent land uses, public health, roads,
29recreation and youth programs, and child care programs.

30(h) In selecting grants pursuant to subdivision (b), an Indian
31Gaming Local Community Benefit Committee shall select only
32grant applications that mitigate impacts from casinos on local
33jurisdictions. If a local jurisdiction uses a grant selected pursuant
34to subdivision (b) for any unrelated purpose, the grant shall
35terminate immediately and any moneys not yet spent shall revert
36to the Indian Gaming Special Distribution Fund. If a local
37jurisdiction approves an expenditure that mitigates an impact from
38a casino on a local jurisdiction and that also provides other benefits
39to the local jurisdiction, the grant selected pursuant to subdivision
P7    1(b) shall be used to finance only the proportionate share of the
2 expenditure that mitigates the impact from the casino.

3(i) All grants from Individual Tribal Casino Accounts shall be
4made only upon the affirmative sponsorship of the tribe paying
5into the Indian Gaming Special Distribution Fund from whose
6Individual Tribal Casino Account the grant moneys are available
7for distribution. Tribal sponsorship shall confirm that the grant
8application has a reasonable relationship to a casino impact and
9satisfies at least one of the priorities listed in subdivision (g). A
10grant may not be made for any purpose that would support or fund,
11directly or indirectly, any effort related to the opposition or
12challenge to Indian gaming in the state, and, to the extent any
13awarded grant is utilized for any prohibited purpose by any local
14government, upon notice given to the county by any tribe from
15whose Individual Tribal Casino Account the awarded grant went
16toward that prohibited use, the grant shall terminate immediately
17 and any moneys not yet used shall again be made available for
18qualified nexus grants.

19(j) A local government jurisdiction that is a recipient of a grant
20from an Individual Tribal Casino Account or a County Tribal
21Casino Account shall provide notice to the public, either through
22a slogan, signage, or other mechanism, stating that the local
23government project has received funding from the Indian Gaming
24Special Distribution Fund and further identifying the particular
25Individual Tribal Casino Account from which the grant derives.

26(k) (1) Each county’s Indian Gaming Local Community Benefit
27Committee shall submit to the Controller a list of approved projects
28for funding from Individual Tribal Casino Accounts. Upon receipt
29of this list, the Controller shall release the funds directly to the
30local government entities for which a grant has been approved by
31the committee.

32(2) Funds not allocated from an Individual Tribal Casino
33Account by the end of each fiscal year shall revert back to the
34Indian Gaming Special Distribution Fund.begin delete Moneys allocated for
35the 2003-04 fiscal year shall be eligible for expenditure through
36December 31, 2004. Moneys allocated for the 2008-09 fiscal year
37shall be eligible for expenditure through December 31, 2009.end delete

38(l) Notwithstanding any other law, a local government
39jurisdiction that receives a grant from an Individual Tribal Casino
40Account shall deposit all funds received in an interest-bearing
P8    1account and use the interest from those funds only for the purpose
2of mitigating an impact from a casino. If any portion of the funds
3in the account is used for any other purpose, the remaining portion
4shall revert to the Indian Gaming Special Distribution Fund. As a
5condition of receiving further funds under this section, a local
6government jurisdiction, upon request of the county, shall
7demonstrate to the county that all expenditures made from the
8account have been in compliance with the requirements of this
9section.



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