BILL ANALYSIS �
AB 2066
Page 1
Date of Hearing: May 7, 2014
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
AB 2066 (Hall) - As Introduced: February 20, 2014
SUBJECT : Tribal gaming: local agencies.
SUMMARY : Deletes obsolete provisions in law relating to the
Indian Gaming Special Distribution Fund (SDF) for allocations
which were stipulated for previous fiscal years.
EXISTING LAW :
1)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.
2)Provides that the Department of Finance (DOF), in consultation
with the CGCC, shall calculate the total revenue in the SDF
that will be available for the current budget year for local
government agencies impacted by tribal gaming. DOF shall
include this information in the May budget revision.
3)Authorizes the Legislature 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 CGCC and
the Department of Justice (DOJ) in connection with the
implementation and administration of compacts.
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 the terms of the 1999 compacts.
f) Any other purpose specified by law.
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4)Establishes a method of calculating the distribution of
appropriations from the SDF for grants to local government
agencies impacted by tribal gaming. This method includes a
requirement that the State Controller, in consultation with
the Commission, deposit funds into County Tribal Casino
Accounts and Individual Tribal Casino Accounts based upon a
process that takes into consideration whether the county has
tribes that pay, or not pay, into the SDF. The distribution
formula "sunsets" on January 1, 2021.
5)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.
FISCAL EFFECT : This bill is keyed fiscal by Legislative
Counsel.
COMMENTS :
According to the author's office, this bill is intended to make
technical, clarifying and conforming changes to update and
condense where possible, current statutes pertaining to the SDF.
In addition, the bill might be used to address issues as
outlined in a recent California State Auditor's report from
March 2014, titled "The Indian Gaming Special Distribution Fund"
(Report 2013-036). In general, the State Auditor concluded that
the Indian gaming local community benefit committees did not
always comply with state laws for distribution fund grants which
they awarded. Further, the Auditor noted "that there is no
state agency responsible for providing oversight or technical
assistance to the benefit committees who administer the
distribution grant fund program. However, designating a state
agency, such as the CGCC or DOJ to provide oversight could
improve benefit committees' compliance with state laws for
administering the mitigation grant program."
The author's office states that this bill is also intended to
provide more detail during the budget process so that the
Legislature is better informed to determine the funding level
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for local mitigation grants.
Background :
Indian Gaming Special Distribution Fund : In 1999, anticipating
voter approval of Proposition 1A, the governor negotiated and
the Legislature approved legislation ratifying compacts with
many tribes. The State eventually entered into 61 of these
tribal-state gaming compacts (1999-model compacts). The
1999-model compacts later received final federal approval as
required by the IGRA, and they are effective until December 31,
2020. In consideration for the State's willingness to enter
into these compacts, the tribes agreed to provide to the State,
on a sovereign-to-sovereign basis, a portion of their revenues
from gaming devices in the form of license and operation fees.
These fees provide money for two funds: the IGRSTF, which
distributes money to tribes that do not have compacts or that
have compacts and operate fewer than 350 gaming devices, and the
SDF. Unfortunately, the fee structure established in the 1999
compacts designed to support the $1.1 million payments to the
non-compact and limited gaming tribes does not generate a
sufficient level of funding necessary to support this
obligation, thus necessitating annual transfers (approximately
$33.5 million in 2012-13) from the SDF to address this
shortfall. The SDF funds are to be used for purposes as stated
above in the analysis.
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.
SDF budget actions : The Budget Act of 2003-04 appropriated $25
million from the SDF to local jurisdictions impacted by Indian
gaming. The Budget Acts of 2004-05, 2005-06, and 2006-07, each
appropriated $30 million from the SDF to local governments
impacted by Indian gaming. The Budget Act of 2007-08 included a
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$30 million appropriation from the SDF to local governments
impacted by Indian gaming; however, the Governor blue-penciled
that appropriation. In 2008, AB 158 (Torrico), appropriated $30
million from the SDF to counties for mitigating Indian casino
impacts. In 2010, SB 856 (Senate Budget and Fiscal Review
Committee), appropriated $30 million from the SDF to restore $30
million in funding vetoed by the Governor in the 2007-08 Budget
Act. The bill required the funds to be divided amongst the
locals based on the amounts paid into the SDF in the 2006-07
fiscal year. In 2011, AB 1417 (Hall), Chapter 736, Statutes of
2011, appropriated $9.1 million from the SDF to the CGCC to
provide grants to local agencies for the purpose of mitigating
the adverse impacts of tribal gaming. AB 2515 (Hall), Chapter
704, Statutes of 2012, appropriated $9.1 million from the SDF
for mitigation grants. AB 1042 (Hall), Chapter 746, Statutes of
2013, appropriated $9,100,000 from the SDF for mitigation
grants.
Prior legislation : AB 1042 (Hall), Chapter 746, Statutes of
2013. Made modifications to an existing provision of law that
requires DOF, in consultation with 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.
Appropriated $9.1 million from the SDF to the CGCC to provide
grants to local agencies for the 2013-14 fiscal year.
AB 2515 (Hall), Chapter 704, Statutes of 2012. Strengthened
procedures governing the awarding of grants from the SDF to
ensure that the funds are properly used to mitigate costs
associated with tribal gaming. In addition, appropriates $9.1
million from the SDF to the CGCC to provide grants to local
agencies for the purpose of mitigating the adverse impacts of
tribal gaming.
AB 1417 (Hall), Chapter 736, Statutes of 2011. Appropriated
$9.1 million from the SDF to the CGCC to provide grants to local
agencies for the purpose of mitigating the adverse impacts of
tribal gaming.
SB 856 (Senate Budget and Fiscal Review Committee), Chapter 719,
Statutes of 2010. Appropriated $30 million from the SDF to
restore $30 million in funding vetoed by the Governor in the
2007-08 Budget Act. The bill required the funds be divided
amongst the locals based on the amounts paid into the SDF in the
2006-07 fiscal year.
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SB 357 (Ducheny), Chapter 181, Statutes of 2009. Extended the
sunset date to January 1, 2021 for the law governing the method
of calculating the distribution of appropriations from the SDF
for grants to local government agencies impacted by tribal
gaming.
AB 158 (Torrico), Chapter 754, Statutes of 2008. Enacted
several recommendations proposed by the State Auditor relative
to the allowable allocation and uses of grants to local
government agencies to mitigate the impact of tribal gaming in
local jurisdictions. Appropriated $30 million from the SDF to
be allocated by the CGCC for local projects that mitigate the
impacts of tribal gaming.
SB 621 (Battin), Chapter 858, Statutes of 2003. Established
priorities and procedures for funding to local governments from
the SDF for the purpose of mitigating impacts from tribal
casinos. In addition, required DOF, in consultation with CGCC,
to calculate the total revenue in SDF that will be available for
the current budget year for local government agencies impacted
by tribal gaming. This information must be included in the May
Budget revision.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531