BILL ANALYSIS �
Bill No: AB
2066
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Lou Correa, Chair
2013-2014 Regular Session
Staff Analysis
AB 2066 Author: Hall
As Introduced: February 20, 2014
Hearing Date: June 24, 2014
Consultant: Art Terzakis
SUBJECT
Tribal Gaming: local agencies
DESCRIPTION
AB 2066 deletes obsolete allocation provisions from fiscal
year 2003-04 relating to the Indian Gaming Special
Distribution Fund (SDF) and makes other technical changes.
EXISTING LAW
Existing law creates in the State Treasury two special
funds derived from revenues from tribal gambling - the
Indian Gaming Revenue Sharing Trust Fund (RSTF) and the
Indian Gaming Special Distribution Fund (SDF). The RSTF is
used to provide payments to tribes ($1.1 million per tribe)
that operate fewer than 350 machines. The SDF is used for:
(1) backfilling shortfalls in the RSTF; (2) programs
addressing gambling addiction and related problems; (3)
gambling regulatory activities of the California Gambling
Control Commission (CGCC) and the Department of Justice
(DOJ); (4) ) grants for the support of state and local
government agencies impacted by tribal casinos; and, (5)
other gambling-related purposes.
Existing law 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 is required to include this information
in the May budget revision.
AB 2066 (Hall) continued
Page 2
Existing law 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 CGCC, 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.
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 the 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.
BACKGROUND
Purpose of AB 2066: According to the author's office, this
measure is simply intended to make technical, clarifying
and conforming changes to update and condense where
possible, current statutes pertaining to the SDF. The
author's office also notes that at some point this measure
may be used as a vehicle to address issues 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
responsible for distributing these funds did not always
comply with state laws for the distribution fund grants
they awarded.
Staff Comments: As a result of amendments to several
tribal state compacts that were ratified beginning in 2007,
the SDF has seen significant decline in its fund balances.
This is because the amended compacts decreased the amount
of revenue that certain tribes are required to pay into the
SDF by requiring that these tribes instead make payments to
the General Fund or a special fund account for
transportation. It is estimated that the SDF will see a
negative fund balance as soon as 2014-15.
AB 2066 (Hall) continued
Page 3
PRIOR/RELATED LEGISLATION
AB 1426 (Hall), 2013-14 Session. Would reorganize statutes
pertaining to Indian gaming compacts primarily by moving
them to a newly created Title 16.5 on Tribal Gaming in the
Government Code. (Pending on Senate floor - inactive file)
AB 1916 (Hall), 2013-14 Session. Would create the "Tribal
Nation Grant Fund" in the State Treasury, to be
administered by the CGCC, for the receipt and deposit of
moneys received by the state from Indian tribes; pursuant
to the terms of tribal-state gaming compacts. (Pending in
this committee)
AB 1042 (Hall), Chapter 746, Statutes of 2013. Required
the Department of Finance, in consultation with the 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,
appropriated $13 million from the SDF to the CGCC to
provide grants to local agencies for the 2013-14 fiscal
year.
SUPPORT: None on file as of June 20, 2014.
OPPOSE: None on file as of June 20, 2014.
FISCAL COMMITTEE: No.
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