BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2066|
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CONSENT
Bill No: AB 2066
Author: Hall (D)
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 10-0, 6/24/14
AYES: Correa, Berryhill, Cannella, De Le�n, Galgiani,
Hernandez, Lieu, Padilla, Torres, Vidak
ASSEMBLY FLOOR : 73-0, 5/15/14 - See last page for vote
SUBJECT : Tribal gaming: local agencies
SOURCE : Author
DIGEST : This bill deletes obsolete allocation provisions from
fiscal year 2003-04 relating to the Indian Gaming Special
Distribution Fund (SDF); and makes other technical changes.
ANALYSIS :
Existing law:
1.Creates in the State Treasury two special funds derived from
revenues from tribal gambling - the Indian Gaming Revenue
Sharing Trust Fund (RSTF) and the 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 (a)
backfilling shortfalls in the RSTF; (b) programs addressing
gambling addiction and related problems; (c) gambling
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regulatory activities of the California Gambling Control
Commission (CGCC) and the Department of Justice; (d) grants
for the support of state and local government agencies
impacted by tribal casinos; and (e) other gambling-related
purposes.
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 is required
to include this information in the May budget revision.
3.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.
4.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.
This bill deletes obsolete allocation provisions from fiscal
year 2003-04 relating to the SDF; and makes other technical
changes.
Background
The Senate Governmental Organization Committee states that 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
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negative fund balance as soon as 2014-15.
Comments
According to the author's office, this bill 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
bill 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
ASSEMBLY FLOOR : 73-0, 5/15/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley, Daly,
Dickinson, Donnelly, Eggman, Fong, Frazier, Garcia, Gatto,
Gomez, Gonzalez, Gordon, Gorell, Gray, Grove, Hagman, Hall,
Harkey, Roger Hern�ndez, Holden, Jones, Jones-Sawyer, Levine,
Linder, Logue, Lowenthal, Maienschein, Medina, Melendez,
Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Perea,
John A. P�rez, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Dababneh, Dahle, Fox, Beth Gaines, Mansoor,
Patterson, Vacancy
MW:nl 6/25/14 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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