BILL NUMBER: AB 2914 INTRODUCED
BILL TEXT
INTRODUCED BY Committee on Governmental Organization (Assembly
Members Gray (Chair), Bigelow (Vice Chair), Alejo, Bonta, Campos,
Cooley, Cooper, Daly, Gallagher, Gipson, Jones-Sawyer, Levine,
Linder, Maienschein, Salas, and Wilk)
MARCH 17, 2016
An act to amend Sections 12012.75 and 12012.90 of the Government
Code, relating to gaming.
LEGISLATIVE COUNSEL'S DIGEST
AB 2914, as introduced, Committee on Governmental Organization.
Gaming: Indian Gaming Revenue Sharing Trust Fund.
Existing federal law, the Indian Gaming Regulatory Act of 1988,
provides for the negotiation and execution of tribal-state gaming
compacts for the purpose of authorizing certain types of gaming on
Indian lands within a state. The California Constitution authorizes
the Governor to negotiate and conclude compacts, subject to
ratification by the Legislature. Existing law expressly ratifies a
number of tribal-state gaming compacts, and amendments of
tribal-state gaming compacts, between the State of California and
specified Indian tribes.
Existing law establishes the Indian Gaming Revenue Sharing Trust
Fund within the State Treasury for the receipt and deposit of moneys
derived from gaming device license fees that are received from tribes
pursuant to the terms of tribal-state gaming compacts for the
purpose of making distributions to noncompact tribes. Existing law
provides that moneys in that fund are available to the California
Gambling Control Commission, upon appropriation by the Legislature,
for the purpose of making those distributions in accordance with
plans specified in tribal-state gaming compacts.
This bill would clarify that the purpose of the fund is for making
distributions to eligible recipient Indian tribes.
Existing law requires the California Gambling Control Commission
to, on or before the day of the May budget revision for each fiscal
year, determine the anticipated total amount of shortfalls in payment
likely to occur in the Indian Gaming Revenue Sharing Trust Fund for
the next fiscal year, and to provide to the committee in the Senate
and Assembly that considers the State Budget an estimate of the
amount needed to transfer from the Indian Gaming Special Distribution
Fund to backfill the Indian Gaming Revenue Sharing Trust Fund for
the next fiscal year. Existing law requires, at the end of each
fiscal quarter, the commission's Indian Gaming Revenue Sharing Trust
Fund report to include specified information, including, among other
things, the amount paid into the Indian Gaming Revenue Sharing Trust
Fund by each of the tribes pursuant to the applicable sections of the
tribal-state gaming compact.
This bill would provide that tribes contributing to the Indian
Gaming Revenue Sharing Trust Fund on a net win or gross gaming
revenue basis may be aggregated in the quarterly report described
above.
Existing law requires the California Gambling Control Commission
to determine the amount of money needed to be transferred from the
Indian Gaming Special Distribution Fund to the Indian Gaming Revenue
Sharing Trust Fund to ensure that each eligible recipient Indian
tribe receives a specified amount of the funds. Existing law defines
"eligible recipient tribe" for those purposes to mean a noncompact
tribe, as defined in the tribal-state gaming compacts ratified and in
effect, as specified. Those compacts define "noncompact tribe" to
mean a federally recognized tribe that operates fewer than 350 gaming
devices.
This bill would clarify that "eligible recipient Indian tribe"
means a noncompact, nongaming, or limited-gaming tribe, as defined in
the tribal-state gaming compacts ratified and in effect, as
provided. The bill would delete other related, obsolete provisions.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 12012.75 of the Government Code is amended to
read:
12012.75. There is hereby created in the State Treasury a special
fund called the "Indian Gaming Revenue Sharing Trust Fund" for the
receipt and deposit of moneys derived
received by the state from gaming device license fees
that are paid into the fund Indian tribes
pursuant to the terms of tribal-state gaming compacts for the purpose
of making distributions to noncompact
eligible recipient Indian tribes. Moneys in the Indian Gaming
Revenue Sharing Trust Fund shall be available to the California
Gambling Control Commission, upon appropriation by the Legislature,
for the purpose of making distributions to noncompact
eligible recipient Indian tribes, in accordance
with distribution plans specified in tribal-state gaming compacts.
SEC. 2. Section 12012.90 of the Government Code is amended to
read:
12012.90. (a) (1) For each fiscal year commencing with the
2002-03 fiscal year to the 2004-05 fiscal year, inclusive, the
California Gambling Control Commission shall determine the aggregate
amount of shortfalls in payments that occurred in the Indian Gaming
Revenue Sharing Trust Fund pursuant to Section 4.3.2.1 of the
tribal-state gaming compacts ratified and in effect as provided in
subdivision (f) of Section 19 of Article IV of the California
Constitution as determined below:
(A) For each eligible recipient Indian tribe that received money
for all four quarters of the fiscal year, the difference between one
million one hundred thousand dollars ($1,100,000) and the actual
amount paid to each eligible recipient Indian tribe during the fiscal
year from the Indian Gaming Revenue Sharing Trust Fund.
(B) For each eligible recipient Indian tribe that received moneys
for less than four quarters of the fiscal year, the difference
between two hundred seventy-five thousand dollars ($275,000) for each
quarter in the fiscal year that a recipient Indian tribe was
eligible to receive moneys and the actual amount paid to each
eligible recipient Indian tribe during the fiscal year from the
Indian Gaming Revenue Sharing Trust Fund.
(2) For purposes of this section, "eligible recipient Indian tribe"
means a noncompact tribe, as defined in Section 4.3.2(a)(i) of the
tribal-state gaming compacts ratified and in effect as provided in
subdivision (f) of Section 19 of Article IV of the California
Constitution.
(b) The California Gambling Control Commission shall provide to
the committee in the Senate and Assembly that considers the State
Budget an estimate of the amount needed to backfill the Indian Gaming
Revenue Sharing Trust Fund on or before the date of the May budget
revision for each fiscal year.
(c) An eligible recipient Indian tribe may not receive an amount
from the backfill appropriated following the estimate made pursuant
to subdivision (b) that would give the eligible recipient Indian
tribe an aggregate amount in excess of two hundred seventy-five
thousand dollars ($275,000) per eligible quarter. Any funds
transferred from the Indian Gaming Special Distribution Fund to the
Indian Gaming Revenue Sharing Trust Fund that result in a surplus
shall revert back to the Indian Gaming Special Distribution Fund
following the authorization of the final payment of the fiscal year.
(d) Upon a transfer of moneys from the Indian Gaming Special
Distribution Fund to the Indian Gaming Revenue Sharing Trust Fund and
appropriation from the trust fund, the California Gambling Control
Commission shall distribute the moneys without delay to eligible
recipient Indian tribes for each quarter that a tribe was eligible to
receive a distribution during the fiscal year immediately preceding.
(e)
12012.90. For each fiscal year commencing with the
2005-06 2016- 17 fiscal
year, all of the following shall apply and subdivisions (b)
to (d), inclusive, shall not apply: apply:
(1)
(a) On or before the day of the May budget revision for
each fiscal year, the California Gambling Control Commission shall
determine the anticipated total amount of shortfalls in payment
likely to occur in the Indian Gaming Revenue Sharing Trust Fund for
the upcoming next fiscal year, and
shall provide to the committee in the Senate and Assembly that
considers the State Budget an estimate of the amount needed to
transfer from the Indian Gaming Special Distribution Fund to backfill
the Indian Gaming Revenue Sharing Trust Fund for the next fiscal
year. The anticipated total amount of shortfalls to be transferred
from the Indian Gaming Special Distribution Fund to the Indian Gaming
Revenue Sharing Trust Fund shall be determined by the California
Gambling Control Commission as follows:
(A)
(1) The anticipated number of eligible recipient
Indian tribes that will be eligible to receive payments for the
next fiscal year, multiplied by one million one hundred thousand
dollars ($1,100,000), with that product reduced by the amount
anticipated to be paid by the tribes directly into the Indian Gaming
Revenue Sharing Trust Fund for the next fiscal year.
(2) For purposes of this section and Section 12012.75, "eligible
recipient Indian tribe" means a noncompact, nongaming, or
limited-gaming tribe, as defined in the tribal-state gaming compacts
ratified and in effect as provided in subdivision (f) of Section 19
of Article IV of the California Constitution.
(B)
(3) This amount shall be based upon actual payments
received into the Indian Gaming Revenue Sharing Trust Fund the
previous fiscal year, with adjustments made due to amendments to
existing tribal-state gaming compacts or newly executed
tribal-state gaming compacts with respect to payments to
be made to the Indian Gaming Revenue Sharing Trust Fund.
(2)
(b) The Legislature shall transfer from the Indian
Gaming Special Distribution Fund to the Indian Gaming Revenue Sharing
Trust Fund an amount sufficient for each eligible recipient
Indian tribe to receive a total not to exceed two hundred
seventy-five thousand dollars ($275,000) for each quarter in the
upcoming next fiscal year that
an eligible recipient Indian tribe is eligible to
receive moneys, for a total not to exceed one million one hundred
thousand dollars ($1,100,000) for the entire fiscal year. The
California Gambling Control Commission shall make quarterly payments
from the Indian Gaming Revenue Sharing Trust Fund to each eligible
recipient Indian tribe within 45 days of the end of each fiscal
quarter.
(3)
(c) If the transfer of funds from the Indian Gaming
Special Distribution Fund to the Indian Gaming Revenue Sharing Trust
Fund results in a surplus, the funds shall remain in the Indian
Gaming Revenue Sharing Trust Fund for disbursement in future years,
and if necessary, adjustments shall be made to future distributions
from the Indian Gaming Special Distribution Fund to the Revenue
Sharing Trust Fund.
(4)
(d) In the event the amount appropriated for the fiscal
year is insufficient to ensure each eligible recipient Indian
tribe receives the total of two hundred seventy-five thousand
dollars ($275,000) for each fiscal quarter, the Department of
Finance, after consultation with the California Gambling Control
Commission, shall submit to the Legislature a request for a budget
augmentation for the current fiscal year with an explanation as to
the reason why the amount appropriated for the fiscal year was
insufficient.
(5)
(e) At the end of each fiscal quarter, the California
Gambling Control Commission's Indian Gaming Revenue Sharing Trust
Fund report shall include information that identifies each of the
eligible recipient Indian tribes eligible to
receive a distribution for that fiscal quarter, the amount
paid into the Indian Gaming Revenue Sharing Trust Fund by each of the
tribes pursuant to the applicable sections of the tribal-state
gaming compact, provided that tribes contributing on a net
win or gross gaming revenue basis may be aggregated in the report,
and the amount necessary to backfill from the Indian Gaming
Special Distribution Fund the shortfall in the Indian Gaming Revenue
Sharing Trust Fund in order for each eligible recipient Indian
tribe to receive the total of two hundred seventy-five thousand
dollars ($275,000) for the fiscal quarter.