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AB-2162 Indian Gaming Special Distribution Fund.(2003-2004)

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Amended  IN  Assembly  April 12, 2004
Amended  IN  Senate  June 10, 2004

CALIFORNIA LEGISLATURE— 2003–2004 REGULAR SESSION

Assembly Bill
No. 2162


Introduced  by  Assembly Member Oropeza

February 18, 2004


An act to amend Sections 12710, 12711, 12713, 12714, and 12715 of the Government Code, relating to gaming.


LEGISLATIVE COUNSEL'S DIGEST


AB 2162, as amended, Oropeza. Indian Gaming Special Distribution Fund.
Existing law, until January 1, 2009, establishes the method of calculating the distribution of appropriations from the Indian Gaming Special Distribution Fund, a fund created within the State Treasury for the receipt of moneys from Indian tribes pursuant to tribal-state gaming compacts, to local government agencies impacted by tribal gaming. Under those provisions, the term ‛local jurisdiction‛ “local jurisdiction” refers to any city, county, or special district.
This bill would revise the terminology used within those provisions, by replacing various references to “local government agencies” with “local jurisdictions.”

Existing law requires that 60% of individual tribal casino accounts be available for nexus grants on a yearly basis to cities and counties impacted by tribes paying into the Indian Gaming Special Distribution Fund.

This bill would instead require that this 60% of individual tribal casino accounts be available for nexus grants to local jurisdictions, which includes cities, counties, and special districts.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 12710 of the Government Code is amended to read:

12710.
 This chapter establishes the method of calculating the distribution of appropriations from the Indian Gaming Special Distribution Fund for grants to local jurisdictions impacted by tribal gaming.

SEC. 2.

 Section 12711 of the Government Code is amended to read:

12711.
 (a) It is the intent of the Legislature to establish a fair and proportionate system to award grants from the Indian Gaming Special Distribution Fund for the support of local jurisdictions impacted by tribal gaming. It is also the intent of the Legislature that priority for funding shall be given to local jurisdictions impacted by the tribal casinos that contribute to the Indian Gaming Special Distribution Fund.
(b) It is the intent of the Legislature that in the event that any compact between any tribe and the state takes effect on or after the effective date of this chapter, or that any compact between any tribe and the state that took effect on or before May 16, 2000, is renegotiated and reexecuted at any time after its initial effective date, money provided to the state by a tribe pursuant to the terms of these compacts shall be applied on a pro rata basis to the state costs for the regulation of gaming and for problem gambling prevention programs in the Office of Problem and Pathological Gambling within the State Department of Alcohol and Drug Programs.
(c) It is the intent of the Legislature that if any compact between any tribe and the state takes effect on or after the effective date of this chapter, or if any compact between any tribe and the state that took effect on or before May 16, 2000, is renegotiated and reexecuted at any time after its initial effective date, any revenue sharing provisions of that compact that requires distributions to nongaming or noncompact tribes shall result in a decrease in the amount that the Legislature appropriates pursuant to this chapter.

SEC. 3.

 Section 12713 of the Government Code is amended to read:

12713.
 The Department of Finance, in consultation with the California Gambling Control Commission, shall calculate the total revenue in the Indian Gaming Special Distribution Fund that will be available for the current budget year for local jurisdictions impacted by tribal gaming. The department shall include this information in the May budget revision.

SEC. 4.

 Section 12714 of the Government Code is amended to read:

12714.
 (a) A County Tribal Casino Account is hereby created in the treasury for each county that contains a tribal casino.
(b) The amount to be deposited into each eligible county’s County Tribal Casino Account shall be calculated in the following way:
(1) (A) For counties that do not have gaming devices subject to an obligation to make contributions to the Indian Gaming Special Distribution Fund, the total amount to be appropriated by the Legislature for grants to local jurisdictions impacted by tribal gaming shall be multiplied by 5 percent.
(B) The amount determined pursuant to subparagraph (A) shall be divided by the aggregate number of gaming devices located in those counties that do not have gaming devices subject to an obligation to make contributions to the Indian Gaming Special Distribution Fund.
(C) The amount determined pursuant to subparagraph (B) shall be multiplied by the number of gaming devices located in each county for which an appropriation is being calculated that are not subject to an obligation to make contributions to the Indian Gaming Special Distribution Fund.
(D) The amount determined pursuant to subparagraph (C) shall be deposited into the County Tribal Casino Account for the county for which the appropriation was calculated.
(2) (A) For counties that have gaming devices subject to an obligation to make contributions to the Indian Gaming Special Distribution Fund, the total amount to be appropriated by the Legislature for grants to local jurisdictions impacted by tribal gaming shall be multiplied by 95 percent.
(B) The amount determined pursuant to subparagraph (A) shall be divided by the aggregate number of gaming devices located in those counties that have gaming devices subject to an obligation to make contributions to the Indian Gaming Special Distribution Fund.
(C) The amount determined pursuant to subparagraph (B) shall be multiplied by the number of gaming devices located in each county for which an appropriation is being calculated that are subject to an obligation to make contributions to the Indian Gaming Special Distribution Fund.
(D) The amount determined pursuant to subparagraph (C) shall be deposited into the County Tribal Casino Account for the county for which the appropriation was calculated.

SEC. 5.

 Section 12715 of the Government Code is amended to read:

12715.
 (a) The Controller, acting in consultation with the California Gambling Control Commission, shall 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 for each tribe that operates a casino within the county. These accounts shall be known as Individual Tribal Casino Accounts, and funds may be released from these accounts to make grants selected by an Indian Gaming Local Community Benefit Committee pursuant to the method established by this section to local jurisdictions impacted by tribal casinos. Each Individual Tribal Casino Account shall be funded in proportion to the amount that each individual tribe paid in the prior fiscal year to the Indian Gaming Special Distribution Fund.
(b) (1) There is hereby created in each county in which Indian gaming is conducted an Indian Gaming Local Community Benefit Committee. The selection of all grants from each Individual Tribal Casino Account or County Tribal Casino Account shall be made by each county’s Indian Gaming Local Community Benefit Committee. In selecting grants, the Indian Gaming Local Community Benefit Committee shall follow the priorities established in subdivision (g). This committee has the following additional responsibilities:
(A) Establishing all application policies and procedures for grants from the Individual Tribal Casino Account or County Tribal Casino Account.
(B) Assessing the eligibility of applications for grants from local jurisdictions impacted by tribal gaming operations.
(C) Determining the appropriate amount for reimbursement from the aggregate county tribal account of the demonstrated costs incurred by the county for administering the grant programs. The reimbursement for county administrative costs may not exceed 2 percent of the aggregate county tribal account in any given fiscal year.
(2) The Indian Gaming Local Community Benefit Committee shall be composed of seven representatives, consisting of the following:
(A) Two representatives from the county, selected by the county board of supervisors.
(B) Three elected representatives from cities located within four miles of a tribal casino in the county, selected by the county board of supervisors. In the event that there are no cities located within four miles of a tribal casino in the county, other local representatives may be selected upon mutual agreement by the county board of supervisors and a majority of the tribes paying into the Indian Gaming Special Distribution Fund in the county. When there are no cities within four miles of a tribal casino in the county, and when the Indian Gaming Local Community Benefit Committee acts on behalf of a county where no tribes pay into the Indian Gaming Special Distribution Fund, other local representatives may be selected upon mutual agreement by the county board of supervisors and a majority of the tribes operating casinos in the county.
(C) Two representatives selected upon the recommendation of a majority of the tribes paying into the Indian Gaming Special Distribution Fund in each county. When an Indian Gaming Local Community Benefit Committee acts on behalf of a county where no tribes pay into the Indian Gaming Special Distribution Fund, the two representatives may be selected upon the recommendation of the tribes operating casinos in the county.
(c) Sixty percent of each individual tribal casino account Individual Tribal Casino Account shall be available for nexus grants on a yearly basis to local jurisdictions cities and counties impacted by tribes that are paying into the Indian Gaming Special Distribution Fund, according to the four-part nexus test described in paragraph (1). Grant awards shall be selected by each county’s Indian Gaming Local Community Benefit Committee and shall be administered by the county. Grants may be awarded on a multiyear basis, and these multiyear grants shall be accounted for in the grant process for each year.
(1) A nexus test based on the geographical proximity of a local jurisdiction to an individual tribal land upon which a tribal casino is located shall be used by each county’s Indian Gaming Local Community Benefit Committee to determine relative priority for grants, using the following criteria:
(A) Whether the local jurisdiction borders the tribal lands on all sides.
(B) Whether the local jurisdiction partially borders tribal lands.
(C) Whether the local jurisdiction maintains a highway, road, or other thoroughfare that is the predominant access route to a casino that is located within four miles.
(D) Whether all or a portion of the local jurisdiction is located within four miles of a casino.
(2) Fifty percent of the amount specified in subdivision (c) shall be awarded in equal proportions to local jurisdictions that meet all four of the nexus test criteria in paragraph (1). If no eligible local jurisdiction satisfies this requirement, the amount specified in this paragraph shall be made available for nexus grants in equal proportions to local jurisdictions meeting the requirements of paragraph (3) or (4).
(3) Thirty percent of the amount specified in subdivision (c) shall be awarded in equal proportions to local jurisdictions that meet three of the nexus test criteria in paragraph (1). If no eligible local jurisdiction satisfies this requirement, the amount specified in this paragraph shall be made available for nexus grants in equal proportions to local jurisdictions meeting the requirements of paragraph (2) or (4).
(4) Twenty percent of the amount specified in subdivision (c) shall be awarded in equal proportions to local jurisdictions that meet two of the nexus test criteria in paragraph (1). If no eligible local jurisdiction satisfies this requirement, the amount specified in this paragraph shall be made available for nexus grants in equal proportions to local jurisdictions meeting the requirements of paragraph (2) or (3).
(d) Twenty percent of each individual tribal casino account Individual Tribal Casino Account shall be available for discretionary grants to local jurisdictions impacted by tribes that are paying into the Indian Gaming Special Distribution Fund. These discretionary grants shall be made available to all local jurisdictions in the county irrespective of any nexus to impacts from any particular tribal casino, as described in paragraph (1) of subdivision (c). Grant awards shall be selected by each county’s Indian Gaming Local Community Benefit Committee and shall be administered by the county. Grants may be awarded on a multiyear basis, and these multiyear grants shall be accounted for in the grant process for each year.
(e) Twenty percent of each individual tribal casino account Individual Tribal Casino Account shall be available for discretionary grants to local jurisdictions impacted by tribes that are not paying into the Indian Gaming Special Distribution Fund. These grants shall be made available to local jurisdictions in the county irrespective of any nexus to impacts from any particular tribal casino, as described in paragraph (1) of subdivision (c), and irrespective of whether the impacts presented are from a tribal casino that is not paying into the Indian Gaming Special Distribution Fund. Grant awards shall be selected by each county’s Indian Gaming Local Community Benefit Committee and shall be administered by the county. Grants may be awarded on a multiyear basis, and of these multiyear grants shall be accounted for in the grant process for each year.
(1) Grants awarded pursuant to this subdivision are limited to addressing service-oriented impacts and providing assistance with one-time large capital projects related to Indian gaming impacts.
(2) Grants shall be subject to the sponsorship of the tribe that operates the particular Indian gaming facility and the recommendations of the Indian Gaming Local Community Benefit Committee for that county.
(f) For each county that does not have gaming devices subject to an obligation to make payments to the Indian Gaming Special Distribution Fund, funds may be released from the county’s County Tribal Casino Account to make grants selected by the county’s Indian Gaming Local Community Benefit Committee pursuant to the method established by this section to local jurisdictions impacted by tribal casinos. These grants shall be made available to local jurisdictions in the county irrespective of any nexus to any particular tribal casino. These grants shall follow the priorities specified in subdivision (g).
(g) The following uses shall be the priorities for the receipt of grant money from Individual Tribal Casino Accounts: law enforcement, fire services, emergency medical services, environmental impacts, water supplies, waste disposal, behavioral, health, planning and adjacent land uses, public health, roads, recreation and youth programs, and child care programs.
(h) All grants from Individual Tribal Casino Accounts shall be made only upon the affirmative sponsorship of the tribe paying into the Indian Gaming Special Distribution Fund from whose individual tribal casino account the grant moneys are available for distribution. Tribal sponsorship shall confirm that the grant application has a reasonable relationship to a casino impact and satisfies at least one of the priorities listed in subdivision (g). A grant may not be made for any purpose that would support or fund, directly or indirectly, any effort related to opposition or challenge to Indian gaming in the state, and, to the extent any awarded grant is utilized for any prohibited purpose by any local jurisdiction upon notice given to the county by any tribe from whose Individual Tribal Casino Account the awarded grant went toward that prohibited use, the grant shall terminate immediately and any moneys not yet used shall again be made available for qualified nexus grants.
(i) A local jurisdiction that is a recipient of a grant from an Individual County Tribal Casino Account or a County Tribal Casino Account shall provide notice to the public, either through a slogan, signage, or other mechanism, which states that the local government project has received funding from the Indian Gaming Special Distribution Fund and which further identifies the particular Individual Tribal Casino Account from which the grant derives.
(j) (1) Each county’s Indian Gaming Local Benefit Committee shall submit to the Controller a list of approved projects for funding from Individual Tribal Casino Accounts. Upon receipt of this list, the Controller shall release the funds directly to the local jurisdiction for which a grant has been approved by the committee.
(2) Funds not allocated from an individual tribal casino account Individual Tribal Casino Account by the end of each fiscal year shall revert back to the Indian Gaming Special Distribution Fund.