The Special Distribution Fund is a key component
of the Tribal-State Compact to which tribes operating more
than 200 gaming devices prior to September 1, 1999 contribute
a set percentage of net win based on the number of devices
in operation. Tribes demanded its inclusion
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Is the SDF part of the
new Schwarzenegger compacts?
No. None of the compacts negotiated by Governor
Schwarzenegger include SDF payments, nor do they include any
mechanism whatsoever to return monies paid to the state under
revenue sharing agreements back to the local governments impacted
by those gaming facilities.
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How is the SDF funded?
The 28 tribes that operated more than 200 gaming
devices on or before September 1, 1999 contribute to the SDF.
All monies contributed to the SDF are derived strictly from
tribal government gaming operations.
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How much money is collected
each year for the SDF?
Since the amount is based on the net win of
slot machines, it varies from year to year. It is estimated
that the SDF last year was greater than $40 million.
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What does the SDF Fund?
The monies from this fund, as outlined in the
Tribal-State Compact, are to be distributed to the following:
(a) grants, including any administrative costs, for programs
designed to address gambling addiction; (b) grants, including
any administrative costs, for the support of state and local
government agencies impacted by tribal government gaming;
(c) compensation for regulatory costs incurred by the State
Gaming Agency and the state Department of Justice in connection
with the implementation and administration of the Compact;
(d) payment of shortfalls that may occur in the Revenue Sharing
Trust Fund; and (e) any other purposes specified by the Legislature.
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Why are there shortfalls
in the Revenue Sharing Trust Fund?
The Revenue Sharing Trust Fund (RSTF) is made
up of license fees paid to the state by gaming tribes operating
350 machines or more. Each tribe with less than 350 machines
is eligible to receive up to $1.1 million from the RSTF. Since
the amount collected in license fees can vary, there is no
guarantee that each tribe eligible to receive RSTF funding
will see the $1.1 million limit.
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What is Senate Bill (SB)
621?
Senate Bill 621, sponsored by Senator Jim Battin
(R-La Quinta) and signed into law October 11, 2003, established
a legal mechanism to disburse SDF funds to local communities.
It also created the Indian Gaming Community Benefit Committee
for counties with tribal government gaming operations. Consisting
of tribal and local government leaders, these committees supervise
grants to public agencies seeking monies from the SDF.
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How
did SB 621 come about?
In a landmark model of government-to-government
outreach, the TASIN-LGC coalition worked diligently over many
months to develop a fair and equitable proposal to allocate
monies from the SDF. This proposal served as the foundation
for SB 621, sponsored by Senator Jim Battin (R-La Quinta),
which established a legal mechanism for these allocations.
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Who
is eligible to receive funding under SB 621?
The bill provides funding for a number of sources,
including backfilling shortfalls in the Revenue Sharing Trust
Fund, funding local governments impacted by tribal government
gaming, local governments impacted by tribal casinos not currently
paying into the SDF, special districts impacted by tribal
government gaming, gambling addiction programs, and reimbursement
to the Division of Gambling Control and the California Gambling
Control Commission for regulatory costs.
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Will counties impacted
by tribal casinos developed after September 1999 receive funding?
Yes. Under SB 621, every county in the state
that has a tribal government gaming facility within its boundaries
will receive funding from the SDF.
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Under SB 621, are the
funds distributed in a discretionary manner? Can a politically
influential gaming tribe use its influence to direct additional
funding to communities near its casino?
The funds are distributed in a discretionary
manner through the Indian Gaming Local Community Benefit Committees
formed within each county. The committees are made up of representatives
from governments eligible to receive SDF funding and the tribal
governments with gaming in those counties.
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