Common use of Special Distribution Fund Clause in Contracts

Special Distribution Fund. (a) The Tribe shall pay to the State on a pro rata basis the State’s 25 U.S.C. § 2710(d)(3)(C) costs incurred for purposes consistent with IGRA, including the performance of all its duties under this Compact, the administration and implementation of tribal-state Class III Gaming compacts and Secretarial procedures prescribed by the Secretary of the Department of the Interior pursuant to 25 U.S.C. § 2710(d)(7)(B)(vii) (Secretarial Procedures), and funding for the Office of Problem Gambling, as determined by the monies appropriated in the annual Budget Act each fiscal year to carry out those purposes (Appropriation). The Appropriation and the maximum number of Gaming Devices operated by all federally recognized tribes in California determined to be in operation during the previous State fiscal year shall be reported annually by the State Gaming Agency to the Tribe on or before December 15. The term “operated” or “operation” as used in this Compact in relation to Gaming Devices describes each and every Gaming Device available to patrons (including slot tournament contestants) for play at any given time. (b) The Tribe’s pro rata share of the State’s 25 U.S.C. § 2710(d)(3)(C) costs in any given year this Compact is in effect shall be calculated by the following equation: The maximum number of Gaming Devices operated in the Tribe’s Gaming Facility(ies) during the previous State fiscal year as determined by the State Gaming Agency, divided by the maximum number of Gaming Devices operated by all federally recognized tribes in California pursuant to tribal-state Class III Gaming compacts or Secretarial Procedures during the previous State fiscal year, multiplied by the Appropriation, equals the Tribe’s pro rata share. (1) Beginning the first full quarter after Class III Gaming commences under this Compact, the Tribe shall pay its pro rata share to the State Gaming Agency for deposit into the Indian Gaming Special Distribution Fund established by the Legislature (Special Distribution Fund). The payment shall be made in four (4) equal quarterly installments due on the thirtieth (30th) day following the end of each calendar quarter (i.e., by April 30 for the first quarter, July 30 for the second quarter, October 30 for the third quarter, and January 30 for the fourth quarter); provided, however, that in the event this Compact becomes effective during a calendar quarter, payment shall be prorated for the number of days remaining in that initial quarter, in addition to any remaining full quarters in the first calendar year of operation to obtain a full year of full quarterly payments of the Tribe’s pro rata share specified above. A payment year will run from January through December. If any portion of the Tribe’s quarterly pro rata share payment or payment pursuant to section 4.3, subdivision (b) or section 5.2, is overdue, the Tribe shall pay to the State for purposes of deposit into the appropriate fund, the amount overdue plus interest accrued thereon at the rate of one percent (1%) per month or the maximum rate permitted by state law for delinquent payments owed to the State, whichever is less. All quarterly payments shall be accompanied by the report specified in section 4.5 (2) If the Tribe objects to the State’s determination of the Tribe’s pro rata share, or to the amount of the Appropriation as including matters not consistent with IGRA, the matter shall be resolved in accordance with the dispute resolution provisions of section 13.0. Any State determination of the Tribe’s adjusted pro rata share challenged by the Tribe shall govern and must be paid by the Tribe to the State when due, and the Tribe’s payment is a condition precedent to invoking the section 13.0 dispute resolution provisions. (3) Only for purposes of calculating the Tribe’s annual pro rata share under section 4.3, any increase in the Appropriation for the current year shall be capped at an amount equal to five percent (5%) from the Appropriation used to calculate the Tribe’s pro rata share in the immediately preceding year. The Appropriation, so capped, will be used to calculate the Tribe’s pro rata share under the equation set forth in section 4.3, subdivision (b). (4) The foregoing payments have been negotiated between the parties as a fair and reasonable contribution, based upon the State’s costs of regulating and mitigating certain impacts of tribal Class III Gaming Activities, as well as the Tribe’s market conditions, its circumstances, and the rights afforded and consideration provided by this Compact. (c) In any given State fiscal year, to the extent permissible and only as may be provided under state law, the State Gaming Agency may reduce, or eliminate, the Tribe’s pro rata share payment obligation to the Special Distribution Fund.

Special Distribution Fund. (a) The Tribe shall pay to the State on a pro rata basis the State’s 25 U.S.C. § 2710(d)(3)(C) costs incurred for purposes consistent with IGRA, including the performance of all its duties under this Compact, the administration and implementation of tribal-state Class III Gaming compacts and Secretarial procedures prescribed by the Secretary of the Department of the Interior pursuant to 25 U.S.C. § 2710(d)(7)(B)(vii) (Secretarial Procedures), and funding for the Office of Problem Gambling, as determined by the monies appropriated in the annual Budget Act each fiscal year to carry out those purposes (Appropriation). The Appropriation and the maximum number of Gaming Devices operated by all federally recognized tribes in California determined to be in operation during the previous State fiscal year shall be reported annually by the State Gaming Agency to the Tribe on or before December 15. The term “operated” or “operation” as used in this Compact in relation to Gaming Devices describes each and every Gaming Device available to patrons (including slot tournament contestants) for play at any given time. (b) The Tribe’s pro rata share of the State’s 25 U.S.C. § 2710(d)(3)(C) costs in any given year this Compact is in effect shall be calculated by the following equation: The maximum number of Gaming Devices operated in the Tribe’s Gaming Facility(ies) during the previous State fiscal year as determined by the State Gaming Agency, divided by the maximum number of Gaming Devices operated by all federally recognized tribes in California pursuant to tribal-state Class III Gaming compacts or Secretarial Procedures during the previous State fiscal year, multiplied by the Appropriation, equals the Tribe’s pro rata share. (1) Beginning the first full quarter after Class III Gaming commences under the effective date of this Compact, the Tribe shall pay its pro rata share to the State Gaming Agency for deposit into the Indian Gaming Special Distribution Fund established by the Legislature (Special Distribution Fund). The payment shall be made in four (4) equal quarterly installments due on the thirtieth (30th) day following the end of each calendar quarter (i.e., by April 30 for the first quarter, July 30 for the second quarter, October 30 for the third quarter, and January 30 for the fourth quarter); provided, however, that in the event this Compact becomes effective during a calendar quarter, payment shall be prorated for the number of days remaining in that initial quarter, in addition to any remaining full quarters in the first calendar year of operation to obtain a full year of full quarterly payments of the Tribe’s pro rata share specified above. A payment year will run from January through December. If any portion of the Tribe’s quarterly pro rata share payment or payment pursuant to section 4.3, subdivision (b) or section 5.2, is overdue, the Tribe shall pay to the State for purposes of deposit into the appropriate fund, the amount overdue plus interest accrued thereon at the rate of one percent (1%) per month or the maximum rate permitted by state law for delinquent payments owed to the State, whichever is less. All quarterly payments shall be accompanied by the report specified in section 4.54.6. (2) If the Tribe objects to the State’s determination of the Tribe’s pro rata share, or to the amount of the Appropriation as including matters not consistent with IGRA, the matter shall be resolved in accordance with the dispute resolution provisions of section 13.0. Any State determination of the Tribe’s adjusted pro rata share challenged by the Tribe shall govern and must be paid by the Tribe to the State when due, and the Tribe’s payment is a condition precedent to invoking the section 13.0 dispute resolution provisions. (3) Only for purposes of calculating the Tribe’s annual pro rata share under section 4.3, any increase in the Appropriation for the current year shall be capped at an amount equal to five percent (5%) from the Appropriation used to calculate the Tribe’s pro rata share in the immediately preceding year. The Appropriation, so capped, will be used to calculate the Tribe’s pro rata share under the equation set forth in section 4.3, subdivision (b). (4) The foregoing payments have been negotiated between the parties as a fair and reasonable contribution, based upon the State’s costs of regulating and mitigating certain impacts of tribal Class III Gaming Activities, as well as the Tribe’s market conditions, its circumstances, and the rights afforded and consideration provided by this Compact. (c) In any given State fiscal year, to the extent permissible and only as may be provided under state law, the State Gaming Agency may reduce, or eliminate, the Tribe’s pro rata share payment obligation to the Special Distribution Fund.

Special Distribution Fund. (a) The Tribe shall pay to the State on a pro rata basis the State’s 25 U.S.C. § 2710(d)(3)(C) costs incurred for purposes consistent with IGRA, including the performance of all its duties under this Compact, the administration and implementation of tribal-state Class III Gaming compacts and Secretarial procedures prescribed by the Secretary of the Department of the Interior pursuant to 25 U.S.C. § 2710(d)(7)(B)(vii) (Secretarial Procedures), and funding for the Office of Problem Gambling, as determined by the monies appropriated in the annual Budget Act each fiscal year to carry out those purposes (Appropriation). The Appropriation and the maximum number of Gaming Devices operated by all federally recognized tribes in California determined to be in operation during the previous State fiscal year shall be reported annually by the State Gaming Agency to the Tribe on or before December 15. The term “operated” or “operation” as used in this Compact in relation to Gaming Devices describes each and every Gaming Device available to patrons (including slot tournament contestants) for play at any given time. (b) The Tribe’s pro rata share of the State’s 25 U.S.C. § 2710(d)(3)(C) regulatory costs in any given year this Compact is in effect shall be calculated by the following equation: The maximum number of Gaming Devices operated in the Tribe’s Gaming Facility(ies) during the previous State fiscal year as determined by the State Gaming Agency, divided by the maximum number of Gaming Devices operated by all federally recognized tribes in California pursuant to tribal-state Class III Gaming compacts or Secretarial Procedures during the previous State fiscal year, multiplied by the Appropriation, equals the Tribe’s pro rata share. (1) Beginning the first full quarter after Class III Gaming commences under the effective date of this Compact, the Tribe shall pay its pro rata share to the State Gaming Agency for deposit into the Indian Gaming Special Distribution Fund established by the Legislature (Special Distribution Fund). The payment shall be made in four (4) equal quarterly installments due on the thirtieth (30th) day following the end of each calendar quarter (i.e., by April 30 for the first quarter, July 30 for the second quarter, October 30 for the third quarter, and January 30 for the fourth quarter); provided, however, that in the event this Compact becomes effective during a calendar quarter, payment shall be prorated for the number of days remaining in that initial quarter, in addition to any remaining full quarters in the first calendar year of operation to obtain a full year of full quarterly payments of the Tribe’s pro rata share specified above. A payment year will run from January through December. If any portion of the Tribe’s quarterly pro rata share payment or payment pursuant to section 4.3, subdivision (b) or section 5.2, is overdue, the Tribe shall pay to the State for purposes of deposit into the appropriate fund, the amount overdue plus interest accrued thereon at the rate of one percent (1%) per month or the maximum rate permitted by state law for delinquent payments owed to the State, whichever is less. All quarterly payments shall be accompanied by the certification report specified in section 4.5, subdivision (b). (2) If the Tribe objects to the State’s determination of the Tribe’s pro rata share, or to the amount of the Appropriation as including matters not consistent with IGRA, the matter shall be resolved in accordance with the dispute resolution provisions of section 13.0. Any State determination of the Tribe’s adjusted pro rata share challenged by the Tribe shall govern and must be paid by the Tribe to the State when due, and the Tribe’s payment is a condition precedent to invoking the section 13.0 dispute resolution provisions. (3) Only for purposes of calculating the Tribe’s annual pro rata share under section 4.3, subdivision (a), any increase in the Appropriation for the current year shall be capped at an amount equal to five percent (5%) from the Appropriation used to calculate the Tribe’s pro rata share in the immediately preceding year. The Appropriation, so capped, will be used to calculate the Tribe’s pro rata share under the equation set forth in section 4.3, subdivision (ba). (4) The foregoing payments have been negotiated between the parties as a fair and reasonable contribution, based upon the State’s costs of regulating and mitigating certain impacts of tribal Class III Gaming Activities, as well as the Tribe’s market conditions, its circumstances, and the rights afforded and consideration provided by this Compact. (c) In any given State fiscal year, to the extent permissible and only as may be provided under state law, the State Gaming Agency may reduce, or eliminate, the Tribe’s pro rata share payment obligation to the Special Distribution Fund.

Special Distribution Fund. (a) The Tribe shall pay to the State on a pro rata basis the State’s 25 U.S.C. § 2710(d)(3)(C) costs incurred for purposes consistent with IGRA, including the performance of all its duties under this Compact, the administration and implementation of tribal-state Class III Gaming compacts and Secretarial procedures prescribed by the Secretary of the Department of the Interior pursuant to 25 U.S.C. § 2710(d)(7)(B)(vii) (Secretarial Procedures)compacts, and funding for the Office of Problem Gambling, as determined by the monies appropriated in the annual Budget Act each fiscal year to carry out those purposes (Appropriation). The Appropriation and the maximum number of Gaming Devices operated by all federally recognized tribes in California pursuant to tribal-state Class III Gaming compacts determined to be in operation during the previous State fiscal year shall be reported annually by the State Gaming Agency to the Tribe on or before December 15. The term “operated” or “operation” as used in this Compact in relation to Gaming Devices describes each and every Gaming Device available to patrons (including slot tournament contestants) for play at any given time. (b) . The Tribe’s pro rata share of the State’s 25 U.S.C. § 2710(d)(3)(C) regulatory costs in any given year this Compact is in effect shall be calculated by the following equation: The maximum number of Gaming Devices operated in the Tribe’s Gaming Facility(ies) Facility during the previous State fiscal year as determined by the State Gaming Agency, divided by the maximum number of Gaming Devices operated by all federally recognized tribes in California pursuant to tribal-state Class III Gaming compacts or Secretarial Procedures during the previous State fiscal year, multiplied by the Appropriation, equals the Tribe’s pro rata share. (1a) Beginning the first full quarter after Class III Gaming commences under this Compact, the Tribe shall pay its pro rata share to the State Gaming Agency for deposit into the Indian Gaming Special Distribution Fund established by the Legislature (Special Distribution Fund). The payment shall be made in four (4) equal quarterly installments due on the thirtieth (30th) day following the end of each calendar quarter (i.e., by April 30 for the first quarter, July 30 for the second quarter, October 30 for the third quarter, and January 30 for the fourth quarter); provided, however, that in the event this Compact becomes effective during a calendar quarter, payment shall be prorated for the number of days remaining in that initial quarter, in addition to any remaining full quarters in the first calendar year of operation to obtain a full year of full quarterly payments of the Tribe’s pro rata share specified above. A payment year will run from January through December. If any portion of the Tribe’s quarterly pro rata share payment or payment pursuant to section 4.3, subdivision (b) or section 5.2, is overdue, the Tribe shall pay to the State for purposes of deposit into the appropriate fund, the amount overdue plus interest accrued thereon at the rate of one percent (1%) per month or the maximum rate permitted by state State law for delinquent payments owed to the State, whichever is less. All quarterly payments shall be accompanied by the report Quarterly Contribution Report specified in section 4.54.4, subdivision (b). (2b) If the Tribe objects to the State’s determination of the Tribe’s pro rata share, or to the amount of the Appropriation as including matters not consistent with IGRA, the matter shall be resolved in accordance with the dispute resolution provisions of section 13.0. Any State determination of the Tribe’s adjusted pro rata share challenged by the Tribe shall govern and must shall be paid by the Tribe to the State when due, and the Tribe’s payment is a condition precedent to invoking the section 13.0 dispute resolution provisions. (3c) Only for purposes of calculating the The Tribe’s annual pro rata share payment amount under section 4.3this section, any increase in the Appropriation for the current year shall be capped at an amount equal to a five percent (5%) percent increase from the Appropriation used to calculate the Tribe’s pro rata share in the immediately preceding year. The Appropriation, so capped, will be used to calculate the Tribe’s pro rata share under the equation set forth in section 4.3, subdivision (b). (4d) The foregoing payments have been negotiated between the parties as a fair and reasonable contribution, based upon the State’s costs of regulating and mitigating certain impacts of tribal Class III Gaming Activities, as well as the Tribe’s market conditions, its circumstances, and the rights afforded and consideration provided by this Compact. (c) In any given State fiscal year, to the extent permissible and only as may be provided under state law, the State Gaming Agency may reduce, or eliminate, the Tribe’s pro rata share payment obligation to the Special Distribution Fund.

Special Distribution Fund. (a) The Tribe shall pay to the State on a pro rata basis the State’s 25 U.S.C. § 2710(d)(3)(C) costs incurred for purposes consistent with IGRA, including the performance of all its duties under this Compact, the administration and implementation of tribal-state Class III Gaming compacts and Secretarial procedures prescribed by the Secretary of the Department of the Interior pursuant to 25 U.S.C. § 2710(d)(7)(B)(vii) (Secretarial Procedures)compacts, and funding for the Office of Problem Gambling, as determined by the monies appropriated in the annual Budget Act each fiscal year to carry out those purposes (Appropriation). The Appropriation and the maximum number of Gaming Devices operated by all federally recognized tribes in California pursuant to tribal-state Class III Gaming compacts determined to be in operation during the previous State fiscal year shall be reported annually by the State Gaming Agency to the Tribe on or before December 15. The term “operated” or “operation” as used in this Compact in relation to Gaming Devices describes each and every Gaming Device available to patrons (including slot tournament contestants) for play at any given time. (b) . The Tribe’s pro rata share of the State’s 25 U.S.C. § 2710(d)(3)(C) regulatory costs in any given year this Compact is in effect shall be calculated by the following equation: The maximum number of Gaming Devices operated in the Tribe’s Gaming Facility(ies) Facility during the previous State fiscal year as determined by the State Gaming Agency, divided by the maximum number of Gaming Devices operated by all federally recognized tribes in California pursuant to tribal-state Class III Gaming compacts or Secretarial Procedures during the previous State fiscal year, multiplied by the Appropriation, equals the Tribe’s pro rata share. (1) Beginning the first full quarter after Class III Gaming commences under this Compact, the Tribe shall pay its pro rata share to the State Gaming Agency for deposit into the Indian Gaming Special Distribution Fund established by the Legislature (Special Distribution Fund). The payment shall be made in four (4) equal quarterly installments due on the thirtieth (30th) day following the end of each calendar quarter (i.e., by April 30 for the first quarter, July 30 for the second quarter, October 30 for the third quarter, and January 30 for the fourth quarter); provided, however, that in the event this Compact becomes effective during a calendar quarter, payment shall be prorated for the number of days remaining in that initial quarter, in addition to any remaining full quarters in the first calendar year of operation to obtain a full year of full quarterly payments of the Tribe’s pro rata share specified above. A payment year will run from January through December. If any portion of the Tribe’s quarterly pro rata share payment or payment pursuant to section 4.3, subdivision (b) or section 5.2, is overdue, the Tribe shall pay to the State for purposes of deposit into the appropriate fundSpecial Distribution Fund, the amount overdue plus interest accrued thereon at the rate of one percent (1%) per month or the maximum rate permitted by state State law for delinquent payments owed to the State, whichever is less. All quarterly payments shall be accompanied by the report Quarterly Contribution Report specified in section 4.54.4, subdivision (b). (2) If the Tribe objects to the State’s determination of the Tribe’s pro rata share, or to the amount of the Appropriation as including matters not consistent with IGRA, the matter shall be resolved in accordance with the dispute resolution provisions of section 13.0. Any State determination of the Tribe’s adjusted pro rata share challenged by the Tribe shall govern and must shall be paid by the Tribe to the State when due, and the Tribe’s payment is a condition precedent to invoking the section 13.0 dispute resolution provisions. (3) Only for purposes of calculating the The Tribe’s annual pro rata share payment amount under section 4.3, any increase in the Appropriation for the current year subdivision (a) shall be capped at an amount equal to a five percent (5%) percent increase from the Appropriation used to calculate the Tribe’s pro rata share in the immediately preceding year. The Appropriation, so capped, will be used to calculate the Tribe’s pro rata share under the equation set forth in section 4.3, subdivision (b). (4) The foregoing payments have been negotiated between the parties as a fair and reasonable contribution, based upon the State’s costs of regulating and mitigating certain impacts of tribal Class III Gaming Activities, as well as the Tribe’s market conditions, its circumstances, and the rights afforded and consideration provided by this Compact. (cb) In any given State state fiscal year, to the extent permissible and only as may be provided under state State law, the State Gaming Agency may reduce, or eliminate, the Tribe’s pro rata share payment obligation to the Special Distribution Fund.

Special Distribution Fund. (a) The Tribe shall pay to the State on a pro rata basis the State’s 25 U.S.C. § 2710(d)(3)(C) costs incurred the State incurs for purposes consistent with IGRA, including the performance of all its duties under this Compact, the administration and implementation of tribal-state Class III Gaming compacts and Secretarial procedures prescribed by the Secretary of the Department of the Interior pursuant to 25 U.S.C. § 2710(d)(7)(B)(vii) (Secretarial Procedures), and funding for the Office of Problem Gambling, Compact as determined by the monies appropriated in the annual Budget Act for the performance of their duties under Class III Gaming compacts each fiscal year for the California Gambling Control Commission, the California Department of Justice, the Office of the Governor, the California Department of Public Health Programs, Office of Problem Gambling, the State Controller, the Department of Human Resources, the Financial Information System for California, and the State Designated Agency, or any agency or agencies the State designates as a successor to carry out those purposes them (Appropriation). The Appropriation and the maximum number of Gaming Devices operated by all federally recognized tribes in California pursuant to tribal-state Class III Gaming compacts determined to be in operation during the previous State fiscal year shall be reported annually by the State Gaming Agency to the Tribe on or before December 15. The term “operated” or “operation” as used in this Compact in relation to Gaming Devices describes each and every Gaming Device available to patrons (including slot tournament contestants) for play at any given time. (b) . The Tribe’s pro rata share of the State’s 25 U.S.C. § 2710(d)(3)(C) regulatory costs in any given year this Compact is in effect shall be calculated by the following equation: The maximum number of Gaming Devices operated in the Tribe’s Gaming Facility(ies) Facility during the previous State fiscal year as determined by the State Gaming Agency, divided by the maximum number of Gaming Devices operated by all federally recognized tribes in California pursuant to tribal-tribal- state Class III Gaming compacts or Secretarial Procedures during the previous State fiscal year, multiplied by the Appropriation, equals the Tribe’s pro rata share. (1) Beginning the first full quarter after Class III Gaming commences under this Compact, the Tribe shall pay its pro rata share to the State Gaming Agency for deposit into the Indian Gaming Special Distribution Fund established by the Legislature (Special Distribution Fund). The payment shall be made in four (4) equal quarterly installments due on the thirtieth (30th) day following the end of each calendar quarter (i.e., by April 30 for the first quarter, July 30 for the second quarter, October 30 for the third quarter, and January 30 for the fourth quarter); provided, however, that in the event this Compact becomes effective during a calendar quarter, payment shall be prorated for the number of days remaining in that initial quarter, in addition to any remaining full quarters in the first calendar year of operation to obtain a full year of full quarterly payments of the Tribe’s pro rata share specified above. A payment year will run from January through December. If any portion of the Tribe’s quarterly pro rata share payment pursuant to section 4.3, subdivision (a) or payment payments pursuant to section 4.3, subdivision (b) or section 5.24.5, is overdue, the Tribe shall pay to the State for purposes of deposit into the appropriate fund, the amount overdue plus interest accrued thereon at the rate of one percent (1%) per month or the maximum rate permitted by state law for delinquent payments owed to the State, whichever is less. All quarterly payments shall be accompanied by the report specified in section 4.54.4. (2) If the Tribe objects to the State’s determination of the Tribe’s pro rata share, or to the amount of the Appropriation as including matters not consistent with IGRA, the matter shall be resolved in accordance with the dispute resolution provisions of section 13.0. Any State determination of the Tribe’s adjusted pro rata share challenged by the Tribe shall govern and must shall be paid by the Tribe to the State when due, and the Tribe’s payment is a condition precedent to invoking the section 13.0 dispute resolution provisions. (3) Only for purposes of calculating the Tribe’s annual pro rata share under section 4.3, any increase in the Appropriation for the current year shall be capped at an amount equal to five percent (5%) from the Appropriation used to calculate the Tribe’s pro rata share in the immediately preceding year. The Appropriation, so capped, will be used to calculate the Tribe’s pro rata share under the equation set forth in section 4.3, subdivision (b). (4) The foregoing payments have been negotiated between the parties as a fair and reasonable contribution, based upon the State’s costs of regulating and mitigating certain impacts of tribal Class III Gaming Activities, as well as the Tribe’s market conditions, its circumstances, and the rights afforded and consideration provided by this Compact. (b) The Tribe further agrees to pay an additional 1.1 million dollars ($1,100,000) into the Special Distribution Fund to ensure it remains solvent in order to carry out the purposes set forth in section 4.3. 1. The parties agree to meet and confer for the purpose of continuing, discontinuing or making an appropriate reduction in the additional payment in this subdivision (b). (c) In any given State fiscal yearThe Tribe’s payment pursuant to this section 4.3 shall be capped at three million dollars ($3,000,000), to the extent permissible and only as may be provided under state law, the State Gaming Agency may reduce, or eliminate, unless the Tribe’s pro rata share under subdivision (a) exceeds that amount. In the event the Tribe’s pro rata share under subdivision (a) exceeds three million dollars ($3,000,000), the Tribe’s payment under this section 4.3 shall be capped at that pro rata share and the Tribe shall have no payment obligation to the Special Distribution Fundunder subdivision (b).

Special Distribution Fund. (a) The Tribe shall pay to the State on a pro rata basis the State’s 25 U.S.C. § 2710(d)(3)(C) costs incurred for purposes consistent with IGRA, including the performance of all its duties under this Compact, the administration and implementation of tribal-state Class III Gaming compacts and Secretarial procedures prescribed by the Secretary of the Department of the Interior pursuant to 25 U.S.C. § 2710(d)(7)(B)(vii) (Secretarial Procedures), and funding for the Office of Problem Gambling, as determined by the monies appropriated in the annual Budget Act each fiscal year to carry out those purposes (Appropriation). The Appropriation and the maximum number of Gaming Devices operated by all federally recognized tribes in California determined to be in operation during the previous State fiscal year shall be reported annually by the State Gaming Agency to the Tribe on or before December 15. The term “operated” or “operation” as used in this Compact in relation to Gaming Devices describes each and every Gaming Device available to patrons (including slot tournament contestants) for play at any given time. (b) The Tribe’s pro rata share of the State’s 25 U.S.C. § 2710(d)(3)(C) regulatory costs in any given year this Compact is in effect shall be calculated by the following equation: The maximum number of Gaming Devices operated in the Tribe’s Gaming Facility(ies) during the previous State fiscal year as determined by the State Gaming Agency, divided by the maximum number of Gaming Devices operated by all federally recognized tribes in California pursuant to tribal-state Class III Gaming compacts or Secretarial Procedures during the previous State fiscal year, multiplied by the Appropriation, equals the Tribe’s pro rata share. (1) Beginning the first full quarter after Class III Gaming commences under the effective date of this Compact, the Tribe shall pay its pro rata share to the State Gaming Agency for deposit into the Indian Gaming Special Distribution Fund established by the Legislature (Special Distribution Fund). The payment shall be made in four (4) equal quarterly installments due on the thirtieth (30th) day following the end of each calendar quarter (i.e., by April 30 for the first quarter, July 30 for the second quarter, October 30 for the third quarter, and January 30 for the fourth quarter); provided, however, that in the event this Compact becomes effective during a calendar quarter, payment shall be prorated for the number of days remaining in that initial quarter, in addition to any remaining full quarters in the first calendar year of operation to obtain a full year of full quarterly payments of the Tribe’s pro rata share specified above. A payment year will run from January through December. If any portion of the Tribe’s quarterly pro rata share payment or payment pursuant to section 4.3, subdivision (b) or section 5.2, is overdue, the Tribe shall pay to the State for purposes of deposit into the appropriate fund, the amount overdue plus interest accrued thereon at the rate of one percent (1%) per month or the maximum rate permitted by state law for delinquent payments owed to the State, whichever is less. All quarterly payments shall be accompanied by the report specified in section 4.5. (2) If the Tribe objects to the State’s determination of the Tribe’s pro rata share, or to the amount of the Appropriation as including matters not consistent with IGRA, the matter shall be resolved in accordance with the dispute resolution provisions of section 13.0. Any State determination of the Tribe’s adjusted pro rata share challenged by the Tribe shall govern and must be paid by the Tribe to the State when due, and the Tribe’s payment is a condition precedent to invoking the section 13.0 dispute resolution provisions. (3) Only for purposes of calculating the Tribe’s annual pro rata share under section 4.3, any increase in the Appropriation for the current year shall be capped at an amount equal to five percent (5%) from the Appropriation used to calculate the Tribe’s pro rata share in the immediately preceding year. The Appropriation, so capped, will be used to calculate the Tribe’s pro rata share under the equation set forth in section 4.3, subdivision (b). (4) The foregoing payments have been negotiated between the parties as a fair and reasonable contribution, based upon the State’s costs of regulating and mitigating certain impacts of tribal Class III Gaming Activities, as well as the Tribe’s market conditions, its circumstances, and the rights afforded and consideration provided by this Compact. (c) In any given State fiscal year, to the extent permissible and only as may be provided under state law, the State Gaming Agency may reduce, or eliminate, the Tribe’s pro rata share payment obligation to the Special Distribution Fund.