121st Maine Legislature
		Office of Fiscal and Program Review
		LD 1354
		An Act To Permit Video Gaming for Money Conducted by Nonprofit Organizations
		LR 0540(02)
		Fiscal Note for Bill as Amended by Committee Amendment " "
		Committee: Legal and Veterans Services
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Net Cost (Savings)
	General Fund		$1,321,034	$3,589,253	$3,644,502	$3,700,865
Appropriations/Allocations
	General Fund		$1,245,434	$3,280,805	$3,329,885	$3,379,956
	Other Special Revenue Funds		$1,593,957	$3,054,736	$3,102,191	$3,150,595
Revenue
	General Fund		($75,600)	($308,448)	($314,617)	($320,909)
	Other Special Revenue Funds		$1,593,957	$3,054,736	$3,102,191	$3,150,595
Correctional and Judicial Impact Statements
	Establishes new Class C and D crimes; increases correctional and judicial costs
Fiscal Detail and Notes
	This bill specifies that at least 80% of the gross terminal revenue must be paid back to users of the video gaming terminals. The remaining 20% of revenue collected by eligible nonprofit organizations that elect to become licensed as video gaming terminal operators will be distributed as follows: 75% is kept by the licensee; 23% goes to the Video Gaming Fund;  and 2% goes to the Compulsive Gambler Rehabilitation Fund which will be administered by the Department of Behavioral and Developmental Services.  The 23% that is distributed to the Video Gaming Fund is further distributed in the following manner: 2% is reserved for the costs incurred by State Government in administering the provisions of this bill; 10% (net of the administrative costs) goes to the Local Government Fund; and at the end of each fiscal year, the remaining unspent funds are distributed to those municipalities that host the nonprofit organizations that chose to become licensed by the provisions of this bill.
	As stated previously, the bill specifies that 2% of the revenue collected for the Video Gaming Fund will be reserved for the administrative costs of state agencies.  The estimated revenues that will be generated for this purpose are $31,116 and $57,979 in fiscal years 2003-04 and 2004-05, respectively. The total administrative and enforcement costs that will be incurred by state agencies are $1,276,550 and $3,388,784 in fiscal years 2003-04 and 2004-05, respectively.  The difference between the amounts reserved for administrative costs and the actual costs of the state agencies is $1,245,435 and $3,280,805 in fiscal years 2003-04 and 2004-05, respectively, and will require appropriations from the General Fund.
	In addition, the shift of expenditures from Lottery ticket sales and Pari-mutuel wagering to video gaming terminals at licensed non-profit organizations will reduce both General Fund and dedicated revenue.
	Presented below is an estimate of the revenue and distribution that may be generated by licensed nonprofit organizations assuming that 270 nonprofit organizations will become licensed video terminal operators and each of the licensees will have the maximum 5 video terminals authorized by the provisions of this bill. This table also includes a breakdown of the General Fund and Other Special Revenue Funds impacts.
	Summary of Gaming Revenue		2003-04	2004-05	2005-06	2006-07
	Total Gaming Revenue		$11,812,500	$48,195,000	$49,158,900	$50,142,078
	80% Payback		$9,450,000	$38,556,000	$39,327,120	$40,113,662
	Net Terminal Income		$2,362,500	$9,639,000	$9,831,780	$10,028,416
	75% of Net Terminal Income to Licensee		$1,771,875	$7,229,250	$7,373,835	$7,521,312
	Required Distribution of net terminal income (25% State Share)
	Video Gaming Fund Revenues
	-23% of Net Terminal Income		$543,375	$2,216,970	$2,261,309	$2,306,536
	-License Fees to Video Gaming Fund		$682,000	$682,000	$682,000	$682,000
	-Reimbursement  to Video Gaming Fund		$330,404	$0	$0	$0
	Video Gaming Fund Revenues For Distribution		$1,555,779	$2,898,970	$2,943,309	$2,988,536
	- 2% for Administrative Costs		$31,116	$57,979	$58,866	$59,771
	- 10% (net) to Local Government Fund		$152,466	$284,099	$288,444	$292,877
	- Unspent Funds to Host Municipalities		$1,372,197	$2,556,892	$2,595,999	$2,635,888
	2% to Compulsive Gambling Program		$47,250	$192,780	$196,636	$200,568
	Other Revenue Impacts:
	Impact on Lottery - Diverted "Gaming/Gambling" Revenue to Non-profit Video Terminals
	2.5% of Gross Revenue		$295,313	$1,204,875	$1,228,973	$1,253,552
	25% General Fund Transfer		($73,828)	($301,219)	($307,243)	($313,388)
	Impact on Harness Racing - Diverted "Gaming/Gambling" Revenue to Non-profit Video Terminals
	1% of Gross Revenue		$118,125	$481,950	$491,589	$501,421
	Loss of Revenue from diverted revenue by Fund/Account:
	General Fund		($1,772)	($7,229)	($7,374)	($7,521)
	Subtotal General Fund Revenue		($75,600)	($308,448)	($314,617)	($320,909)
	Other Special Revenue Funds
	- Purse Supplements		($2,126)	($8,675)	($8,849)	($9,026)
	- Sire Stakes Fund		($1,169)	($4,771)	($4,867)	($4,964)
	- Agricultural Support Fund		($1,358)	($5,542)	($5,653)	($5,766)
	- Racetracks		($1,465)	($5,976)	($6,096)	($6,218)
	- Promotional Board		($2,953)	($12,049)	($12,290)	($12,536)
	Subtotal Dedicated Revenue		($9,072)	($37,014)	($37,754)	($38,509)
	Summary of Expenditure Impacts
	General Fund:
	- Administrative and Financial Services		$756,710	$2,671,268	$2,719,463	$2,768,622
	- Attorney General		$53,174	$70,898	$72,670	$74,487
	- Public Safety		$435,550	$538,639	$537,752	$536,847
	Subtotal General Fund Costs		$1,245,434	$3,280,805	$3,329,885	$3,379,956
	Other Special Revenue Funds:
	- Agriculture, Food and Rural Resources		($9,072)	($37,014)	($37,754)	($38,509)
	- Behavioral and Developmental Services		$47,250	$192,780	$196,636	$200,568
	- Public Safety		$31,116	$57,979	$58,866	$59,771
	- Treasurer		$1,524,663	$2,840,991	$2,884,443	$2,928,765
	Subtotal Other Special Revenue Costs		$1,593,957	$3,054,736	$3,102,191	$3,150,595
	Summary of Revenue Impacts
	General Fund:
	- Diverted Lottery Revenue		($73,828)	($301,219)	($307,243)	($313,388)
	- Diverted Pari-mutuel Revenue		($1,772)	($7,229)	($7,374)	($7,521)
	General Fund Total		($75,600)	($308,448)	($314,617)	($320,909)
	Other Special Revenue Funds:
	- Video Gaming Fund Revenues		$1,555,779	$2,898,970	$2,943,309	$2,988,536
	- Diverted Pari-mutuel Revenue		($9,072)	($37,014)	($37,754)	($38,509)
	- Compulsive Gambling Program		$47,250	$192,780	$196,636	$200,568
	Other Special Revenue Total		$1,593,957	$3,054,736	$3,102,191	$3,150,595