121st Maine Legislature
Office of Fiscal and Program Review
LD 1370
An Act to Enact the Maine Tribal Gaming Act
LR 2023(01)
Fiscal Note for Original Bill
Sponsor: Initiated Bill
Committee: Judiciary
Fiscal Note Required: Yes
   
             
Fiscal Note
Initiated Bill - Potential Referendum Costs
Potential Costs - General Fund
Potential Revenue Increase - Other Special Revenue Funds
Correctional and Judicial Impact Statements
Potential increase of criminal and civil cases filed in the courts.
Referendum Costs Month/Year Election Type Question Length
Nov-03 General Initiated Bill Standard
The Secretary of State's budget includes sufficient funds to accommodate one ballot of average length for the general election in November. If the number or size of the referendum questions increases the ballot length, an additional appropriation of $8,000 or more may be required.  If the number of questions exceeds the limit that can be printed on one ballot, the Secretary of State will require an additional appropriation of $121,392 for the cost of a second ballot.  This is an initiated bill.  If not enacted without change, this bill and any competing measure must be submitted to the voters in November 2003, resulting in one or more questions on the ballot in November. 
Fiscal Detail and Notes
The implementation of this bill is contingent upon approval by the voters (if not enacted without change), by the local governmental body where the casino is proposed and by a vote of the Penobscot Nation and the Passamaquoddy Tribe.
If these contingencies are met, this bill will increase dedicated revenue collected by the State.  The State's share of the revenue will vary depending on the location and size of the casino and resort.  The revenue received by the State, equal to 25% of the gross revenue of video facsimile,  will be distributed as follows: 50% to the Local Government Fund; 40% to General Purpose Aid for Local Schools; 5% to the Maine State Grant Program; and 5% to the Finance Authority of Maine for enhancing postsecondary opportunities for students. 
In addition, this bill establishes an assessment for state regulatory and law enforcement expenditures that will be received as General Fund revenue.  The amount of the additional costs that will be incurred by the Department of Public Safety will be $2,279,656 for the first full year of operation and $2,260,312 for each year thereafter.  The additional costs for the Department of the Attorney General will be $366,240 for the first full year of operation and each year thereafter.  If this bill is approved by the voters, the Second  Regular Session of the 121st Legislature will be required to appropriate these amounts to the aforementioned departments. The Bureau of Revenue Services can absorb the costs pertaining to this bill within currently budgeted resources.  The shift of expenditures from Lottery ticket sales and Pari-mutuel wagering to the casino will reduce both General Fund and dedicated revenue.
Presented below is an example of the potential revenue that may be generated by a casino assuming that it is located in southern Maine with a facility that includes a 200,000 square-foot casino, 875-room hotel, 2,000-seat theater, 100,000 square-foot convention center, 20,000 square-foot spa and 10 restaurants and nightclubs. 
Year 1 Year 2 Year 3 Year 4 Year 5
Gaming Revenue - Total $495,600,000 $548,200,000 $575,610,000 $592,900,000 $610,700,000
Share from Video Facsimile $386,568,000 $427,596,000 $448,975,800 $462,462,000 $476,346,000
25% Annual Fee to State $96,900,000 $106,800,000 $112,200,000 $115,600,000 $119,100,000
Required Distribution of Annual Fee to State:
 50% to Local Gov't Fund $48,450,000 $53,400,000 $56,100,000 $57,800,000 $59,550,000
 40% to School Subsidies $38,760,000 $42,720,000 $44,880,000 $46,240,000 $47,640,000
 5% to Me. State Grant Prog. $4,845,000 $5,340,000 $5,610,000 $5,780,000 $5,955,000
 5% to FAME to non-profits $4,845,000 $5,340,000 $5,610,000 $5,780,000 $5,955,000
Impact on Lottery - Diverted "Gaming/Gambling" Revenue to Casino
5% of Gross Revenue $24,780,000 $27,410,000 $28,780,500 $29,645,000 $30,535,000
25% General Fund Transfer ($6,195,000) ($6,852,500) ($7,195,125) ($7,411,250) ($7,633,750)
Impact on Harness Racing - Diverted "Gaming/Gambling" Revenue to Casino
2% of Gross Revenue $9,912,000 $10,964,000 $11,512,200 $11,858,000 $12,214,000
Loss of Revenue from diverted revenue by Fund/Account:
 General Fund ($148,680) ($164,460) ($172,683) ($177,870) ($183,210)
Other Special Revenue Funds
 - Purse Supplements ($178,416) ($197,352) ($207,220) ($213,444) ($219,852)
 - Sire Stakes Fund ($98,129) ($108,544) ($113,971) ($117,394) ($120,919)
 - Agricultural Support Fund ($113,988) ($126,086) ($132,390) ($136,367) ($140,461)
 - Racetracks ($122,909) ($135,954) ($142,751) ($147,039) ($151,454)
 - Promotional Board ($247,800) ($274,100) ($287,805) ($296,450) ($305,350)
 Subtotal Dedicated Revenue ($761,242) ($842,035) ($884,137) ($910,694) ($938,035)
Annual Assessment for Law Enforcement and Regulatory Costs:
 - Maine State Police $2,279,656 $2,260,312 $2,260,312 $2,260,312 $2,260,312
 - Attorney General $366,420 $366,420 $366,420 $366,420 $366,420