HP0780, LD 1111, item 2, Document Text

Amend the bill by striking out everything after the enacting clause and before the summary and inserting the following:

PART A

‘

Sec. A-1. 8 MRSA §1011, sub-§2-A, as amended by PL 2011, c. 417, §2, is further amended to read:

2-A. Persons eligible for casino operator license. The board may accept an application for a casino operator license to operate slot machines and table games at a casino from a commercial track that has been selected as a successful bidder by the Department of Administrative and Financial Services pursuant to section 1018-A or a commercial track licensed to operate a slot machine facility on January 1, 2011 for the same location where slot machines were operated on January 1, 2011 and any person if that person and casino satisfy the following criteria:

A. The casino is located on a parcel of land in Oxford County that is:

(1) No less than 50 acres in size; and

(2) Located not more than:

(a) Thirty miles from a Level I or Level II trauma center verified as such by the American College of Surgeons or successor organization;

(b) Fifteen miles from the main office of a county sheriff;

(d) Thirty miles from an interchange of the interstate highway system;

(e) Ten miles from a fire station;

(f) Ten miles from a facility at which harness racing was conducted pursuant to a license from the State Harness Racing Commission for the 2009 racing year; and

(g) One-half mile from a state highway as defined in Title 23, section 1903, subsection 15.

For the purposes of this paragraph, distances are determined by measuring along the most commonly used roadway, as determined by the Department of Transportation;

B. The criteria adopted through rulemaking by the board regarding the licensing of the operation of slot machines and table games;

C. The operation of a casino is approved by the voters of the municipality in which the casino to be licensed is located in a referendum election or by a vote of the municipal officers in the municipality in which the casino is to be licensed and located held at any time after October 1, 2009 and on or before December 31, 2011;

D. The person owns a facility that is within 10 miles of the proposed casino at which harness racing was conducted pursuant to a license from the State Harness Racing Commission for the 2009 racing year; and

E. The slot machines and table games are located and operated in the casino.

Sec. A-2. 8 MRSA §1011, sub-§3, as amended by PL 2011, c. 417, §3, is further amended to read:

3. Requirements for license; continued commercial track licensure. The board may not issue a license to operate a slot machine facility or a casino to any person unless that person demonstrates compliance with the qualifications set forth in sections 1016 and 1019. To maintain eligibility for a slot machine operator license or a casino operator license under subsection 2-A issued to a commercial track with slot machines or to a commercial track selected as a successful bidder by the Department of Administrative and Financial Services pursuant to section 1018-A, a licensed commercial track must at all times maintain a license to operate a commercial track without lapse, suspension or revocation. A commercial track that is issued a casino operator license pursuant to section 1018-A must also comply with the requirements of the contract negotiated with the Department of Administrative and Financial Services.

Sec. A-3. 8 MRSA §1018, sub-§1, ¶C-1, as amended by PL 2011, c. 417, §4, is further amended to read:

C-1. The initial application fee for a casino operator license is $225,000, except that the initial application fee for an applicant that is a commercial track that was licensed to operate slot machines as of January 1, 2011 is $25,000. The annual renewal fee is $80,000 plus an amount, set by rules of the board, equal to the cost to the board of licensing casino operators and determined by dividing the costs of administering the casino operator licenses by the total number of casino operators licensed by the board. In addition, a casino operator shall pay an initial gaming table fee of $100,000 for the privilege to operate each gaming table for a period of 20 years as long as the casino operator is licensed. Each gaming table is also subject to an annual gaming table renewal fee of $1,000. The gaming table fees authorize the casino operator to conduct any authorized table game at the gaming table during the 20-year period. A casino licensed in accordance with section 1011, subsection 2-A, paragraph A is not required to pay the gaming table fees until after one calendar year of table game operation. Fees collected in accordance with this paragraph must be deposited to the Gambling Control Board administrative expenses Other Special Revenue Funds account, which is a nonlapsing dedicated account. A casino operator license issued pursuant to section 1018-A is not subject to the fees required by this paragraph.

Sec. A-4. 8 MRSA §1018, sub-§2, as enacted by PL 2003, c. 687, Pt. A, §5 and affected by Pt. B, §11, is amended to read:

2. Term of license; renewal, renewal fees. All Except for a casino operator license issued pursuant to section 1018-A, all licenses issued by the board under this chapter are effective for one year, unless revoked or surrendered pursuant to subchapter 5. Upon proper application and payment of the required fees and taxes and in accordance with rules adopted by the board, the board may renew a license for an additional year if municipal approval has been obtained as provided in section 1012. The board shall transfer $25,000 of the renewal fee required by subsection 1, paragraph C to the municipality in which the slot machines are operated.

Sec. A-5. 8 MRSA §1018-A is enacted to read:

§ 1018-A. Competitive bidding process for one casino operator license for commercial track; fee submitted as part of competitive bid

1. Competitive bidding process for one casino operator license; fee. Notwithstanding any other provision of this chapter, the Department of Administrative and Financial Services may, in accordance with the process for competitive bidding set out in Title 5, chapter 155, subchapter 1-A, administer a process of competitive bidding for the issuance of a casino operator license to an operator of a commercial track for one casino to be located in York County or Cumberland County after January 1, 2014. The minimum bid for a casino operator license pursuant to this section is $50,000,000. The sum provided by the successful bidder under this section must be transferred to the board as a license fee when the board issues a casino operator license to the successful bidder as determined by the Department of Administrative and Financial Services.

2. Reimbursement of fee upon licensure of additional facilities. If the board issues a slot machine operator license or a casino operator license authorizing the operation of more than 5 slot machines at any one location in the State within one year after the issuance of a casino operator license under subsection 1, the board shall reimburse 90% of the license fee under subsection 1. The amount of the reimbursement is reduced by 10% for each year after the first year in which no other such slot machine operator license or casino operator license is issued. No reimbursement may be made after 9 years of the date of issuance of the license under subsection 1.

Sec. A-6. 8 MRSA §1019, sub-§6, as amended by PL 2011, c. 417, §5, is further amended to read:

6. Proximity of licensed casinos and slot machine facilities. A casino operator license or slot machine operator license may not be issued under this chapter to operate any casino or slot machine facility located within 100 miles of a licensed casino or slot machine facility. This subsection does not apply to a casino operator license issued pursuant to section 1018-A and it does not prohibit a commercial track that was licensed to operate slot machines on January 1, 2011 from obtaining a casino operator license for the same facility where slot machines were operated as of January 1, 2011. If a commercial track is initially issued a casino operator license after January 1, 2014, the commercial track may relocate to a new location that is not closer to an existing casino than is the original location of the track.

Sec. A-7. 8 MRSA §1019, sub-§7, as amended by PL 2011, c. 417, §6, is further amended to read:

7. Statewide and county referendum; municipal vote. After January 1, 2011, any a proposed casino or slot machine facility may not be issued a license unless it has been issued a license pursuant to section 1018-A or approved by a statewide referendum vote and a vote of the municipal officers or municipality in which the casino or slot machine facility is to be located, except that a commercial track licensed to operate slot machines on January 1, 2011 is only required, as a condition to obtain a casino license, to receive approval to operate a casino by means of a referendum of the voters of the county in which the commercial track is located.

Sec. A-8. 8 MRSA §1019, sub-§8 is enacted to read:

8. Slot machine and table game operation contingent upon facility construction. A casino operator licensed pursuant to section 1018-A may not begin operation of slot machines and table games prior to the completion of all phases of construction of a resort that includes a hotel, spa, pool, dining facility and entertainment venue and provides for a view of the racing oval from the dining facility and from the location of slot machines within the facility.

Sec. A-9. 8 MRSA §1020, sub-§3, ¶A, as amended by PL 2011, c. 585, §8, is further amended to read:

A. Except for slot machines used for training and educational purposes at postsecondary institutions as provided by section 1011, subsection 1-B, the total number of slot machines registered in the State may not exceed 3,000 4,500; and

Sec. A-10. 8 MRSA §1036, sub-§2-D is enacted to read:

2-D. Distribution of table game income and slot machine income from a casino issued a license subject to competitive bidding. A casino operator that was issued a license subject to competitive bidding pursuant to section 1018-A shall submit 1% of the gross slot machine income to the Treasurer of State for deposit in the General Fund for the administrative expenses of the board. The casino operator shall submit 39% of net slot machine income and 16% of net table game income to the board, which shall distribute that revenue as follows:

A. Eleven percent must be forwarded to the Treasurer of State, who shall credit the money to the fund established in section 298 to supplement harness racing purses;

B. Four and one-half percent must be forwarded to the Treasurer of State, who shall credit the money to the Agricultural Fair Support Fund established in Title 7, section 91;

C. Four and one-half percent must be forwarded to the Treasurer of State, who shall credit the money to the Sire Stakes Fund created in section 281;

D. Four and one-half percent must be forwarded to the municipality in which the slot machines and table games are located;

E. One and one-half percent must be forwarded to the municipalities that abut the municipality in which the slot machines and table games are located. The revenues must be paid in equal portions to each municipality;

F. One percent must be forwarded to the Treasurer of State, who shall credit the money to the Fund to Stabilize Off-track Betting Facilities established by section 300. The amount distributed under this paragraph must be divided equally among the eligible off-track betting facilities except that no off-track betting facility may receive more than 25% of the amount forwarded to the board under this paragraph. Any revenues remaining after distribution to off-track betting facilities must be credited to the General Fund. An off-track betting facility is eligible for a distribution under this paragraph if it was licensed by the State Harness Racing Commission to conduct and actually conducted wagering operations for a minimum of 250 days during the preceding 12-month period in which the first payment to the fund is required.

G. Seventy-three percent must be deposited to the General Fund for administrative expenses of the board in accordance with rules adopted by the board under section 1003, subsection 1, paragraph B, except that of the amount calculated pursuant to this paragraph, $100,000 must be transferred annually to the Gambling Addiction Prevention and Treatment Fund established by Title 5, section 20006-B.

PART B

Sec. B-1. Issuance of casino operator license. Notwithstanding the Maine Revised Statutes, Title 8, chapter 31, subchapter 2, or any other provision of law to the contrary, the Department of Public Safety, Gambling Control Board shall issue a casino operator license according to the provisions of the Maine Revised Statutes, Title 8, section 1018-A and this Part to a commercial track that is the best-value bidder selected by the Commissioner of Administrative and Financial Services, referred to in this Part as "the commissioner."

1. Solicit bids. In accordance with the competitive bidding process outlined in Title 5, chapter 155, subchapter 1-A, the commissioner shall solicit bids for the operation of a new casino to be located in York County or Cumberland County. The minimum bid for a casino operator license pursuant to this section is $50,000,000.

2. Submission deadline; application fee. A bid submitted pursuant to this section must be:

A. Submitted no later than September 30, 2014; and

B. Accompanied by a nonrefundable application fee of $250,000, which must be credited to an Other Special Revenue Funds account within the division of purchases within the Department of Administrative and Financial Services to be used to defray the costs of managing the application process and for determining the market value for a casino operator license as required by this section.

3. Determination of market value for casino operator license. Prior to the award of a license to operate a casino subject to the requirements in Title 8, section 1016 and in accordance with this section, the commissioner shall contract with an independent consulting firm for the purpose of determining the current market value of a casino operator license in York County or Cumberland County. The determination of market value must take into consideration payments made by existing casino licensees as part of a contract to purchase a licensed existing casino or similar contracts between casino operators and entities that may have funded efforts to pass legislation authorizing the use of slot machines in the State within the past 15 years.

4. Information provided by bidders. A bid submitted pursuant to this section must include the building plans and site designs for the proposed casino and information regarding:

A. The bidder's financial capacity and access to capital for use in maintaining the proposed casino;

B. How the proposed location of the proposed casino would benefit the State;

C. The bidder's knowledge of the gaming industry or a related field;

D. The bidder's knowledge of and experience in operating a commercial harness racing track;

E. The impact that the bidder's overall proposal will have on the economy, employment and revenues of the host municipality, abutting municipalities, the host county and the State; and

F. The bidder's willingness to construct a destination resort gaming facility with harness racing, slot machines and table games.

A bidder must include with the information submitted pursuant to this subsection a statement of whether or not the bidder has been found to have violated any state or federal law or rule governing gaming and attesting to the good moral character of the bidder and any principal officer of the bidder.

5. Award of contract. The commissioner shall review the bids submitted pursuant to this section, consider the information provided pursuant to subsections 3 and 4 and award the contract to the best-value bidder. The commissioner shall give preference to any bidder who has demonstrated experience providing entertainment to residents of the State through wagering on harness racing.

6. Contract requirements. As part of the contract awarded pursuant to this Part, the bidder must agree according to Title 8, section 1019, subsection 8 to:

A. Construct a resort that includes a hotel, spa and pool and multiple dining options;

B. Construct an integrated, 5/8-mile, all-weather-surface harness racing track located at the resort;

C. Include an entertainment venue at the resort; and

D. Include retail space at the resort.

’

SUMMARY

This amendment replaces the bill and is the minority report of the committee. The amendment establishes a competitive bidding process for a resort casino in York County and Cumberland County that includes a minimum bid of $50,000,000 for a license fee. The competitive bidding process is administered by the Department of Administrative and Financial Services and requires that preference be given to a bidder who has demonstrated experience in providing entertainment to residents of the State through wagering on harness races. The amendment provides that a portion of the fee paid for a casino operator license subject to the competitive bidding process must be reimbursed by the Department of Public Safety, Gambling Control Board if another casino or slot machine facility with more than 5 slot machines is licensed within 10 years of the award of the casino operator license. The amendment provides for a $250,000 application fee, which is to be used to defray the cost of the process and to fund a study to determine the fair market value of a resort casino license in York County and Cumberland County. The amendment provides that 1% of the gross slot machine revenue from the casino licensed pursuant to competitive bidding will be credited to the General Fund. It further provides that the Gambling Control Board must collect 39% of the net slot machine revenue and 16% of the net table game revenue and distribute it as follows: 11% to supplement harness racing purses; 4.5% to the Sire Stakes Fund; 4.5% to the Agricultural Fair Support Fund; 4.5% to the host municipality; 1.5% divided among abutting municipalities; 1% to the Fund to Stabilize Off-track Betting Facilities; and 73% to the General Fund.

FISCAL NOTE REQUIRED

(See attached)

HP0780 LD 1111	Session - 126th Maine Legislature C "A", Filing Number H-628, Sponsored by		LR 1490 Item 2
	Bill Tracking, Additional Documents	Chamber Status

Bill Tracking		Chamber Status
Amendments	Testimony, Public Hearings & Work Sessions		Committee Information
Other Documents			Title & Section

Search Bill Text		Search Bill Status
Bill Directory	Session Information		Legislative Information
Download MS-Word, Printed PDF		Maine Legislature

Office of Legislative Information 100 State House Station Augusta, ME 04333		voice: (207) 287-1692 fax: (207) 287-1580 tty: (207) 287-6826
Word Viewer for Windows		Disclaimer