HP1171, LD 1675, item 1, An Act To Streamline Gaming Laws

An Act To Streamline Gaming Laws

Be it enacted by the People of the State of Maine as follows:

PART A

Sec. A-1. 8 MRSA §1011, sub-§4, as amended by PL 2005, c. 663, §6, is further amended to read:

4. Requirement for license; agreement with municipality where slot machines are located. A slot machine operator or a person who is initially granted a casino operator license after January 1, 2014 shall enter into an agreement with the municipality where the slot machine operator's or casino operator's slot machines are located that provides for revenue sharing or other compensation, including, but not limited to, a provision requiring the preparation, in conjunction with the municipality, of a security plan for the premises on which the slot machines are located. The revenue-sharing agreement must provide for a minimum payment to the municipality of 3% of the net slot machine income derived from the machines located in the municipality.

Sec. A-2. 8 MRSA §1018, sub-§1-B is enacted to read:

1-B. Fee for initial casino operator license granted after January 1, 2014. Notwithstanding subsection 1, paragraphs C and C-1 and subsection 1-A, a person who is initially granted a casino operator license after January 1, 2014 shall pay an initial license fee of $5,000,000.

Sec. A-3. 8 MRSA §1019, sub-§6, as amended by PL 2011, c. 417, §5, is repealed.

Sec. A-4. 8 MRSA §1019, sub-§7, as amended by PL 2011, c. 417, §6, is further amended to read:

7. Countywide referendum; municipal vote. After January 1, 2011, any proposed casino or slot machine facility may not be issued a license unless it has been approved by a statewide countywide 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-5. 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 5,000; and

Sec. A-6. 8 MRSA §1036, sub-§1, as amended by PL 2011, c. 417, §7, is further amended to read:

1. Distribution for administrative expenses of board. A slot machine operator licensed under section 1011, subsection 2 or a casino operator that is a commercial track that was licensed to operate slot machines under section 1011, subsection 2 on January 1, 2011 shall collect and distribute 1% of gross slot machine income to the Treasurer of State for deposit in the General Fund for the administrative expenses of the board.

Sec. A-7. 8 MRSA §1036, sub-§2-A, as amended by PL 2013, c. 118, §2, is further amended to read:

2-A. Distribution from casino of slot machine income. A casino operator shall collect and distribute 46% of the net slot machine income from slot machines operated by the casino operator to the board for distribution by the board as follows:

A. Twenty-five percent of the net slot machine income must be forwarded directly by the board to the Treasurer of State, who shall credit the money to the Department of Education, to be used to supplement and not to supplant funding for essential programs and services for kindergarten to grade 12 under Title 20-A, chapter 606-B;

B. Four percent of the net slot machine income must be forwarded by the board to the University of Maine System Scholarship Fund created in Title 20-A, section 10909 and to the Board of Trustees of the Maine Maritime Academy to be applied by the board of trustees to fund its scholarship program. The slot machine income under this paragraph must be distributed as follows:

(1) The University of Maine System share is the total amount of the distribution multiplied by the ratio of enrolled students in the system to the total number of enrolled students both in the system and at the Maine Maritime Academy; and

(2) The Maine Maritime Academy share is the total amount of the distribution multiplied by the ratio of enrolled students at the academy to the total number of enrolled students both in the system and at the academy;

C. Three percent of the net slot machine income must be forwarded by the board to the Board of Trustees of the Maine Community College System to be applied by the board of trustees to fund its scholarships program under Title 20-A, section 12716, subsection 1;

D. Four percent of the net slot machine income must be forwarded by the board to the Treasurer of State, who shall distribute the funds to the tribal governments of the Penobscot Nation and the Passamaquoddy Tribe;

E. Three percent of the net slot machine income must be deposited to the General Fund for administrative expenses of the board, including gambling addiction counseling services, in accordance with rules adopted by the board;

F. Two percent of the net slot machine income must be forwarded directly to the municipality in which the casino is located;

G. One percent of the net slot machine income must be forwarded by the board to the Treasurer of State, who shall credit the money to the Agricultural Fair Support Fund established in Title 7, section 91;

H. One percent of the net slot machine income must be forwarded by the board to the Treasurer of State, who shall credit the money to the fund established in section 298 to supplement harness racing purses;

I. One percent of the net slot machine income must be credited by the board to the Sire Stakes Fund created in section 281;

J. One percent of the net slot machine income must be forwarded directly to the county in which the casino is located to pay for mitigation of costs resulting from gaming operations;

L. Beginning July 1, 2013, 1/2 of 1% of the net slot machine income must be forwarded by the board to the Treasurer of State, who shall credit the money to the Maine Milk Pool, Other Special Revenue Funds account within the Department of Agriculture, Conservation and Forestry to help fund dairy farm stabilization pursuant to Title 7, sections 3153-B and 3153-D; and

M. Beginning July 1, 2013, 1/2 of 1% of the net slot machine income must be forwarded by the board to the Treasurer of State, who shall credit the money to the Dairy Improvement Fund established under Title 10, section 1023-P.

If a recipient of net slot machine income in paragraph D, H or I owns or receives funds from a slot machine facility or casino, other than the casino in Oxford County or the slot machine facility in Bangor, then the recipient may not receive funds under this subsection, and those funds must be retained by the Oxford County casino operator.

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

2-D. Distribution of net slot machine income and net table game income from casino with commercial track initially licensed to operate slot machines after January 1, 2014. A casino operator that is a commercial track that was initially licensed to operate slot machines and table games after January 1, 2014 shall collect and distribute 39% of the net slot machine income from slot machines and 16% of net table game income from table games operated by the casino operator to the board for distribution by the board as follows:

A. Two and one-half percent of the sum received from the net slot machine income and net table game income 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;

B. Twenty percent of the sum received from the net slot machine income and net table game income must be forwarded by the board to the Treasurer of State, who shall credit the money to the fund established in section 298 to supplement harness racing purses;

C. Five percent of the sum received from the net slot machine income and net table game income must be credited by the board to the Sire Stakes Fund created in section 281;

D. Eight and one-half percent of the sum received from the net slot machine income and net table game income must be forwarded by the board to the Treasurer of State, who shall credit the money to the Agricultural Fair Support Fund established in Title 7, section 91;

E. Five percent of the sum received from the net slot machine income and net table game income must be forwarded directly to the municipality in which the slot machines and table games are located;

F. Seven and one-half percent of the sum received from the net slot machine income and net table game income must be forwarded directly to the county in which the slot machines and table games are located;

G. Two and one-half percent of the sum received from the net slot machine income and net table game income must be forwarded directly 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 in order to provide property tax relief to those municipalities;

H. Two and one-half percent of the sum received from the net slot machine income and net table game income must be forwarded by the board to the Treasurer of State, who shall credit the money to the Fund to Stabilize Off-track Betting Facilities established by section 300, as long as a facility has conducted off-track wagering operations for a minimum of 250 days during the preceding 12-month period in which the first payment to the fund is required;

I. One and one-half percent of the sum received from the net slot machine income and net table game income must be forwarded by the board to the Treasurer of State, who shall credit the money to a nonprofit fraternal organization fund established by rule;

J. One and one-half percent of the sum received from the net slot machine income and net table game income must be forwarded by the board to the Treasurer of State, who shall credit the money to the Coordinated Veterans Assistance Fund under Title 37-B, section 514;

K. Two and one-half percent of the sum received from the net slot machine income and net table game income must be forwarded by the board directly, in equal amounts, to the governing bodies of the federally recognized Indian tribes in the State;

L. Twenty and one-half percent of the sum received from the net slot machine income and net table game income must be forwarded by the board to the Treasurer of State, who shall credit the money to the Department of Education for the purpose of funding kindergarten to grade 12 education; and

M. Twenty and one-half percent of the sum received from the net slot machine income and net table game income must be forwarded by the board to the Treasurer of State, who shall credit the money to the Local Government Fund under Title 30-A, chapter 223 for the purpose of revenue sharing with the municipalities of the State.

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 to the best-value bidder selected by the Commissioner of Administrative and Financial Services, referred to in this Part as "the commissioner," in accordance with this section.

1. Solicit bids. In accordance with the process for a competitive bid 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 the southern part of the State.

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

A. Submitted no later than July 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.

3. 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 the hospitality industry or a related field;

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

F. 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

G. 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 that the bidder has not 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.

4. Award of bid. The commissioner shall review the bids submitted pursuant to this section, consider the information provided pursuant to subsection 3 and shall award the contract to the best-value bidder.

5. Contract requirements. As part of the contract awarded pursuant to this Part, the bidder must agree 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 gaming facility;

C. Include an entertainment venue at the resort; and

D. Include retail space at the resort.

SUMMARY

This bill requires the Commissioner of Administrative and Financial Services to solicit bids for the operation of a new casino located in southern Maine and directs the Department of Public Safety, Gambling Control Board to issue a casino operator license to the entity that is awarded the bid. The casino operator must enter into an agreement with the municipality where the slot machines are located that provides for revenue sharing or other compensation of at least 3% of the net slot machine income. The fee for this license is $5,000,000. The limit on the number of slot machines that may be registered in the State is raised from 3,000 to 5,000.

The casino operator must distribute 1% of gross slot machine income to the General Fund for the administrative expenses of the Gambling Control Board. The casino operator must distribute 39% of net slot machine income and 16% of net table game income as follows:

1. Two and one-half percent for the administrative expenses of the Gambling Control Board and for the Gambling Addiction Prevention and Treatment Fund;

2. Twenty percent to supplement harness racing purses;

3. Five percent to the Sire Stakes Fund;

4. Eight and one-half percent to the Agricultural Fair Support Fund;

5. Five percent to the municipality in which the slot machines and table games are located;

6. Seven and one-half percent to the county in which the slot machines and table games are located;

7. Two and one-half percent to the municipalities that abut the municipality in which the slot machines and table games are located;

8. Two and one-half percent to the Fund to Stabilize Off-track Betting Facilities;

9. One and one-half percent to a nonprofit fraternal organization fund established by rule;

10. One and one-half percent to the Coordinated Veterans Assistance Fund;

11. Two and one-half percent to the federally recognized Indian tribes in the State;

12. Twenty and one-half percent to the Department of Education for the purpose of funding kindergarten to grade 12 education; and

13. Twenty and one-half percent to the Local Government Fund under the Maine Revised Statutes, Title 30-A, chapter 223 for the purpose of revenue sharing with the municipalities of the State.

HP1171 LD 1675	Session - 126th Maine Legislature		LR 2521 Item 1
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