‘An Act To Establish a Competitive Bidding Process for the Operation of a Resort-style Casino in Southern Maine’
HP0876 LD 1280 |
Session - 127th Maine Legislature C "E", Filing Number H-580, Sponsored by
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LR 1572 Item 15 |
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Bill Tracking, Additional Documents | Chamber Status |
Amend the bill by striking out the title and substituting the following:
‘An Act To Establish a Competitive Bidding Process for the Operation of a Resort-style Casino in Southern Maine’
Amend the bill by striking out everything after the enacting clause and before the summary and inserting the following:
‘Sec. 1. 5 MRSA §12004-G, sub-§32-A is enacted to read:
Sport and Entertainment | Casino Development Commission | Legislative Per Diem and Expenses | 8 MRSA §1005-A |
Sec. 2. 8 MRSA §1001, sub-§6-A is enacted to read:
Sec. 3. 8 MRSA §1003, sub-§2, ¶B, as enacted by PL 2003, c. 687, Pt. A, §5 and affected by Pt. B, §11, is amended to read:
Sec. 4. 8 MRSA §1003, sub-§2, ¶B-1 is enacted to read:
Sec. 5. 8 MRSA §1005-A is enacted to read:
§ 1005-A. Casino Development Commission
Sec. 6. 8 MRSA §1011, sub-§2-B, as enacted by PL 2011, c. 699, §1, is repealed.
Sec. 7. 8 MRSA §1011, sub-§2-C is enacted to read:
Sec. 8. 8 MRSA §1011-A is enacted to read:
§ 1011-A. County referendum
This section applies to referendum requirements for counties in which the commission is authorized to receive bids for the privilege to submit an application for a casino operator license to the board.
Sec. 9. 8 MRSA §1011-B is enacted to read:
§ 1011-B. Privilege to submit a casino operator license application for a southern casino pursuant to competitive bidding
If the voters of either York County or Cumberland County, or both, approve the operation of a resort-style casino pursuant to a referendum held in accordance with section 1011-A, the commission shall develop a request for proposals designed to encourage vigorous bidding for the purpose of awarding one bidder the privilege to submit an application to the board for a casino operator license. The commission shall request bids for the privilege to submit an application to the board for one resort-style casino in either York County or Cumberland County, except that bids may not be requested for a proposal in a county in which the voters rejected the operation of a casino. A request for proposals must instruct potential bidders to propose the scope of the gambling facility and amenities to be offered in conjunction with the facility and how the proposal will ensure that the proposed casino will provide the State with socially responsible economic growth while operating as a successful business for the operator, considering license fees, minimum capital investment requirements, regulatory standards and required rates of revenue distribution. The commission may require submission of documented expert analysis from a bidder to support the proposals submitted by the bidder.
(1) The bidder's commitment and capacity to make an initial minimum capital investment of $250,000,000 for a resort-style casino facility. Land acquisition, license fees and off-site improvements are not considered to be part of the minimum capital investment;
(2) How the bidder's proposal can be expected to preserve existing jobs in the State and the number of net new full-time and part-time jobs that can be expected to be created by the operation of the proposed facility;
(3) The extent to which the bidder's market plans suit the character of the region and the local population in a way that encourages residents of the State to choose to patronize the bidder's proposed facility as opposed to gambling facilities in other states;
(4) The potential created by the bidder's proposal to create commercial development opportunities in the host location and surrounding communities consistent with historic uses, regional character and local zoning and planning requirements;
(5) The potential gross and net income to be generated by the bidder based upon documented, expert market analysis;
(6) The extent to which the bidder's proposed facility can reasonably be expected to serve as a significant regional and national tourism destination;
(7) How the bidder's proposal will result in the highest potential benefit and the highest prospective total revenues to the State from a bidder based upon documented, expert financial analysis;
(8) The bidder's proposed capital investment in a gambling facility, proposed amenities associated with the facility and timing of capital investment expenditures in terms of ensuring the facility is economically competitive in the State and regionally; and
(9) Other factors, properly disclosed in the commission's request for proposals, that the commission determines to be relevant;
(1) The bidder's workforce development plan and the extent to which it will maximize use of the State's existing labor force and create new jobs in the marketplace;
(2) The impact on economic development, existing and planned, in the region of the proposed facility;
(3) How the proposal would benefit the harness racing industry in the State and sustain or create jobs associated with the harness racing industry, including whether the bidder has any plans to support the operation of a commercial track at the casino facility location that uses a 5/8-mile, all-weather-surface track; and
(4) Other factors, properly disclosed in the commission's request for proposals, that the commission determines to be relevant;
(1) The adequacy of transportation infrastructure surrounding the proposed location of the gambling facility;
(2) The need for additional public infrastructure expenditures at or immediately surrounding the proposed location of the gambling facility;
(3) Any negative impact of the proposed location of the gambling facility on the municipality in which the facility is to be located, including but not limited to traffic congestion, worsened road safety conditions and increased safety concerns for pedestrian traffic;
(4) The bidder's proposals for mitigating negative impacts identified under this paragraph; and
(5) Other factors, properly disclosed in the commission's request for proposals, that the commission determines to be relevant; and
(1) The bidder's plan to identify, address and minimize the potential for and existence of negative consequences associated with gambling and the operation of the bidder's proposed facility, including but not limited to a financial commitment to efforts to address problem gambling prevention, intervention, treatment and research;
(2) The effects, both positive and negative, that can be reasonably anticipated to be experienced by the municipality in which the facility is located and the communities in the region; and
(3) The likelihood that the bidder will meet the casino operator license requirements described in section 1016.
The commission shall consult with the Office of the Attorney General during the negotiation and execution of the contract. The contract must be approved by the Attorney General. The casino operator license issued by the board does not take effect and the board may not accept the license fee required under section 1018, subsection 1, paragraph C-2 until the contract is executed.
Sec. 10. 8 MRSA §1018, sub-§1, ¶C, as enacted by PL 2003, c. 687, Pt. A, §5 and affected by Pt. B, §11, is amended to read:
Sec. 11. 8 MRSA §1018, sub-§1, ¶C-1, as amended by PL 2011, c. 417, §4, is further amended to read:
Sec. 12. 8 MRSA §1018, sub-§1, ¶¶C-2 and C-3 are enacted to read:
Sec. 13. 8 MRSA §1018, sub-§1-A, as enacted by PL 2011, c. 699, §2, is repealed.
Sec. 14. 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:
Sec. 15. 8 MRSA §1018, sub-§§2-A, 2-B and 3-A are enacted to read:
Sec. 16. 8 MRSA §1018-A is enacted to read:
§ 1018-A. Host municipality and county revenue loss mitigation
The portion of the license fee submitted in accordance with section 1018, subsection 1, paragraph C-2 must be deposited into a nonlapsing, dedicated account to be administered by the board. The purpose of the account is to maintain the level of revenue distributed to host municipalities under section 1011, subsection 4; section 1036, subsection 2, paragraph J; and section 1036, subsection 2-A, paragraph F and to a host county under section 1036, subsection 2-A, paragraph J and property tax revenue received by host municipalities. If a casino initially licensed to operate prior to January 1, 2016 ceases operation within 5 years of the commencement of the operation of slot machines at a casino in York County or Cumberland County, the board shall distribute revenues to the county that received distributions under section 1036, subsection 2-A, paragraph J, if applicable, and the municipality in which the closed casino was operated. The board shall determine the distribution amount by calculating the average annual distribution to the host county or host municipality of the closed casino from the last 5 full calendar years in which distributions were received from casinos initially licensed prior to January 1, 2016 and by factoring in any reduction in the amount of property tax revenues received by the municipality directly related to the cessation of casino operations. The distribution amount determined by the board must be decreased by the amounts distributed from a casino operated in York County or Cumberland County under section 1036, subsection 2-D, paragraphs K, M and N. The board shall determine the distribution amounts within 90 days of the closure of a casino initially licensed prior to January 1, 2016 and begin making distributions to the municipality and county, as applicable, as soon as practicable thereafter. Nothing in this section prohibits distribution to each municipality or county in which a casino initially licensed prior to January 1, 2016 is operated as long as the casino ceases operation within 5 years after the commencement of the operation of slot machines at a casino in York County or Cumberland County. Distributions made to a municipality or county in accordance with this section continue for a period of 5 years after receiving an initial distribution from the board in accordance with this section. If the amount in the account is insufficient to make distributions to the county or municipalities as required by this section, the board may require additional payment from the operator of the casino in York County or Cumberland County to make distributions required by this section. If no casino initially licensed prior to January 1, 2016 ceases operation within 5 years of the commencement of slot machine operation at a casino in York County or Cumberland County or if funds remain in the account after distributions are made in accordance with this section for the 5-year period, the funds must be deposited in the Department of Transportation, Highway and Bridge Capital program, Other Special Revenue Funds account within the Highway Fund as established by Title 23, section 1651 for capital improvement purposes.
Sec. 17. 8 MRSA §1019, sub-§6, as amended by PL 2011, c. 417, §5, is repealed.
Sec. 18. 8 MRSA §1019, sub-§7, as amended by PL 2011, c. 417, §6, is repealed.
Sec. 19. 8 MRSA §1020, sub-§3, as amended by PL 2011, c. 585, §8, is further amended to read:
Sec. 20. 8 MRSA §1036, sub-§§2-D and 2-E are enacted to read:
(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;
Sec. 21. 8 MRSA §1036-A is enacted to read:
§ 1036-A. Distributions of slot machine and table game income upon operation of a gambling facility licensed after January 1, 2016
The board may not make distributions as provided by section 1036, subsections 1, 2, 2-A, 2-B and 2-C after the commencement of operations of a gambling facility subject to licensure by the board initially licensed after January 1, 2016. Net slot machine income and net table game income collected by a casino operator or slot machine facility operator in accordance with section 1036, subsections 1, 2, 2-A, 2-B and 2-C must be held by the board until a distribution of 40% of net slot machine income and a distribution of 16% of net table game income is established by the Legislature that provides for a distribution of net slot machine income and net table game income that applies, in the same manner, to each gambling facility licensed in accordance with this chapter.
Sec. 22. 37-B MRSA §516 is enacted to read:
§ 516. Fund to Reform Veterans Services
The Fund to Reform Veterans Services is established to develop a coordinated delivery system of benefits and services to veterans in the State. The fund is a dedicated, nonlapsing account. Benefits and services to be coordinated within this system are not limited to those established and administered by the State, but may also include those provided by federal agencies, service-oriented nonprofit organizations and veterans' service organizations. The director shall administer the fund based on the recommendations and funding priorities established by the Maine Veterans Assistance Council established under section 517. Allocations from the fund in any one calendar year may not exceed 85% of the balance of the fund at the beginning of the calendar year. The director may request allocations from the fund once per calendar year, not to exceed 1% of the balance of the fund at the beginning of the calendar year, to cover the costs of administration of the Maine Veterans Assistance Council.
Sec. 23. 37-B MRSA §517 is enacted to read:
§ 517. Maine Veterans Assistance Council
Sec. 24. Executive director of State Harness Racing Commission to submit report regarding Sire Stakes Fund. No later than February 15, 2017, the executive director of the State Harness Racing Commission within the Department of Agriculture, Conservation and Forestry shall submit a report to the joint standing committees of the Legislature having jurisdiction over agricultural matters and casino matters regarding the Sire Stakes Fund established in the Maine Revised Statutes, Title 8, section 281. The executive director shall include in the report recommendations, developed in consultation with the State Harness Racing Commission and after seeking comment from members of the harness racing industry, to increase the number of breeders eligible to receive funds and ways to structure distributions so that distributions from the fund are not concentrated among a small percentage of breeders of standardbred horses.
Sec. 25. Appropriations and allocations. The following appropriations and allocations are made.
DEFENSE, VETERANS AND EMERGENCY MANAGEMENT, DEPARTMENT OF
Veterans Services 0110
Initiative: Establishes the Fund to Reform Veterans Services with a base allocation.
OTHER SPECIAL REVENUE FUNDS | 2015-16 | 2016-17 |
All Other
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$0 | $500 |
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OTHER SPECIAL REVENUE FUNDS TOTAL | $0 | $500 |
summary
This amendment replaces the bill and is the majority report of the committee. The amendment establishes a competitive bid process for the operation of a resort-style casino in either York County or Cumberland County. The amendment establishes the Casino Development Commission, which is an independent board of 5 members appointed by the Governor and confirmed by the Senate. The commission's purpose is to develop a request for proposals for the privilege to submit an application to the Department of Public Safety, Gambling Control Board for a casino operator license. Prior to submitting a request for proposals, either York County or Cumberland County, or both, would have to hold a referendum vote asking voters to allow the operation of a casino in their county. The referendum must be held on the same date as a statewide election no sooner than June 1, 2017 and no later than July 1, 2018. The fee to submit a bid is $250,000. The amendment provides for specific supporting information to be submitted by the bidder and considered by the commission including the bidder's ability to make a minimum $250,000,000 capital investment in the resort-style casino and information regarding job creation, economic development, plans to mitigate negative infrastructure impacts and the bidder’s support of the harness racing industry. Under the amendment, the commission is directed to develop a point system for the factors to be considered in evaluating proposals and give priority to proposals that create jobs, promote economic development, increase tourism and support a casino that fits the character of the State. The winning bidder must enter into a contract with the commission that obligates the casino operator to abide by the proposals made in the winning bid. Failure to abide by the terms of the contract could result in financial penalties to the casino operator.
The license fee for a casino under the amendment is $55,000,000, of which $5,000,000 is deposited into the General Fund to be used for administrative expenses of the Gambling Control Board. The remaining $50,000,000 is deposited into an account to be used to mitigate the impact of lost revenue on the municipalities and a county in which casinos are currently located. The Gambling Control Board will distribute money from the account to the municipalities and county based on distributions the municipalities and county had been receiving from the casino.
If a person initially licensed to operate the casino surrenders the license or the license is revoked, a subsequent licensee may operate the casino only for the remainder of the license term and is subject to a $500,000 transfer fee. A subsequent licensee is subject to the contract executed when the casino in either York County or Cumberland County was initially licensed.
The amendment sets the distribution of net slot machine revenue at 40% and the distribution of net table game revenue at 16% for the resort-style casino. It directs the Gambling Control Board to withhold distributions of slot and table game revenues from the existing casinos upon the commencement of operation of the casino authorized by this amendment until the required distributions are established at those rates for all casinos by the Legislature. The amendment provides for various recipients of slot machine revenue and requires table game revenue to be deposited to the Fund to Reform Veterans Services. Allocations from the fund are made through grants to support the needs of veterans as governed by the policies and objectives of the Maine Veterans Assistance Council, which is established by this amendment.
The amendment requires the executive director of the State Harness Racing Commission to submit a report to the joint standing committees of the Legislature having jurisdiction over casino matters and agricultural matters. The executive director is required to consult with the commission and members of the harness racing industry to make recommendations that will increase the number of breeders in the Sire Stakes Fund program and structure distributions so that the money is not concentrated among a small percentage of breeders.
The amendment also adds an appropriations and allocations section.