HP0833, LD 1144, item 1, An Act To Authorize Tribal Gaming

An Act To Authorize Tribal Gaming

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

Sec. 1. 8 MRSA §1001, sub-§25-A is enacted to read:

25-A. Joint tribal entity. "Joint tribal entity" means a legal entity formed for the purpose of operating slot machines and table games at a casino, the entire ownership of which is held equally, either jointly or in common, by the Passamaquoddy Tribe, the Penobscot Nation, the Aroostook Band of Micmacs and the Houlton Band of Maliseet Indians.

Sec. 2. 8 MRSA §1011, sub-§2-C is enacted to read:

2-C. Licenses for the operation of slot machines and table games by a joint tribal entity. Notwithstanding subsection 2-B, the board may accept an application for a casino operator license from a joint tribal entity authorizing the joint tribal entity to operate slot machines and table games at one casino owned by the joint tribal entity.

Sec. 3. 8 MRSA §1011, sub-§4-A is enacted to read:

4-A. Joint tribal entity license; change in ownership. Notwithstanding section 1001, subsection 25-A, a casino operator license issued to a joint tribal entity does not become invalid or ineligible for renewal if the composition of the joint tribal entity changes, as long as:

A. The change in composition happens no sooner than 6 months after initial licensure;

B. The joint tribal entity consists of no fewer than 2 federally recognized Indian tribes after the composition change; and

C. The remaining tribes comprise the entire ownership and that ownership is held equally, either jointly or in common.

Sec. 4. 8 MRSA §1018, sub-§1-A, as enacted by PL 2011, c. 699, §2, is amended to read:

1-A. Fees for slot machine and casino operator licenses on or after September 1, 2012. Notwithstanding subsection 1, paragraphs C and C-1, beginning September 1, 2012, an applicant for a slot machine operator license or a casino operator license must pay a $250,000 nonrefundable privilege fee to be submitted with the application for the license and a minimum license fee, or cash bid if the license is part of a competitive bidding process established by law, of $5,000,000. This subsection does not apply to a casino licensed for operation in the State as of September 1, 2012 or a casino licensed to a joint tribal entity under section 1011, subsection 2-C.

Sec. 5. 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 Except for a casino operator license issued to a joint tribal entity under section 1011, subsection 2-C, 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. A casino operator license issued to a joint tribal entity may not be issued for a casino located within 50 miles of an existing licensed casino or slot machine facility. This subsection 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.

Sec. 6. 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 , other than a casino to be operated by a joint tribal entity, may not be issued a license unless it has been 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.

A. A license may not be issued to a joint tribal entity that has applied for a casino operator license under section 1011, subsection 2-C unless one of the following conditions is met:

(1) The land on which the casino will be located is land that on January 1, 2019 was owned by the Passamaquoddy Tribe, the Penobscot Nation, the Aroostook Band of Micmacs or the Houlton Band of Maliseet Indians or is land held in trust by the United States or by any other person or entity for the Passamaquoddy Tribe, the Penobscot Nation, the Aroostook Band of Micmacs or the Houlton Band of Maliseet Indians;

(2) The land on which the casino will be located is located in the unorganized territory; or

(3) The land on which the casino will be located is within a municipality and that municipality approves of the operation of the casino in that municipality. A municipality may provide its approval either by vote of its legislative body or in a referendum of the voters of the municipality.

Sec. 7. 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. 8. 8 MRSA §1036, sub-§2-A, as amended by PL 2017, c. 284, Pt. C, §1, is further amended to read:

2-A. Distribution from casino of slot machine income. A casino operator licensed under section 1011, subsection 2-A 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 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 deposited to the General Fund.

Sec. 9. 8 MRSA §1036, sub-§§2-D and 2-E are enacted to read:

2-D. Distribution of slot machine income from a casino operated by a joint tribal entity. A casino operator that is a joint tribal entity licensed under section 1011, subsection 2-C shall collect and forward 25% of net slot machine income from slot machines operated by the joint tribal entity to the Treasurer of State, who shall credit the money to the Department of Education, to be used for essential programs and services for kindergarten to grade 12 under Title 20-A, chapter 606-B.

2-E. Distribution of table game income from a casino operated by a joint tribal entity. A casino operator that is a joint tribal entity licensed under section 1011, subsection 2-C shall collect and forward 16% of net table game income from table games operated by the joint tribal entity for deposit to the General Fund.

SUMMARY

This bill authorizes the Department of Public Safety, Gambling Control Board to accept an application for a casino operator license from a joint tribal entity authorizing the joint tribal entity to operate table games and slot machines at one casino owned by the joint tribal entity. It increases by 1,500 the number of slot machines that may be registered in the State. "Joint tribal entity" is defined as a legal entity formed for the purpose of operating slot machines and table games at one casino, the entire ownership of which is held equally, either jointly or in common, by the Passamaquoddy Tribe, the Penobscot Nation, the Aroostook Band of Micmacs and the Houlton Band of Maliseet Indians.

The bill provides the following in regard to the casino.

1. It specifies that, as a condition of a joint tribal entity's receiving a license, a casino must be located:

A. On land that on January 1, 2019 was owned by the Passamaquoddy Tribe, the Penobscot Nation, the Aroostook Band of Micmacs or the Houlton Band of Maliseet Indians or land held in trust by the United States or by any other person or entity for the Passamaquoddy Tribe, the Penobscot Nation, the Aroostook Band of Micmacs or the Houlton Band of Maliseet Indians;

B. On land located in the unorganized territory; or

C. On land in a municipality and that municipality approves of the operation of the casino in that municipality, either by vote of its legislative body or in a referendum of the voters of the municipality.

2. It exempts a casino licensed to a joint tribal entity from the provision in current law that prohibits a new casino or slot machine facility from being located within 100 miles of an existing casino or slot machine facility. It provides that a casino licensed to a joint tribal entity may not be located within 50 miles of an existing facility.

3. It provides that a change in the composition of a joint tribal entity does not invalidate a casino license issued to the entity as long as the change occurs no sooner than 6 months after the license is issued and the entity still consists of at least 2 federally recognized Indian tribes in the State who own equal shares of the entity in its entirety.

4. It changes the provision in current law that states that distributions of net slot machine revenue from the casino located in Oxford County to the Penobscot Nation and the Passamaquoddy Tribe revert to the operator if one or both tribes operate or receive distributions from a newly licensed casino. It provides that the distribution of that slot machine revenue would instead be deposited into the General Fund if either the Penobscot Nation or the Passamaquoddy Tribe operated or received distributions from a newly licensed casino.

5. It establishes a distribution rate of 25% of net slot machine income and 16% of net table game income for a casino operator that is a joint tribal entity. The slot machine income is used to fund education for kindergarten to grade 12 and the table game income is deposited to the General Fund.

HP0833 LD 1144	Session - 129th Maine Legislature		LR 2121 Item 1
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