Chapter 539
H.P. 1651 - L.D. 2289
PART G
Sec. G-1. 7 MRSA §91, sub-§1,  as enacted by PL 2005, c. 563, §3, is amended to read:
1. Fund created.
Â
The Treasurer of State shall establish an account to be known as "the Agricultural Fair Support Fund" and shall credit to it all money received under Title 8, section 1036, subsection 2, paragraph D. The fund is a dedicated, nonlapsing fund. All revenues deposited in the fund must be disbursed in accordance with this section, except that assessments and advances may be withdrawn in accordance with Title 8, section 267-A.
Sec. G-2. 8 MRSA §265, last ¶,  as enacted by PL 1997, c. 528, §8, is amended to read:
Compensation of the members of the commission and all other necessary expenses of the commission must be paid out of amounts the Legislature may appropriate the operating account established under section 267-A.
Sec. G-3. 8 MRSA §266  is amended to read:
Compensation of the commissioners, their assistants and all other necessary expenses of the commission shall be paid out of such amounts as the Legislature may appropriate the operating account established under section 267-A.
Sec. G-4. 8 MRSA §267, sub-§1,  as enacted by PL 1991, c. 579, §8, is repealed and the following enacted in its place:
1. Budget.
Â
The commission shall develop or revise a recommended operating budget for each fiscal year of the biennium in accordance with this subsection. Funding for the commission is provided entirely from the operating account established in section 267-A. A. On or before August 1st of even-numbered years the commission shall hold a hearing to make findings regarding and develop its recommended operating budget for the biennium. The commission shall provide notice of the hearing in accordance with Title 5, section 9052, and notice must be provided to persons who receive distributions from the funds established by sections 281, 298, 299 and 300 and Title 7, section 91. Based on the information obtained during the hearing, the commission shall submit to the commissioner as provided in Title 5, section 1665 a budget consistent with this subsection that is sufficient to carry out the provisions of this chapter, and the commissioner shall transmit this budget to the Bureau of the Budget without any revision, alteration or change. The commission shall submit a copy of this budget with any desired comments to the joint standing committee of the Legislature having jurisdiction over agricultural matters, to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs and to the Executive Director of the Legislative Council.
B. On or before August 1st of odd-numbered years the commission shall hold a hearing to make findings regarding and develop any revisions to its budget for the second fiscal year of the biennium. The commission shall provide notice of the hearing in accordance with Title 5, section 9052, and notice must be provided to persons who receive distributions from the funds established by sections 281, 298, 299 and 300 and Title 7, section 91. After the hearing, the commission may submit to the commissioner any recommended revisions to its budget, and the commissioner shall transmit these changes to the Bureau of the Budget without any revision, alteration or change. The commission shall submit a copy of this revised budget with any desired comments to the joint standing committee of the Legislature having jurisdiction over agricultural matters, to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs and to the Executive Director of the Legislative Council.
Any budgetary increases proposed by the commission in developing its recommended budget for fiscal year 2010 and thereafter must be reasonable and related to expansion in the number of racing days, the numbers of races held, the need to maintain competitive salaries, or inflation.
Sec. G-5. 8 MRSA §267, sub-§2,  as amended by PL 1997, c. 528, §9, is further amended to read:
2. Report.
Â
By May 1st annually, the commission shall make a report to the commissioner with copies to the Governor, the joint standing committee of the Legislature having jurisdiction over agricultural matters and the Executive Director of the Legislative Council. This report must include an account of the commission's operations and actions, a report of its financial position, including receipts, an account of the practical effects of application of this chapter and any recommended legislation. The operations report must include the number and types of violations of racing laws and rules, the disposition of those violations and the amount of time required for their disposition, including a history of any appeals. The report must include the date and amount of each administrative assessment withdrawn in accordance with section 267-A from each of the assessed funds under section 267-A, subsection 4.
Sec. G-6. 8 MRSA §267-A  is enacted to read:
1. Account established.
Â
An operating account for the commission, referred to in this section as "the operating account," is established as a dedicated, nonlapsing fund. Funds in the operating account may be allocated and expended only for the purposes of funding the operations of the commission. The fund may not be charged for indirect costs under a departmental indirect cost allocation plan.
2. Revenues.
Â
The following must be deposited in the operating account: A. The state share as required under section 287;
B. All fees collected by the commission pursuant to section 271, 275-D and 279-A; and
C. Any funds allocated or appropriated to the operating account.
3. Additional revenue needs.
Â
Using the total legislative allocation of the operating account for the fiscal year and the revenue received and anticipated under subsection 2, the commission shall calculate the amount of additional revenue needed, referred to in this section as "the shortfall," to equal the total legislative allocation. This calculation must be made at least annually and more frequently if needed.
4. Administrative assessments.
Â
The following funds, referred to collectively in this section as "the assessed funds," are subject to an administrative assessment determined under subsection 5: A. The fund established in section 298 to supplement harness racing purses;
B. The Sire Stakes Fund established in section 281;
C. The Agricultural Fair Support Fund established in Title 7, section 91;
D. The Fund to Encourage Racing at Maine's Commercial Tracks established in section 299; and
E. The Fund to Stabilize Off-track Betting Facilities established in section 300.
Only those balances in the assessed funds from revenues received under section 1036, subsection 2, paragraphs B, C, D, H and I are subject to an assessment under this section.
5. Calculation and transfer of administrative assessment.
Â
The commission shall establish by rule an administrative assessment that when applied to each of the assessed funds yields a total that approximates the amount of the shortfall. The assessment is a percentage of the revenue each fund receives under section 1036. An assessment may be made on a monthly basis. The commission shall certify the amounts to be assessed on each of the assessed funds to the Treasurer of State, who shall transfer those amounts to the operating account.
6. Working capital advance.
Â
In addition to the administrative assessment established under subsection 5, the commission may assess a working capital advance from each of the assessed funds to meet the cash flow needs of the commission. The amount of the advance under this subsection must be established by rule and must be calculated as a single percentage applied to each of the assessed funds. The commission shall certify the amounts to be advanced from each of the assessed funds to the Treasurer of State, who shall transfer those amounts to the operating account. The commission shall credit against future assessments calculated under subsection 5 any amounts advanced as a working capital advance under this subsection.
7. Rulemaking.
Â
Rules adopted under subsections 5 and 6 to establish administrative assessments and working capital advances are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
Sec. G-7. 8 MRSA §271, sub-§2, ¶A,  as amended by PL 2007, c. 466, Pt. A, §26, is further amended to read:
A. The revenues to be generated, consistent with the profitability and financial health of the licensee, for the General Fund operating account pursuant to section 287; the purse supplements pursuant to section 286; the Sire Stakes Fund pursuant to section 281; and the Stipend Fund pursuant to Title 7, section 86;
Sec. G-8. 8 MRSA §281, last ¶,  as amended by PL 1999, c. 482, §4, is further amended to read:
The commission, by rule, may define a strain of Maine Standardbred, bred or owned in the State of Maine and registered with the department in its registry book. The commission is also authorized to establish necessary fees for horses and races in the establishment of a Maine Standardbred program, the funds from which must be administered by the department by deposit in a trust account entitled Sire Stakes Fund. The fund is a dedicated, nonlapsing fund and all revenues deposited in the fund remain in the fund and must be disbursed in accordance with this section. All disbursements from the fund must be for the purposes of supplementing purses, costs of administration , including assessments and advances withdrawn in accordance with section 267-A, and any other appropriate expenses incurred by the department. A report must be submitted annually by the executive director to the commissioner setting forth an itemization of all deposits to and expenditures from the fund.
Sec. G-9. 8 MRSA §287,  as amended by PL 2005, c. 563, §6, is further amended to read:
1. Payment.
Â
Amounts calculated as state share under section 286 must be paid to the Treasurer of State for deposit in the General Fund operating account established under section 267-A. If the total of regular and exotic wagers placed at facilities licensed under this chapter exceeds $35,000,000 for any calendar year, the portion payable to the General Fund operating account must be distributed in accordance with this section. All wagers placed at off-track betting facilities and racetracks must be included in making this calculation, including wagers made in this State to commingled pools.
2. Commercial meet account.
Â
The Treasurer of State shall deposit in a commercial meet account 72% of the revenue credited to the General Fund operating account under this section that is attributable to amounts in excess of $35,000,000. This account must be divided in the proportion that the contributions of regular and exotic wagers of pari-mutuel pools on live racing made or conducted at the commercial meets of each licensee during the calendar year bear to the total contributions of regular and exotic wagers to pari-mutuel pools on live racing made or conducted at the commercial meets of all licensees during that calendar year. Licensees sharing in this distribution shall use 1/2 of the funds received for the purpose of supplementing purse money. The other 1/2 of this distribution must be paid to the commercial licensees as reimbursement for improvements made to their racing facilities in the calendar year during which the funds are generated or, beginning January 1, 2000, during the prior year. To receive reimbursement, commercial licensees must submit plans for the improvements to the commission and receive approval from the commission prior to making the improvements, and the commission must verify that the approved improvements have been made.
3. Payment to Stipend Fund.
Â
Nine percent of the revenue credited to the General Fund operating account under this section that is attributable to amounts in excess of $35,000,000 must be distributed to the Stipend Fund as provided in Title 7, section 86.
4. Sire Stakes Fund.
Â
Nine percent of the revenue credited to the General Fund operating account under this section that is attributable to amounts in excess of $35,000,000 must be paid to the commission to be credited to the Sire Stakes Fund as provided in section 281.
5. Definition.
Â
For the purposes of this section, "improvements" means the amount paid out for new buildings or for permanent improvements made to improve the facilities utilized by the licensee for conducting its racing meetings; or the amount expended in restoring property or in improving the facility or any part of the facility that results in the addition, replacement or substantial enhancement or restoration of a fixed asset or of a movable asset that is important to efficient operation of the racing meetings. In general, the amounts referred to as improvements include amounts paid that add to the value, improve or substantially prolong the useful life of the racetrack and moveable assets utilized by the licensee for conducting its racing meetings. Amounts paid or incurred for routine repairs and maintenance of property, interest expense or lease payments in connection with the capital improvements are not improvements within the meaning of this section. In order to qualify as an improvement, a substantial enhancement or restoration of an asset must cost at least $2,000 and must be an expenditure that would qualify for depreciation under the United States Internal Revenue Code. A moveable asset may be considered important to the efficient operation of a race meeting if the asset will remain at the commercial track or at the offices of the licensee throughout its use and if that asset is directly associated with running races, accommodating patrons of the race meet, conducting pari-mutuel wagering or paying purses.
6. Timing of payment.
Â
Payment under this section must be made no later than 7 days after each race and must be accompanied by a report under oath showing the total of all contributions to pari-mutuel pools covered by the report and other information the commission requires.
7. Interim payments to commercial tracks.
Â
If during the course of any calendar year the commission finds that wagers placed at facilities licensed under this chapter for the year are likely to exceed $35,000,000, it may, if reasonably necessary for improvements to be effected expeditiously, direct the Treasurer of State to make interim payments to a commercial track in amounts as the commission finds the commercial track is likely to be entitled to receive under this section. If a commercial track receives interim payments under this subsection that exceed the total amount the commercial track is entitled to receive for the calendar year, the Treasurer of State shall reimburse the General Fund operating account for this excess by retaining money otherwise due to that commercial track pursuant to section 295.
Sec. G-10. 8 MRSA §298, sub-§1,  as enacted by PL 2003, c. 687, Pt. A, §3 and affected by Pt. B, §11, is amended to read:
1. Fund created.
Â
A fund is established to supplement harness racing purses to which the commission shall credit all payments received pursuant to section 1036, subsection 2, paragraph B for distribution in accordance with this section. The fund is a dedicated, nonlapsing fund, and all revenues deposited in the fund remain in the fund and must be disbursed in accordance with this section, except that assessments and advances may be withdrawn in accordance with section 267-A. The commission shall distribute in accordance with this section amounts credited to the fund.
Sec. G-11. 8 MRSA §299, sub-§1,  as enacted by PL 2003, c. 687, Pt. A, §4 and affected by Pt. B, §11, is amended to read:
1. Fund created.
Â
The Fund to Encourage Racing at Maine's Commercial Tracks is established to provide revenues to Maine's commercial tracks. The fund is a dedicated, nonlapsing fund. All revenues deposited in the fund remain in the fund and must be disbursed in accordance with this section, except that assessments and advances may be withdrawn in accordance with section 267-A.
Sec. G-12. 8 MRSA §300, sub-§1,  as enacted by PL 2003, c. 687, Pt. A, §4 and affected by Pt. B, §11, is amended to read:
1. Fund created.
Â
The Fund to Stabilize Off-track Betting Facilities is established to provide revenues to those off-track betting facilities licensed and in operation as of December 31, 2003. The fund is a dedicated, nonlapsing fund. All revenues deposited in the fund remain in the fund and must be disbursed in accordance with this section, except that assessments and advances may be withdrawn in accordance with section 267-A.
Sec. G-13. Transition; working capital advance. Notwithstanding any other provision in the Maine Revised Statutes, Title 8, section 267-A, the Harness Racing Commission may assess a working capital advance under Title 8, section 267-A, subsection 6 in an amount not to exceed $110,000, pending the adoption of rules under Title 8, section 267-A, subsection 7. The commission shall certify the amounts to be assessed to the Treasurer of State, who shall transfer those amounts from each of the assessed funds to the commission's operating account. The amount transferred pursuant to this section must be credited against subsequent assessments made pursuant to rules adopted under Title 8, section 267-A, subsection 7.
Sec. G-14. Appropriations and allocations. The following appropriations and allocations are made.
AGRICULTURE, FOOD AND RURAL RESOURCES, DEPARTMENT OF
Harness Racing Commission 0320
Initiative: Deappropriates funding for the Harness Racing Commission.
| GENERAL FUND |
2007-08 |
2008-09 |
|
POSITIONS - LEGISLATIVE COUNT
|
0.000 |
(3.000) |
|
POSITIONS - FTE COUNT
|
0.000 |
(2.578) |
|
Personal Services
|
$0 |
($410,634) |
|
All Other
|
$0 |
($698,575) |
|
 |
|
| GENERAL FUND TOTAL |
$0 |
($1,109,209) |
| OTHER SPECIAL REVENUE FUNDS |
2007-08 |
2008-09 |
|
POSITIONS - LEGISLATIVE COUNT
|
0.000 |
3.000 |
|
POSITIONS - FTE COUNT
|
0.000 |
2.809 |
|
Personal Services
|
$0 |
$423,828 |
|
All Other
|
$0 |
$466,593 |
|
|
|
| OTHER SPECIAL REVENUE FUNDS TOTAL |
$0 |
$890,421 |
Sec. G-15. Effective date. This Part takes effect July 1, 2008.