HP0532
LD 701
First Special Session - 123rd Legislature - Text: MS-Word, RTF or PDF LR 666
Item 2
Bill Tracking Chamber Status

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

Sec. 1. 8 MRSA §1003, sub-§2, ¶M,  as enacted by PL 2003, c. 687, Pt. A, §5 and affected by Pt. B, §11, is amended to read:

M.  Inform commercial track operators those applying for a license to operate slot machines that any slot machines licensed by the board must be compatible with the central site system of on-line monitoring used by the board;

Sec. 2. 8 MRSA §1011,  as amended by PL 2005, c. 663, §6, is further amended to read:

§ 1011. License to operate

The board shall exercise authority over the licensing of all persons participating in the operation, distribution and maintenance of slot machines and slot machine facilities and over the registration of slot machines.

1. Operator license required.   A person may not operate any slot machine in the State unless the person has been issued a license to operate slot machines by the board. A slot machine operator license authorizes a licensee to own or lease slot machines operated at a licensed gambling facility.
2. Eligible persons.   The board may accept applications for a license to operate slot machines from a federally recognized Indian tribe in the State licensed to conduct high stakes beano as of January 1, 2007 and any person who is licensed to operate a commercial track that satisfies the following criteria:
A.  The commercial track is located at or within a 5-mile radius of the center of a commercial track that conducted harness racing with pari-mutuel wagering on more than 25 days during calendar year 2002; and
B.  The operation of slot machines at the commercial track is approved by the voters of the municipality in which the commercial track to be licensed is located by referendum election held at any time after December 31, 2002 and before December 31, 2003.
3. Requirements for license; continued commercial track licensure.   The board may not issue a license to operate slot machines to any person unless that person demonstrates compliance with the qualifications set forth in sections 1016 and 1019. A person who is granted a license to operate slot machines at a commercial track must maintain a license to operate a commercial track, without lapse, suspension or revocation for the duration of the slot machine operator's license.
4. Requirement for license; agreement with municipality where slot machines are located.   A slot machine operator licensed to operate slot machines at a commercial track shall enter into an agreement with the municipality where the slot machine 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.
5. Renewal.   Licenses to operate slot machines may be renewed upon application for renewal in accordance with this subchapter, subject to board rules.

Sec. 3. 8 MRSA §1012, first ¶,  as enacted by PL 2003, c. 687, Pt. A, §5 and affected by Pt. B, §11, is amended to read:

An application for renewal of a commercial track slot machine operator license must first be approved under this section by the municipal officers of the municipality in which the commercial track with slot machines is located or, if the commercial track is in an unincorporated place, the application must be approved by the county commissioners of the county in which the commercial track with slot machines is located.

Sec. 4. 8 MRSA §1012, sub-§1,  as enacted by PL 2003, c. 687, Pt. A, §5 and affected by Pt. B, §11, is amended to read:

1. Hearings.   Municipal officers or county commissioners, as the case may be, may hold a public hearing for the consideration of a request for the renewal of a license to operate slot machines at a commercial track, except that, when an applicant has held a license for the prior 5 years and a complaint has not been filed with the board against the applicant within that time, the applicant may request a waiver of the hearing.
A.  The board shall prepare and supply application forms for public hearings under this subsection.
B.  Municipal officers or county commissioners, as the case may be, shall provide public notice of any hearing held under this section by causing, at the applicant's prepaid expense, a notice stating the name and place of the hearing to appear on at least 3 consecutive days before the date of the hearing in a daily newspaper having general circulation in the municipality where the premises of the commercial track with slot machines are located or one week before the date of the hearing in a weekly newspaper having general circulation in the municipality where the premises are located.
C.  If municipal officers or county commissioners, as the case may be, fail to take final action on an application for a renewal of a slot machine operator license within 60 days of the filing of an application, the application is considered approved and ready for action by the board. For purposes of this paragraph, the date of filing of the application is the date the application is received by the municipal officers or county commissioners.

Sec. 5. 8 MRSA §1018, sub-§1,  as amended by PL 2005, c. 663, §7, is further amended to read:

1. Fees.   The application fee for a license and the annual fee for a registered slot machine under this chapter are as set out in this subsection.
A.  The initial registration fee for a registered slot machine is $100. The annual renewal fee is $100 for each registered slot machine.
B.  The initial application fee for a slot machine distributor license is $200,000. The annual renewal fee is $75,000.
C.  The initial application fee for a commercial track slot machine operator license is $200,000 and $55,000 for a license to operate slot machines held by a federally recognized Indian tribe licensed to operate high stakes beano. The annual renewal fee is $75,000 for a commercial track slot machine operator license and $20,000 for a license to operate slot machines held by a federally recognized Indian tribe licensed to operate high-stakes beano plus an amount, set by rules of the board, equal to the cost to the board of licensing slot machine operators and determined by dividing the costs of administering the slot machine operator licenses by the total number of slot machine operators licensed by the board.
D.  The annual application fee for a license for a gambling services vendor is $2,000.
E.  The initial application fee for an employee license under section 1015 is $250. The annual renewal fee is $25.

In addition to the application fee for a license or annual fee for a registered slot machine, the board may charge a one-time application fee for a license or registration listed in paragraphs A to E in an amount equal to the projected cost of processing the application and performing any background investigations. If the actual cost exceeds the projected cost, an additional fee may be charged to meet the actual cost. If the projected cost exceeds the actual cost, the difference may be refunded to the applicant. All fees collected pursuant to this section must be deposited directly to the General Fund, except that $25,000 of the annual renewal fee for a commercial track slot machine operator must be deposited to the Gross Slot Income Other Special Revenue Fund account within the Gambling Control Board to be transferred to the municipality in which the slot machines are operated, in accordance with subsection 2. All application and registration fees are nonrefundable and are due upon submission of the application.

Sec. 6. 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 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 for a commercial track slot machine operator license required by subsection 1, paragraph C to the municipality in which the slot machines are operated.

Sec. 7. 8 MRSA §1020, sub-§3,  as amended by PL 2005, c. 663, §9, is further amended to read:

3. Limits on total slot machines.   The board shall determine the number of slot machines to be registered in the State. The board shall make this determination based upon the minimum net slot machine income, when distributed pursuant to section 1036, necessary to maintain the harness horse racing industry in this State, except that:
A The total number of slot machines registered in the State may not exceed 1,500; and
B.  A slot machine operator may not operate more than 1,500 slot machines at any one a commercial track . ; and
C A slot machine operator that is a federally recognized Indian tribe that operates high-stakes beano may not operate more than 400 slot machines.

Sec. 8. 8 MRSA §1036, sub-§2,  as amended by PL 2005, c. 563, §10 and c. 663, §12, is repealed and the following enacted in its place:

2 Distribution from commercial track.   A commercial track slot machine operator shall collect and distribute 39% of the net slot machine income from slot machines operated by the commercial track slot machine operator to the board for distribution by the board as follows:
A 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;
B Ten 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;
C Three percent of the net slot machine income must be credited by the board to the Sire Stakes Fund created in section 281;
D Three 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;
E Ten percent of the net slot machine income must be forwarded by the board to the State Controller to be credited to the Fund for a Healthy Maine established by Title 22, section 1511 and segregated into a separate account under Title 22, section 1511, subsection 11, with the use of funds in the account restricted to the purposes described in Title 22, section 1511, subsection 6, paragraph E;
F Two 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;
G One 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;
H Four 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 to Encourage Racing at Maine's Commercial Tracks, established in section 299; however, the payment required by this paragraph is terminated when all commercial tracks have obtained a license to operate slot machines in accordance with this chapter;
I Two 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 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. After 48 months of receiving an allocation of the net slot machine income from a licensed operator, the percent of net slot machine income forwarded to the Fund to Stabilize Off-track Betting Facilities is reduced to 1% with the remaining 1% to be forwarded to the State in accordance with subsection 1; and
J One percent of the net slot machine income must be forwarded directly to the municipality in which the slot machines are located.

Sec. 9. 8 MRSA §1036, sub-§2-A  is enacted to read:

2-A Distribution from tribal gambling facility.   A slot machine operator that is a federally recognized Indian tribe in the State licensed to operate high-stakes beano shall collect and distribute 38% of the net slot machine income from slot machines operated by the slot machine operator to the board for distribution by the board as follows:
A 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;
B Two and one half 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;
C Two and one half 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 Five 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 support the operating budget of the system;
E Five percent of the net slot machine income must be forwarded by the board to the Department of Defense, Veterans and Emergency Management, Bureau of Maine Veterans' Services;
F Five percent of the net slot machine income must be forwarded by the board to the Maine Technology Institute under Title 5, section 15302;
G Five percent of the net slot machine income must be distributed by the board in equal amounts to nonprofit organizations licensed as of January 1, 2007 to conduct beano within 75 miles of where slot machines are operated by a federally recognized Indian tribe in the State;
H Five percent of the net slot machine income must be forwarded by the board to the bordering municipality with the highest population where slot machines are operated by a federally recognized Indian tribe in the State; and
I Five percent of the net slot machine income must be distributed by the board to other federally recognized Indian tribes in the State that are not licensed to operate slot machines.

Sec. 10. Appropriations and allocations. The following appropriations and allocations are made.

COMMUNITY COLLEGE SYSTEM, BOARD OF TRUSTEES OF THE MAINE

Maine Community College System - Board of Trustees 0556

Initiative: Provides allocations for the distribution of funds to the scholarship program of the Maine Community College System.

OTHER SPECIAL REVENUE FUNDS 2007-08 2008-09
All Other
$89,190 $385,960
inline graphic sline.gif inline graphic sline.gif
OTHER SPECIAL REVENUE FUNDS TOTAL $89,190 $385,960

Maine Community College System - Board of Trustees 0556

Initiative: Provides allocations for the distribution of funds to the general fund of the Maine Community College System.

OTHER SPECIAL REVENUE FUNDS 2007-08 2008-09
All Other
$178,380 $771,920
inline graphic sline.gif inline graphic sline.gif
OTHER SPECIAL REVENUE FUNDS TOTAL $178,380 $771,920

COMMUNITY COLLEGE SYSTEM, BOARD OF TRUSTEES OF THE MAINE
DEPARTMENT TOTALS 2007-08 2008-09
OTHER SPECIAL REVENUE FUNDS
$267,570 $1,157,880
inline graphic sline.gif inline graphic sline.gif
DEPARTMENT TOTAL - ALL FUNDS $267,570 $1,157,880

DEFENSE, VETERANS AND EMERGENCY MANAGEMENT, DEPARTMENT OF

Veterans Services 0110

Initiative: Allocates funds to be distributed to the Bureau of Veterans Services.

OTHER SPECIAL REVENUE FUNDS 2007-08 2008-09
All Other
$178,380 $771,920
inline graphic sline.gif inline graphic sline.gif
OTHER SPECIAL REVENUE FUNDS TOTAL $178,380 $771,920

DEFENSE, VETERANS AND EMERGENCY MANAGEMENT, DEPARTMENT OF
DEPARTMENT TOTALS 2007-08 2008-09
OTHER SPECIAL REVENUE FUNDS
$178,380 $771,920
inline graphic sline.gif inline graphic sline.gif
DEPARTMENT TOTAL - ALL FUNDS $178,380 $771,920

ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF

Office of Innovation 0995

Initiative: Allocates funds for the Maine Technology Institute.

OTHER SPECIAL REVENUE FUNDS 2007-08 2008-09
All Other
$178,380 $771,920
inline graphic sline.gif inline graphic sline.gif
OTHER SPECIAL REVENUE FUNDS TOTAL $178,380 $771,920

ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF
DEPARTMENT TOTALS 2007-08 2008-09
OTHER SPECIAL REVENUE FUNDS
$178,380 $771,920
inline graphic sline.gif inline graphic sline.gif
DEPARTMENT TOTAL - ALL FUNDS $178,380 $771,920

PUBLIC SAFETY, DEPARTMENT OF

Gambling Control Board Z002

Initiative: Allocates funds to be distributed in equal amounts to certain nonprofits licensed to conduct beano.

OTHER SPECIAL REVENUE FUNDS 2007-08 2008-09
All Other
$178,380 $771,920
inline graphic sline.gif inline graphic sline.gif
OTHER SPECIAL REVENUE FUNDS TOTAL $178,380 $771,920

Gambling Control Board Z002

Initiative: Allocates funds to be distributed to the bordering municipality with the highest population where slot machines are operated by a federally recognized Indian tribe in the State.

OTHER SPECIAL REVENUE FUNDS 2007-08 2008-09
All Other
$178,380 $771,920
inline graphic sline.gif inline graphic sline.gif
OTHER SPECIAL REVENUE FUNDS TOTAL $178,380 $771,920

Gambling Control Board Z002

Initiative: Allocates funds to be distributed to federally recognized tribes in the State that are not licensed to operate slot machines.

OTHER SPECIAL REVENUE FUNDS 2007-08 2008-09
All Other
$178,380 $771,920
inline graphic sline.gif inline graphic sline.gif
OTHER SPECIAL REVENUE FUNDS TOTAL $178,380 $771,920

Gambling Control Board Z002

Initiative: Provides funds for two additional Public Inspector I positions and necessary operating costs.

GENERAL FUND 2007-08 2008-09
POSITIONS - LEGISLATIVE COUNT
2.000 2.000
Personal Services
$82,692 $115,802
All Other
$234,911 $76,375
inline graphic sline.gif inline graphic sline.gif
GENERAL FUND TOTAL $317,603 $192,177

PUBLIC SAFETY, DEPARTMENT OF
DEPARTMENT TOTALS 2007-08 2008-09
GENERAL FUND
$317,603 $192,177
OTHER SPECIAL REVENUE FUNDS
$535,140 $2,315,760
inline graphic sline.gif inline graphic sline.gif
DEPARTMENT TOTAL - ALL FUNDS $852,743 $2,507,937

UNIVERSITY OF MAINE SYSTEM, BOARD OF TRUSTEES OF THE

University of Maine Scholarship Fund Z011

Initiative: Allocates funds for the University of Maine System Scholarship Fund.

OTHER SPECIAL REVENUE FUNDS 2007-08 2008-09
All Other
$89,190 $385,960
inline graphic sline.gif inline graphic sline.gif
OTHER SPECIAL REVENUE FUNDS TOTAL $89,190 $385,960

UNIVERSITY OF MAINE SYSTEM, BOARD OF TRUSTEES OF THE
DEPARTMENT TOTALS 2007-08 2008-09
OTHER SPECIAL REVENUE FUNDS
$89,190 $385,960
inline graphic sline.gif inline graphic sline.gif
DEPARTMENT TOTAL - ALL FUNDS $89,190 $385,960

SECTION TOTALS 2007-08 2008-09
GENERAL FUND
$317,603 $192,177
OTHER SPECIAL REVENUE FUNDS
$1,248,660 $5,403,440
inline graphic sline.gif inline graphic sline.gif
SECTION TOTAL - ALL FUNDS $1,566,263 $5,595,617

summary

This amendment replaces the bill. The amendment allows for 400 slot machines, to be operated by a federally recognized Indian tribe that is licensed to conduct high-stakes beano as of January 1, 2007. The license would be subject to existing licensing requirements and oversight by the Gambling Control Board. The initial license fee for the slot machine license established by this amendment, based on the maximum of 400 machines, is $55,000 and the annual renewal fee is $20,000. One percent of the gross slot machine revenue would be required to be deposited to the General Fund. Thirty-eight percent of the net slot machine revenue from slot machines operated by a federally recognized Indian tribe under this amendment would be distributed as follows:

A. Three percent to the General Fund for administrative expenses of the board, including gambling addiction counseling services, in accordance with rules adopted by the board;

B. Two and one half percent to the University of Maine System Scholarship Fund;

C. Two and one half percent to the Maine Community College System to fund its scholarships program;

D. Five percent to the Maine Community College System;

E. Five percent to the Department of Defense, Veterans and Emergency Management, Bureau of Maine Veterans' Services;

F. Five percent to the Maine Technology Institute;

G. Five percent, in equal amounts, to nonprofit organizations licensed as of January 1, 2007 to conduct beano within 75 miles of where slot machines are operated by a federally recognized Indian tribe in the State;

H. Five percent to the bordering municipality with the highest population where slot machines are operated by a federally recognized Indian tribe that is licensed to conduct high-stakes beano; and

I. Five percent to be distributed to other federally recognized Indian tribes in the State that are not licensed to operate slot machines.

FISCAL NOTE REQUIRED
(See attached)


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