‘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 "D", Filing Number H-494, Sponsored by
|
LR 1572 Item 5 |
|
| 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Sec. 6. 8 MRSA §1011, sub-§2-B, as enacted by PL 2011, c. 699, §1, is repealed.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. Privilege to submit a casino operator license application for a southern casino pursuant to competitive bidding
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 a resort-style casino in either York County or Cumberland County. 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; and
(3) 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. 9. 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. 10. 8 MRSA §1018, sub-§1, ¶C-1, as amended by PL 2011, c. 417, §4, is further amended to read:
Sec. 11. 8 MRSA §1018, sub-§1, ¶¶C-2, C-3 and C-4 are enacted to read:
Sec. 12. 8 MRSA §1018, sub-§1-A, as enacted by PL 2011, c. 699, §2, is repealed.
Sec. 13. 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. 14. 8 MRSA §1018, sub-§§2-A, 2-B and 3-A are enacted to read:
Sec. 15. 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. If a casino initially licensed to operate prior to January 1, 2015 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. The board shall determine the distribution amounts within 90 days of the closure of a casino initially licensed prior to January 1, 2015 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 a county in which a casino initially licensed prior to January 1, 2015 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 until 100% of the amount of the license fee deposited into the account is distributed. If no casino initially licensed prior to January 1, 2015 ceases operation within 5 years of the commencement of slot machine operation at a casino in York County or Cumberland County, 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. 16. 8 MRSA §1019, sub-§6, as amended by PL 2011, c. 417, §5, is repealed.
Sec. 17. 8 MRSA §1019, sub-§7, as amended by PL 2011, c. 417, §6, is repealed.
Sec. 18. 8 MRSA §1020, sub-§3, as amended by PL 2011, c. 585, §8, is further amended to read:
Sec. 19. 8 MRSA §1036, as amended by PL 2013, c. 118, §§1 and 2 and c. 128, §1, is further amended to read:
§ 1036. Allocation of funds
(1) For the fiscal year beginning July 1, 2011, $50,000;
(2) For the fiscal year beginning July 1, 2012, $50,000; and
(3) For the fiscal year beginning July 1, 2013 and for each fiscal year thereafter, $100,000;
(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;
(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;
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. 20. 8 MRSA §1036-A is enacted to read:
§ 1036-A. Distributions of slot machine and table game income upon operation of a casino, gambling facility or slot machine facility licensed after January 1, 2015
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 casino, slot machine facility or gambling facility subject to licensure by the board initially licensed after January 1, 2015. 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 net slot machine income and 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 casino, slot machine facility or gambling facility licensed in accordance with this chapter.
Sec. 21. Joint Standing Committee on Veterans and Legal Affairs authorized to submit legislation. The Joint Standing Committee on Veterans and Legal Affairs is authorized to submit legislation to the Second Regular Session of the 127th Legislature establishing a manner of distribution of slot machine and table game revenue that will apply to each casino, slot machine facility or gambling facility operated in this State. The manner of slot machine and table game revenue distribution must apply percentages to the following:
1. The fund to supplement harness racing purses established under the Maine Revised Statutes, Title 8, section 298;
2. The Sire Stakes Fund established under Title 8, section 281;
3. The Agricultural Fair Support Fund established under Title 7, section 91, except that distributions to that fund may not be paid to those licensed to conduct or accept wagers on harness racing at an agricultural fair or commercial track;
4. Scholarships for the University of Maine System, Maine Maritime Academy and Maine Community College System;
5. The City of Bangor, the Town of Oxford and the counties of Penobscot and Oxford;
6. The municipality in either York County or Cumberland County in which the casino is operated;
7. The Department of Education to fund essential programs and services for kindergarten to grade 12 under Title 20-A, chapter 606-B;
8. The Fund to Stabilize Off-track Betting Facilities established under Title 8, section 300;
9. Each of the 4 federally recognized Indian tribes in the State if the tribe is not benefitting from the operation of a casino licensed after January 1, 2015;
10. The Fund for a Healthy Maine established under Title 22, section 1511 to support programs that provide prescription drug benefits to the elderly;
11. The Maine Milk Pool, Other Special Revenue Funds account within the Department of Agriculture, Conservation and Forestry for dairy stabilization programs under Title 7, sections 3153-B and 3153-D;
12. The Dairy Improvement Fund established under Title 10, section 1023-P;
13. The General Fund for administrative expenses of the Gambling Control Board within the Department of Public Safety and the Gambling Addiction Prevention and Treatment Fund established under Title 5, section 20006-B;
14. The Coordinated Veterans Assistance Fund established under Title 37-B, section 514 and the Bureau of Maine Veterans' Services within the Department of Defense, Veterans and Emergency Management for the purposes of developing a coordinated delivery system of services and benefits from nonprofit organizations and federal and state programs to veterans in the State;
15. Established bona fide nonprofit organizations incorporated in the State whose charitable purpose is to serve veterans;
16. The General Fund to provide supplemental funding for the operation of county jails;
17. A fund, to be established, for the purpose of providing education in the industry of harness racing through paid internships for high-school-aged students;
18. A fund, to be established, to benefit an agricultural fair association by funding premium payouts at agricultural fairs;
19. A fund, to be established, to support harness racing conducted by agricultural fairs by assisting with improvements and maintenance to racing tracks and buildings associated with harness racing; and
20. A fund, to be established, to support the costs and promotion of educational programs for school-aged children conducted as part of an agricultural fair.
Sec. 22. Statutory referendum procedure; submission at election; form of question; effective date. This Act must be submitted to the legal voters of the State at a statewide election held in the month of November 2016 following passage of this Act. The municipal officers of this State shall notify the inhabitants of their respective cities, towns and plantations to meet, in the manner prescribed by law for holding a statewide election, to vote on the acceptance or rejection of this Act by voting on the following question:
"Do you favor the operation of a resort-style casino, licensed pursuant to a competitive bid process, in either York County or Cumberland County?"
The legal voters of each city, town and plantation shall vote by ballot on this question and designate their choice by a cross or check mark placed within a corresponding square below the word "Yes" or "No." The ballots must be received, sorted, counted and declared in open ward, town and plantation meetings and returns made to the Secretary of State in the same manner as votes for members of the Legislature. The Governor shall review the returns. If a majority of the legal votes are cast in favor of this Act, the Governor shall proclaim the result without delay and this Act becomes effective 30 days after the date of the proclamation.
The Secretary of State shall prepare and furnish to each city, town and plantation all ballots, returns and copies of this Act necessary to carry out the purposes of this referendum.’
summary
This amendment replaces the bill and is a minority 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 Gambling Control Board for a casino operator license. 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 and plans to mitigate negative infrastructure impacts. Under the amendment, the commission is directed to develop a point system for the factors to be considered and give priority to factors 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 operator.
The license fee for a casino under the amendment is $50,000,000, of which $5,000,000 is deposited with the Gambling Control Board and $15,000,000 is deposited into the General Fund. The remaining $30,000,000 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. If an existing casino closes, the Gambling Control Board will distribute money from the account to the municipalities and county based on distributions the municipality or 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. Upon commencement of table game operations at a casino in York County or Cumberland County, a single distribution of slot machine and table game revenue will be applied to all casinos in the State. The amendment authorizes the Joint Standing Committee on Veterans and Legal Affairs to submit legislation developing this distribution of revenue and provides a list of funds and programs that are required to be included in that distribution.
Finally, the amendment makes enactment of this bill contingent upon the approval of the voters of the State at a statewide referendum held in November 2016.