‘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 the title and substituting the following:
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:
32-A.
| 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:
6-A. Commission. "Commission" means the Casino Development Commission created under section 1005-A.
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:
B. Hear and decide all license and registration applications under this chapter and issues affecting the granting, suspension, revocation or renewal of licenses and registrations , including but not limited to applications received by the board from a person awarded the privilege by the commission to submit an application to operate a casino;
Sec. 4. 8 MRSA §1003, sub-§2, ¶B-1 is enacted to read:
B-1. Hear and decide issues affecting the granting, suspension, revocation or renewal of licenses and registrations;
Sec. 5. 8 MRSA §1005-A is enacted to read:
§ 1005-A. Casino Development Commission
1. Establishment. The Casino Development Commission, established in Title 5, section 12004-G, subsection 32-A, shall carry out the functions specified in this chapter with regard to awarding the privilege to apply for a casino or slot machine operator license through a competitive bid process and establishing a contract with the winning bidder upon issuance of a casino operator license by the board. The commission is affiliated with the board as specified in this chapter.
2. Members. The commission consists of 5 members appointed by the Governor. All members must be members of the general public without affiliation to the gaming or hospitality industry. At least 3 of the commission members must have training or experience in at least one of the following fields: corporate finance, economics, law, economic development and accounting. A municipal employee, county employee, elected official or candidate for elective office may not serve as a commission member.
3. Term of office. Members of the commission serve 3-year terms, except that the Governor shall initially appoint one member for a term of one year, 2 members for a term of 2 years and 2 members for a term of 3 years. A vacancy is filled by appointment for the remainder of the unexpired term of that member. Members whose terms expire serve until their successors are appointed and confirmed. Members may serve no more than 2 full consecutive terms on the commission.
4. Confirmation. Appointees to the commission must be reviewed by the joint standing committee of the Legislature having jurisdiction over gambling matters and are subject to confirmation by the Senate.
5. Chair. The commission members shall elect one member to serve as chair for at least a 2-year term.
6. Quorum. An action of the commission is not binding unless taken at a meeting at which at least 3 of the 5 members are present.
7. Conflict of interest. In addition to the restrictions imposed pursuant to Title 5, section 18, a commission member may not participate in any matter before the commission in which the commission member has a personal bias or any other conflict of interest as the commission determines, either on the commission's own motion or in response to a written complaint. During a commission member's term of service and for 5 years after the end of that commission member's service, any person with a direct and substantial interest in a gambling activity or gambling facility, including accommodations and amenities associated with a gambling facility, may not employ or be represented by the commission member or a member of the commission member's immediate family. For the purposes of this subsection, "direct and substantial" means ownership or control of more than 10% of the voting securities of a gambling facility, of an associated accommodation or associated amenity of a gambling facility or of an entity in contract, consort or cooperation with a gambling facility key executive.
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:
2-C. Persons eligible for casino operator license on or after January 1, 2016. Beginning January 1, 2016, the board may not accept an application for an initial license to operate a casino, slot machine facility or any other gambling facility for which the board has licensing authority, unless that application is submitted by a successful bidder for the privilege to submit an application to the board chosen pursuant to section 1011-B and the applicant has received approval by the voters of the municipality where the casino will be located.
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.
1. Secretary of State to prepare ballots and returns. Notwithstanding any law to the contrary, upon notification by the county commissioners of the date of a statewide election no sooner than June 1, 2017 and no later than July 1, 2018 at which a county has determined that the county will hold a referendum asking voters of the county to authorize the operation of a casino subject to a competitive bid process, the Secretary of State shall prepare and furnish to each city, town and plantation in that county ballots and returns for an election to be held no sooner than June 1, 2017 and no later than July 1, 2018. 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 Secretary of State shall determine the wording of the question to be submitted to the voters of the county.
2. Referendum impact on competitive bid for privilege to submit casino operator license application. The commission may accept and consider a bid for the privilege to submit an application for a casino operator license to the board from a bidder who proposes to operate a casino in a county where the voters have approved the operation of a casino by referendum held in accordance with this section. The commission may not accept a bid for the privilege to submit an application to the board for a casino operator license in a county where voters rejected the operation of a casino in the county by referendum vote or in a county that did not hold a countywide referendum within the time frame prescribed by this section.
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. Consideration of bids for privilege to submit casino operator license application to the board. A bidder seeking award of the privilege to submit an application to the board for a license to operate a casino in York County or Cumberland County shall comply with the requirements determined by the commission. The commission shall require that a proposal for the privilege to submit an application to the board for the operation of a casino include a nonrefundable application fee of $250,000 and an agreement to pay the costs of the board for processing an application and performing background investigations, as described in section 1018, subsection 1, if awarded the privilege to submit an application to the board for a license to operate a casino. The commission shall ensure that the request for proposals clearly identifies the deadline for submission and all bid requirements. The commission shall follow, as nearly as practicable, the provisions governing competitive bidding prescribed by Title 5, chapter 155, subchapter 1-A and rules adopted pursuant to that subchapter.
2. Request for proposals; factors; southern casino. When considering bids received in response to a request for proposals prescribed in subsection 1 for a location in York County or Cumberland County, the commission shall consider the following:
A. Business and market factors, including:
(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;
B. Economic development factors, including:
(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;
C. Site location factors, including:
(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
D. Factors other than those listed in paragraphs A to C, including:
(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.
3. Bid award factor priorities; southern casino. The commission shall develop a system of assigning points to the factors required to be considered under subsection 2. The commission is authorized to hire or enter into a contract with vendors experienced in evaluating business plans for large-scale development and the impacts of development on the local and regional economies to assist with the consideration of bids and development of the point system required by this subsection. The development of a point system must ensure that factors that support the following are awarded the highest point value:
A. The overall increase in the number of jobs created in the region that can be directly or indirectly attributed to the development and operation of the resort-style casino;
B. The positive impacts on economic development, existing and planned, from the development and operation of the resort-style casino in the immediate region and the potential to positively impact the state economy, including opportunities to pursue developments that will create ongoing sources of revenue and employment for the region separate from the resort-style casino;
C. The maximum potential benefits from the operation of the proposed resort-style casino on year-round tourism in the region; and
D. The representation and incorporation by the proposed resort-style casino of the character of the State generally and, in particular, the character of the surrounding region consistent with historic uses, local planning and zoning requirements.
4. Notice of award. Upon award of the privilege to submit an application for a casino operator license to the board, the commission shall cite how the successful bidder’s proposal supported the priorities described in subsection 3.
5. Contract required; southern casino. A person who is selected as the winning bidder for the privilege to submit an application to the board for a casino operator license shall agree to enter into a contract with the commission that obligates the casino operator to the proposals made in the bid submitted in accordance with this section. In addition, the contract must include:
A. A framework of reasonable financial penalties for failure of the casino operator to comply with the terms of the contract and the circumstances under which failure to comply with terms of the contract justifies withholding all net slot machine income and net table game income until the terms of the contract are satisfied; and
B. Annual reinvestment requirements that direct the casino operator, beginning no sooner than 5 years after commencing operation of slot machines at the casino, to either make capital improvements to the casino facility or deposit with the board, in an account described in section 1018, subsection 2-B, an amount no less than 3% but no greater than 4% of net slot machine income and net table game income generated by the casino during the previous year.
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:
C. The initial application fee for a slot machine operator license is $200,000. The annual renewal fee is $75,000 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. This paragraph applies to slot machine operator licenses initially issued before January 1, 2016.
Sec. 11. 8 MRSA §1018, sub-§1, ¶C-1, as amended by PL 2011, c. 417, §4, is further amended to read:
C-1. The initial application fee for a casino operator license is $225,000, except that the initial application fee for an applicant that is a commercial track that was licensed to operate slot machines as of January 1, 2011 is $25,000. The annual renewal fee is $80,000 plus an amount, set by rules of the board, equal to the cost to the board of licensing casino operators and determined by dividing the costs of administering the casino operator licenses by the total number of casino operators licensed by the board. In addition, a casino operator shall pay an initial gaming table fee of $100,000 for the privilege to operate each gaming table for a period of 20 years as long as the casino operator is licensed. Each gaming table is also subject to an annual gaming table renewal fee of $1,000. The gaming table fees authorize the casino operator to conduct any authorized table game at the gaming table during the 20-year period. A casino licensed in accordance with section 1011, subsection 2-A, paragraph A is not required to pay the gaming table fees until after one calendar year of table game operation. Fees collected in accordance with this paragraph must be deposited to the Gambling Control Board administrative expenses Other Special Revenue Funds account, which is a nonlapsing dedicated account. This paragraph applies to casino operator licenses initially issued before January 1, 2016.
Sec. 12. 8 MRSA §1018, sub-§1, ¶¶C-2 and C-3 are enacted to read:
C-2. The fee for a casino operator license for a casino in York County or Cumberland County, issued in accordance with section 1011-B, is $55,000,000. The license fee must be deposited in accordance with section 1018-A, except for $5,000,000, which must be deposited to the General Fund and used for the administrative expenses of the board. The license fee is separate from the nonrefundable application fee required pursuant to section 1011-B, subsection 1 and the payment of costs to the board for processing the application and performing background investigations.
C-3. The annual registration fee for a slot machine and a table game operated at a casino licensed on or after January 1, 2016 is $100.
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:
2. Term of license issued before January 1, 2016; renewal; renewal fees. All Except for slot machine operator licenses and casino operator licenses issued on or after January 1, 2016, 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 required by subsection 1, paragraph C to the municipality in which the slot machines are operated.
Sec. 15. 8 MRSA §1018, sub-§§2-A, 2-B and 3-A are enacted to read:
2-A. Term of license issued on or after January 1, 2016. A casino operator license issued by the board pursuant to section 1011, subsection 2-C is effective for 20 years unless revoked or surrendered pursuant to subchapter 5.
2-B. Annual reinvestment requirements; southern casino. A casino operator licensed by the board pursuant to section 1011, subsection 2-C operating a casino in York County or Cumberland County may deposit with the board the percentage of net slot machine income and net table game income required as an annual reinvestment pursuant to the contract executed in accordance with section 1011-B, subsection 5. The board shall hold the funds in an interest-bearing, nonlapsing account. The casino operator may request funds from the account for the purpose of making capital investments or improvements to the casino facility. If there are funds in the account and the casino ceases operation for a period of more than 90 days, the funds must be deposited to the General Fund.
3-A. Licensee other than the original applicant; contract applicable; transfer fee. If a person initially licensed to operate a casino after January 1, 2016 in York County or Cumberland County surrenders the license or the license is revoked, a subsequent licensee authorized to operate the casino in accordance with this chapter is subject to the terms of the contract required by and executed under section 1011-B, subsection 5. A subsequent licensee is required to submit an application to the board and is subject to the licensing qualifications prescribed under section 1016 and may only operate the casino for the remainder of the 20-year license term applied to the initial licensee. The fee for the transfer of a casino operator license initially issued subsequent to the competitive bid process under section 1011-B is $500,000, which must be submitted to the board for deposit to the General Fund.
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:
3. Limits on total slot machines. The board shall determine the number of slot machines to be registered in the State for casinos initially licensed prior to January 1, 2016. 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. 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 for operation at casinos initially licensed prior to January 1, 2016 may not exceed 3,000; and
B. A slot machine operator initially licensed prior to January 1, 2016 may not operate more than 1,500 slot machines at any one commercial track and a casino operator initially licensed prior to January 1, 2016 may not operate more than 1,500 slot machines at a casino.
Sec. 20. 8 MRSA §1036, sub-§§2-D and 2-E are enacted to read:
2-D. Distribution of slot machine income from a casino in York County or Cumberland County. A casino operator licensed to operate a casino in York County or Cumberland County pursuant to section 1011-B shall collect and distribute 40% of net slot machine income to the board for distribution by the board as follows:
A. Seven and one-half percent of the net slot machine income must be forwarded by the board to the Treasurer of State, who shall deposit the income into 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;
B. Five and one-half percent of the net slot machine income must be forwarded by the board to the Treasurer of State, who shall credit the income to the fund established in section 298 to supplement harness racing purses;
C. Six percent of the net slot machine income must be deposited by the board into the Fund to Reform Veterans Services established by Title 37-B, section 516;
D. One percent of the net slot machine income must be forwarded by the board directly to the county in which the slot machines are located;
E. Two percent of the net slot machine income must be deposited to the General Fund for administrative expenses of the board in accordance with rules adopted by the board, except that of the amount calculated pursuant to this paragraph, $100,000 must be transferred annually to the Gambling Addiction Prevention and Treatment Fund established by Title 5, section 20006-B;
F. One and one-half percent of the net slot machine income must be credited by the board to the Sire Stakes Fund created in section 281;
G. One and one-half percent of the net slot machine income must be forwarded by the board to the Treasurer of State, who shall credit the income 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 income to the Fund to Stabilize Off-track Betting Facilities established by section 300;
I. One percent of the net slot machine income must be forwarded by the board directly to the municipality in which the slot machines are located;
J. One percent of the net slot machine income must be forwarded by the board directly to the municipalities that abut the municipality in which the slot machines are located. The revenues must be paid in equal portions to each abutting municipality;
K. Three-fourths of one percent of the net slot machine income must be forwarded by the board directly to Oxford County;
L. Three-fourths of one percent of the net slot machine income must be forwarded by the board directly to Penobscot County;
M. One-half of one percent of the net slot machine income must be forwarded by the board directly to the City of Bangor;
N. One-half of one percent of the net slot machine income must be forwarded by the board directly to the Town of Oxford;
O. Four and one-half percent of the net slot machine income must be forwarded by the board directly to the Treasurer of State, who shall credit the income to the Department of Education for distribution to school administrative units eligible to receive targeted public preschool program to grade 2 funds;
P. One 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 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;
Q. One 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;
R. One and sixty-three hundredths percent of the net slot machine income must be forwarded by the board to the Treasurer of State, who shall distribute the funds in equal proportion to the tribal governments of the Penobscot Nation, the Passamaquoddy Tribe, the Houlton Band of Maliseet Indians and the Aroostook Band of Micmacs;
S. Thirty-one hundredths of one percent of the net slot machine income must be forwarded by the board to the State Controller and, except as otherwise provided in this paragraph, 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; and
T. Six hundredths of 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 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.
2-E. Distribution of table game income from a casino in York County or Cumberland County. A casino operator licensed to operate a casino in York County or Cumberland County pursuant to section 1011-B shall collect and distribute 16% of net table game income to the board to be deposited by the board into the Fund to Reform Veterans Services established by Title 37-B, section 516.
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
1. Maine Veterans Assistance Council; establishment and purpose. The Maine Veterans Assistance Council, referred to in this section as "the council," is established to develop policies and recommendations for the allocation of funds from the Fund to Reform Veterans Services as established under section 516, referred to in this section as "the fund." Except as otherwise provided by this subsection, allocations from the fund must be made in the form of grants to qualified entities based on applications submitted to the director. The director is authorized to make grant award decisions based on the criteria for award established by the council. The council, upon unanimous agreement, may make allocations directly to the director to support the duties of the bureau.
2. Members. In addition to the director, the council consists of the following members appointed by the director:
A. One member representing the interests of the Military Officers Association of America or a successor organization;
B. One member representing the interests of the Treasurer of State;
C. One member representing the interests of the American Legion or a successor organization;
D. One member representing the interests of the Veterans of Foreign Wars or a successor organization;
E. One member representing the interests of Disabled American Veterans or a successor organization;
F. One member representing the interests of American Veterans or a successor organization;
G. One member representing the interests of the Fleet Reserve Association or a successor organization; and
H. One member representing the interests of an organization that provides a forum for veterans' organizations to work together on behalf of veterans in the State.
3. Vacancies. In the event of a vacancy on the council, the director shall appoint a new member to fill the vacancy until the expiration of the term. A vacancy on the council must be filled in the same manner as the original appointment was made under subsection 2.
4. Terms. Members of the council are appointed for 3-year terms.
5. Removal. The director may remove a member of the council for cause.
6. Voting; quorum. A quorum consists of 5 members of the council. Each member has one vote. A policy or a recommendation may not be approved by the council without at least 3 affirmative votes.
7. Council proceedings. The council shall meet not less than 6 times per calendar year at a date and time set by the director. The director shall prepare the agenda and prepare and keep a summarized record of meetings. The council may not make binding decisions but shall vote on policies and recommendations. The director shall be present at the meetings to facilitate the meetings. The director does not have a vote.
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
|
$0 | $500 |
 |
|
|
| 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.
FISCAL NOTE REQUIRED
(See attached)