‘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 "F", Filing Number H-581, Sponsored by
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LR 1572 Item 16 |
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| 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Sec. 6. 8 MRSA §1011, sub-§2-B, as enacted by PL 2011, c. 699, §1, is repealed.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 §1019, sub-§6, as amended by PL 2011, c. 417, §5, is repealed.
Sec. 16. 8 MRSA §1019, sub-§7, as amended by PL 2011, c. 417, §6, is repealed.
Sec. 17. 8 MRSA §1020, sub-§3, as amended by PL 2011, c. 585, §8, is further amended to read:
Sec. 18. 8 MRSA §1036, sub-§2-D is enacted to read:
Sec. 19. 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 35% 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. 20. 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 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 Department of Public Safety, 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, with job creation and economic development being the highest priorities. 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. The contract includes a commitment of the casino operator to make annual reinvestments in the facility of an amount no less than 3% but no greater than 4% of net gambling revenue. 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 $10,000,000, which is deposited into the General Fund. The amendment sets the distribution of net slot machine revenue at 35% and the distribution of net table game revenue at 16% for the resort-style casino. Upon operation of slot machines at the resort-style casino, the board will hold distributions required of existing casinos until the Legislature establishes a single distribution structure that would apply to all casinos in the State that establishes a distribution of 35% of net slot machine revenue and 16% of net table game revenue.
Finally, the amendment makes enactment of this bill contingent upon the approval of the voters of the State at a statewide referendum election.