An Act To Increase Gaming Opportunities for Charitable Veterans' Organizations
Sec. 1. 5 MRSA §20006-B, sub-§1, as amended by PL 2011, c. 657, Pt. AA, §24, is further amended to read:
Sec. 2. 8 MRSA §1001, sub-§13-B is enacted to read:
Sec. 3. 8 MRSA §1011, sub-§2-C is enacted to read:
(1) Demonstrate that a majority of the revenue, after deductions for reasonable expenses, generated from gaming conducted under Title 17, chapter 13-A or 62 has been used for the charitable purposes of the eligible organization;
(2) Demonstrate that the premises on which the slot machines will be operated have been owned, rented or leased for at least 2 consecutive years, serve as the primary location of the organization's administrative operations and are located in a municipality in which the voters have approved in a referendum election the operation of slot machines by a charitable nonprofit veterans' organization;
(3) Demonstrate that it has reserved in a segregated account at least $1,000 in cash for each slot machine the eligible organization intends to operate if issued a license;
(4) Identify and submit to the board a list of the charitable purposes for which the revenue from the operation of the slot machines will be used; and
(5) Meet other criteria established by the board by rule regarding the licensing and operation of slot machines.
(1) The name and address of the treasurer of the eligible organization and the name of at least one official on the governing board of the eligible organization who will submit the application to the board;
(2) A copy of the deed, rental agreement or lease agreement for the premises where the eligible organization intends to operate the slot machines;
(3) State and federal tax returns of the eligible organization for the immediately prior 2 calendar years; and
(4) Copies of disposition of funds reports from the operation of games of chance or beano conducted by the eligible organization for the immediately prior 2 calendar years.
This paragraph is repealed January 1, 2016.
Sec. 4. 8 MRSA §1011, sub-§4, as amended by PL 2005, c. 663, §6, is further amended to read:
Sec. 5. 8 MRSA §1016, sub-§1, ¶D, as amended by PL 2013, c. 212, §15, is further amended to read:
Sec. 6. 8 MRSA §1016, sub-§3, as amended by PL 2013, c. 212, §21, is further amended to read:
Sec. 7. 8 MRSA §1017, sub-§1-A is enacted to read:
Sec. 8. 8 MRSA §1018, sub-§1, as amended by PL 2011, c. 417, §4, c. 469, §5 and c. 585, §§5 and 6, is further amended to read:
In addition to the application fee for a license or annual fee for a registered slot machine or table game, the board may charge a one-time application fee for a license or registration listed in paragraphs A to C-1, D and 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 Administrative Expenses Other Special Revenue Funds account, which is a dedicated nonlapsing account within the Gambling Control Board, except that $25,000 of the annual renewal fee for a slot machine operator or casino operator must be deposited to the Gross Slot Income Other Special Revenue Funds account within the Gambling Control Board to be transferred to the municipality in which the slot machine facility or casino is operated, in accordance with subsection 2. All application and registration fees are nonrefundable and are due upon submission of the application.
Sec. 9. 8 MRSA §1019, sub-§6, as amended by PL 2011, c. 417, §5, is further amended to read:
Sec. 10. 8 MRSA §1019, sub-§7, as amended by PL 2011, c. 417, §6, is further amended to read:
Sec. 11. 8 MRSA §1019, sub-§§8 and 9 are enacted to read:
Sec. 12. 8 MRSA §1020, sub-§2, ¶G, as amended by PL 2013, c. 212, §24, is further amended to read:
Sec. 13. 8 MRSA §1020, sub-§3, as amended by PL 2011, c. 585, §8, is further amended to read:
Sec. 14. 8 MRSA §1031-A is enacted to read:
§ 1031-A. Eligible organization; age limit on slot machine use; play limited to members and guests; access by minors; credit prohibited
Notwithstanding the provisions of section 1031, the following provisions apply to the operation of slot machines by an eligible organization.
Sec. 15. 8 MRSA §1035, as amended by PL 2011, c. 585, §10, is further amended to read:
§ 1035. Location of slot machines
Slot machines may be located only on the premises of an eligible organization licensed in accordance with this chapter, the premises of a commercial track, the premises of a casino or the premises of an accredited postsecondary institution for the purposes of training and education under section 1011, subsection 1-B. For the purposes of this section, "premises of a commercial track" means property owned by the person who owns the property on which a commercial track is located and that is either within 200 feet of the outside edge of the racing oval or, if the commercial track was owned by a municipality when a license to operate slot machines in association with that commercial track was issued, within 2,000 feet of the center of the racing oval.
Sec. 16. 8 MRSA §1036, sub-§2-D is enacted to read:
Net revenue from the operation of slot machines by eligible organizations after the distributions required in paragraphs A to D must be used to support the charitable purposes identified to the board under section 1011, subsection 2-C, paragraph A, except that the net revenue may be used to pay compensation and defray expenses in the same manner as prescribed for revenue from games of chance by Title 17, section 1838.
This bill permits the Department of Public Safety, Gambling Control Board, beginning January 1, 2016, to issue a license to a charitable nonprofit organization that is a veterans' organization that is tax-exempt under the United States Internal Revenue Code of 1986 to operate up to 3 slot machines on premises that have been owned, rented or leased by the organization for at least 2 consecutive years, that serve as its primary administrative operations headquarters and that are located in a municipality that has, by referendum of the voters, approved the operation of slot machines in that municipality. The charitable nonprofit veterans' organization must be able to demonstrate that it has a cash reserve of $1,000 for each machine the organization intends to operate.
A charitable nonprofit veterans' organization that wishes to apply prior to January 1, 2016 may file a declaration of intent to apply with the Gambling Control Board. An application must include a refundable $2,500 deposit. The initial application fee for a slot machine operator license is $500, and the annual renewal fee is $175.
A slot machine operated by a charitable nonprofit veterans' organization is subject to the same central site monitoring that applies to casinos and slot machine facilities at harness racing tracks. The total number of slot machines allowed to be operated by charitable nonprofit veterans' organizations statewide between January 1, 2016 and December 31, 2016 is 80; beginning January 1, 2017 the number increases to 150.
The bill provides that 10% of the net slot machine income from a charitable nonprofit veterans' organization is required to be deposited directly with the Gambling Control Board for administrative expenses; 8% goes directly to the General Fund; 10% goes to the host municipality; and 2% is dedicated to gambling addiction prevention and treatment. A charitable nonprofit veterans’ organization that is licensed to operate slot machines is required to establish a separate account, from which the board may withdraw funds to distribute the net revenue percentages. The remaining revenue generated from the slot machines must be used to support the charitable purposes of the veterans' organization.