An Act To Stimulate Economic Development and Create Jobs by Amending the Laws Governing Gaming
Sec. 1. 8 MRSA §1011, sub-§2-B, as enacted by PL 2011, c. 699, §1, is repealed.
Sec. 2. 8 MRSA §1011, sub-§2-C is enacted to read:
Sec. 3. 8 MRSA §1011, sub-§3, as amended by PL 2011, c. 417, §3, is further amended to read:
Sec. 4. 8 MRSA §§1011-A to 1011-J are enacted to read:
§ 1011-A. Commissioner of Administrative and Financial Services to administer competitive bidding for privilege to submit application to operate; applications considered by board
Notwithstanding any provision of this chapter to the contrary, the Commissioner of Administrative and Financial Services may, consistent with the competitive bid process set out in Title 5, chapter 155, subchapter 1-A, administer a competitive bid process for the privilege to operate a casino in each region as described in section 1011-B. A successful bidder is awarded the privilege to operate a casino subject to the consideration and approval of an application submitted to the board in accordance with this chapter.
§ 1011-B. Regions established; operator licenses limited to one per region
The board may not issue more than one license for the operation of a slot machine facility, casino or any other gambling facility for which the board has licensing authority per region as described by this section.
§ 1011-C. Region 1 minimum bid and facility requirements; fees
§ 1011-D. Region 2 minimum bid and facility requirements; fees
§ 1011-E. Region 3 minimum bid and facility requirements; fees
§ 1011-F. Region 4 minimum bid and facility requirements; fees
§ 1011-G. Region 5 minimum bid and facility requirements; fees
§ 1011-H. Slot machine and table game operation contingent upon facility construction
A casino operator licensed pursuant to section 1011-C, 1011-D, 1011-E, 1011-F or 1011-G may not begin operation of slot machines or table games prior to the payment of the license fee in full and completion of all phases of construction of the facility proposed in the bid submitted to the board.
§ 1011-I. License fees for casinos authorized by competitive bid deposited to General Fund
License fees submitted by successful bidders for a casino who have been issued a license by the board pursuant to the competitive bid process in section 1011-A must be deposited into the General Fund.
§ 1011-J. License term for casinos authorized by competitive bid
Notwithstanding section 1018, the bid submitted by the successful bidder who is subsequently granted a casino operator license by the board pursuant to the competitive bid process in section 1011-A entitles the operator to a casino operator license for a period of 20 years. After 20 years, the operator shall negotiate with the board for a fee, not less than the fee proposed in the submitted bid, that will authorize continued operation of the casino.
Sec. 5. 8 MRSA §1018, sub-§1, ¶C-1, as amended by PL 2011, c. 417, §4, is further amended to read:
Sec. 6. 8 MRSA §1018, sub-§1-A, as enacted by PL 2011, c. 699, §2, is repealed.
Sec. 7. 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. 8. 8 MRSA §1018, sub-§3, as enacted by PL 2003, c. 687, Pt. A, §5 and affected by Pt. B, §11, is amended to read:
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 repealed.
Sec. 11. 8 MRSA §1020, sub-§3, ¶A, as amended by PL 2011, c. 585, §8, is further amended to read:
Sec. 12. 8 MRSA §1036-A is enacted to read:
§ 1036-A. Distribution of slot machine and table game income from casino in Region 1 licensed pursuant to competitive bidding
Notwithstanding section 1036, subsections 1, 2, 2-A, 2-B and 2-C, upon the operation of a casino in Region 1 licensed pursuant to competitive bidding in accordance with section 1011-C, each casino or slot machine facility licensed under this chapter by the board shall collect and distribute income from the operation of slot machines and table games as required by this section.
(1) Three percent of the net slot machine income must be forwarded to the Finance Authority of Maine for economic development programs under Title 10, sections 1023-C, 1026-L, 1026-M and 1026-N;
(2) Three percent of the net slot machine income must be forwarded to the Maine International Trade Center established by Title 10, chapter 107-B; and
(3) One percent of the net slot machine income must be used for the Governor's Jobs Initiative Program under Title 26, section 2031;
(1) One percent of the net slot machine income must be deposited in the agricultural development fund under Title 7, section 306-A;
(2) One percent of the net slot machine income must be deposited in the Stipend Fund under Title 7, section 86; and
(3) Three percent of the net slot machine income must be used for the horsemen's purse share pursuant to section 292;
summary
This bill establishes 5 regions in the State for the operation of casinos. Region 1 includes York County and the Town of Scarborough in Cumberland County. Region 2 includes Androscoggin, Franklin, Kennebec, Oxford and Cumberland counties, with the exception of the Town of Scarborough in Cumberland County. Region 3 includes Penobscot, Somerset, Waldo, Lincoln, Sagadahoc and Knox counties. Region 4 includes Washington and Hancock counties. Region 5 includes Aroostook and Piscataquis counties. If a region does not have a casino or if an existing casino ceases operation, the Department of Administrative and Financial Services is required to administer a competitive bid process for the privilege to operate a casino, subject to application to and investigation by the Gambling Control Board. Bids in region 1 are granted preference if the bidder is associated with the operator of an existing commercial harness racing track in that region. Bids in regions 4 and 5 are given preference if the operator is associated with a federally recognized Indian tribe eligible to conduct high-stakes beano in that region. The bill provides for a staggered schedule for the authorization of casinos in regions where casinos are not currently operated. The bill provides for minimum bids and requirements for a minimum number of slot machines, table games and other amenities at a facility in each region. Each bidder is also required to submit a nonrefundable privilege fee intended to mitigate the costs of administering the competitive bid process by the Department of Administrative and Financial Services and meet the costs of background checks and investigations conducted by the Gambling Control Board. The bill establishes distribution of table game and slot machine revenue for casinos and specifies that the revenue must be used for the purposes specifically described unless otherwise authorized. This distribution will apply to all casinos and slot machine facilities operated in the State as soon as a casino in Region 1 is authorized via the competitive bid process. If an alternative purpose is authorized for the table game or slot machine revenue, all distributions must be reduced in equal proportion.