An Act To Permit Video Gaming for Money Conducted by Nonprofit Organizations
Maine Legislature, Session 121, LD 1354
Committee: Legal and Veterans Affairs
Sponsors: THOMPSON, GAGNON, CLARK, RINES, SAVIELLO
Amends: 8 MRSA §372, 8 MRSA §374, 17 MRSA §348, 25 MRSA §3902, 28-A MRSA §807, 28-A MRSA §1054, 30-A MRSA §5686

Legislative Document 
No. 1354 
H.P.996 
House of Representatives, March 13,2003 
An Act To Permit Video Gaming for Money Conducted by 
Nonprofit Organizations 
Reference to the Committee on Legal and Veterans Affairs suggested and ordered printed. 
Presented by Representative THOMPSON of China. 
Cosponsored by Senator GAGNON of Kennebec and 
'I?1~/h.-mu~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: CLARK of Millinocket, RINES of Wiscasset, SAVIELLO of Wilton. 
Printw on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 8 MRSA §372, sub-§2, 1fI, as repealed and replaced by PL 
1993, c. 349, §23, is amended to read: 
I. 
Carryon a continuous study and investigation of the 
lotteries 
throughout 
the 
State 
and 
the 
operation 
and 
administration of similar laws that may be in effect in 
other states or countries; aBa 
Sec. 2. 8 MRS A §372, sub-§2, 1rJ, as enacted by PL 1991, c. 780, 
Pt. Y, §112, is amended to read: 
J. 
Assign duties as necessary to a designeeT; and 
Sec.3. 8 MRSA §372, sub-§2, 1rK is enacted to read: 
K. 
Carry out the duties assigned to the director under 
Title 17, chapter 16, including developing and maintaining a 
central computer system to monitor licensed video gaming 
terminals and coordinating and cooperating with the Chief of 
the State Police in implementing and enforcing that chapter. 
Sec. 4. 8 MRSA §374, sub-§l, 1rL, as amended by PL 1997, c. 
301, §1, is further amended to read: 
L. 
The apportionment of the total annual revenue accruing 
from the sale of lottery tickets or shares and from all 
other sources for the payment of prizes to the holders of 
winning tickets or shares; for the payment of costs incurred 
in 
the 
operation 
and 
administration 
of 
the 
lotteries, 
including the expenses 
of the 
commission 
and 
the costs 
resu1 ting from any contract or contracts entered into for 
promotional, advertising, consulting or operational services 
or 
for 
the purchase or 
lease of lottery equipment 
and 
materials; for the repayment of the money appropriated to 
the State Lottery Fund; and for transfer to the General Fund 
for distribution pursuant to section 387; aBa 
Sec. 5. 8 MRSA §374, sub-§I, 1rM, as enacted by PL 1997, c. 
301, §2, is amended to read: 
M. 
The imprinting on all lottery tickets sold in the State 
of the overall odds of winning a prize for each garneT; and 
Sec. 6. 8 MRSA §374, sub-§I, 1rN is enacted to read: 
N. 
Rules to administer and enforce Title 17, chapter 16, 
which may be adopted jointly with the Chief of the State 
Page l-LR0540(1) 
Police. 
These rules are routine technical rules pursuant to 
Title 5, chapter 375, subchapter 2-A. 
Sec. 7. 17 MRSA §348 is enacted to read: 
§348. 
AppliCability 
Except as expressly provided in chapter 16, this chapter 
does not apply to video gaming terminals. 
Sec.8. 17 MRSA c. 16 is enacted to read: 
CHAPTER 16 
VIDEO GAMING TERMINALS 
SUBCHAPTER I 
GENERAL PROVISIONS 
§361. 
Definitions 
As 
used 
in 
this 
chapter, 
unless 
the 
context otherwise 
indicates, the following terms have the following meanings. 
1. 
Associated equipment. 
"Associated equipment" means any 
proprietary device, machine or part used in the manufacture or 
maintenance 
of 
a 
video 
gaming 
terminal, 
including, 
but not 
limited to, integrated circuit chips, printed wired assemblies, 
printed wired boards, printing mechanisms, video display monitors 
and metering devices. 
2. 
Director. 
"Director" means the Director of the Bureau 
of Alcoholic Beverages and Lottery Operations in the Department 
of Administrative and Financial Services. 
3. 
Drug abuser. 
"Drug abuser" has the Same meaning as set 
forth in Title 5, section 20003, subsection 10. 
4. 
Drug addict. 
"Drug addict" has the same meaning as set 
forth in Title 5, section 20003, subsection 11. 
5. 
Drug-dependent person. 
"Drug-dependent person" has the 
same meaning as set forth in Title 5, section 20003, subsection 
12. 
6. 
Engaged in reckless or negligent conduct. 
"Engaged in 
reckless or negligent conduct" means that the applicant, either 
consciously disregarding or failing to be aware of a risk that 
the applicant's conduct would cause such a result, engaged in 
conduct that in fact created a substantial risk of death, serious 
bodily injury or bodily injury to another human being and the 
applicant's disregard or failure to be aware of that risk, when 
viewed in light of the nature and purpose of the applicant's 
conduct and the circumstances known to the applicant, involved a 
gross deviation from the standard of conduct that a reasonable 
and prudent person would observe in the same situation. 
1. 
Formal 
charging 
instrument. 
"Formal 
charging 
instrument" 
means 
a 
complaint, 
an indictment, 
information, 
a 
juvenile petition or other formal written accusation against a 
person for some criminal or juvenile offense. 
8. 
Fugitive from justice. 
"Fugitive from justice" means a 
person described in Title 15, section 201, subsection 4; or 18 
United States Code, Section 921, Subsection (a), Paragraph (15); 
or a person subject to an outstanding warrant of arrest in this 
State 
or 
any other 
jurisdiction for 
a 
crime 
punishable 
by 
imprisonment for one year or longer. 
9. 
Illegal gaming machine. 
"Illegal gaming machine" or 
"illegal machine" means a machine as defined in section 330 that: 
A. 
Is required to be licensed under this chapter, but is 
not so licensed; 
B. 
Is required to be licensed under chapter 14, but is not 
so licensed; or 
C. 
Is licensed under either chapter 14 or this chapter, but 
is being operated in a manner that violates the license. 
10. 
Licensee. 
"Licensee" means a person licensed by the 
Chief of the State Police to operate a video gaming terminal. 
11. 
Net terminal income. 
"Net terminal income" means money 
inserted into a video gaming terminal minus credits paid out in 
cash. 
12. 
Operate. 
"Operate" means to offer for use. 
13. 
Pa!:ba~k va,lue. 
"Payback value" means 
the value of 
credits granted to players by a video gaming terminal compared to 
the 
value 
of 
money 
inserted into 
the 
terminal 
by players, 
calculated as a percentage on an annual basis. 
14. 
Person. 
"Person" 
means 
an 
individual, 
corporation, 
association or partnership. 
15. 
Uniform 
1ocation 
application. 
"Uniform 
location 
application" means a written application submitted by a licensee 
to the Chief of the State Police. 
16. 
Video gaming terminal. 
"Video gaming terminal" means a 
machine that, upon insertion of coin or currency, is available to 
play or simulate the play of a video game authorized by the Chief 
of the State Police, including, but not limited to, poker, keno, 
blackjack 
and 
line 
games 
using 
a 
video 
display 
and 
microprocessor, in which by chance the player may receive free 
games or credits that may be redeemed for cash. 
17. 
Video 
gaming 
terminal 
manufacturer. 
"Video 
gaming 
terminal manufacturer" means a person who assembles or produces 
video gaming terminals or associated equipment for sale or use in 
this State. 
18. 
Video 
gaming 
terminal 
wholesaler. 
"Video 
gaming 
terminal wholesaler" 
means 
a 
person 
who 
sells video 
gaming 
terminals or associated equipment for distribution in this State. 
§362. 
License required 
A person may not manufacture, sell, operate or place a video 
gaming terminal for use in this State unless the person 
1S 
licensed to do so by the Chief of the State Police. 
A person may 
not place for use or operate a video gaming terminal in this 
State unless the machine is licensed by the Chief of the State 
Police. 
§363. 
Administration and enforcement 
The 
Chief 
of 
the 
State 
administer 
and 
enforce 
the 
specified in this chapter. 
Police 
and 
the 
director shall 
provisions 
of 
this 
chapter 
as 
§364. 
Powers and duties of Chief of State Police 
1. 
Powers. 
In addition to powers conferred by any other 
provision of law, the Chief of the State Police may: 
A. 
Regulate, supervise and exercise general control over 
the operation of video gaming terminals; 
B. 
Investigate the direct or indirect ownerShip or control 
of a video gaming terminal or associated equipment by any 
licensee; 
C. 
Adopt rules necessary to administer and enforce this 
chapter, including the power to jointly adopt rules with the 
Maine State Lottery Commission. 
These rules are routine 
technical rules pursuant to Title 5, chapter 375, subchapter 
2-A; 
D. 
In any investigation conducted under this chapter, issue 
subpoenas to compel the attendance of witnesses 
and the 
production of evidence relevant to any fact at issue; and 
E. 
Approve or disapprove terms and conditions of uniform 
location agreements. 
2. 
Duties. 
The Chief of the State Police shall: 
A. 
Investigate or cause to be investigated all complaints 
made to the State Police and all violations of this chapter 
or the rules adopted under this chapter; 
B. 
Adopt rules, which are routine technical rules pursuant 
to 
Title 
5, 
chapter 
375, 
subchapt'er 
2-A, 
to 
prevent 
undesirable 
conduct 
relating 
to 
the 
operation 
of 
video 
gaming terminals, including the following: 
(1) 
The practice of any fraud or deception upon a 
player of a video gaming terminal; 
(2) 
The 
presence 
of 
a 
video 
gaming 
terminal 
on 
premises that may be unsafe due to fire hazard or other 
such conditions; 
(3) 
The use of obscene advertising; 
(4) 
The solicitation on a public way of persons to 
play video gaming terminals; 
(5) 
The 
infiltration of 
organized 
crime 
into 
the 
operation of video gaming terminals; 
(6) 
The presence of disorderly persons in a location 
where video gaming terminals are in use; and 
(7) 
The use of the word "casino" to describe any video 
gaming terminal licensed under this chapter or as the 
name or any part of the name of the licensed premises 
or of a portion of the premises where the video gaming 
terminal is located; 
C. 
Direct the director to disable any video gaming terminal 
if the Chief of the State Police has reason to believe that: 
(1) 
A person has illegally tampered with the terminal 
as described in section 394, subsection 2; 
( 2) 
The 
funds 
from 
the 
terminal 
have 
not 
been 
distributed, deposited or allocated in accordance with 
section 383; 
ill 
The 
terminal 
does 
not 
requirements of this chapter; or 
meet 
the 
licensure 
(4) 
The licensee is guilty of criminal conduct; and 
D. 
Approve 
uniform 
location 
applications 
submitted 
by 
licensees pursuant to section 372, subsection 2. 
§365. 
Powers and duties of director 
1. 
Powers. 
In addition to powers conferred by any other 
provision of law, the director may: 
A. 
Propose to the State Liquor and Lottery Commission for 
adoption 
rules 
necessary to administer 
and enforce this 
chapter, 
including rules to be 
adopted jointly with the 
Chief 
of 
the 
State 
Police. 
These 
rules 
are 
routine 
technical rules pursuant to Title 5, chapter 375, subchapter 
2-Aj and 
B. 
Subject to approval of the State Liquor and Lottery 
Commission and to any applicable laws relating to public 
contracts, enter into 
a 
contract for performance of the 
director's duties under this chapter. 
All contracts must be 
awarded in accordance with rules adopted by the Department 
of Administrative and Financial Services pursuant to Title 
5, chapters 141 to 145 and Title 5, sections 1812 and 1813. 
A contract awarded or entered into by the director may not 
be 
assigned 
by 
the 
holder 
of 
the 
contract, 
except 
by 
specific approval of the commission. 
2. 
Duties. 
The director shall: 
A. 
Develop, install and test a central computer system with 
continuous on-line polling to all licensed video 
gaming 
terminals 
to 
provide 
auditing 
program 
information. 
The 
system may not limit participation to only one manufacturer 
of video gaming terminals by either the cost of implementing 
the necessary program modifications to communicate or an 
inability to communicate with the central computer system. 
In developing the system, the director shall allow for a 
5-year 
phase-in period 
in 
accordance 
with 
section 
373, 
subsection 3 for licensees to acquire equipment capable of 
interfacing with a central computer system; 
B. 
Maintain and monitor the central computer 
system to 
ensure compliance with this chapterj 
C. 
Attempt to determine the cause of 
any video 
gaming 
terminal malfunction detected by the central computer system 
and notify the Chief of the State Police of any suspected 
tampering 
with 
a 
video 
gaming 
terminal 
or 
any 
other 
violation of this chapter or the rules adopted under this 
chapter; 
D. 
Cause the central computer system to disable a video 
gaming terminal as directed by the Chief of the State Police 
in accordance with section 364; 
E. 
Collect 
funds 
due 
the 
State under 
section 
and 
deposit them in the Video Gaming Fund established in section 
384; 
F. 
Immediately notify the Chief of the State Police of the 
failure of any licensee to comply with section 383; 
G. 
Certify monthly to the Treasurer of State, the Maine 
State 
Lottery 
Commission 
and 
the 
Commissioner 
of 
Administrative and Financial Services a 
full and complete 
statement of all video 
gaming 
terminal 
revenue, 
credits 
disbursed 
by 
licensees, 
administrative 
expenses 
and 
the 
allocation of net terminal income for the preceding monthj 
H. 
Submit by January 15th an annual report to the Governor 
and the joint standing committee of the Legislature having 
jurisdiction over gaming matters. 
The report must include 
information 
on 
video 
gaming 
terminal 
revenue, 
credits 
disbursed 
by 
licensees, 
administrative 
expenses 
and 
the 
allocation of net terminal income for the preceding year; 
I. 
Prepare and submit to the Commissioner of Administrative 
and Financial Services a budgetj and 
J. 
Cooperate 
with 
the 
Chief 
of 
the 
State 
Police 
in 
implementing and enforcing the provisions of this chapter. 
§366. 
Applicability of chapter 14 
Except as expressly provided in this chapter, chapter 14 
does not apply to video gaming terminals. 
Section 335 relating 
to use of proceeds applies to the use of net terminal income by 
licensees under this chapter. 
SUBCHAPTER 2 
LICENSING 
§371. 
License to operate 
1. 
Eligible entities. 
The Chief of the State Police may 
issue a license to operate video gaming terminals to a person who: 
A. 
Is eligible for a license to conduct games of chance 
pursuant to section 332; 
B. 
Is 
exempt 
from 
federal 
taxation under 
the Internal 
Revenue 
Code, 
Section 
501(c)(3), 
501(c)(4}, 
501(c)(8}, 
501(c)(10) or 501(c)(19); and 
C. 
Owns or leases the premises upon which the video gaming 
terminals will be located and uses those premises to fulfill 
the 
primary 
charitable 
or 
nonprofit 
purpose 
of 
the 
organization. 
If the premises are leased, the lease must 
run for a term longer than the license term. 
Notwithstanding paragraph B, an organization that holds a license 
under section 332 to operate an electronic video machine on the 
effective date of this chapter is eligible to apply for a license 
under this section to operate video gaming terminals for up to 18 
months, provided the organization applies for federal tax status 
as specified in paragraph B. 
If the Chief of the State Police 
determines that the organization is making a good faith effort to 
secure the required tax status and is likely to be given such 
status, the Chief of the State Police may extend the term of the 
license for an additional 
months to allow the United States 
Internal 
Revenue 
Service 
time 
to 
complete 
processing 
the 
application for tax status. 
If the organization applied for such 
status and was rejected wi thin 3 years of the effective date of 
this 
section, 
that organization is 
not eligible 
under 
this 
subsection. 
2. 
Qualifications for license. 
A person may be issued a 
license to operate a 
video gaming terminal if the person is 
eligible for 
a 
license under subsection 
and has sufficient 
financial assets to meet the financial obligations imposed by 
this chapter and a method acceptable to the Chief of the State 
Police for meeting those obligations, and the individual and each 
officer, director or partner of the corporation, association or 
partnership: 
A. 
Has 
not 
been 
convicted 
in 
Maine 
or 
any 
other 
jurisdiction of a misdemeanor crime of domestic violence, 
within the meaning of 18 United States Code, Section 921, 
Subsection (a), Paragraph (33); 
B. 
Does not have a formal charging instrument pending in 
Maine or any other jurisdiction for a misdemeanor crime of 
domestic violence, wi thin the meaning of 18 United States 
Code, Section 921, Subsection (a), Paragraph (33); 
C. 
Has 
not 
been 
convicted 
in 
Maine 
or 
any 
other 
jurisdiction wi thin the past 3 years of 3 or more crimes 
punishable by imprisonment for less than one year, if those 
convictions arose from different criminal episodes; 
D. 
Has not engaged within the past 3 years in reckless or 
negligent conduct that is substantiated by information of 
record by a governmental entity; 
E. 
Is 
current 
in 
payment 
of 
all 
taxes, 
interest 
and 
penalties owed to the State or to a municipality, excluding 
items under formal dispute or appeal pursuant to applicable 
statutes or ordinances; 
F. 
Has not been involved in any criminal activity and has 
not been convicted of a crime punishable by one year or more 
of imprisonment in any jurisdiction unless at least 10 years 
have passed since satisfactory completion of the sentence or 
probation imposed by the court for the crime; 
G. 
Has not been convicted of a violation of this chapter or 
chapter 14 or of eguivalent laws in any other state; 
H. 
Has not been adjudicated within the past 3 years of 
having committed a juvenile offense involving conduct that, 
if committed by an adult, would cause the Chief of the State 
Police to refuse to approve a license application under this 
section; 
1. 
Is not a fugitive from justice, a drug abuser, a drug 
addict, 
a 
drug-dependent person, 
an illegal alien or 
a 
person who 
was 
discharged 
from 
the United States 
Armed 
Forces under dishonorable conditions within 3 years prior to 
the date of application; 
J. 
Has completed the application form and complied with the 
reguirements of section 375; and 
K. 
Has not knowingly made 
a false statement of material 
fact to the Chief of the State Police in applying for a 
license under this chapter or chapter 14. 
3. 
Local approval of application for license. 
The Chief of 
the State Police may not issue a 
license to operate a video 
ggming terminal until the initial application for the license is 
first approved by the municipal officers of the municipality in 
which the applicant's premises are located or, if the premises 
are located in an unincorporated place, until the application is 
approved by the county commissioners of the county in which the 
unincorporated place is located. 
4. 
Hearing process. 
The municipal officers or, in the case 
of 
an 
unincorporated place, 
the 
county 
commissioners 
of 
the 
county in which the unincorporated place is located may hold a 
public hearing for the consideration of the applications for new 
video gaming terminal licenses. 
The municipal officers or county 
commissioners may hold a public hearing for the consideration of 
requests for renewal of licenses. 
A. 
The Chief of the State Police shall prepare and supply 
license application forms. 
B. 
The municipal officers or the county commissioners shall 
provide, at the applicant's prepaid expense, public notice 
of a hearing held under this section by causing a notice 
stating the time and place of hearing to appear at least 6 
consecutive days before the date of the hearing in a daily 
newspaper having general circulation in the municipality or 
unincorporated place where the premises are located or 
consecutive weeks before the date of the hearing in a weekly 
newspaper having general circulation in the municipality or 
unincorporated place where the premises are located. 
C. 
In granting or denying an application, the municipal 
officers or 
the 
county 
commissioners 
shall indicate the 
reasons for their decision and provide a written statement 
of their reasons to the applicant. 
§372. 
Placement and ownership of terminals 
1. Number of terminals; 
location. 
No more than 5 video 
gaming terminals may be placed on the premises of a licensee. A 
terminal 
may 
not 
be 
placed in 
any 
location other 
than 
the 
premises of the licensee. 
A licensee must own or control the 
premises 
on which 
a 
video 
gaming 
terminal is located. 
The 
terminal area must be designed to permit the licensee or an agent 
of the licensee to see and control the area at all times to 
ensure compliance with the provisions of this chapter. 
2. 
Uniform location application. 
Each location must be 
subject to 'an approved uniform location application. 
A copy of 
the application must be submitted to the Chief of the State 
Page lO-LR0540(1) 
Police. 
The Chief of the State Police may approve or disapprove 
any 
uniform 
location 
application. 
If 
the 
uniform 
location 
application is disapproved, the Chief of the State Police shall 
provide written reasons for the denial. 
3. 
Appeal to commissioner. 
Any licensee denied approval of 
a uniform location application may appeal the decision of the 
Chief of the State Police to the Commissioner of Public Safety. 
The commissioner shall hold a hearing to include the licensee and 
the Chief of the State Police or the chief's designee before 
rendering 
a 
decision on 
the 
appeal. 
The 
commissioner shall 
render a decision within 30 days of the hearing. 
§373. 
Licensing of terminals 
1. 
License required. 
A video gaming terminal may not be 
placed for public use or operated in this State unless 
the 
terminal is licensed by the Chief of the State Police. 
The 
terminal license must be prominently displayed on the terminal. 
Language describing the odds of winning the game and warning of 
the 
danger 
of 
compulsive 
gambling 
must 
also 
be 
prominently 
displayed on the terminal. 
2. 
Requirements 
for license. 
To 
be 
licensed, 
a 
video 
gaming terminal: 
A. 
May offer only games permitted by the Chief of the State 
Police: 
B. 
May not have any means of manipulation that affect the 
random probabilities of winning a game; 
C. 
May not directly dispense coins, cash or tokens; 
D. 
Must have one or more mechanisms that accept coin or 
cash in the form of bills and that are designed to prevent a 
person from obtaining credits without paying; 
E. 
Must be designed to suspend operation until reset if a 
person attempts, by physical or other tampering, to obtain 
credits without paying; 
F. 
After completion of the 5-year phase-in period described 
in subsection 3, must have nonresettable meters housed in a 
readily 
accessible 
locked 
terminal 
area 
that 
keep 
a 
permanent record of all cash inserted into the video gaming 
terminal, credits awarded by the terminal, credits played 
for video games and credits distributed by tickets made by 
the terminal's printer; 
Page ll-LR0540(1) 
G. 
After completion of the 5 year phase-in period described 
in subsection 
3, 
must be 
capable of printing a 
ticket 
voucher stating the value of the credits for the player at 
the end of play, the time of day in 24-hour format showing 
hours and minutes, the· date, the terminal's serial number, 
the 
sequential 
number 
of 
the 
ticket 
voucher, 
and 
an 
encrypted validation number from which the validity of the 
credits may be determined; 
H. 
After completion of the 5-year phase-in period described 
in subsection 3, must have accounting software that keeps an 
electronic record of information that includes, but is not 
limited to, 
total 
cash inserted into 
the 
video 
gaming 
terminal, 
total credits 
awarded 
by 
the 
terminal, 
total 
credits played for video games, total credits distributed by 
tickets made 
by the terminal's printer and the payback 
percentage of each video game; and 
I. 
After completion of the 5-year phase-in period described 
in subsection 3, 
must be linked to the central computer 
system 
developed 
under 
section 
to 
provide 
auditing 
program information. 
3. 
Phase-in period; 
rules. 
Requirements 
governing the 
technical capabilities of video gaming terminals must be phased 
in over a period of 5 years from the effective date of this Act. 
The Chief of the State Police shall adopt rUles to implement this 
subsection. 
Rules 
adopted 
pursuant 
to 
this 
subsection 
are 
routine technical rules 
as defined in Title 5, 
chapter 375, 
subchapter 2-A. 
4. 
Amount of play; payback value. 
A video gaming terminal 
may be played for a maximum of $5 in a single game. 
A video 
gaming terminal may not accept more than $20 at a time. 
The 
maximum prize awarded may not exceed the value of $1, 250. 
The 
payback value of each type of video game offered by each terminal 
must be at least 80%. 
5. 
Examination of prototypes. 
The Chief of the State 
Police and the Attorney General shall examine all prototypes of 
video gaming terminals and associated equipment for which a video 
gaming terminal manufacturer seeks a license as required in this 
chapter. 
The 
Chief 
of 
the 
State 
Police 
shall 
require 
the 
manufacturer seeking the examination and approval of the video 
gaming terminal or associated equipment to pay the anticipated 
actual cost of the examination before the examination occurs. 
After the examination occurs, the Chief of the State Police shall 
refund overpayments or charge and collect amounts sufficient to 
reimburse the Chief of the State Police for underpayments of 
actual cost. 
The Chief of the State Police may contract for the 
Page l2-LR0540(1) 
examinations of video gaming terminals and associated equipment 
as required by this section. 
6. 
Illegal gaming machine. 
An illegal gaming machine 
1S 
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sections 395 and 396. 
§374. 
Licensing of manufacturer or wholesaler 
1. 
Qualifications. 
To 
be 
licensed 
as 
a 
video 
gaming 
terminal manufacturer or wholesaler, 
a 
person must meet 
the 
qualifications set forth in section 371, subsection 2. 
2. 
Limitation on ownership. 
A partnership, corporation, 
person, individual partner or shareholder of more than 50,!> of a 
corporation or an immediate family member of a person, individual 
partner or shareholder of more than 5% of a corporation may not 
have ownership interests in more than one distributor. 
For the 
purposes of this subsection, "immediate family" means a spouse, 
child, parent, stepchild or stepparent. 
3. 
Preparation of list. 
The Chief of the State Police 
shall prepare a list of state-certified distributors of video 
gaming terminals. 
§375. 
Applications; investigation 
1. 
Form. 
An application for a license required under this 
chapter must be on a form provided by the Chief of the State 
Police. 
The 
application 
must 
be 
signed 
by 
the 
individual 
applicant or by a duly authorized officer of the partnership, 
corporation 
or 
association 
applying 
for 
the 
license. 
The 
application must contain, but is not limited to, the following 
information regarding the individual applicant and each officer, 
director, partner or owner of any interest in a partnership, 
corporation or association applying for a license: 
A. 
Full name: 
B. 
Full current address and addresses for the prior 5 years; 
C. 
A record of previous issuances of, refusals to issue and 
revocations of a license under this chapter; and 
D. 
Answers 
to 
the 
following 
questions 
posed 
in 
substantially the following form: 
(I) 
"Is there a formal charging instrument now pending 
against you in this or any other jurisdiction for a 
crime that is punishable by imprisonment for one year 
Page l3-LR0540(1) 
or 
more 
or 
for 
a 
misdemeanor 
crime 
of 
domestic 
violence?" 
(2) 
"Is there a formal charging instrument now pending 
against you in this or any other jurisdiction for a 
juvenile 
offense 
that 
involves 
conduct 
that. 
if 
committed 
by 
an 
adult. 
would 
be 
punishable 
by 
imprisonment for one year or more or would constitute a 
misdemeanor crime of domestic violence?" 
(3) "Have you ever been convicted of a crime described 
in subparagraph (1) 
or adjudicated as having committed 
a juvenile offense as described in subparagraph (2)?" 
(4) 
"Are you a fugitive from justice?" 
( 5) 
"Are 
you 
a 
drug 
abuser, 
drug 
addict 
or 
drug-dependent person?" 
(6) 
"Have you been discharged from the United States 
Armed 
Forces 
under dishonorable circumstances within 
the past 5 years?" 
(7) 
"Are you an illegal alien? " 
(8) 
"Have you been convicted wi thin the past 3 years 
of 3 or more crimes punishable by imprisonment of less 
than one year?" 
(9) 
"Have you been adjudged within the past 3 years to 
have committed 3 or more juvenile offenses involving 
conduct 
that, 
if 
committed 
by 
an 
adult, 
would 
be 
punishable by imprisonment of less than one year?" 
(10) 
"To your knowledge, have you engaged wi thin the 
past 3 years in reckless or negligent conduct that is 
substantiated by the records of a governmental entity?" 
2. 
Signature as certification. 
The applicant. by affixing 
the 
applicant's 
signature 
to 
the 
application, 
certifies 
the 
following: 
A. 
That the statements made in the application and any 
documents 
made 
a 
part of 
the 
application are 
true 
and 
correct; 
B. 
That 
the 
applicant 
understands 
that 
an 
affirmative 
answer to one or more of the questions in subsection 1, 
paragraph D is cause for refusal; and 
Page l4-LR0540(1) 
C. 
That the applicant understands that knowingly making any 
false statement in the application or any document made a 
part of the application is grounds for a refusal to issue a 
license or for revocation or suspension of a license. 
3. 
Consent to review records. At the reg:uest of the Chief 
of the State Police, the applicant shall take whatever action is 
necessary to permit the Chief of the State Police to examine all 
accounts and records in the applicant's possession, 
under the 
~cant's control or under the control of 3rd parties but 
accessible by consent of the applicant and shall authorize all 
3rd parties in possession or in control of those accounts or 
records to allow the Chief of the State Police or a designee to 
examine the accounts and records as the Chief of the State Police 
determines necessary to ascertain: 
A. 
Whether the information supplied on the application or 
on any documents made a part of the application is true and 
correct; 
B. 
Whether each of the requirements of this section has 
been met: and 
C. 
Whether 
the 
applicant 
meets 
the 
requirements 
for 
licensure under this chapter. 
This requirement includes taking whatever action is necessary to 
permit the Chief of the State Police or a designee to have access 
to 
confidential 
records 
held 
by 
banks, 
the 
courts, 
law 
enforcement agencies and the military for the purposes stated in 
this subsection. 
4. 
Investigations; national criminal history record check. 
Any 
individual 
applying 
for 
a 
license, 
any 
partner 
of 
a 
partnership or any officer. director or holder of any ownerShip 
interest of a corporation or association apJ?lying for a license 
as 
a 
licensee, 
manufacturer 
or wholesaler must 
submit 
to 
a 
background investigation by the Chief of the State Police to 
verify 
the 
applicant's 
compliance 
with 
the 
requirements 
of 
section 371, subsection 2. 
In order to determine the eligibility 
of an applicant for a license under this chapter, the Chief of 
the State Police shall require the applicant to furnish a full 
set of fingerprints to enable a criminal background investigation 
to be conducted. 
The Chief of the State Police shall submit the 
fingerprints 
to 
the 
Federal 
Bureau 
of 
Investigation 
for 
a 
national criminal history record check. 
5. 
Notification of municipal officers. 
An applicant for a 
license to operate a video gaming terminal must send a copy of 
the 
application 
to 
the 
officers 
of 
the 
municipality 
or 
unincorporated place in which the terminal will be operated. 
The 
applicant must certify in the application that the copy has been 
sent and must list the names and addresses of the persons to whom 
the copy was sent. 
§376. 
Fees: term of license: nontransferable 
1. 
License levels; fees. 
The annual fee for 
a 
license 
issued under this chapter is as follows: 
A. 
A license for a video gaming terminal manufacturer is a 
f,P'lTP 1 
1; rpnsF' and the fee 
foX __ 9 
video gamins- terminal 
manufacturer license is $5,000; 
B. 
A license for a video gaming terminal wholesaler is a 
Level 
license and the fee for 
a video gaming terminal 
wholesaler license is $5,000; and 
C. 
A license to operate a video gaming terminal is a Level 
license and the fee for a video gaming terminal operator 
license is $600 per terminal. 
In addition to the annual license fee, the Chief of the State 
Police may charge a one-time application fee for a license issued 
under this chapter in an amount equal to the actual cost of 
processing 
the 
application 
and 
performing 
any 
background 
investigations. 
All fees collected pursuant to this section must 
be deposited directly into the Video Gaming Fund, established in 
section 384. 
2. 
Term of license. 
All licenses issued by the Chief of 
the State Police under this chapter are effective for one year 
and are renewable annually, unless sooner revoked pursuant to 
section 377. 
3. 
Nontransferable. 
A license issued under this chapter is 
not transferable or assignable. 
4. 
Levels 
of 
license: 
prohibition 
against 
multiple 
licenses. 
A 
person 
licensed 
as 
a 
video 
gaming 
terminal 
manufacturer or wholesaler 
under 
section 
has 
a 
Level 
license. 
A licensee under section 371 has a Level 2 license. 
A 
person may not hold more than one level of license. 
§377. 
Actions relating to licenses 
1. 
Refusal to renew license. 
The Chief of the State Police 
may refuse to renew a license issued under this chapter for just 
cause after a hearing in accordance with the Maine Administrative 
Procedure Act. 
Page l6-LR0540(1) 
2. 
Suspension of license by Chief of State Police. 
The 
Chief of the State Police may suspend a license issued under this 
chapter for just cause for a period of up to 180 days. 
The 
license may be suspended under this subsection only if the Chief 
of the State Police receives a written statement made under oath 
from a law enforcement officer establishing probable cause for 
the suspension. 
The Chief of the State Police shall immediately 
notify the licensee in writing of the suspension and the date the 
suspension is to take effect. 
If the licensee wishes to have a 
hearing, the licensee must notify the District Court in writing 
within 20 days of the date of the suspension. 
If a hearing is 
requested, the license remains suspended pending the outcome of 
the hearing. 
If the Chief of the State Police suspends a license 
under this subsection, the licensee is entitled to a refund, on a 
pro rata basis, of the license fee for the remainder of the 
license period. 
3. 
Suspension or revocation of license by District Court. 
The District Court may suspend or revoke a license issued under 
this chapter for just cause. 
4. 
Just cause. 
As used in this section, "just cause" means: 
A. 
Making or causing to be made 
a 
false statement of 
material fact in obtaining a license under this chapter or 
in connection with service rendered within the scope of the 
license issued; 
B. 
Violating or having an agent who violated any provision 
of this chapter or any rule adopted under this chapter; or 
C. 
Becoming ineligible to hold that license. 
5. 
Ineligibility period following refusal to issue or renew 
license or revocation of license. 
A person may not apply to the 
Chief of the State Police for any license under this chapter less 
than 2 years after the Chief of the State Police refused to issue 
or renew a license under this chapter or less than 2 years after 
the District Court revoked a license issued to the person under 
this chapter. 
SUBCHAPTER 3 
VIDEO GAMING TERMINAL OPERATION; ALLOCATION OF FUNDS 
§38l. 
Limits on video gaming terminal use 
1. 
Hours of play. 
A licensee may not permit a person to 
play a video gaming terminal at any time other than a time when 
the sale of liquor is permissible under Title 28-A, section 4, 
subsection 1. 
2. 
Age of player. 
A licensee may not permit a person under 
years of age to playa video gaming terminal. 
3. 
Time and money limits imposed by licensee. 
A licensee 
may impose a daily limit on the amount of time or money spent by 
a person playing the video gaming terminals on the licensee's 
premises. 
4. 
Play by members 
and 
9J!""e"""'s-"t"'s'-'.'------'O""n~l.J._y-_.l:p"'e""r~s-"'o~n'-"s'------'w"-'h~o--"a'-=r~e 
members of the licensee organization or guests of those members 
may playa video gaming terminal on the premises of the licensee. 
§382. 
Payment of credits by licensee 
A licensee shall redeem credits for players who earn credits 
on 
terminals 
located 
on 
the 
premises 
of 
that 
licensee 
in 
accordance with rules adopted jointly by the Chief of the State 
Police 
and 
the 
director. 
If 
a 
person 
receives 
a 
credit 
redeemable for more than the minimum amount required by federal 
law to be reported to the United States Internal Revenue Service, 
the licensee shall require the person to complete a form listing 
the 
person's 
name, 
address 
and 
social 
security number. 
The 
licensee shall 
promptly 
send 
the 
form 
to 
the 
Department of 
Administrative and Financial Services, Bureau of Revenue Services. 
§383. 
Allocation of funds 
1. 
Allocation of net terminal income. 
Net terminal income 
must be allocated as follows: 
bank 
A. 
Eight percent must be sent to the Treasurer of State for 
deposit in the Video Gaming Fund established in section 384; 
and 
B. 
Two percent must be sent to the Treasurer of State for 
deposit 
in 
the 
Compulsive 
Gambling 
Rehabilitation 
Fund 
established in Title 22, section l700-A. 
C. 
Ninety percent must be paid to the licensee. 
If a 
licensee has obtained use of a video gaming terminal from a 
state certified distributor, the distributor must be paid, 
pursuant 
to 
an 
agreement 
between 
the 
licensee 
and 
the 
distributor, out of the funds received by the licensee under 
this paragraph. 
2. 
Deposit of state funds. 
Each licensee shall maintain a 
account accessible by the State for the deposit of funds 
Page l8-LR0540(1) 
owed to the State under this chapter. 
The licensee shall deposit 
in that account the State's share of the net terminal income 
attributable to video gaming terminals 
owned or leased. 
The 
licensee shall deposit in that account the State's share of net 
terminal income attributable to terminals. 
If the day on which 
funds must be deposited is not a business day, the funds must be 
deposited on the next business day after that date. 
3. 
Use of state share. 
At the end of each fiscal year 
beginning after June 
30, 
2005, 
the Treasurer of State shall 
transfer to the Local Government Fund created in Title 30-A, 
section 5681 an amount equal to 10°1> of the state share of net 
terminal income derived from video gaming terminals during that 
fiscal year, net of state administrative costs. 
Thirty 
da~ 
after the end of each fiscal year, the Treasurer of State shall 
transfer to the Public Education Fund, established in Title 30-A, 
section 
5686, 
all unexpended amounts 
of 
the previous fiscal 
year's revenues to the Local Government Fund, except those needed 
to fund 2 months of expenses for administering this chapter. 
4. 
Failure to deposit funds. 
A licensee who willfully 
fails to comply with this section commits a Class C crime. 
The 
license of that person may be revoked by the District Court, and 
the video gaming terminals to which the undeposi ted funds are 
attributable may be disabled by the director at the direction of 
the Chief of the State Police. 
5. 
Late payments. 
All payments not remitted when due must 
be paid together with a penalty assessment on the unpaid balance 
at a rate of 1.5% per month. 
§384. 
Video Gaming Fund 
1. 
Fund created. 
There is established the Video Gaming 
Fund. 
The fund consists of all revenue payable to the State 
pursuant to sections 376 and 383 and all other money credited or 
transferred to the fund from any other fund or source pursuant to 
law. 
2. 
Use of money. 
The money in the Video Gaming Fund may be 
used only: 
A. 
For expenses incurred in implementing or enforcing this 
chapter; 
B. 
For payment to the Local Government Fund pursuant to 
section 383; and 
C. 
For payment to the Public Education Fund, established in 
Title 30-A, section 5686. 
D. 
For payment to the Compulsive Gambler Rehabili tation 
Fund, established in Title 22, section 1700-A. 
SUBCHAPTER 4 
ENFORCEMENT AND PENALTIES 
§391. 
Reports; records 
1. 
Reports; records. 
The Chief of the State Police or the 
director shall require from any licensed video gaming terminal, 
manufacturer, wholesaler or licensee whatever records and reports 
the 
chief 
or 
the 
director 
considers 
necessary 
for 
the 
administration and enforcement of this chapter. 
2. 
Location. 
A license holder shall maintain all records 
required by this chapter or by rules adopted under this chapter 
at the primary business office within this State of the license 
holder or on the premises where the video gaming terminal is 
operated. 
In the case of a video gaming terminal manufacturer or 
wholesaler, 
the 
records 
must 
be 
maintained 
at 
the 
primary 
business office of the manufacturer or wholesaler. 
The primary 
business office must be designated by the license holder in the 
license application. 
All records must be open to inspection by 
the Chief of the State Police, the director or the designee of 
either of them, and a license holder may not refuse the Chief of 
the State Police, the director or the designee of either of them 
the right to inspect or audit the records. 
Refusal to permit 
inspection or audit of the records is not a crime under this 
chapter but does constitute grounds for revocation of the license. 
§392. 
Access to premises, equipment, records 
A person holding a license under this chapter shall permit 
the Chief of the State Police or the chief's designee to inspect 
any equipment, prizes, records or items and materials used or to 
be 
used 
in 
the 
operation 
of 
any 
video 
gaming 
terminal 
manufactured, owned or operated by that person. 
A person holding 
a 
license under this chapter shall consent in writing to the 
examination of all accounts, bank accounts and records in the 
license holder's possession or under the license holder's control 
and shall authorize all 3rd parties in possession or in control 
of those accounts or records to allow the Chief of the State 
Police 
or 
the chief's designee 
to 
examine 
the 
accounts 
and 
records as the chief determines necessary. 
§393. 
Contempt 
If a witness in a case involving a violation of this chapter 
refuses to obey a 
subpoena issued by the Chief of the State 
Police or to give any evidence relevant to proper inquiry by the 
chief, the Attorney General may petition the Superior Court in 
the county where the refusal occurred to find the witness in 
contempt. 
The Attorney General shall cause to be served on the 
witness an order requiring that witness to appear before the 
Superior Court to 
show cause why that witness should not be 
adjudged in contempt. 
The court shall, in a summary manner, hear 
the evidence and, if it is such as to warrant the court to do so, 
punish the witness in the same manner and to the same extent as 
for 
contempt 
committed 
before 
the 
Superior 
Court 
or 
with 
reference to the process of the Superior Court. 
§394. 
Violations 
1. 
Crimes by licensee. 
A licensee who performs any of the 
following acts commits a Class D crime: 
A. 
Permitting a person under 
years of age to playa 
video gaming terminal licensed pursuant to this chapter; 
B. 
Permitting a 
person to play a 
video gaming terminal 
licensed pursuant to this chapter at a 
time other than a 
time when the sale of liquor is permissible under Title 
28-A, section 4, subsection 1; 
C. 
Extending credit to a person in order for the person to 
playa video gaming terminal; 
D. 
Permitting a person to use a credit card as a method of 
payment for playing a video gaming terminal; and 
E. 
Permitting a visibly intoxicated person to play a video 
gaming terminal. 
2. 
Class C crimes by any person. 
A person who performs any 
of the following acts commits a Class C crime: 
A. 
Tampering with a video gaming terminal with intent to 
interfere with the proper operation of that terminal; 
B. 
Manipulating or attempting to manipulate the outcome, 
payoff or operation of a video gaming terminal by physical 
tampering or any other means; 
C. 
Manufacturing, 
distributing, 
selling, 
operating 
or 
placing 
a 
video 
gaming 
terminal 
for 
use 
in this 
State 
without a license 
01-
manufacturing, distributing, selling, 
operating or placing an illegal terminal for use in this 
State; and 
D. 
Placing for public use or operating an unlicensed video 
gaming terminal ln this State. 
3. 
Class D crimes by any person. 
A person who violates any 
provision of this chapter or any rule adopted under this chapter 
for which a specific penalty is not provided commits a Class D 
crime. 
§395. 
Seizure and forfeiture of illegal gaming machines 
1. 
Forfeiture. 
An illegal gaming machine, including any 
monetary contents, is subject to forfeiture to the State. 
2. 
Court jurisdiction. 
An illegal gaming machine and any 
monetary contents may be declared forfeited by any court that has 
jurisdiction over the illegal machine or final jurisdiction over 
any related criminal proceeding brought under this chapter or by 
the Superior Court for 
Kennebec 
County. 
Property subject to 
forfeiture may be 
kept or stored at any location within the 
territorial boundaries 
of 
the 
State 
and 
is 
subject 
to 
the 
authority of any court in which a petition seeking the forfeiture 
of that property is filed. 
3. 
Procedure. 
Forfeitures 
under 
this 
section must 
be 
accomplished by the following procedure. 
A. 
A district attorney or the Attorney General may petition 
the Superior Court in the name of the State in the nature of 
a proceeding in rem to order forfeiture of an illegal gaming 
machine 
and any monetary contents. 
The petition must be 
filed in the court having jurisdiction over the property. 
B. 
The proceeding is an in rem civil action, in which the 
State has the burden of proving all material facts by a 
preponderance of the evidence. 
C. 
The court shall order the State to give notice of the 
pendency 
of 
the 
action 
and 
the 
right 
to 
be 
heard 
by 
certified or registered mail or hand delivery by a deputy 
sheriff to any person who appears to have an interest in the 
illegal machine 
and any monetary contents. 
Receipt by a 
person then licensed to operate a motor vehicle in the State 
is presumed when notice is mailed to the last known address 
of that person on file with the Department of the Secretary 
of State, Bureau of Motor Vehicles. 
D. 
The court shall promptly, but not less than 2 weeks 
after notice, hold a hearing on the petition under paragraph 
A after an answer is filed by a person served with notice 
under paragraph C. 
At the hearing, the court shall hear 
evidence and make findings of fact and enter conclusions of 
lIDL.. 
E. 
Based on the findings and conclusions, the court shall 
issue a final order from which the parties have a right of 
appeal. 
The final order must provide for disposition of the 
illegal gaming machine 
and any monetary contents by the 
State. 
Any 
revenue generated by the disposition of the 
illegal machine 
and any monetary contents of the machine 
must 
be 
used 
to 
pay 
the 
reasonable 
expenses 
of 
the 
forfeiture 
oroceedings, 
seizure, 
storage, 
maintenance 
of 
custody, advertising and notice. 
The balance, if any, must 
be deposited in the General Fund. 
4. 
Records. 
Any 
law enforcement officer, 
department or 
agency 
having 
custody 
of 
an 
illegal 
gaming 
machine 
or 
any 
monetary 
contents 
of 
an 
illegal 
gaming 
machine, 
or 
having 
disposed of the illegal gaming machine 
or any monetary contents, 
shall keep and maintain during the pendency of the action full 
and complete records in accordance with this subsection. 
Upon 
issuance by the court of a final order ordering the disposition, 
destruction or return of the illegal machine or the monetary 
contents, the officer, department or agency shall transmit a copy 
of those records to the Department of Public Safety for inclusion 
into a centralized record. 
A. 
The records must show: 
From whom the illegal machine 
and any monetary 
contents were received; 
(2) 
Under what authority the illegal machine and any 
monetary contents are held, received or disposed of; 
~) 
To 
whom 
the 
illegal machine 
and 
any monetary 
contents are delivered; 
(4) 
The date and manner of destruction or disposition 
of the illegal machine; and 
(5) 
The exact kinds, guantities and forms of illegal 
gaming machines and the exact amount of any monetary 
contents of any machine held in custody or disposed of. 
B. 
The records must be open to inspections by all federal 
and state officers authorized by the laws of the United 
States, 
a state or territory of the United States or 
a 
foreign nation to investigate or prosecute gambling laws. 
C. 
The 
Department 
of 
Public 
Safety 
shall 
maintain 
a 
centralized record of illegal machines seized. 
At least 
quarterly, 
the department shall provide 
a 
report of the 
disposition of property previously held by the department to 
the Commissioner of Administrative and Financial Services 
and the legislative Office of Fiscal and Program Review. 
These records must include an estimate of the fair market 
value of items seized. 
5. 
Report to court. 
Persons making final disposition or 
destruction of an illegal gaming machine or its monetary contents 
under court order shall report, under oath, to the court the 
exact circumstances of the destruction or disposition. 
6. 
Seizure. 
An illegal gaming machine 
together with any 
monetary contents is contraband and may be seized by any law 
enforcement officer pursuant to subsection 7 or 8. 
1. 
Process for seizure. 
At the request of the State ex 
parte, 
the court may issue 
any preliminary order or process 
necessary to seize or secure the property for which forfeiture is 
sought and provide for its custody. 
A. 
Process for seizure of the property may issue only upon 
a 
showing of probable cause. 
The application for process 
for seizure of the property and the issuance, execution and 
return of the process are subject to the provisions of 
applicable state law. 
B. 
Any property subject to forfeiture under this section 
may be seized upon process. 
8. 
Seizure without process. 
Seizure without process may be 
made when seizure is incident to a legal search or inspection if 
the law enforcement officer has probable cause to believe the 
property seized is an illegal gaming machine. 
§396. 
Criminal forfeiture 
1. 
Forfeiture 
upon 
conviction of violation. 
A person 
convicted of a violation of this chapter forfeits to the State 
all rights, privileges, interests and claims to property that is 
subject to forfeiture pursuant to 
section 
395. 
All 
rights, 
privileges, interest and title in property subject to forfeiture 
under this section vest in the State upon the commission of the 
act giving rise to forfeiture pursuant to section 395. 
2. 
Proceeding 
by 
indictment. 
Property 
subject 
to 
forfeiture that is not yet the subject of a final order pursuant 
to 
section 
may 
be 
proceeded 
against 
by 
indictment 
or 
superseding indictment of a grand jury in any related criminal 
proceeding in which one or more persons with an interest in the 
property 
have 
been 
simultaneously indicted 
for 
one 
or 
more 
violations of this chapter. 
At any time prior to triaL the 
State, with the consent of the court and any defendant with an 
interest 
in 
the 
property, 
may 
file 
an 
ancillary 
charging 
instrument or information alleging that that property is subject 
to 
criminal 
forfeiture. 
Upon 
commencement 
of 
a 
criminal 
forfeiture by indictment or information of any property that may 
be the subject of any pending civil action commenced pursuant to 
section 395, 
the civil action must be immediately stayed and 
subrogated to the criminal forfeiture action. 
Discovery in the 
criminal action must be 
as 
provided by the 
Maine 
Rules 
of 
Criminal Procedure. 
3. 
Seizure upon finding of probable cause. Property subject 
to forfeiture that has not already been seized but has been 
indicted by a grand jury pursuant to this section may also be 
ordered seized based upon the grand jury's finding of probable 
cause pursuant to section 395. 
4. 
Trial against property. Trial against property charged 
by indictment or information may be by jury and must be held in a 
single proceeding together with the trial of the related criminal 
violation. 
Forfeiture of the property must be proved by the 
State by a preponderance of the evidence. 
The court, in its 
discretion, may allow any defendant with an interest in property 
indicted pursuant to this section to waive the right to trial by 
jury as against the property while preserving the right to trial 
by jury of any crime alleged. 
At trial by jury, the court, upon 
motion of a defendant or the State, may separate the trial of the 
matter against the defendant from the trial of the matter against 
the 
property 
subject 
to 
criminal 
forfeiture. 
If 
the 
court 
bifurcates the jury triaL the court shall first instruct and 
submit to the jury the issue of the guilt or 
innocence of 
defendants to be determined by proof beyond a reasonable doubt 
and shall restrict argument of counsel to those issues. 
After a 
verdict upon the guilt or innocence of all defendants, the court 
shall instruct and submit to the jury the issue of the forfeiture 
of the property to be determined by proof by a preponderance of 
the evidence 
and the court shall restrict argument to those 
issues. 
A special verdict must be returned as to the extent of 
the interest in property subject to forfeiture, if any. 
5. 
Person interested in forfeited property. 
A. person not 
charged in the indictment may 
not intervene in the criminal 
action. 
Following the entry of 
a 
verdict of forfeiture of 
property pursuant to this section or the entry of a guilty plea 
in open court on the record, the State shall provide written 
notice of its intent to dispose of the property to any person 
known to have alleged an interest in the property. 
The notice 
may be by certified, return receipt mail or as otherwise ordered 
by the court. 
Receipt by a person then licensed to operate a 
motor vehicle in the State is presumed when notice is mailed to 
the last known address of that person on file with the Department 
of the Secretary of State, Bureau of Motor Vehicles. 
A person 
other 
than the 
defendant asserting 
a 
legal 
interest in the 
property within 30 days of the date of receipt of the notice may 
petition the court for a hearing to adjudicate the validity of 
any alleged interest in the property. 
The hearing must be held 
before the court without jury. 
The request for the hearing must 
be signed by the petitioner under penalty of perjury and must 
state the nature and extent of the petitioner's right, title or 
interest in the property, 
the time 
and circumstances of the 
petitioner's acquisition of the right, title or interest in the 
property, _any additional facts supporting the petitioner's claim 
and the relief sought. 
Upon the filing of any petition for 
hearing, 
the 
court 
shall 
schedule 
the 
hearing 
as 
soon 
as 
practicable, but in no 
event later than 
months after the 
petition is filed or after the 
sentencing of 
any 
defendant 
convicted upon the same indictment. 
The court shall issue or 
amend 
a 
final 
order 
of 
forfeiture 
in 
accordance 
with 
its 
determination if, after the hearing, the court determines that 
the petitioner has established by a preponderance of the evidence 
that~ 
A. 
The petitioner has a legal right, title or interest in 
the property and the right, title or interest renders the 
order of forfeiture invalid in whole or in part because the 
right, title or interest was vested in the petitioner rather 
than any defendant or was superior to any right, title or 
interest to the exclusion of any defendant at the time of 
the commission of the acts that gave rise to the forfeiture 
of the property under this section; and 
B. 
The petitioner is a bona fide purchaser for value of the 
right, title or interest in the property and was at the time 
of purchase reasonably without cause to believe that the 
property was subject to 
forfeiture under this section. 
6. Title to property following forfeiture. 
Following the 
entry of a verdict of forfeiture of property pursuant to this 
section or the entry of a guilty plea in open court on the 
record, the State has clear title to property that is the subject 
of the indictment or information and order of forfeiture and may 
order all or a portion of the property forfeited to the State to 
be disposed of pursuant to section 395. 
§391. 
Payment to Attorney General 
As provided in Title 5, section 203, the Bureau of the State 
Police shall pay the Attorney General from the Video Gaming Fund 
for legal services provided pursuant to this chapter. 
§398. 
Implementation 
A video gaming terminal may not be operated under this 
chapter before April 1, 2004. 
§399. 
Rules 
Rules adopted pursuant to this chapter are routine technical 
rules pursuant to Title 5, chapter 375, subchapter 2-A. 
Sec. 9. 22 MRSA c. 276 is enacted to read: 
CHAPTER 21Q 
COMPULSIVE GAMBLER REHABILITATION 
§1100-A. 
Compulsive Gambler Rehabilitation Fund 
1. 
Creation of fund. 
The Compulsive Gambler Rehabilitation 
Fund, referred to in this section as "the fund," is established 
as 
a 
nonlapsing 
fund 
to 
provide 
rehabilitation services 
to 
persons who 
are compulsive gamblers and are determined to be 
eligible according to rules adopted by the 
department 
under 
subsection 2. 
2. 
Administration. 
The 
department shall administer the 
fund and shall adopt rules as necessary to administer the fund 
and to determine the criteria for eligible recipients. 
Rules 
adopted pursuant to this subsection are routine technical rules 
as defined in Title 5, chapter 375, subchapter 2-A. 
3. 
Funds. 
In addition to funds deposited pursuant to Title 
8, 
section 383, 
the fund may 
receive money from any source, 
including grants, gifts, bequests and donations. 
Sec. 10. 25 MRSA §3902, sub-§4 is enacted to read: 
4. 
Notice of violation of video gaming terminal laws. 
A 
liquor enforcement officer who notices a potential violation of 
any provision of Title 17, chapter 16 shall promptly notify the 
Chief of the State Police of the potential violation. 
Sec. II. 28-A MRSA §807 is enacted to read: 
§807. 
Notice to Chief of State Police 
The commission shall notify the Chief of the State Police of 
the suspension or revocation of any license under this chapter. 
The commission shall also notify the Chief of the State Police of 
any investigation of a violation of any provision of this Title. 
Sec. 12. 28-A MRSA §1054, sub-§II, ~C is enacted to read: 
C. 
A municipality may not combine a permit to operate a 
video gaming terminal, as defined in Title 17, section 361, 
wi th any other permit. 
The fee for a permit to operate a 
video gaming terminal may not be higher than the fee for any 
other 
special 
entertainment 
permit 
issued 
by 
the 
municipali ty. 
Sec. 13. 30-A MRSA §5686 is enacted to read: 
§5686. 
Public Education Fund 
In order to aid in financing education services, the Public 
Education Fund is established. 
Money in the Public Education 
Fund must be distributed to each municipality in proportion to 
the product of the population of the municipality multiplied by 
the property tax burden of the municipality as defined in section 
5681. 
SUMMARY 
This bill allows operation of video gaming terminals by 
nonprofi t 
organizations that are eligible for games of chance 
licenses and that are exempt from federal tax under Internal 
Revenue Code, Section 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10) 
or 
501(c)(19). 
These 
sections 
of 
the 
tax 
code 
refer 
to 
chari table 
organizations, 
civic 
leagues, 
fraternal 
benefit 
societies, 
domestic 
fraternal 
societies 
and 
associations 
and 
veterans' 
organizations. 
Organizations 
that 
currently 
have 
licenses for electronic video machines but do not qualify under 
one of those code sections may apply for an initial license while 
they seek the required federal 
tax status. 
The organization 
applying for the license must own or lease the premises on which 
the terminals will be placed and must use the premises for its 
charitable or nonprofit purpose. 
Video 
gaming 
terminal 
manufacturers, 
wholesalers 
and 
operators must be licensed by the Chief of the State Police, 
following background investigations of the applicants and their 
major 
business 
partners. 
Local 
approval 
is 
required 
for 
a 
license to operate video gaming terminals. 
The license specifies the number of terminals allowed on the 
premises, and the maximum number of terminals allowed is 5 per 
licensee. 
Terminals must be licensed by the Chief of the State 
Police and must be connected to a computer system operated by the 
Director 
of 
the 
Bureau 
of 
Alcoholic 
Beverages 
and 
Lottery 
Operations within the Department of Administrative and Financial 
Services. 
By the end of a 5-year phase-in period, this computer 
system must provide continuous on-line monitoring of video gaming 
terminal activity. 
Persons under 21 years of age are not allowed 
to use the machines. Only members of the organization and their 
guests are allowed to play. 
The maximum dollar amount for each 
play is $5 and the maximum payout is $1,250. 
Each game on each 
machine must return at least 80% of wagers to players, calculated 
on an annual basis. 
Net 
terminal 
income, 
which 
is 
income 
after 
payback 
to 
players, is divided as follows: 
8% to the State for payment into 
the Video 
Gaming 
Fund for 
administrative expenses, 
municipal 
revenue sharing and Public Education Fund revenue; 
2% 
to the 
Compulsive Gambler Rehabilitation Fund; and 90% to the licensee. 
Licenses are issued for one year. 
Applicants for an initial 
license must pay the actual costs of processing the application 
and performing the background investigation.