An Act To Permit Video Gaming for Money Conducted by Nonprofit Organizations LR0540(05)
Maine Legislature, Session 121, LD 1354
Committee Amendment CA_B_H814 (House)

12lST LEGISLATURE 
COMMITTEE AMENDMENT "B" to H.P. 996, L.D. 1354, 
Act To Permit Video Gaming for Money 
Conducted by 
Organizations" 
Bill, "An 
Nonprofit 
Amend the bill in section 3 in paragraph K in the last line 
(page 1, 
line 22 
in L.D.) 
by inserting after the following: 
"Police" the following: 'or the chief's designee' 
Further amend the bill in section 6 in paragraph N in the 
4th line (page 2, line 1 in L.D.) by striking out the following: 
"routine technical" and inserting in its place the following: 
'major substantive' 
Further amend the bill in section 8 in that part designated 
"~" in subsection 9 by inserting at the end a new blocked 
paragraph to read: 
, "Illegal gaming machine" does not include those machines owned 
or leased by the Department of Administrative 
and Financial 
Services, Bureau of Alcoholic Beverages and Lottery Operations 
and operated in accordance with this chapter.' 
Further amend the bill in section 8 in that part designated 
"§361." by striking out all of subsection 15 (page 4, lines 1 to 
in L. D. ) 
Further amend the bill in section 8 in that part designated 
"§361." by renumbering the subsections to read consecutively. 
Page l-LR0540(5) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "./3" to H.P. 996, L.D. 1354 
Further amend the bill in section 8 in that part designated 
"~" in subsection 1 in paragraph C in the 3rd and 4th lines 
(page 5, lines 1 and 2 in L.D.) by striking out the following: 
"routine technical" and inserting in its place the following: 
'major substantive' 
Further amend the bill in section 8 in that part designated 
"h64." in subsection 2 in paragraph B in the first line (page 5, 
line 
in L.D.) 
by 
striking out the 
following: 
"routine 
technical" and inserting in its place the following: 
'major 
substantive' 
Further amend the bill in section 8 in that part designated 
"~" in subsection 2 in paragraph B in subparagraph (7) in the 
last line (page 5, 
line 45 in L.D.) by inserting after the 
fOllowing: 
"located;" the following: 
'and' 
Further amend the bill in section 8 in that part designated 
"§l.§L." in subsection 2 in paragraph C in subparagraph (4) in the 
last line 
(page 
6, 
line 
in L.D.) 
by striking out 
the 
following: 
"~" and inserting in its place the following: 
' ....... ' 
Further amend the bill in section 8 in that part designated 
"~" in subsection 2 by striking out all of paragraph D (page 
6, lines 13 and 14 in L.D.) 
Further amend the bill in section 8 in that part designated 
"§3.§5...." in subsection 1 in paragraph A in the 4th and 5th lines 
(page 6, lines 24 and 25 in L.D.) by striking out the following: 
"routine technical" and inserting in its place the following: 
'major substantive' 
Further amend the bill in section 8 in that part designated 
"~" in subsection 
by inserting before paragraph 
A 
the 
following: 
'A. 
Contract to purchase or lease video lottery terminals 
and place or cause to be placed video lottery terminals on 
premises licensed under this chapter:' 
Further amend the bill in section 8 in that part designated 
"~" in subsection 2 by relettering the paragraphs to read 
consecutively. 
Further amend the bill in section 8 in that part designated 
"~" in subsection 1 in paragraph B in the 2nd line (page 8, 
line 15 in L.D.) by striking out the following: 
"501(c)(3), 
SOHc) (4)," 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "l?)" to H.P. 996, L.D. 1354 
Further amend the bill in section 8 in that part designated 
"§ll..L." in subsection 1 by striking out all of the last blocked 
paragraph (page 8 lines 24 to 38 in L.D.) 
Further amend the bill in section 8 in that part designated 
"§ll..L." in subsection 3 in the 2nd line (page 10, line 2 in L.D.) 
by inserting after the following: 
"issue" the following: 
'or 
renew' 
Further amend the bill in section 8 in that part designated 
"§.ll.L." in subsection 3 in the 3rd line (page 10, line 3 in L.D.) 
by inserting after the following: 
"license" the following: 
'or 
renewal' 
Further amend the bill in section 8 in that part designated 
"§371." in subsection 4 in paragraph C in the last line (page 10, 
line 35 in L.D.) by inserting after the following: 
"applicant." 
the following: 
'Denial of an initial application and refusal to 
renew a license by the municipal officers is subject to appeal to 
the Chief of the State Police.' 
Further amend the bill in section 8 in that part designated 
"§3.IL." by striking out all of subsections 2 and 3 (page 10, 
lines 48 to 50 and page 11, lines 1 to 12 in L.D.) 
Further amend the bill in section 8 in that part designated 
"~" in subsection 1 in the 3rd line (page 11, line 18 in 
L.D.) by inserting after the following: 
"Police" the following: 
• and owned or leased and placed in a licensed facility by the 
Bureau of Alcoholic Beverages and Lottery Operatio~s' 
Further amend the bill in section 8 in that part designated 
"§373." in subsection 2 in paragraph F in the first and 2nd lines 
(page 
11, 
lines 
and 
in 
L.D.) 
by 
striking out 
the 
following: 
"After 
completion of 
the 
5-year phase-in period 
described in subsection 3, must" and inserting in its place the 
following: 
.~. 
Further amend the bill in section 8 in that part designated 
"~" in subsection 2 in paragraph G in the first and 2nd lines 
(page 12, lines 1 and 2 in L.D.) by striking out the following: 
"After completion of the 5-year phase-in period described in 
subsection 3, must" and inserting in its place the following: 
• MY.§J;. I 
Further amend the bill in section 8 
I.§ll.l..... •• in 
(page 
12, 
following: 
subsection 2 in paragraph H in 
lines 
and 
in 
L.D.) 
"After 
completion of 
the 
in that part designated 
the first and 2nd lines 
by 
striking out 
the 
5-year phase-in period 
COMMITTEE AMENDMENT 
".:., 
COMMITTEE AMENDMENT ,13:>" to H.P. 996, L.D. 1354 
described in subsection 3, must" and inserting in its place the 
following: 
'MYll' 
Further amend the bill in section 8 in that part designated 
"SJ1L." in subsection 2 in paragraph I in the first and 2nd lines 
(page 
12, 
lines 
and 
in 
L.D.) 
by 
striking out 
the 
following: 
"After 
completion of 
the 
5-year 
phase-in period 
described in subsection 3, must" and inserting in its place the 
following: 
'Must' 
Further amend the bill in section 8 in that part designated 
"§l.l3....." by striking out all of subsection 3 (page 12, lines 24 to 
in L.D.) 
Further amend the bill in section 8 in that part designated 
"§l.l3....." by renumbering the subsections to read consecutively. 
Further amend the bill in section 8 in that part designated 
"~" in subsection 2 in the first line (page 14, line 39 in 
L.D.) by striking out the following: 
"The" and inserting in its 
place the following: 
'~' 
Further amend the bill in section 8 in that part designated 
"~" in subsection 3 in the 2nd line (page 15, line 7 in L.D.) 
by inserting after the following: 
"Police" the following: 
'Q£ 
the chief's designee' 
Further amend the bill in section 8 in that part designated 
"§l1.L" in subsection 1 in paragraph A in the last line (page 16, 
line 13 in L.D.) by striking out the following: 
"$5,000" and 
inserting in its place the following: 
'$3,500' 
Further amend the bill in section 8 in that part designated 
"§31.L." in subsection 1 in paragraph B in the last line (page 16, 
line 17 in L.D.) by striking out the following: 
"$5,000" and 
inserting in its place the following: 
'$3,500' 
Further amend the bill in section 8 in that part designated 
"§.llL" in subsection 1 in paragraph C in the last line (page 16, 
line 21 in L.D.) 
by striking out the following: 
"llQQ" 
and 
inserting in its place the following: 
'£5QQ' 
Further amend the bill in section 8 in that part designated 
"SlaL." in subsection 1 in the last line (page 18, line 2 in 
L.D.) 
by inserting after the following: 
"subsection 1." the 
following: 
'If an operator licensed under this chapter does not 
have a license to sell liguor, the hours of play are limited to 
the hours when the sale of liguor is permissible under Title 
28-A, section 4, subsection 1.' 
COMMITTEE AMENDMENT 
" .. 
, 
~/ 
COMMITTEE AMENDMENT ':b" to H.P. 996, L.D. 1354 
Further amend the bill in section 8 in that part designated 
,,~ 
.. by inserting after subsection 4 the following: 
'5. 
Suspension of liguor license. 
If at any time the 
liguor 
license of 
an operator 
licensed by this 
chapter is 
suspended 
or 
revoked. 
the license to operate 
video 
lottery 
terminals is suspended until the liguor license is reinstated. 
6. 
Operation of video lottery terminals separate 
frQID 
conduct of beano. 
If an operator licensed under this chapter is 
also licensed to conduct beano. the operation of beanQ must be 
kept physically separate from the operation of video lottery 
terminals. ' 
Further amend the bill in section 8 in that part designated 
.. ~ 
.. by striking out all of subsection 1 and inserting in its 
place the following: 
'I. 
Allocation of net terminal income. 
Net terminal income 
must be allocated as follows. 
A. 
Thirty-four percent must be sent to the Treasurer of 
State for deposit in the Video Gaming Fund established in 
section 384. 
B. 
One percent must be sent to the Treasurer of State for 
deposit 
in 
the 
Compulsive 
Gambling 
Rehabilitation 
Fund 
established in Title 22. section l70Q-A. 
C. 
Sixty-five 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.' 
Further amend the bill in section 8 in that part designated 
.. §l..8.l......" by striking out all of subsection 3 and inserting in its 
place the following: 
'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 50'10 of the state share of net 
terminal income derived from video gaming terminals during that 
fiscal year, net of state administrative costs. 
Not later than 
days after the end of each fiscal year, the Treasurer of State 
shall issue to municipalities that host an organization licensed 
to operate video lottery terminals all unexpended amounts of the 
COMMITTEE AMENDMENT 
" '~~1" 
COMMITTEE AMENDMENT ,hIt to H.P. 996, L.D. 1354 
state share. 
in proportion to the amount generated by video 
lottery terminals operated in that municipality.' 
Further amend the bill in section 8 in that part designated 
"~" in subsection 2 by striking out al1 of paragraphs A to D 
(page 19, lines 43 to 50 and page 20, lines 2 and 3 in L.D.) and 
inserting in their place the following: 
'A. 
For expenses incurred in implementing or enforcing this 
chapter that do not exceed 10% of the fundi and 
B. 
For payment to the Local Government Fund pursuant to 
section 383.' 
Further amend the bill in section 8 in that 
"~" in subsection 1 in the first line (page 
L.D.) by inserting after the following: 
"who" 
'negligently' 
Further amend the bill in section 8 in that 
"Sill-.." in subsection 2 in the first line (page 
L .. D.) by inserting after the following: 
"who" 
'negligently' 
part designated 
21, line 17 in 
the following: 
part designated 
21, line 37 in 
the following: 
Further amend the bill in section 8 in that part designated 
,,~ 
.. by striking out all of subsection 1 (page 22, lines 14 
and 15 in L.D.) and inserting in its place the following: 
'1. 
Forfeiture. 
An illegal gaming machine. including any 
monetary contents and any funds that have passed through the 
machine since the commission of the illegal act. is subject to 
forfeiture to the State.' 
Further amend the bill in section 8 in that part designated 
".§.nb" in subsection l. by striking out all of the last sentence 
(page 24, lines 46 to 49 in L.D.) 
Further amend the bill in section 8 in that part designated 
,,~ 
.. in the first line (page 27, line 15 in L.D.) by striking 
out the following: 
"routine technical" 
and inserting in its 
place the following: 
'major substantive' 
Further amend the bill in section 9 in that part designated 
"§1700-A." by striking out all of SUbsection 2 (page 27, lines 33 
to 37 in L.D.) and inserting in its place the following: 
'2. 
Administration. 
The 
Department 
of 
Behavioral 
and 
Developmental Services shall administer the 
fund 
through the 
Office of Substance Abuse and shall adopt rules as necessary to 
administer the fund and to determine the criteria for eligible 
COMMITTEE AMENDMENT 
,.,,~ 
''':fl' 
COMMITTEE AMENDMENT ,j3 .. to H.P. 996, L.D. 1354 
recipients. 
Rules 
adopted 
pursuant 
to 
this 
subsection 
are 
routine technical rules 
as defined in Title 5, 
chapter 
, 
subchapter 2-A.' 
Further amend the bill by striking out all of section 10. 
Further amend the bill by striking out all of section 13 and 
inserting in its place the following: 
, Sec. 
13. 
Appropriations and 
allocations. 
appropriations and allocations are made. 
The 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Nonprofit Gaming 
following 
Initiative: 
Appropriates funds for one Clerk III position, one 
Clerk IV position, the costs of leasing video gaming terminals, 
the costs of providing a computerized monitoring system and other 
operational costs. 
General Fund 
positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL -
ALL FUNDS 
AGRICULTURE, FOOD AND RURAL 
RESOURCES, DEPARTMENT OF 
Harness Racing Commission 
0320 
2003-04 
(0.000) 
$0 
o 
$0 
2003-04 
$0 
$0 
2004-05 
(2.000) 
$81,518 
2,668,750 
$2,750,268 
2004-05 
$2,750,268 
$2,750,268 
Initiative: 
revenues. 
Dea110cates funds to reflect a 
loss of dedicated 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
AGRICULTURE, FOOD AND RURAL 
2003-04 
$0 
$0 
2004-05 
($37,014) 
($37,014) 
COMMITTEE AMENDMENT 
\~. 
;,~ 
\~'O" 
COMMITTEE AMENDMENT .. J3 .. to H.P. 996, L.D. 1354 
RESOURCES, DEPAR'l'MENT OF 
DEPARTMENT '1'O'.rALS 
OTHER SPECIAL REVEHUE FUNDS 
DEPAR'l'MElIT TOTAL -
ALL FUNDS 
AT'l'ORREY GENERAL, DEPAR".l'MEN'T OF THE 
Administration - Attorney General 
0310 
2003-04 
$0 
$0 
2004-05 
($37,014) 
($37,014) 
Initiative: 
Provides funds for 
an Assistant Attorney General 
position 
to 
assist 
in 
rulemaking, 
forfeitures, 
license 
application denial appeals and other required legal services. 
General Fund 
Positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
AT'l'ORHEY GENERAL, DEPAR'l'MENT OF THE 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL -
ALL FUNDS 
BEHAVIORAL AND DEVELOPMENTAL 
SERVICES, DEPARTMENT OF 
Office of Substance Abuse 
0679 
2003-04 
2004-05 
(0.000) 
(1.000) 
$0 
$62,234 
8,664 
$0 
$70,898 
2003-04 
2004-05 
$0 
$70,898 
$0 
$70,898 
Initiative: 
Allocates funds for the newly established Compulsive 
Gambler Rehabilitation Fund. 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
BEHAVIORAL AND DEVELOPMENTAL 
SERVICES, DEPAR7MENT OF 
DEPAR7MENT '1'O'.rALS 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL -
ALL FUNDS 
2003-04 
$0 
$0 
2003-04 
$0 
$0 
2004-05 
$96,390 
$96,390 
2004-05 
$96,390 
$96,390 
COMMITTEE AMENDMENT 
~~. 
~$}. 
COMMITTEE AMENDMENT .. & 
.. to H.P. 996, L.D. 1354 
PUBLIC SAFETY, DEPARTMENT OF 
State Police - Nonprofit Gaming Enforcement 
Initiative: 
Appropriates funds for one Sergeant position and a 
portion of the operating costs necessary to enforce the legal 
requirements of nonprofit video gaming. 
General Fund 
positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
State Police - Nonprofit Gaming Enforcement 
2003-04 
(0.000) 
$0 
o 
$0 
2004-05 
(1.000) 
$99,416 
68,236 
$167,652 
Initiative: 
Allocates funds for one Detective position, 3 Public 
Safety Inspector I positions, one Clerk Typist III position, one 
Clerk Typist II position and a portion of the operating costs 
necessary to enforce the legal requirements of nonprofit video 
gaming. 
Other Special Revenue Funds 
Positions - Legislative Count 
Personal Services 
All Other 
Other Special Revenue Funds Total 
PUBLIC SAFETY, DEPARTMENT OF 
DEPARTMENT '.I."O'XALS 
GENERAL FUND 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT '.I."O'XAL -
ALL FUNDS 
TREASURER OF STATE, OFFICE OF 
Nonprofit Gaming - Municipal Distribution 
2003-04 
(0.000) 
$0 
o 
$0 
2003-04 
$0 
o 
$0 
2004-05 
(6.000) 
$383,524 
$45,442 
$428,966 
2004-05 
$167,652 
428,966 
$596,618 
Initiative: 
Allocates funds for the distribution of funds to 
those municipalities who are hosts to licensed nonprofit video 
gaming operators. 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
2003-04 
$0 
$0 
2004-05 
$1, 930,349 
$1,930,349 
COMMITTEE AMENDMENT 
t, \:~,' 
tt·"'" 
\(~ 
COMMITTEE AMENDMENT "b" to H.P. 996, L.D. 1354 
State - Municipal Revenue Sharing 
0020 
Initiative: 
Allocates funds to reflect the distribution of funds 
from the Video Gaming Fund. 
Other Special Revenue Funds 
2003-04 
2004-05 
All Other 
$0 
$1,930,349 
Other Special Revenue Funds Total 
$0 
$1,930,349 
TREASURER OF STATE, OFFICE OF 
DEPAR'1"MEBT TOTALS 
2003-04 
2004-05 
OTHER SPECIAL REVENUE FUNDS 
$0 
$3,860,698 
DEPARTMENT'l'O'lAL -
ALL FUNDS 
$0 
$3,860,698 
SECTION TOTALS 
2003-04 
2004-05 
GENERAL FUND 
$0 
$2,988,818 
OTHER SPECIAL REVENUE FUNDS 
4,349,040 
SECTION 'l'O'lAL -
ALL FONDS 
$0 
$7,337,858' 
Further amend the 
nonconsecutive 
Part 
consecutively. 
bill by relettering 
letter 
or 
section 
or renumbering any 
number 
to 
read 
SUMMARY 
This 
amendment 
is 
a 
revised 
version 
of 
the 
original 
committee amendment: 
changes were made to the distribution of 
net terminal income, noted later in this summary. 
This 
amendment 
restricts 
the 
types 
of 
nonprofit 
organizations eligible for 
a 
license to operate video gaming 
terminals. 
It removes from eligibility organizations that are 
exempt from federal tax under Internal Revenue Code, Sections 
501(c)(3) 
and 501(c)(4). 
It maintains organizations that are 
eligible for games of chance licenses and that are exempt from 
federal 
tax 
under 
Internal 
Revenue 
Code, 
Section 
501(c)(8), 
501(c)(10) or 501(c)(19). 
These sections of the tax code refer 
to fraternal benefit societies, domestic fraternal societies and 
associations 
and 
veterans' 
organizations. 
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. 
COMMITTEE AMENDMENT 
'~l "::'l>~ a 
(~, ~!~. 
\:'-' 
COMMITTEE AMENDMENT J3" to H.P. 996, L.D. 1354 
Under this amendment, video lottery terminals operated by 
organizations licensed under this amendment must be owned or 
leased 
by 
the 
Department 
of 
Administrative 
and 
Financial 
Services, Bureau of Alcoholic Beverages and Lottery Operations. 
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 
amendment specifies that 
local approval is also required for renewal of a license to 
operate video gaming terminals and that municipal decisions are 
subject to appeal to the Chief of the State Police in accordance 
with the Maine Administrative Procedure Act. 
The license specifies the number of terminals allowed on the 
premises; 
the 
maximum 
number of terminals 
allowed is 
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. 
Persons under 21 years of age are not allowed to use 
the machines. The amendment specifies that if an organization's 
liquor license is suspended, the license to operate video gaming 
terminals 
is 
also 
suspended 
until 
the 
liquor 
license 
is 
reinstated. 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 
among 
the state, 
the municipalities, 
a 
compUlsive 
gambling 
fund 
for 
prevention 
and 
treatment 
of 
compulsive 
gambling 
and 
the 
charitable 
organization. 
This 
amendment differs from the original committee amendment in that 
2% of the net terminal income goes to the Compulsive Gambler 
Rehabilitation 
Fund 
and 
65% 
to 
the 
licensee. 
The 
revised 
amendment provides that 23°-t> of the income goes to the State for 
payment into the Video Gaming Fund for administrative expenses 
not to exceed 10°,,; the rest of the Video Gaming Fund is divided 
between municipal revenue sharing and the municipalities that 
host the organizations that operate video lottery terminals. 
Host municipalities receive their share in proportion to the 
amount of revenue that is generated by video gaming terminals in 
their municipality. 
Licenses are issued for one year. The amendment reduces the 
fees proposed by the bill. The license fee per terminal is $500, 
and for wholesalers, manufacturers and operators, the fee is 
$3,500. 
Applicants for an initial license must pay the actual 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .p .. to H.P. 996, L.D. 1354 
costs of processing the application and performing the background 
investigation. 
The amendment also specifies that any rules put forth by the 
Bureau of Alcoholic Beverages and Lottery Operations and the 
Chief of the State Police to administer and enforce the laws 
related to video gaming by nonprofits are major substantive rules. 
The amendment also adds an appropriations and allocations 
section. 
This amendment also changes the distribution of net terminal 
income 
from 
video 
lottery 
terminals 
operated 
by 
nonprofit 
organizations. 
The State's share, which is deposited in the 
Video Gaming Fund, 
is increased from 23% to 34%. 
The allocation 
to the Compulsive Gambling Rehabilitation Fund is reduced from 2% 
to 1%, and the amount paid to the licensee is reduced from 75% to 
65%. 
The amendment also increases the maximum amount that the 
State may use to cover administrative expenses from 
2'l-o of the 
State's share to 10% of the State's share. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Appropriations! Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Revised: 02/05104 frac 
Office of Fiscal and Program Review 
LD 1354 
An Act To Permit Video Gaming for Money Conducted by Nonprofit 
Organizations 
LR0540(05) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Legal and Veterans Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
Projections 
2003-04 
2004-05 
2005-06 
2006-07 
$0 
$3,297,266 
$3,300,888 
$3,351,470 
$0 
$2,988,818 
$2,986,271 
$3,030,561 
$0 
$4,349,040 
$4,085,369 
$4,153,436 
$0 
($308,448) 
($314,617) 
($320,909) 
$0 
$4,349,040 
$4,085,369 
$4,153,436 
Correctional and Judicial Impact Statements 
Establishes new Class C and D crimes; increases correctional and judicial costs 
Fiscal Detail and Notes 
This bill specifies that at least 80% of the gross tenninal revenue must be paid back to users of the video gaming 
tenninals. The remaining 20% of revenue collected by eligible nonprofit organizations that elect to become licensed as 
video gaming tenninal operators will be distributed as follows: 65% is kept by the licensee; 34% goes to the Video 
Gaming Fund; and 1 % goes to the Compulsive Gambler Rehabilitation Fund which will be administered by the 
Department of Behavioral and Developmental Services. The 34% that is distributed to the Video Gaming Fund is 
further distributed in the following manner: 10% is reserved for the costs incurred by State Government in 
administering the provisions of this bill; 50% (net of the administrative costs) goes to the Local Government Fund; 
and at the end of each fiscal year, the remaining unspent funds are distributed to those municipalities that host the 
nonprofit organizations that chose to become licensed by the provisions of this bill. 
LR0540(5) - Fiscal Note - Page 1 of3 
As stated previously, the bill specifies that 10% of the revenue collected for the Video Gaming Fund will be reserved 
for the administrative costs of state agencies. The estimated revenue that will be generated for this purpose is 
$428,966 in fiscal year 2004-05. The total administrative and enforcement costs that will be incurred by state agencies 
is $3,417,784 in fiscal year 2004-05. The difference between the amounts reserved for administrative costs and the 
actual costs of the state agencies is $2,988,818 in fiscal year 2004-05 and will require appropriations from the Gel. 
Fund. 
In addition, the shift of expenditures from Lottery ticket sales and Pari-mutuel wagering to video gaming terminals at 
licensed non-profit organizations will reduce both General Fund and dedicated revenue. 
Presented below is an estimate of the revenue and distribution that may be generated by licensed nonprofit 
organizations assuming that 270 nonprofit organizations will become licensed video terminal operators and each of the 
licensees will have the maximum 5 video terminals authorized by the provisions ofthis bill. This table also includes a 
breakdown of the General Fund and Other Special Revenue Funds impacts. 
Summary of Gaming Revenue 
2003-04 
2004-05 
2005-06 
Total Gaming Revenue 
$0 
$48,195,000 
$49,158,900 
80% Payback 
$0 
$38,556,000 
$39,327,120 
Net Terminal Income 
$0 
$9,639,000 
$9,831,780 
65% of Net Terminal Income to Licensee 
$0 
$6,265,350 
$6,390,657 
Reguired Distribution of net terminal income 
Video Gaming Fund Revenues 
-34% of Net Terminal Income 
$0 
$3,277,260 
$3,342,805 
-License Fees to Video Gaming Fund 
$0 
$682,000 
$682,000 
-Reimbursement to Video Gaming Fund 
$0 
$330,404 
$0 
Video Gaming Fund Revenues For Distribution 
$0 
$4,289,664 
$4,024,805 
- 10% for Administrative Costs 
$0 
$428,966 
$402,481 
- 50% (net) to Local Government Fund 
$0 
$1,930,349 
$1,811,162 
- Unspent Funds to Host Municipalities 
$0 
$1,930,349 
$1,811,162 
% to Compulsive Gambling Program 
$0 
$96,390 
$98,318 
Other Revenue Impacts: 
Impact on Lottery - Diverted "Gaming/Gambling" Revenue to Non-profit Video Tenninals 
2.5% of Gross Revenue 
$0 
$1,204,875 
$1,228,973 
25% General Fund Transfer 
$0 
($301,219) 
($307,243) 
Impact on Harness Racing - Diverted "Gaming/Gambling" Revenue to Non-profit Video Terminals 
1% of Gross Revenue 
$0 
$481,950 
$491,589 
Loss of Revenue from diverted revenue by Fundi Account: 
General Fund 
Subtotal General Fund Revenue 
Other Special Revenue Funds 
- Purse Supplements 
- Sire Stakes Fund 
- Agricultural Support Fund 
$0 
$0 
$0 
$0 
$0 
LR0540(5) - Fiscal Note - Page 2 of3 
($7,229) 
($308,448) 
($8,675) 
($4,771) 
($5,542) 
($7,374) 
($314,617) 
($8,849) 
($4,867) 
($5,653) 
2006-07 
$50,142,078 
$40,113,662 
$10,028,416 
$6,518,470 
$3,409, 
$682,000 
$0 
$4,091,661 
$409,166 
$1,841,248 
$1,841,248 
$100,284 
$1,253,552 
($313,388) 
$501,421 
($7,521) 
($320,909) 
($9,lJ~~) 
($4,964) 
($5,766) 
- Racetracks 
$0 
($5,976) 
($6,096) 
($6,218) 
- Promotional Board 
$0 
($12,049) 
($12,290) 
($12,536) 
Subtotal Dedicated Revenue 
$0 
($37,014) 
($37,754) 
($38,509) 
SummarY of Ex~enditure Im~acts 
General Fund: 
- Administrative and Financial Services 
$0 
$2,750,268 
$2,719,463 
$2,768,622 
- Attorney General 
$0 
$70,898 
$72,670 
$74,487 
- Public Safety 
$0 
$167,652 
$194,137 
$187,452 
Subtotal General Fund Costs 
$0 
$2,988,818 
$2,986,270 
$3,030,561 
Other Special Revenue Funds: 
- Agriculture, Food and Rural Resources 
$0 
($37,014) 
($37,754) 
($38,509) 
- Behavioral and Developmental Services 
$0 
$96,390 
$98,318 
$100,284 
- Public Safety 
$0 
$428,966 
$402,481 
$409,166 
- Treasurer 
$0 
$3,860,698 
$3,622,324 
$3,682,496 
Subtotal Other Special Revenue Costs 
$0 
$4,349,040 
$4,085,369 
$4,153,437 
SummarY of Revenue Im~acts 
General Fund: 
- Diverted Lottery Revenue 
$0 
($301,219) 
($307,243) 
($313,388) 
- Diverted Pari-mutuel Revenue 
$0 
($7,229) 
($7,374) 
($7,521) 
General Fund Total 
$0 
($308,448) 
($314,617) 
($320,909) 
Other Special Revenue Funds: 
- Video Gaming Fund Revenues 
$0 
$4,289,664 
$4,024,805 
$4,091,661 
- Diverted Pari-mutuel Revenue 
$0 
($37,014) 
($37,754) 
($38,509) 
- Compulsive Gambling Program 
$0 
$96,390 
$98,318 
$100,284 
Other Special Revenue Total 
$0 
$4,349,040 
$4,085,369 
$4,153,436 
LR0540(5) - Fiscal Note - Page 3 of3