An Act To Allow Slot Machines at Commercial Horse Racing Tracks Transmitted to the Clerk of the 121st Maine Legislature by the Secretary of State on February 26, 2003 and ordered printed. Primed un recydt'li ~r 17/~ 1J7.1lldC~
Maine Legislature, Session 121, LD 1371
Amends: 7 MRSA §76, 8 MRSA §263-C, 8 MRSA §271, 25 MRSA §3902

Legislative Document 
No. 1371 
LB.2 
House of Representatives, March 18,2003 
An Act To Allow Slot Machines at Commercial Horse Racing 
Tracks 
Transmitted to the Clerk of the 121st Maine Legislature by the Secretary of State on 
February 26, 2003 and ordered printed. 
Primed un recydt'li ~r 
'17/~ 1J7.1lldC~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 7 MRSA §76 is enacted to read: 
§16. Agricultural Fair Support Fund 
1. Fund created. The Treasurer of State shall establish an 
account to be known as the "Agricultural Fair Support Fund" and 
shall credit to it all the money received for that purpose under 
Title 8, section 923, subsection 1, paragraph A, subparagraph 4. 
2. Disbursement. No later than January 31st of each year, 
all funds held as of the end of the previous calendar year in the 
Agricultural 
Fair 
Support 
Fund 
must 
be 
distributed 
by 
the 
Treasurer of State as follows: 
A. Sixty percent of these funds must be distributed to all 
entities licensed as agricultural fairs by the department 
that during the previous year were 
licensed to 
and did 
accept pari-mutuel wagers 
on harness horse 
races. 
Each 
licensed entity must receive a proportionate distribution 
based upon the number of days in the preceding year each 
licensee raced during its regular fair meet. The funds must 
be used by the fairs to supplement purses; and 
B. Forty percent of these funds must be divided among all 
entities licensed as agricultural fairs by the department. 
These funds must be distributed in the same proportion as 
funds distributed for premium reimbursement and may be used 
at the fairs' discretion. 
Sec. 2. 8 MRSA §263-C, sub-§4, as reallocated by PL 1999, c. 
790, Pt. A, §8, is amended to read: 
4. 
Duties. 
The executive director has the following duties: 
A. 
Management of the work of the commission, including: 
(1) 
Rulemaking; 
(2) 
Processing appeals; 
(3) 
Licensing 
of 
tracks 
and 
off-track 
betting 
facilities; aBa 
(4) 
Setting race dates; and 
(5) 
Registration of slot machines and licensing of 
slot machine operators and slot machine distributors; 
gill! 
Page l-LR2024(1) 
• 
f 
B. 
Management of the work 
of the department 
regarding 
harness 
racing 
aBeL 
off-track betting 
and 
slot machine 
operations, including: 
(1) 
Supervision of all staff 
racing 
aBeL 
off-track 
betting 
functions; 
involved 
in 
and 
slot 
harness 
machine 
(2) 
Management of the collection and distribution of 
revenues under this chapter; 
(3) 
Budget development and management; 
(4) 
Policy development with regard to harness racing 
aBeL off-track betting and slot machines; 
(5) 
Management of participant licensing; 
(6) 
Enforcement 
of 
harness 
racing 
aBeL 
off-track 
betting and slot machine statutes and rules; 
(7) 
Investigation of harness 
racing aBeL off-track 
betting and slot machine violations; 
(8) 
Facilitating the development of positive working 
relationships in the harness racing industry and State 
Government; and 
(9) 
Making reports to the Governor and Legislature and 
recommendations to the commissioner regarding harness 
racing 
aBeL 
off-track 
betting 
and 
slot 
machine 
operations and the need for changes in statutes and 
rules. 
Sec. 3. 8 MRSA §271, sub-§l, as amended by PL 2001, c. 567, 
§3, is further amended to read: 
1. 
Licensing. 
If the commission is satisfied that all of 
this chapter and rules prescribed by the commission have been 
substantially complied with during the past year and will be 
fully 
complied with 
during 
the 
coming 
year 
by 
the 
person, 
association or corporation applying for 
a 
license; 
that the 
applicant, 
its 
members, 
directors, 
officers, 
shareholders, 
employees, creditors and associates are of good moral character; 
that the applicant is financially responsible; and that the award 
of 
racing dates 
to 
the 
applicant is 
appropriate 
under 
the 
criteria contained in subsection 2, it may issue a license for 
the holding of harness horse races or meets for public exhibition 
with pari-mutuel pools, which must expire on December 31st. 
The 
fee for a license is $100 or $10 per week, whichever is higher. 
The commission shall provide a booklet containing harness racing 
laws and rules and relevant portions of the Maine Administrative 
Procedure Act to every initial 1 icensee and a fee not to exceed 
$10 must be included in the license fee to cover the cost of this 
publication. 
The commission shall provide necessary revisions of 
this booklet to those persons renewing licenses at the time of 
renewal 
and shall include the cost of the revisions, 
not to 
exceed $10, in the renewal fee. 
The license must set forth the 
name of the licensee, the place where the races or race meets are 
to be held and the specific race dates and time of day or night 
during which racing may be conducted by the licensee. 
I f 
the 
commission determines that the location where a commercial track 
is licensed to conduct races is unavailable, it may permit a 
licensee 
to 
transfer its 
license 
to 
another 
location. 
The 
substitute location and the races conducted there by the licensee 
must be conducted in accordance with this chapter. 
ABy--&aeh 
:l:i:eeBse--i~-i-&-Bet--t.-£'·an&f.e·r-ab.J..-e--<H::--a66:i:'3Bae:leT 
The District 
Court Judge, as designated in Title 4, chapter 5, may revoke any 
license issued at any time for violation of the commission's 
rules or 
licensing provisions 
upon notice 
and hearing. 
The 
:l:i:eeBse-~-~~y-€e£~e£a~ieB-~~-aatematiea±±Y-~€¥Bk€B~-~~-te 
T:i:t:le--~r-~~---~~--~PBR--the A license issued under this 
section is transferable or assignable as long as the commission 
finds that the transferee or assignee satisfies all elements for 
the issuance of the license being transferred or assigned. 
A 
change in ownership, legal or equitable, of 50°", or more of the 
voting stock of the 
Q 
corporation aBs--t..-he--eel'pel'at:i:eB--may--aet 
he:ls-a-ha~R€££-~~-e--£'~~-~-~~-~~~~-e~hi&itiea-witheat-a 
Bew-:l:i:eeBse licensed under this section constitutes a transfer of 
the license. 
Sec. 4. 8 MRSA §§296 and 297 are enacted to read: 
§296. Fund to supplement harness racing purses 
1. 
Fund created. 
A 
fund 
is established to 
supplement 
harness racing purses to which the commission shall credit all 
payments 
received 
pursuant 
to 
section 
923, 
subsection 
1, 
paragraph A, subparagraph (2) for distribution in accordance with 
this section. 
2. Distribution. 
On May 30th, September 30th and January 
30th, 
all amounts 
credited to the 
fund established by this 
section as of the last day of the preceding month and not 
distributed 
before 
that 
day 
must 
be 
distributed 
to 
each 
commercial track licensed to operate slot machines under section 
911, with each track receiving that amount of the money available 
for distribution determined by multiplying that amount times a 
fraction, the numerator of which is the total number of live race 
• 
( 
days conducted by the commercial track during the preceding time 
period and the denominator of which is the total number of race 
days conducted by all commercial tracks licensed to operate slot 
machines under section 911 during that time period. 
The payment 
in January must be adjusted so that for the prior 3 time periods 
each commercial track receives that fraction of the total money 
distributed over the full year from the fund established by this 
section, the amount determined by multiplying the total amount of 
money times a fraction, the numerator of which is the number of 
live race days 
conducted by the 
commercial track during the 
calendar year and the denominator of which is the total number of 
race days conducted by all commercial tracks licensed to operate 
slot machines under section 911 during that calendar year. 
The 
funds 
distributed pursuant 
to 
this section must 
be 
used 
to 
supplement harness racing purses . 
3. Rules. 
The commission may adopt rules to enforce the 
obligation of 
licensees to 
use 
funds 
distributed under this 
section 
to 
supplement 
harness 
racing 
purses 
and 
to 
require 
licensees to account for funds. 
§297. Working capital advance 
The commission is authorized to establish an advance to the 
commission from any licensee under section 911 in an amount of up 
to $250,000 to fund any necessary start-up costs associated with 
the implementation of a 
system of slot machines in the State 
pursuant to chapter 30. 
Funds advanced for this purpose must be 
credited against the licensee's obligation to pay the first 
$250,000 to the commission under section 923. 
Sec. 5. 8 MRSA c. 30 is enacted to read: 
CHAPTER 30 
SLOT MACHINES 
SUBCHAPTER 1 
GENERAL PROVISIONS 
§901. 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 slot machine, including, but not limited to, 
integrated circuit chips, printed wire assemblies, printed wire 
boards I 
printing mechanisms I 
video_-.--display moni tors and metering 
devices. 
2. Conunission. 
"Commission" means the State Harness Racing 
~C~o~m~m~1~·~s~s~i~o~n~2w~i~t~h~i~nL-~t~h~e~~D~e~p~a~r~t~m,~e~n~t~~o~f~~A~g~r~i~c~u~l~t~u~r~e~,~F~o~o~d and Rural 
Resources. 
3. Director. 
"Director" means the executive director of the 
commission. 
4. Drug abuser. 
"Drug abuser" has the same meaning as set 
forth in Title 5, section 20003, subsection 10. 
5. Drug addict. 
"Drug addict" has the same meaning as set 
forth in Title 5, section 20003, subsection 11. 
6. Drug-dependent person. 
"Drug-dependent person" has the 
same meaning as set forth in Title 5, section 20003, subsection 
12. 
7. 
Distribute. 
"Distribute" means to sell, lease, license, 
place or otherwise make available for use in the State. 
8. Fugitive from justice. 
"Fugitive from justice" has the 
same meaning as set forth in Title 15, section 201, subsection 4. 
9. Gross slot income. 
credits inserted into a slot 
prizes paid out to winners. 
"Gross slot income" means money .. 9J:' 
machine minus money or credi ts or 
10. Licensee. 
"Licensee" means 
a person licensed by the 
commission to operate a slot machine in accordance with section 
11. Operate. 
"Operate" means to offer for public use. 
12. Pari-mutuel facility. 
"Pari-mutuel facility" means 
a 
location at which a person is licensed under chapter 11 to accept 
pari-mutuel wagers on horse races. 
13. 
Person. 
"Person" 
means 
an 
individual, 
corporation, 
association, partnership, trust or other business organization. 
14. 
Slot machine. 
"Slot machine" 
means 
any mechanical, 
electrical or electronic device, contrivance or machine or other 
device, contrivance or machine that, upon insertion of a coin, 
token, credit or similar object or thing of value, is available 
to play or operate, the play or operation of which by the element 
of chance may deliver or entitle the person playing or operating 
the device, contrivance or machine to receive cash, 
tokens or 
• 
:; 
credits to be exchanged for cash, merchandise or anything of 
value, whether the payoff is made automatically from the device, 
contrivance or machine or in any other manner, 
and includes 
progressive 
electronic 
gaming 
devices 
with 
a 
payoff 
that 
increases as the electronic gaming device is played. 
15. Slot machine distributor. 
"Slot machine distributor" 
means a person who is licensed under this chapter to distribute 
slot machines and associated eguipment for use in the State. 
16. 
Uniform 
location 
agreement. 
"Uniform 
location 
agreement" means 
a written agreement between a licensee and a 
slot machine distributor that governs the terms and conditions of 
the placement of slot machines on the premises of the licensee. 
§902. License required 
1. 
Operation of slot machines. 
A person may operate a slot 
machine in this State if the person is licensed to do so by the 
commission under section 911, but not otherwise. 
2. 
Distribution of slot machines. 
A person may distribute 
a slot machine and associated eguipment for use in this State if 
the person is licensed to do so by the commission under section 
913, but not otherwise. 
3. 
Slot machines. 
A person may not operate or distribute a 
slot machine in this State unless the machine is registered with 
the commission under section 912. 
4. Ownership of slot machines. 
A person may not place or 
operate a slot machine for use in this State if the slot machine 
is owned by any person other than a slot machine distributor 
licensed under section 913. 
§903. Administration and enforcement 
The commission shall enforce and administer the J?rovisions 
of this chapter. 
§904. Powers and duties of the commission 
1. Powers. The commission may: 
A. Regulate, supervise and exercise general control over the 
ownership, operation and distribution of slot machines; 
B. 
Adopt rules necessary to administer and enforce this 
chapter; 
C. 
Investigate any alleged violations of this chapter or 
rules adopted under this chapter and investigate the direct 
or indirect ownership or control of any licensee or slot 
machine distributor; 
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; 
E. 
Enter 
the 
offices, 
facilities 
or 
other 
places 
of 
business 
of 
a 
licensee 
or 
slot machine 
distributor 
to 
determine compliance with this chapter and rules adopted 
under this chapter: 
F. 
Reguire a licensee to file an annual financial report 
with the commission, including a balance sheet and profit 
and 
loss 
statement, 
a 
list of all persons 
having 
any 
beneficial 
interest 
in 
the 
licensee, 
and 
such 
other 
information as the commission may reguire, all in such form 
as the commission may establish by rule; 
G. 
Keep accurate and complete records of its proceedings 
and to certify the records as may be appropriate; 
H. 
Take 
any 
other 
action 
as 
may 
be 
reasonable 
or 
appropr iate to enforce this chapter and the rules adopted 
under this chapter; 
I. Approve or disapprove terms and conditions of uniform 
location agreements; and 
J. 
Subject 
to 
any 
applicable 
laws 
relating 
to 
public 
contracts, enter into a contract for the performance of the 
commission's duties under this chapter. 
A contract awarded 
or entered into by the commission may not be assigned by the 
holder of the contract except by specific approval of the 
commission. 
2. Duties. The commission shall: 
A. 
Investigate or cause to be investigated all complaints 
made to the commission regarding ownership, distribution or 
operation of slot machines 
and all violations 
of 
this 
chapter or the rules adopted under this chapter; 
B. 
Adopt rules to prevent undesirable conduct relating to 
the ownership, distribution and operation of slot machines, 
including, but not limited to, the following: 
• 
(1) 
The practice of any fraud or deception upon 
a 
player of a slot machine: 
(2) The presence of a slot machine in or at premises 
that may be unsafe due to fire hazard or other such 
conditions: 
(3) The use of obscene advertising: 
(4) 
The 
infiltration 
of 
organized 
crime 
into 
the 
ownership, distribution or operation of slot machines; 
and 
(5) The presence of disorderly persons in a location 
where slot machines are in use; 
C. Disable any slot machine following a determination that: 
(1) 
A person has 
illegally tampered with the slot 
machine: 
(2) 
The 
funds 
from the slot machine have 
not been 
distributed, deposited or allocated in accordance with 
section 923: or 
(3) 
The slot machine does not meet the registration 
requirements of this chapter or rules adopted under 
this chapter: 
D. Collect funds due to the State under section 923: 
E. Certify monthly to the Commissioner of Agriculture, Food 
and Rural Resources a full and complete statement of all 
slot 
machine 
revenue, 
credits 
disbursed 
by 
licensees, 
administrative expenses and the allocation of gross slot 
income for the preceding mont~ 
F. Submit by January 15th an annual report to the Governor 
and the joint standing committee of the Legislature having 
jurisdiction over legal affairs of slot machine revenue, 
credits disbursed by licensees, administrative expenses and 
the allocation of gross .. slot income for the preceding year; 
and 
G. Prepare and submit to the Department of Agriculture, Food 
and Rural Resources a budget for the administration of this 
chapter. 
SUBCHAPTER 2 
LICENSING 
§911. License to operate 
1. Eligible persons. 
The commission may issue a license to 
operate slot machines to any person who is licensed to operate a 
commercial track, as defined in section 275-A, that satisfies the 
following criteria: 
A. 
The commercial track is located at or within a 5-mile 
radius of the center of a commercial track that conducted 
harness racing with pari-mutuel wagering on more than 25 
days during calendar year 2002; and 
B. 
The operation of slot machines at the commercial track 
is approved by the voters of the municipality in which the 
commercial track to be licensed is located by referendum 
election held at any time after December 31, 2002 and before 
December 31, 2003. 
2. 
Requirements for 
license under subsection 1 
forth in section 914. 
license. 
The person applying for 
a 
must satisfy the qualifications set 
3. 
OReration of machines. 
A licensee may operate a slot 
machine on any day during the calendar year at the location where 
the commercial track is licensed to accept pari-mutuel wagers on 
horse races, without restriction on hours of operation. 
4. Placement of slot machines. 
A licensee shall prohibit 
persons under 21 years of age from any area in which a slot 
machine is located except that persons 18 to 20 years of age may 
be present if directly employed by the licensee or a slot machine 
distributor. 
5. Uniform location agreement. 
Each slot machine is subject 
to 
a 
uniform 
location 
agreement 
between 
the 
slot 
machine 
distributor and the licensee. 
A copy of the agreement must be 
submitted to the commission. The uniform location agreement is 
the complete and sole agreement between the licensee and the slot 
machine distributor regarding slot machines. 
No other agreement 
between the licensee and the slot machine distributor is legally 
binding. 
6. Disclosure of other contracts and agreements. 
A licensee 
must disclose to the director any and all contracts or agreements 
the licensee establishes with a slot machine distributor. 
• 
• 
",<" 
7. Restriction against proliferation. 
A license ma~ not be 
issued under subsection 1 to any commercial track located within 
miles of any existing licensee. 
§912. Registration of slot machines 
1. 
Registration 
required. 
A slot 
machine 
may 
not 
be 
operated or distributed in this State unless the slot machine is 
registered by the commission, the operator is licensed 
b~ the 
commission under section 911 
and the distributor of the slot 
machine is licensed under section 913. 
2. Requirements for registration. 
To be registered, a slot 
machine: 
A. May not have any means of manipulation that affect the 
random probabilities of winning a game: 
B. 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 or cash without pa~ing; 
C. Must be designed to suspend operation until reset if a 
person attempts, by physical or other tampering, to obtain 
credits or cash without paying; 
D. 
Must 'have 
nonresettable 
meters 
housed 
in 
a 
readily 
accessible locked slot machine area that keep a permanent 
record of all cash inserted into the slot machine, credi ts 
or cash awarded by the slot machine, 
credits played for 
games and credits distributed by tickets issued by the slot 
machine; and 
E. Must have accounting Sol. cware that keeps an electronic 
record of information that includes, but is not limited to, 
total 
cash 
inserted 
into 
the 
slot machine; 
total 
cash 
awarded, total credits played for games and total credits 
distributed by tickets made by the slot machine; 
and the 
payback percentage of each game. 
3. Examination of prototypes. 
The commission shall examine 
prototypes of slot machines 
and associated equipment of slot 
machine distributors seeking registration as required in this 
chapter. 
The 
commission 
shall 
require 
the 
slot 
machine 
distributor seeking examination and approval of the slot machine 
or 
associated equipment 
to 
pay 
the anticipated cost of 
the 
examination before the examination occurs. 
After the examination 
occurs, the commission shall refund overpayments or charge and 
collect 
amounts 
sufficient 
to 
reimburse 
the 
commission 
for 
underpayments of actual cost. 
The commission may contract for 
the examinations of slot i,,_ 
required by this section. 
Lr~s and associated equipment as 
4. Unregistered slot machine subject to confiscation. 
Any 
slot machine that is not registered as required by this section 
is 
contraband 
and 
a 
public 
nuisance 
and 
is 
subject 
to 
confiscation by any law enforcement officer. 
§913. Licensing of slot machine distributors 
1. License required. 
A pe.rson may not distribute any slo-.-t 
machine in the State unless the person is licensed under this 
section. 
2. 
Requirements for license. 
license to distribute slot machines 
the qualifications set out in section 
§914. 
Qualifications for license 
The commission may issue a 
to an applicant that mee~ 
914. 
1. 
Minimum qualifications. 
A person 
must 
satisfy 
the 
following qualifications to be a licensee under section 911 or a 
slot machine distributor under section 913. 
A. 
The person must be of good moral character. 
B. 
The person 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. 
C. 
The person has not been convicted of a violation of this 
chapter or Title ~~1 chapter 14. 
D. 
The person is not 
a 
fugitive 
from 
justice, 
a 
drug 
abuser , 
a drug addict, a drug-dependent person, an illegal 
alien or a person who was dishonorably discharged from the 
military 
forces 
within 
years 
prior 
to 
the 
date 
of 
application. 
E. 
The 
person 
has 
completed 
the 
application 
form 
and 
complied with the requirements of section 915. 
F. 
The person has sufficient financial assets to meet any 
financial obligations imposed by this chapter. 
G. 
The person has not knowinglY-----!!lQde a false statement of 
material fact in applying for a license under this chapter. 
.. 
.. 
H. 
The person has sufficient knowledge 
the operation of commercial 
tracks 
and 
effectively operate the commercial track 
to which the license application relates 
this chapter and the rules and standards 
chapter. 
and experience in 
slot machines 
to 
and slot machines 
in accordance with 
adopted under this 
2. 
Background 
investigation; 
additional 
qualifications. 
Before a license is granted under this chapter, the commission 
shall 
conduct 
a 
thorough 
background 
investigation 
of 
the 
applicant to ensure satisfaction of the gualifications set forth 
in 
this 
chapter 
and 
such 
additional 
gualifications 
as 
the 
commission may establish by rules adopted under section 904. 
The 
applicant shall provide information on a form as reguired by the 
director. 
§9l5. Applications 
1. Form. 
An application for a license reguired under this 
chapter must 
be 
on the 
form provided by the director. 
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 legal or beneficial interest in 
a person 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. All information the commission determines is necessary or 
appropriate to determine whether the applicant satisfies the 
minimum gualifications specified in section 914, subsection 
h 
2. Signature as certification. 
The applicant, by affixing 
the 
applicant's 
signature 
to 
the 
following: 
application, 
certifies 
the 
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 
und~rstands that 
the 
information 
provided pursuant to subsection 1, paragraph D is used by 
the commission, 
along with other information, 
in judging 
good moral character and that this information may be cause 
for refusal to issue a license; and 
Page l2-LR2024(1) 
C. 
That the applicant understal).ds that knowingly making a 
false statement in the application or in a document made a 
part of the application is grounds for refusal to issue a 
license or for revocation or suspension of a license. 
3. 
Consent 
to 
review records. 
At 
the 
request 
of 
the 
commission, the applicant shall take whatever action is necessary 
to permit the director to examine all accounts and records in the 
applicant's possession, 
under the applicant's control or under 
the control of 3rd parties but accessible by consent of the 
applicant, and must authorize all 3rd parties in possession or in 
control of those accounts or records to allow the director or a 
designee to examine the accounts 
and records as the director 
determines necessary, to ascertain: 
A. 
Whether the information supplied on the application or 
any docUIT,ents made a part of the application is true and 
correct; 
B. Whether each of the requirements of this section has been 
met; or 
C. 
Whether 
the 
applicant 
meets 
the 
requirements 
for 
licensure under this chapter and under rules adopted under 
this chapter. 
The 
consent 
to 
review 
records 
includes 
the 
applicant 
taking 
whatever action is necessary to permit the commission or its 
designee to have access to confidential records held by .banks, 
courts, law enforcement agencies and the military for purposes 
stated in this subsection. 
4. 
Existing license. 
Commercial tracks with a license tQ 
operate under chapter 11 in force as of the effective date of 
this chapter that satisfy the eligibility requirements of section 
must be automatically considered a licensee under section 911 
and are not required to submit an application for a license under 
section 911. 
§9l6. Fees; term of license or registration; transferability 
1. 
Fees. 
The 
annual 
fee 
for 
a 
license or registratjon 
issued under this chapter is as follows: 
A. Registration of a slot machine under section 9l2~L~; 
.6_._~licenSJL..iQ~ 
__ ~loJ;. __ !I'-9&hine distributor 
U1J<;l~X_~~~tj,-Qn 
is $1,000; and 
Page l3-LR2024{1} 
• 
• 
C. A license for an operator of a slot machine under section 
is $1. 000. 
In addition to 
the 
annual 
license or registration fee, 
the 
director may charge a one-time application fee for a license or 
registration listed in paragraph A, B or C in an amount egual to 
tb~ actual cost of processing the application and performing any 
background investigations. 
All fees collected pursuant to this 
~~ction must be deposited directly to the General Fund. 
2. 
Term of license and registration. 
All 
licenses 
and 
;trations issued by the director under this chapter are 
·tive for 10 years and are automatically renewable at the 
usion of the term for an additional term of 10 years, unless 
ed pursuant to section 917. 
3. Transferable. 
A license issued under this chapter is 
~erable or assignable as long as the director finds that the 
eree 
or 
assignee 
satisfies 
all 
reguirements 
for 
the 
ce of the license transferred or assigned .. 
Actions relating to licenses and registrations 
Suspension or revocation of license; refusal to renew. 
'mmission may refuse to renew a license or registration or 
a license or registration after a hearing in accordance 
the 
Maine 
Administrative Procedure 
Act 
for 
just cause, 
ling any of the following: 
A. The person made or caused to be made a false statement of 
material fact in obtaining a license or registration under 
this chapter or in connection with service rendered within 
the scope of the license or registration issued; 
B. The person or the person's agent violated any provision 
of this chapter or any rule adopted under this chapter; or 
C. 
The 
holder of 
a 
license or registration under 
thi.l? 
~c~h~a~p~t~e~r __ ~b~e~c~o~m~e~s __ ~i~n~e~l~~~'g~i~b~l~e~~t~o~~h~o~l~d~~t~h~a~t~ __ l~i~c~e~n~s~e~ __ or 
registration. 
The commission may not suspend a license or registration unless 
the 
director 
determines 
that probable 
cause 
exists 
for 
the 
suspension. The commission shall immediately notify the licensee 
or registration holder in writing of the suspension and the date 
the 
suspension 
is 
to 
take 
effect. 
If 
the 
licensee 
or 
registration holder wishes to have a hearing, the licensee or 
registration holder must petition the Superior Court in writing 
within 20 days of the date of the suspension and the Superior 
Court shall conduct a hearing expeditiously. 
If a hearing is 
requested, the license or registration remains in effect pending 
the outcome of the hearing. 
Suspension, nonrenewal or revocation 
of 
a 
license 
or 
registration 
is 
subject 
to 
appeal 
as 
administrative action under the Maine Administrative Procedure 
2. Ineligibility period following refusal to issue or renew 
license or revocation of license. 
A person may not apply to the 
commission for any license under section 911 or 913 less than 2 
years after the commission refused to issue or renew a license 
under 
section 
or 
or 
less 
than 
one 
year after the 
revocation of a license issued to the person under section 911 or 
913. 
SUBCHAPTER 3 
SLOT MACHINE OPERATION; ALLOCATION OF FUNDS 
§92l. Limits on slot machine use 
1. Age of player. 
A licensee may not permit a person under 
years of age to playa slot machine. 
2. Time and money limits not required. 
A licensee is not 
required to impose a limit on the amount of time or money spent 
by an individual playing the slot machines on the licensee's 
premises. 
A licensee has no civil or criminal liability for 
th~ 
amount of time or money spent by an individual playing slot 
machines on the licensee's premises. 
§922. Payment of credits by licensee 
A licensee shall redeem credits for players who earn credits 
on a slot machine located on the premises of that licensee in 
accordance with rules adopted by the commission. 
§923. Allocation of funds 
1. Distribution from commercial track. 
A licensee shall 
~c~o~l~l~e~c~t __ ~a~n~d~_d~i~s~t~r~i~b~u~t~e~~g~r~o~s~s __ ~s~l~o~t~~i~n~c~o~m~e~~f~r~o~m~~s~l~o~t~~m.achines 
operated by the licensee as follows. 
A. Twenty-five percent of total gross slot income must be 
sent to the commission for distribution by the commission as 
follows: 
( 1) 
One percent of total gross slot income must be 
retained for administrative expenses of the commission. 
An amount not to exceed $250,000 may be expended by the 
I c' 
commission 
for 
addiction 
counseling 
services 
in 
accordance with rules adopted by the commission; 
(2) Seven percent of total gross slot income must be 
used by the commission to supplement harness racing 
p-urses and must be disbursed for that purpose at the 
times and in the manner prescribed in section 296; 
(3) 
One percent of total gross slot income must be 
credited by the commission to the Sire Stakes 
Fund 
created in section 281; 
(4) Three percent of the total gross slot income must 
be 
forwarded by the commission to the Treasurer of 
State, who shall credit the money to the Agricultural 
Fair Support Fund established in Title 7, section 76; 
(5) Ten percent of the total gross slot income must be 
forwarded by the commission to the State Controller to 
be credited to the Fund for a Healthy Maine established 
by 
Title 
22, 
section 
1511 
and 
segregated 
into 
a 
separate 
account 
under 
Title 
22, 
section 
1511, 
subsection 
10, 
with 
use 
of 
funds 
in 
the 
account 
restricted to 
the 
purposes 
described in Title 
22, 
section 1511, subsection 6, paragraph E; 
(6) 
Two percent of the total gross slot income must be 
forwarded by the commission to the Finance Authority of 
Maine for application to the University of Maine System 
Scholarship Fund created in Title 20-A, section 11631; 
and 
ill One percent of the total gross slot income must be 
forwarded by the commission to the board of trustees of 
the Maine Technical College System to be applied by the 
board to 
fund its scholarships program 
under Title 
20-A, section 12716, subsection 1. 
B. The balance of the gross slot income must be retained ~ 
the licensee from which the licensee is required to pay the 
slot machine distributor and all other expenses associated 
with the operation of the slot machines. 
2. 
Failure to deposit funds. 
A licensee 
who 
willfully 
refuses to comply with this section commits a Class D crime. The 
4(· 
license of that person may be revoked by the commission and the 
slot machines operated by that licensee may be disabled and may 
be confiscated by the director. 
3. 
Late 
pa~nts. 
The 
commission 
may 
adopt 
rules 
establishing the dates on which payments required by this section 
are due. All payments not remitted when due must be paid together 
with interest on the unpaid balance at a rate of 1.5% per month. 
SUBCHAPTER 4 
ENFORCEMENT AND PENALTIES 
§931. Reports; records 
1. Reports; records. 
The commission may require from any 
licensee under section 91L a slot machine distributor licensed 
under section 913 or holder of a registration under section 912 
whatever records and reports the director considers necessary for 
the administration and enforcement of this chapter. 
2. Location. 
A holder of a license or registration under 
this chapter 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 slot machine is operated. 
In the case of 
a 
slot 
machine 
distributor, 
the 
records 
must 
be 
maintained 
at 
the 
primary business office of the slot machine distributor. 
The 
QKimary business office must be designated by the license holder 
in 
the 
license 
application. 
All 
records 
must 
be 
open 
tQ 
inspection and audit by the commission or its designee and a 
license holder may not refuse the commission or its designee the 
right 
to 
inspect 
or 
audit 
the 
records. 
Refusal 
to 
permit 
inspection 
or 
audit 
of 
the 
records 
constitutes 
grounds 
(or 
revocation of the license or registration. 
§932. Access to premises, equipment and records 
A 
person 
holding 
a 
license 
or 
registration 
under 
this 
chapter 
shall permit the director 
to 
inspect 
any 
equipment, 
prizes, records or items and materials used or to be used in the 
operation of any slot machine owned, distributed or operated by 
that person. 
A person holding a license or registration under 
this chapter shall consent in writing to the examination of all 
the licensee' s books and records related to operations licensed 
under 
this 
chapter 
and 
shall 
authorize all 
3rd parties 
in 
possession or in control of those books and records to allow the 
director or the director' s 
designee to examine such books and 
records as the director determines necessary. 
§933. Contempt 
If a 
witness 
refuses 
to 
obey 
a 
subpoena issued by the 
commission 
to 
give 
any 
evidence 
to 
proper 
inquiry 
by 
the 
.. 
• 
commission, the commission may petition the Superior Court in the 
county 
where 
the 
refusal 
occurred 
to 
find 
the 
witness 
in 
contempt. The commission 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 the evidence warrants the court to do so, punish the 
witness in the same manner and to the same extent as for contempt 
before the Superior Court or with reference to the process of the 
Superior Court. 
§934. Violations 
1. Violations by licensees. 
The commission shall adopt by 
rule under section 904 a schedule of fines and other disciplinary 
actions 
against 
licensees 
and 
slot machine 
distributors 
for 
violation of the provisions of this chapter and rules adopted 
under this chapter. 
2. Class C crimes by any person. 
A person commits a Class C 
crime if that person: 
A. Tampers with a slot machine with intent to interfere with 
the proper operation of that slot machine: 
B. Manipulates or intends to manipulate the outcome, payback 
or operation of a slot machine by physical tampering or any 
other means; or 
C. 
Operates or distributes a slot machine in this State 
without a license. 
§935. Fines and suspensions 
To enforce the provisions of this chapter and any rules 
adopted 
under 
this 
chapter, 
the 
commission is authorized to 
establish a schedule of fines for each violation of this chapter 
or each violation of the rules. The commission is authorized to 
levy a fine, after notice and hearing, for each violation of this 
chapter or each violation of the rules. 
The 
commission is authorized to establish a 
schedule of 
suspensions 
of 
licenses 
and 
may 
levy 
suspensions 
for 
each 
violation of this chapter or the rules adopted pursuant to this 
chapter. 
Any person aggrieved by any fine or suspension imposed by 
the commission may seek judicial review pursuant to the Maine 
Administrative Procedure Act. 
Page l8-LR2024(1) 
§936. Rules 
Rules adopted pursuant to this chapter are routine technical 
rules pursuant to Title 5, chapter 375, subchapter 2-A. 
§937. Applicability of Title 17, chapter 14 
Except as expressly provided in this chapter, the provisions 
of 
Title 
17, 
chapter 
do 
not 
apply 
to 
the 
ownership, 
distribution or operation of slot machines in the State. 
Sec. 6. 22 MRS A §1511, sub-§10 is enacted to read: 
10. 
Restricted 
accounts. 
The 
State 
Controller 
is 
authorized to establish separate accounts within the 
fund in 
order to segregate money received by the fund from any source, 
whether public or private, that requires as a condition of the 
contribution to the fund that the use of the money contributed be 
restricted to one or more of the purposes specified in subsection 
6. 
Money credited to a restricted account established under this 
subsection may be applied only to the purposes to which the 
account is restricted. 
Sec. 7. 25 MRSA §3902, sub-§4 1S enacted to read: 
4. 
Notice of violation of slot machine 
law. 
A 
liquor 
enforcement officer who notices a violation of any provision of 
Title 8, 
chapter 
shall promptly notify the State Harness 
Racing Commission of the violation. 
SUMMARY 
This initiated bill allows the operation of slot machines by 
certain persons who are licensed to operate a commercial track. A 
person under 21 years of age is prohibited from playing a slot 
machine. 
The initiated bill provides for regulation of the operation 
of slot machines by the State Harness Racing Commission and the 
Executive Director of the State Harness Racing Commission within 
the Department of Agriculture, Food and Rural Resources. 
Gross 
income 
from 
slot machines, 
which is 
income 
after 
payback to players, is divided as follows: 75% is retained by the 
person licensed to operate the slot machines; 10% must be sent to 
the State Controller to be credited directly to the Fund for a 
Healthy Maine with its use restricted to providing financial 
assistance with prescription drugs for adults who are elderly or 
disabled; 7% must be sent to the State Harness Racing Commission 
.. 
.. 
A 
to 
be 
used to 
supplement harness 
racing purses; 
3~ must be 
forwarded to the Treasurer of State who shall credit the money to 
the Agricultural Fair Support Fund; 
2~ must be forwarded to the 
Finance Authority of Maine for application to its University of 
Maine System Scholarship Fund; 
l~ must be sent to the commission 
for 
application 
to 
administrative 
expenses, 
including 
expenditures by the commission for addiction counseling services; 
Po must be sent to the board of trustees of the Maine Technical 
College System for application to its scholarship program and 
l~ 
must be sent to the commission for application to its Sire Stakes 
Fund.