An Act To Support Harness Horse Racing in Maine, Equine Agriculture in Maine, Maine Agricultural Fairs and the General Fund of the State LR 0995(02)
Maine Legislature, Session 121, LD 1361
Committee Amendment CA_A_S256 (Senate)
Amends: 8 MRSA §271

COMMITTEE AMENDMENT "A" to S.P. 449, L.D. 1361, Bill, "An 
Act To Support Harness Horse Racing in Maine, Equine Agriculture 
in Maine, Maine Agricultural Fairs and the General Fund of the 
State" 
Amend the bill by inserting after section 2 the following: 
'Sec. 3. 8 MRSA §271, sub-§2, tA-1 is enacted to read: 
A-I. 
The commitment of the licensee to conducting races 
limited to benefit or otherwise benefiting horses owned and 
primarily stabled in this State;' 
Further amend the bill in section 4 in paragraph A in the 
6th 
line 
(page 
2, 
line 
in 
L.D.) 
by 
striking out 
the 
following: 
"that, ttl and inserting in its place the following: 
'~' 
Further amend the bill in section 5 in that part designated 
"~" in subsection 1 in the 3rd line (page 3, line 16 in L.D.) 
by striking out the following: 
"paragraph E" and inserting in 
its place the following: 
'paragraph F' 
Further amend the bill in section 5 in that part designated 
"~" in subsection 2 in the 7 th line (page 3, line 25 in L. D. ) 
by striking out the following: "ll" and inserting in its place 
the following: 
'lQ' 
Further amend the bill in section 5 in that part designated 
"§llL" in subsection 2 in the last line (page 3, line 42 in 
L.D.) by inserting after the following: 
"~" the following: 
'At least 10% of all funds received by a commercial track under 
this section must be used for capital improvements at its racing 
~2 
facility. ' 
Page l-LR0995(2) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to S.P. 449, L.D. 1361 
Further amend the bill in section 7 in that part designated 
"§J.6L." by inserting after subsection 1 the following: 
'2. 
Connercial track. 
"Commercial track" has 
the 
same 
meaning as in Title 8, section 275-A, subsection 1.' 
Further amend the bill in section 7 in that part designated 
"§.l.6.L" by renumbering the subsections to read consecutively. 
Further amend the bill in section 7 by striking out all of 
that part designated "~" and inserting in its place the 
following: 
'§37l. 
License to qperate 
1. 
Eligible persons. 
The commission may issue a license to 
operate yideo lottery terminals to any person who is licensed to 
operate an off-track betting facility. 
2. 
Video lotte~ tenminals. 
The license under subsection 1 
must specify the maximum number of yideo lottery terminals that 
the licensee may operate on its premises I 
In the case of an 
off-track betting facility not 
owned 
by 
the 
operator 
of 
a 
commercial track, the number must be 200, unless the commission 
finds that the off-track betting facility will not, 
in the 
licensee's op!n!on, 
be able to accommodate 
yideo lottery 
terminals. 
In the case of an off-track betting facility owned by 
the operator of a 
commercial track, the number must be 600, 
unless 
the 
commercial 
track 
already 
operates 
an 
existing 
off-track betting facility, in which case the number must be 200 
or the difference between 600 and the number of yideo lottery 
terminals 
the 
licensee 
is 
authorized 
to 
operate 
at 
other 
off-track betting facilities, whicheyer is greater. 
Except as 
express1~ provided otherwise in this chapter, the number of yideo 
lottery terminals may be increased upon subsequent application to 
the 
commission, 
which 
shall 
consider, 
among 
other 
releyant 
criteria, the relatiye market success of the licensee and the 
usage history of the licensee's existing yideo lottery terminalS. 
3. 
Conditions on increase. 
An off-track betting facility 
not owned by ·the operator of a commercial track may not increase 
the number of video lottery terminals oyer 200 unless: 
A, 
The licensee under subsection 1 has obtained the prior 
consent of all commercial tracks located within 60 miles of 
the off-track betting facility, which consent may not be 
unreasonably withheld: or 
COMMITTEE AMENDMENT 
",.' 
COMMITTEE AMENDMENT "A" to S.P. 449, L.D. 1361 
B. 
The licensee under subsection 1 will not. after the 
increase, have more than 300 video lottery terminals at any 
location. 
4. 
Video lottery terminals located; prohibit persons under 
years of age. 
A licensee under this chapter shall prohibit 
persons under 21 years of age from any area in which a video 
lottery terminal is located, except that persons 18 to 20 years 
of age may be present if directly employed by the licensee or a 
video lottery terminal distributor. 
5. 
Uniform location agreement. 
Each video lottery terminal 
is subject to a 
uniform location agreement between the video 
lottery 
terminal 
distributor 
and 
the 
licensee 
under 
this 
chapter. 
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 
video 
lottery 
terminal distributor regarding video lottery terminals. 
No other 
agreement between the licensee and the video lottery terminal 
distributor is legally binding. 
6. 
Disclosure of other contracts and agreements. 
A video 
lottery terminal distributor shall disclose to the Chief of the 
State Police any other contracts or agreements that the video 
lottery terminal distributor or a subsidiary of the video lottery 
terminal distributor has made with a licensee under this chapter. 
7. 
Restriction against proliferation. 
A license may not be 
issued under subsection 1 to any off-track betting facility not 
licensed on January 1, 2002 to accept pari-mutuel wagers, January 
L 
2002, unless the off-track betting facility is owned by the 
operator 
of 
a 
commercial 
track or 
unless all operators 
of 
commercial tracks currently licensed in the State have first been 
given 180 days' notice of the applicant's intent to open such an 
off-traCk betting facility and those operators have failed to 
apply for a license to open an qff-track betting facility in the 
same municipality as the proposed off-traCk betting facility or 
an adjacent municipality. If a commercial track does not apply 
for an off-track betting license after having received 180 days' 
notice, it is no longer eligible for an off-track betting license 
in that municipality or an adjacent municipality. 
Any off-track betting facility may relocate its facility to a 
different location within 10 miles of its existing location as 
long as: 
A. 
If the off-track betting facility is relocated to a 
different facility, 
consent to that relocation has 
been 
obtained from any off-track betting facility in whose market 
area the off-track betting facility will be located after 
COMMITTEE AMENDMENT 
I-'c;.. 
,.'or;. 
,. 
(:~ . 
COMMITTEE AMENDMENT "A" to S.P. 449, L.D. 1361 
·the relocation and from any commercial track located within 
miles of the off-track betting facility if. after the 
proposed move. the off-track betting facility would be more 
than 5 miles closer to the commercial track than it was 
before the move; and 
B. 
In the event the off-track betting facility is relocated 
to a different municipality, the licensee has received the 
approval of the municipality in which the new facility is to 
be located. 
8. 
Regyirement that video lotte(y tepminals support harness 
racing. 
Notwithstanding any other provision in this chapter. it 
is unlawful for any off-track betting facility to operate video 
lottery terminals in any year for which the Maine Harness Racing 
Commission has not approved at least 150 days of racing at 
commercial tracks in the State and. beginning in the 2nd year 
after any off-track betting facility is first licensed to operate 
video lottery terminals under this chapter. unless during the 
preceding year at least 150 days of live racing were in fact 
raced at COmmercial tracks in the State.' 
Further amend the bill in section 7 in that part designated 
"§.3n...." in subsection 1 in the first line (page 20, line 25 in 
L.D.) 
by striking out the following: 
"commercial tract." and 
inserting in its place the following: 
'licensed facility.' 
Further amend the bill in section 7 in that part designated 
"~" in subsection 1 in the first paragraph in the last line 
(page 
1, 
line 
in L.D.) 
by striking out 
the 
following: 
"commercial track" and inserting in its place the following: 
'licensed facility' 
Further amend the bill in section 7 in that part designated 
"§.3..8.h" in subsection 1 by striking out all of paragraphs E to G 
and inserting in their place the following: 
'E. 
One percent of the total gross terminal income must be 
dedicated to 
the prevention 
and 
treatment of 
addictive 
gambling in accordance with rules to be adopted by the 
Department of Human Services. unless the Commissioner of 
Human Services finds that the funds so dedicated are not 
needed for such prevention and treatment. in which case the 
funds must be paid to the Treasurer of State and applied to 
the General Fund. 
Rules adopted by the Department of Human 
Services to administer the fund are routine technical rules 
as defined in Title 5. chapter 375. subchapter 2-A. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to S.P. 449, L.D. 1361 
F. 
Five percent of the total gross terminal income must be 
paid to the Treasurer of State and credited by the Treasurer 
of State to the fund created in Title 8, section 296. 
G. 
Three percent of the total gross terminal income must be 
paid directly to the municipality in which the facility is 
located and retained by that municipality as supplemental 
revenues or, if the facility is located in an unorganized 
area, to the Treasurer of State and applied to the General 
Dmd....' 
Further amend the bill in section 10 in paragraph C in the 
last line 
(page 
24, 
line 
in L.D.) 
by striking out the 
following: 
"1.9." and inserting in its place the following: 
'lQ' 
Further amend the bill by inserting after section 10 the 
following: 
, Sec. 
11. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
The 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Video Gaming - Administration 
following 
Initiative: 
Appropriates funds for one Clerk III position, one 
Clerk 
IV 
position, 
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 
2003-04 
(2.000) 
$61,139 
2,471,715 
$2,532,854 
2003-04 
$2,532,854 
$2,532,854 
AGRICULTURE, FOOD AND RURAL RESOURCES, DEPARTMENT OF 
Harness Racing Commission 
0320 
2004-05 
(2.000) 
$81, 518 
7,206,250 
$7,287,768 
2004-05 
$7,287,768 
$7,287,768 
COMMI1TEE AMENDMENT 
COMMITTEE AMENDMENT "fl." to S.P. 449, L.D. 1361 
Initiative: 
Allocates funds to reflect the net revenue impact to 
various dedicated harness racing accounts as a result of video 
gaming. 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
AGRICULTURE, FOOD AND RURAL RESOURCES, 
DEPAR'l."MEHT OF 
DEPAR'l"MENT 'l'O'.rALS 
Other Special Revenue Funds 
DEPAR'l"MENT 'l'O'.rAL -
ALL FUNDS 
ATl'ORREY GENERAL, DEPAR'l."MEHT OF THE 
2003-04 
$9,547,336 
$9,547,336 
2003-04 
$9,547,336 
$9,547,336 
2004-05 
$28,757,036 
$28,757,036 
2004-05 
$28,757,036 
$28,757,036 
Administration - Attorney General 
0310 
Initiative: 
Provides 
position to assist 
license 
application 
funds 
for an 
in rulemaking, 
denial 
appeals 
services. 
General Fund 
Positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
ATl'ORREY GENERAL, DEPAR'l"MENT OF THE 
DEPAR'l."MEHT 'l'O'.rALS 
GENERAL FUND 
DEPAR'l."MEHT 'l'O'.rAL -
ALL FUNDS 
HUMAN SERVICES, DEPAR'l"MENT OF 
Purchased Social Services 
0228 
Assistant 
collection 
and other 
Attorney General 
of forfeitures, 
required 
legal 
2003-04 
2004-05 
(1. 000) 
(1.000) 
$46,676 
$62,234 
5,682 
4,909 
$52,357 
$67,143 
2003-04 
2004-05 
$52,357 
$67,143 
$52,357 
$67,143 
Initiative: 
Allocates funds for the addictive gambling program. 
Other Special Revenue Funds 
All Other 
2003-04 
$466,543 
2004-05 
$1,405,250 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. A 
.. to S.P. 449, L.D. 1361 
Other Special Revenue Funds Total 
HUMAN SERVICES, DEPARTMENT OF 
DEPAR'l'MENT 'l'OTALS 
Other Special Revenue Funds 
DEPAR"l'MENT 'l'OTAL -
ALL FUNDS 
PUBLIC SAFETY, DEPAR'l'MENT OF 
State Police - Video Gaming Enforcement 
$466,543 
2003-04 
$466,543 
$466,543 
$1,405,250 
2004-05 
$1,405,250 
$1,405,250 
Initiative: 
Appropriates 
funds 
for 
one Sergeant position, 
Detective positions, 3 Public Safety Inspector I positions, one 
Clerk Typist III position, 
one Clerk Typist II position and 
operating costs necessary to enforce the legal requirements of 
video gaming. 
General Fund 
Positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
PUBLIC SAFETY, DEPAR'l'MENT OF 
DEPAR'l'MENT 'l'OTALS 
GENERAL FUND 
DEPAR'l'MENT 'l'OTAL -
ALL FUNDS 
TREASURER OF STATE, OFFICE OF 
Video Gaming - Municipal Distribution 
2003-04 
(8.000) 
$430,260 
145,179 
$575,439 
2003-04 
$575,439 
$575,439 
2004-05 
(8.000) 
$580,428 
143,142 
$723,570 
2004-05 
$723,570 
$723,570 
Initiative: 
Allocates funds for the distribution of funds to 
those municipalities who 
are hosts to licensed 
video gaming 
operators. 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
TREASURER OF STATE, OFFICE OF 
2003-04 
$1,399,629 
$1,399,629 
2004-05 
$4,215,750 
$4,215,750 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to S.P. 449, L.D. 1361 
DEPAR'l'MENT TOrALS 
OTHER SPECIAL REVENUE nnms 
DEPAR1.'MENT TOrAL -
ALL nnms 
SECTION TOrALS 
GENERAL nnm 
OTHER SPECIAL REvENUE nnms 
SECTION TOrAL -
ALL nnms 
Further amend the bill by 
nonconsecutive 
Part 
letter 
consecutively. 
2003-04 
2004-05 
$1,399,629 
$4,215,750 
$1,399,629 
$4,215,750 
2003-04 
2004-05 
$3,160,650 
$8,078,481 
11,413,508 
34,378,036 
$14,574,158 
$42,456,517' 
relettering 
or 
section 
or renumbering any 
number 
to 
read 
SUMMARY 
This amendment changes the bill by striking a 
commercial 
track 
as 
an entity eligible 
for 
a 
video 
lottery 
terminal 
license. 
If a commercial track operates an off-track betting 
facility, that facility would be eligible to be licensed to 
operate video lottery terminals. 
Under the amendment, commercial 
tracks have first right of refusal for any new off-track betting 
facility license. 
Off-track betting facilities would still be 
eligible 
for 
video 
lottery 
terminal 
licenses 
under 
this 
amendment. 
Under this amendment, an off-track betting facility 
is 
permitted to change its location within 10 miles of its 
current 
location with 
the 
consent of all off-track betting 
facilities and commercial tracks within 50 miles. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
\.ppropriations/ Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Approved: 06/02/03 ;;t'?ac.. 
Office of Fiscal and Program Review 
LD 1361 
An Act To Support Harness Horse Racing in Maine, Equine Agriculture 
in Maine, Maine Agricultural Fairs and the General Fund of the State 
LR 0995(02) 
Fiscal Note for Bill as Amended by Committee Amendment ,A, 
Committee: Legal and Veterans Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
Projections 
2003-04 
2004-05 
2005-06 
2006-07 
($4,287,035) 
($13,281,319) 
($13,601,990) 
($13,860,394) 
$3,160,650 
$8,078,481 
$8,219,006 
$8,362,342 
$11,413,508 
$34,378,036 
$35,065,597 
$35,766,909 
$7,447,685 
$21,359,800 
$21,820,996 
$22,222,736 
$11,413,508 
$34,378,036 
$35,065,597 
$35,766,909 
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 85% of the gross terminal revenue must be paid back to users of the video gaming 
terminals. Using current industry standards it is expected that 90% of the gross terminal revenue will be returned to 
the players. The remaining lO% ofrevenue collected by licensed video lottery terminal operators will be distributed as 
follows: 46% is kept by the licensee; 28% goes to the General Fund; 10% goes for pari-mutuel purse supplements; 5% 
goes to commercial race tracks; 3% goes to the Sires Stakes Fund; 4% goes to the Agricultural Fair Support Fund; 3% 
goes to the municipalities which host licensed video lottery terminal operators; and 1 % goes to the Department of 
Human Services for addictive gambling treatment and prevention. 
LR0995(2) - Fiscal Note - Page 1 of 3 
In addition, the shift of expenditures from Lottery ticket sales and Pari-mutuel wagering to video gaming terminals 
will reduce both General Fund and dedicated revenue from these sources. 
Presented below is an estimate of the potential revenue and subsequent distribution that may be generated by license 
video lottery terminal operators assuming that there will be 11 licensed video terminal operators and that there will be 
a total of 2,200 video terminals authorized by the provisions of this bill. This table also includes a breakdown of the 
General Fund and Other Special Revenue Funds impacts. 
Summarx Qf QamiD~ R~v~nue 
2003-04 
2004-05 
2005-06 
2006-07 
Total Gaming Revenue 
$466,543,000 
$1,405,250,000 
$1,433,355,000 
$1,462,022,100 
90% Payback 
$419,888,700 
$1,264,725,000 
$1,290,019,500 
$1,315,819,890 
Gross Terminal Income 
$46,654,300 
$140,525,000 
$143,335,500 
$146,202,210 
46% of Gross Terminal Income to Licensee 
$21,460,978 
$64,641,500 
$65,934,330 
$67,253,017 
Net State Share 
$25,193,322 
$75,883,500 
$77,401,170 
$78,949,193 
ReguiI~d I2iStribytiQD Qf QrQss T~rminal ID~Qme (,:1:1°& State Share) 
General Fund 
$13,063,204 
$39,347,000 
$40,133,940 
$40,936,619 
Purse Supplements 
$4,665,430 
$14,052,500 
$14,333,550 
$14,620,221 
Commercial Tracks 
$2,332,715 
$7,026,250 
$7,166,775 
$7,310,111 
Agricultural Fair Support Fund 
$1,866,172 
$5,621,000 
$5,733,420 
$5,848,088 
Sires Stakes Fund 
$1,399,629 
$4,215,750 
$4,300,065 
$4,386,066 
Host Municipalities 
$1,399,629 
$4,215,750 
$4,300,065 
$4,386,066 
Addictive Gambling Program 
$466,543 
$1,405,250 
$1,433,355 
$1,462,022 
Other Revenue Impacts: 
License fees to the General Fund 
$34,000 
$0 
$34,000 
$0 
Reimbursements to the General Fund 
$322,231 
$0 
$0 
$0 
Impact on Lottery - Diverted "Gaming/Gambling" Revenue to Video Terminals 
5% of Gross Revenue 
$23,327,150 
$70,262,500 
$71,667,750 
$73,101,105 
25% General Fund Transfer 
($5,831.,788) 
($17,565,625) 
($17,916,938) 
($18,275,276) 
Impact on Harness Racing - Diverted "Gaming/Gambling" Revenue to Video Terminals 
2% of Gross Revenue 
$9,330,860 
$28,105,000 
$28,667,100 
$29,240,442 
Loss of Revenue from diverted revenue by Fundi Account: 
General Fund 
($139,963) 
($421,575) 
($430,007) 
($438,607) 
Subtotal General Fund Revenue 
($5,971,750) 
($17,987,200) 
($18,346,944) 
($18,713,883) 
Other Special Revenue Funds 
- Purse Supplements 
($167,955) 
($505,890) 
($516,008) 
($526,328) 
- Sire Stakes Fund 
($92,376) 
($278,240) 
($283,804) 
($289,480) 
- Agricultural Fair Support Fund 
($107,305) 
($323,208) 
($329,672) 
($336,265) 
- Commercial Racetracks 
($115,703) 
($348,502) 
($355,472) 
($362,581) 
- Promotional Board 
($233,272) 
($702,625) 
($716,678) 
($731,01 
Subtotal Dedicated Revenue 
($716,610) 
($2,158,464) 
($2,201,633) 
($2,245,666) 
LR0995(2) - Fiscal Note - Page 2 of 3 
Summao: Qf Ea;pendirure Impacts 
General Fund: 
- Administrative and Financial Services 
$2,532,854 
$7,287,768 
$7,428,293 
$7,571,629 
- Attorney General 
$52,357 
$67,143 
$67,143 
$67,143 
- Public Safety 
$575,439 
$723,570 
$723,570 
$723,570 
General Fund Total 
$3,160,650 
$8,078,481 
$8,219,006 
$8,362,342 
Other Special Revenue Funds: 
- Agriculture, Food and Rural Resources 
$9,547,336 
$28,757,036 
$29,332,177 
$29,918,820 
- Human Services 
$466,543 
$1,405,250 
$1,433,355 
$1,462,022 
- Treasurer 
$1,399,629 
$4,215,750 
$4,300,065 
$4,386,066 
Other Special Revenue Total 
$11,413,508 
$34,378,036 
$35,065,597 
$35,766,909 
Summao: Qf R!:lv!:lill!e I!lJl!acts 
General Fund: 
- License fees 
$34,000 
$0 
$34,000 
$0 
- Reimbursements 
$322,231 
$0 
$0 
$0 
- Proceeds From Video Terminals 
$13,063,204 
$39,347,000 
$40,133,940 
$40,936,619 
- Diverted Lottery Revenue 
($5,831,788) 
($17,565,625) 
($17,916,938) 
($18,275,276) 
- Diverted Pari-mutuel Revenue 
($139,963) 
($421,575) 
($430,007) 
($438,607) 
General Fund Total 
$7,447,685 
$21,359,800 
$21,820,996 
$22,222,736 
Other Special Revenue Funds: 
- Agriculture, Food and Rural Resources 
$9,547,336 
$28,757,036 
$29,332,177 
$29,918,820 
- Human Services 
$466,543 
$1,405,250 
$1,433,355 
$1,462,022 
- Treasurer 
$1,399,629 
$4,215,750 
$4,300,065 
$4,386,066 
Other Special Revenue Total 
$11,413,508 
$34,378,036 
$35,065,597 
$35,766,909 
LR0995(2) - Fiscal Note .- Page 3 of 3