An Act To Authorize the Operation of Slot Machines on Indian Island in Old Town
Maine Legislature, Session 123, LD 0701
Committee Amendment CA_B_H788 (House)
Amends: 8 MRSA §1003, 8 MRSA §1011, 8 MRSA §1012, 8 MRSA §1020, 8 MRSA §1036

COMMITTEE AMENDMENT 'B" to H.P. 532, L.D. 701, Bill, "An Act To 
Authorize the Operation of Slot Machines on Indian Island in Old Town" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 8 MRSA §1003, suh-§2,~, as enacted by PL 2003, c. 687, Pt. A, §5 
and affected by Pt. B, § 11, is amended to read: 
M. Inform commercial track operators those applying for a license to operate slot 
machines that any slot machines licensed by the board must be compatible with the 
central site system of on-line monitoring used by the board; 
Sec. 2. 8 MRSA §1011, as amended by PL 2005, c. 663, §6, is further amended to 
read: 
§1011. License to operate 
The board shall exercise authority over the licensing of all persons participating in the 
operation, distribution and maintenance of slot machines and slot machine facilities and 
over the registration of slot machines. 
1. Operator license required. A person may not operate any slot machine in the 
State unless the person has been issued a license to operate slot machines by the board. A 
slot machine operator license authorizes a licensee to own or lease slot machines operated 
at a licensed gambling facility. 
2. Eligible persons. The board may accept applications for a license to operate slot 
machines from a federally recognized Indian tribe in the State licensed to conduct high 
stakes beano as of January 1, 2007 and any person who is licensed to operate a 
commercial track 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 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENr)" to H.P. 532, L.D. 70J 
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. 
3. Requirements for license; continued commercial track licensure. The board 
may not issue a license to operate slot machines to any person unless that person 
demonstrates compliance with the qualifications set forth in sections 1016 and 1019. A 
person who is granted a license to operate slot machines at a commercial track must 
maintain a license to operate a commercial track, without lapse, suspension or revocation 
for the duration of the slot machine operator's license. 
4. Requirement for license; agreement with municipality where slot machines 
are located. A slot machine operator licensed to operate slot machines at a commercial 
track shall enter into an agreement with the municipality where the slot machine 
operator's slot machines are located that provides for revenue sharing or other 
compensation, including, but not limited to, a provision requiring the preparation, in 
conjunction with the municipality, of a security plan for the premises on which the slot 
machines are located. The revenue-sharing agreement must provide for a minimum 
payment to the municipality of 3% of the net slot machine income derived from the 
machines located in the municipality. 
5. Renewal. Licenses to operate slot machines may be renewed upon application for 
renewal in accordance with this SUbchapter, subject to board rules. 
Sec. 3. 8 MRSA §1012, first ~, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, § 11, is amended to read: 
An application for renewal of a commercial track slot machine operator license must 
first be approved under this section by the municipal officers of the municipality in which 
the commercial track with slot machines is located or, if the commercial track is in an 
unincorporated place, the application must be approved by the county commissioners of 
the county in which the commercial track with slot machines is located. 
Sec. 4. 8 MRSA §1012, sub-§l, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, § 11, is amended to read: 
1. Hearings. Municipal officers or county commissioners, as the case may be, may 
hold a public hearing for the consideration of a request for the renewal of a license to 
operate slot machines at a commercial track, except that, when an applicant has held a 
license for the prior 5 years and a complaint has not been filed with the board against the 
applicant within that time, the applicant may request a waiver of the hearing. 
A. The board shall prepare and supply application forms for public hearings under 
this subsection. 
B. Municipal officers or county commissioners, as the case may be, shall provide 
public notice of any hearing held under this section by causing, at the applicant's 
prepaid expense, a notice stating the name and place of the hearing to appear on at 
least 3 consecutive days before the date of the hearing in a daily newspaper having 
general circulation in the municipality where the premises of the commercial track 
with slot machines are located or one week before the date of the hearing in a weekly 
COMMITTEE AMENDMENT 
COMMITI.E AMENDMENTj .. to H.P. 532, LD. 701 
newspaper having general circulation in the municipality where the premises are 
located. 
C. If municipal officers or county commissioners, as the case may be, fail to take 
final action on an application for a renewal of a slot machine operator license within 
days of the filing of an application, the application is considered approved and 
ready for action by the board. For purposes of this paragraph, the date of filing of the 
application is the date the application is received by the municipal officers or county 
commissioners. 
Sec. 5. 8 MRS A §1018, sub-§l, as amended by PL 2005, c. 663, §7, is further 
amended to read: 
1. Fees. The application fee for a license and the annual fee for a registered slot 
machine under this chapter are as set out in this subsection. 
A. The initial registration fee for a registered slot machine is $100. The annual 
renewal fee is $100 for each registered slot machine. 
B. The initial application fee for a slot machine distributor license is $200,000. The 
annual renewal fee is $75,000. 
7 
C. The initial application fee for a commercial track slot machine operator license is 
$200,000 and $55,000 for a license to operate slot machines held by a federally 
9 
recognized Indian tribe licensed to operate high stakes beano. The annual renewal 
fee is $75,000 for a commercial track slot machine operator license and $20,000 for a 
license to operate slot machines held by a federally recognized Indian tribe licensed 
to operate high-stakes beano plus an amount, set by rules of the board, equal to the 
cost to the board of licensing slot machine operators and determined by dividing the 
costs of administering the slot machine operator licenses by the total number of slot 
machine operators licensed by the board. 
D. The annual application fee for a license for a gambling services vendor is $2,000. 
E. The initial application fee for an employee license under section 1015 is $250. 
The annual renewal fee is $25. 
In addition to the application fee for a license or annual fee for a registered slot machine, 
the board may charge a one-time application fee for a license or registration listed in 
paragraphs A to E in an amount equal to the projected cost of processing the application 
and performing any background investigations. If the actual cost exceeds the projected 
cost, an additional fee may be charged to meet the actual cost. If the proj ected cost 
exceeds the actual cost, the difference may be refunded to the applicant. 
All fees 
collected pursuant to this section must be deposited directly to the General Fund, except 
that $25,000 of the annual renewal fee for a commercial track slot machine operator must 
be deposited to the Gross Slot Income Other Special Revenue Fund account within the 
Gambling Control Board to be transferred to the municipality in which the slot machines 
are operated, in accordance with subsection 2. All application and registration fees are 
nonrefundable and are due upon submission of the application. 
Sec. 6. 8 MRS A §1018, sub-§2, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, § 11, is amended to read: 
COMMITTEE AMENDMENT 
COMMIlTEE AMENDMENT:8 " to H.P. 532, L.D. 701 
2. Term of license; renewal, renewal fees. All licenses issued by the board under 
this chapter are effective for one year, unless revoked or surrendered pursuant to 
subchapter 5. Upon proper application and payment of the required fees and taxes and in 
accordance with rules adopted by the board, the board may renew a license for an 
additi onal year if municipal approval has been obtained as provided in section 1012. The 
board shall transfer $25,000 of the renewal fee for a commercial track slot machine 
operator license required by subsection 1, paragraph C to the municipality in which the 
slot machines are operated. 
Sec. 7. 8 MRSA §1020, sub-§3, as amended by PL 2005, c. 663, §9, is further 
amended to read: 
3. Limits on total slot machines. The board shall determine the number of slot 
machines to be registered in the State. The board shall make this determination based 
upon the minimum net slot machine income, when distributed pursuant to section 1036, 
necessary to maintain the harness horse racing industry in this State, except that: 
A. The total number of slot machines registered in the ~tate may not exceed 1,500; 
arul 
B. A slot machine operator may not operate more than 1,500 slot machines at afl)' 
eH8 .1! commercial track7; and 
C. A slot machine operator that is a federally recognized Indian tribe that operates 
hi gh-stakes beano may not operate more than 400 slot machines. 
Sec. 8. 8 MRSA §1036, sub-§2, as amended by PL 2007, c. 466, Pt. A, §29, is 
repealed and the following enacted in its place: 
2. Distribution from commercial track. A commercial track slot machine operator 
shall collect and distribute 39% of the net slot machine income from slot machines 
operated by the commercial track slot machine operator to the board for distribution by 
the board as follows: 
A. Three percent of the net slot machine income must be deposited to the General 
Fund for administrative expenses of the board, including gambling addiction 
counseling services, in accordance with rules adopted by the board; 
B. Ten percent of the net slot machine income must be forwarded by the board to the 
Treasurer of State, who shall credit the money to the fund established in section 298 
to supplement harness racing purses; 
C. Three percent of the net slot machine income must be credited by the board to the 
Sire Stakes Fund created in section 281; 
D. Three percent of the net slot machine income must be forwarded by the board to 
the Treasurer of State, who shall credit the money to the Agricultural Fair Support 
Fund established in Title 7, section 91; 
E. 
Ten percent of the net slot machine income must be forwarded by the board to 
the State Controller to be credited to the Fund for a Healthy Maine established by 
Ti tIe 22, section 1511 and segregated into a separate account under Title 22, section 
I 
11, subsection 11, with the use of funds in the account restricted to the purposes 
described in Title 22, section 1511, subsection 6, paragraph E; 
COMMITTEE AMENDMENT 
COMMITTE>: AMENDMENJ "to H.P. 532, LD. 701 
F. Two percent of the net slot machine income must be forwarded by the board to the 
University of Maine System Scholarship Fund created in Title 20-A, section 10909; 
G. One percent ofthe net slot machine income must be forwarded by the board to the 
board of trustees of the Maine Community College System to be applied by the board 
of trustees to fund its scholarships program under Title 20-A, section 12716, 
subsection 1; 
H. Four percent of the net slot machine income must be forwarded by the board to 
the Treasurer of State, who shall credit the money to the Fund to Encourage Racing at 
Maine's Commercial Tracks, established in section 299; however, the payment 
required by this paragraph is terminated when all commercial tracks have obtained a 
license to operate slot machines in accordance with this chapter; 
I. Two percent of the net slot machine income must be forwarded by the board to the 
Treasurer of State, who shall credit the money to the Fund to Stabilize Off-track 
Betting Facilities established by section 300, as long as a facility has conducted off-
track wagering operations for a minimum of 250 days during the preceding 12-month 
period in which the first payment to the fund is required. 
After 48 months of 
receiving an allocation of the net slot machine income from a licensed operator, the 
percent of net slot machine income forwarded to the Fund to Stabilize Off-track 
Betting Facilities is reduced to 1 % with the remaining 1 % to be forwarded to the 
State in accordance with subsection 1; and 
J. One percent of the net slot machine income must be forwarded directly to the 
municipality in which the slot machines are located. 
Sec. 9. 8 MRSA §l036, sub-§2-A is enacted to read: 
2-A. Distribution from tribal gambling facility. A slot machine operator that is a 
federally recognized Indian tribe in the State licensed to operate high-stakes beano shall 
collect and distribute 38% of the net slot machine income from slot machines operated by 
the slot machine operator to the board for distribution by the board as follows: 
A. Three percent of the net slot machine income must be deposited to the General 
Fund for administrative expenses of the board, including gambling addiction 
counseling services, in accordance with rules adopted by the board; 
B. Two and one half percent of the net slot machine income must be forwarded by 
the board to the University of Maine System Scholarship Fund created in Title 20-A, 
section 10909; 
C. Two and one half percent of the net slot machine income must be forwarded by 
the board to the board of trustees of the Maine Community College System to be 
applied by the board of trustees to fund its scholarships program under Title 20-A, 
section 12716, subsection 1; 
D. Five percent of the net slot machine income must be forwarded by the board to 
the board of trustees of the Maine Community College System to support the 
operating budget of the system; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT$ to H.P. 532, L.D. 701 
E. Five percent of the net slot machine income must be forwarded by the board to the 
Department of Defense, Veterans and Emergency Management, Bureau of Maine 
Veterans' Services; 
F. Five percent of the net slot machine income must be forwarded by the board to the 
Maine Technology Institute under Title 5, section 15302; 
G. Five percent of the net slot machine income must be distributed by the board in 
equal amounts to nonprofit organizations licensed as of January 1, 2007 to conduct 
beano within 75 miles of where slot machines are operated by a federally recognized 
Indian tribe in the State; 
H. Five percent of the net slot machine income must be forwarded by the board to 
the bordering municipality with the highest population where slot machines are 
operated by a federally recognized Indian tribe in the State; and 
1. Five percent of the net slot machine income must be distributed by the board to 
other federally recognized Indian tribes in the State that are not licensed to operate 
slot machines.' 
SUMMARY 
This amendment replaces the bill. The amendment allows for 400 slot machines, to 
be operated by a federally recognized Indian tribe that is licensed to conduct high-stakes 
beano as of January 1, 2007. 
The license would be subject to existing licensing 
requirements and oversight by the Gambling Control Board. The initial license fee for the 
slot machine license established by this amendment, based on the maximum of 400 
machines, is $55,000 and the annual renewal fee is $20,000. One percent of the gross slot 
machine revenue would be required to be deposited to the General Fund. Thirty-eight 
percent of the net slot machine revenue from slot machines operated by a federally 
recognized Indian tribe under this amendment would be distributed as follows: 
1. 
Three percent to the General Fund for administrative expenses of the board, 
including gambling addiction counseling services, in accordance with rules adopted by 
the board; 
2. Two and one half percent to the University of Maine System Scholarship Fund; 
3. Two and one half percent to the Maine Community College System to fund its 
scholarships program; 
4. Five percent to the Maine Community College System; 
5. 
Five percent to the Department of Defense, Veterans and Emergency 
Management, Bureau of Maine Veterans' Services; 
6. Five percent to the Maine Technology Institute; 
7. Five percent, in equal amounts, to nonprofit organizations licensed as of January 
1, 2007 to conduct beano within 75 miles of where slot machines are operated by a 
federally recognized Indian tribe in the State; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT~" to H.P. 532, L.D. 701 
8. Five percent to the bordering municipality with the highest population where slot 
machines are operated by a federally recognized Indian tribe that is licensed to conduct 
high-stakes beano; and 
9. Five percent to be distributed to other federally recognized Indian tribes in the 
State that are not licensed to operate slot machines. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/12/08 frac 
LD701 
LR 666(04) 
An Act To Authorize the Operation of Slot Machines on Indian Island in Old Town 
Fiscal Note for Bill as Amended by Committee Amendment:8 " 
Committee: Legal and Veterans Affairs 
Net Cost (Savings) 
General Fund 
A ppropriations/ Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Correctional and Judicial Impact Statements 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
$0 
$0 
$0 
$0 
$0 
2008-09 
$0 
$0 
$0 
$0 
$0 
Projections 
2009-10 
($73,974) 
$264,512 
$255,150 
$338,486 
$255,150 
Projections 
2010-11 
($33,535) 
$102,Ot 
$255,150 
$135,620 
$255,150 
Establishes new Class C crimes. Sentences for more than nine months imposed for a Class C crime must be served in 
a state correctional facility. The average cost to the state for each sentence is $70,308 based on an average length of 
stay of 1 year, 10 months. Sentences of nine months or less imposed for a Class C crime must be served in a county 
jail. The average cost to a county for each sentence is $19,947 based on an average length of stay of 6 months and 2 
days. Based on experience with the slot machine operation in Bangor, no additional criminal cases are expected 
Fiscal Detail and Notes 
Presented below is a detailed estimate of slot machine revenues and subsequent distribution that may be generated by 
a federally recognized Indian tribe that is licensed to conduct high-stakes beano as of January 1,2007. This estimate 
assumes that the Indian tribe would operate 100 slot machines during Super Beano Weekends (currently set by statute 
at 27 weekends per year) starting July 1, 2009. It also assumes that the 400 slot machines allowed by the legislation 
would be phased in over a period of time determined by the Indian tribe based upon the experience of the first 100 
machines. This estimate also assumes no significant effect on revenue generated by the licensed racino facility in 
Bangor. If there is an appreciable shift of revenue, there will be a reduction in the amounts of dedicated revenue 
distributed from that facility. 
LR0666(04) - Fiscal Note - Page 1 of3 
CJ:j(tt 7 0(l 
Summary of Slot Machine Revenue 
2007-08 
2008-09 
2009-10 
2010-1 ] 
Total Slot Machine Revenue 
$0 
$0 
$8,100,000 
$8,100,000 
Payback 
$0 
$0 
$7,290,000 
$7,290,000 
General Fund Administration @ 1% 
$0 
$0 
$81,000 
$81,000 
Net Slot Machine Income @ 10% 
$0 
$0 
$729,000 
$729,000 
38% orNet Slot Machine Income to State & Municipality 
$0 
$0 
$277,020 
$277,020 
2007-08 
2008-09 
2009-]0 
20]0-]] 
Required Distribution of Net Slot Machine Income (33% State & 5% Neighboring Municipality Share) 
General Fund (3%) 
$0 
$0 
$21,870 
$21,870 
University of Maine Scholarship Fund (2.5%) 
$0 
$0 
$18,225 
$18,225 
Community College System scholarship program (2.5%) 
$0 
$0 
$18,225 
$18,225 
Community College System - general fund (5%) 
$0 
$0 
$36,450 
$36,450 
Bureau of Veterans Services (5%) 
$0 
$0 
$36,450 
$36,450 
Maine Technology Institute (5%) 
$0 
$0 
$36,450 
$36,450 
Nonprofit organizations licensed to conduct beano (5%) 
$0 
$0 
$36,450 
$36,450 
Neighboring municipality (5%) 
$0 
$0 
$36,450 
$36,450 
Federally recognized tribes not licensed for slots (5%) 
$0 
$0 
$36,450 
$36,450 
Other Revenue Impacts: 
License fees to the General Fund 
$0 
$0 
$74,500 
$32,750 
Reimbursements to the General Fund 
$0 
$0 
$161,116 
$0 
Summary of Revenue Impacts 
General Fund: 
- 1% of Total Slot Income 
$0 
$0 
$81,000 
$81,000 
- 3% of Net Slot Machine Income 
$0 
$0 
$21,870 
$21,870 
- Reimbursements 
$0 
$0 
$161,116 
$0 
- License fees to the General Fund 
$0 
$0 
$74,500 
$32,750 
General Fund Total 
$0 
$0 
$338,486 
$135,620 
Other Special Revenue Funds: 
- University of Maine Scholarship Fund 
$0 
$0 
$18,225 
$18,225 
- Community College System scholarship program 
$0 
$0 
$18,225 
$18,225 
- Community College System - general fund 
$0 
$0 
$36,450 
$36,450 
- Bureau of Veterans Services 
$0 
$0 
$36,450 
$36,450 
- Maine Technology Institute 
$0 
$0 
$36,450 
$36,450 
- Nonprofit organizations licensed to conduct beano 
$0 
$0 
$36,450 
$36,450 
- Neighboring municipality 
$0 
$0 
$36,450 
$36,450 
- Federally recognized tribes not licensed for slots 
$0 
$0 
$36,450 
$36,450 
Other Special Revenue Total 
$0 
$0 
$255,150 
$255,150 
2007-08 
2008-09 
2009-]0 
20]0-] ] 
Summary of Expenditure Impacts 
General Fund Appropriations: 
- Public Safety I 
$0 
$0 
$264,512 
$102,085 
LR0666(04) - Fiscal Note - Page 2 of3 
General Fund Total 
Other Special Revenue Funds Allocations2: 
Maine Community College System 
- scholarship program 
- System general fund 
Maine Community College System -Total 
Defense, Veterans and Emergency Management 
- Bureau of Veterans Services 
Defense, Veterans and Emergency Management - Total 
Economic and Community Development 
- Maine Technology Institute 
Economic and Community Development - Total 
Public Safety 
- Nonprofit organizations licensed to conduct beano 
- Neighboring municipality 
- Federally recognized tribes not licensed for slots 
Public Safety- Total 
University of Maine System 
- University of Maine Scholarship Fund 
University of Maine System - Total 
Other Special Revenue Funds Total 
Notes; 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
CD (/I~ 
$0 
$264,512 
$102,085 
$0 
$18,225 
$18,2~ 
$0 
$36,450 
$36,450 
$0 
$54,675 
$54,675 
$0 
$36,450 
$36,450 
$0 
$36,450 
$36,450 
$0 
$36,450 
$36,450 
$0 
$36,450 
$36,450 
$0 
$36,450 
$36,450 
$0 
$36,450 
$36,450 
$0 
$36,450 
$36,450 
$0 
$109,350 
$109,350 
$0 
$18,225 
$18,225 
$0 
$18,225 
$18,225 
$0 
$255,150 
$255,150 
The Gambling Control Board within the Department of Public Safety will require additional General Fund appropriations of 
$264,512 and $102,085 in fiscal years 2009-10 and 20 I 0-11, respectively, for the costs of one additional Public Safety Inspectot 
position and necessary operating costs. 
A ]Iocations are needed to allow the distribution of the additional dedicated revenue. 
LR0666(04) - Fiscal Note - Page 3 of 3