An Act To Allow Additional Slot Machines at a Harness Horse Racing Track To Support Harness Horse Racing, Passenger and Freight Train Service on the Mountain Division Rail Line and Passenger Train Service Overseen by the Northern New England Passenger Rail Authority (AFfER DEADLINE)
Maine Legislature, Session 123, LD 1879
Committee: Legal and Veterans Affairs
Sponsors: MOORE, SNOWE-MELLO, CRESSEY, PATRICK, PEOPLES, PINKHAM, TRINW ARD, WEDDELL, SCHNEIDER
Amends: 23 MRSA §900, 8 MRSA §1020

Legislative Document 
No. 1879 
H.P.1311 
House of Representatives, April 26, 2007 
An Act To Allow Additional Slot Machines at a Harness Horse 
Racing Track To Support Harness Horse Racing, Passenger and 
Freight Train Service on the Mountain Division Rail Line and 
Passenger Train Service Overseen by the Northern New England 
Passenger Rail Authority 
(AFfER DEADLINE) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Legal and Veterans Affairs suggested and ordered printed. 
Presented by Representative MOORE of Standish. 
1J1~ 
/J7. 7T/d£~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Senator SNOWE-MELLO of Androscoggin and 
Representatives: CRESSEY of Cornish, McDONOUGH of Scarborough, PATRICK of 
Rumford, PEOPLES of Westbrook, PINKHAM of Lexington Township, TRINW ARD of 
Waterville, WEDDELL of Frankfort, Senator: SCHNEIDER of Penobscot. 
Pruned on f(.."1;)l1,; led paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRS A §12004-F, sub-§19 is enacted to read: 
19. 
Mountain Division Rail Line 
Authority 
Legislative Per Diem 
MRSA §900 1 
Sec. 2. 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 
and section 1071, subsection 6, necessary to maintain the harness horse racing industry in 
this State, except that: 
A. 
The total number of slot machines registered in the State may not exceed ~ 
3,000; and 
B. 
A slot machine operator may not operate more than 1,500 slot machines at any 
one commercial track. 
Sec. 3. 8 MRSA c. 31, sub-c. 7 is enacted to read: 
SUBCHAPTER 7 
SLOT MACHINES IN FACILITY IN RAILWAY CORRIDOR 
§1071. Operation ofslot machines permitted 
1. Application. Notwithstanding section 1011, subsection 2, an entity that operates 
an agricultural fair and that operated such a fair in 2006 or a person licensed to operate a 
commercial track and who operated such a track in 2006 may apply to the board no later 
than December 31, 2009 for a license to operate slot machines pursuant to this 
subchapter. 
2. Location. Slot machines may be operate<i pursuant to this subchapter onlv: 
A. In a municipality: 
(1) Through which runs the railroad line from Portland to the New Hampshire 
border overseen by the Northern New England Passenger Rail Authority 
gescribed in Title 23, section 8111; or 
(2) Through which runs the railroad line from Portland through WestbroQb 
Gorham, Standish and Fryeburg to the New Hampshire border, known as the 
Mountain Division rail line; and 
B. If slot machines are located on property that is within 200 feet of the outside edge 
of the racing oval at a commercial track and that is owned by the person that owns the 
property on which the track is located or on property that is within 200 feet of the 
outside edge of the racing oval at a facility at which harness horse races licensed 
pursuant to section 271 are held and that is owned by the entity that owns the 
property on which the racing oval is located. 
3. Municipal approval required. A municipality must approve the operation of slot 
machines in that municipality before slot machines may be operated in that municipality 
pursuant to this subchapter. A municipality may approve the operation of slot machines 
by a vote of the legislative body of that municipality or by a vote of the citizens of that 
II 
municipality at a referendum. 
4. Submission of applications to the board. An entity or person who is eligible 
pursuant to subsection 1 to be licensed to operate slot machines may submit an 
application for a license to operate slot machines to the board. An applicant shall: 
IS 
A. Demonstrate that the applicant owns a facility or can develop a facility that can 
accommodate harness horse racing and slot machines in proximity to each other as 
described in subsection 2, paragraph B; 
B. Provide proofthat the municipality in which the applicant proposes to operate slot 
machines has approved the operation of slot machines pursuant to subsection 3; 
C. Possess a valid license to hold harness horse races issued by the State Harness 
Racing Commission pursuant to section 271; and 
D. Meet all requirements of the board pursuant to this chapter. 
5. 
Award of license. 
The board may award only one license to operate slot 
machines pursuant to this subchapter. The board may award a license to operate slot 
machines pursuant to this subchapter to an applicant who is eligible pursuant to 
subsection I and who meets the criteria set forth in subsection 4. In determining to which 
applicant to award a license, the board shall consider: 
A. Which application contains the proposal that would provide the greatest benefit to 
the harness racing industry; 
B. Which application contains the proposal for the best market area to generate the 
I 
most revenue at a facility; and 
C. Whether the municipality for which a facility is proposed has a comprehensive 
plan that is consistent with the facility. 
6. Allocation of funds. Notwithstanding section 1036, income from slot machines 
operated pursuant to this subchapter must be allocated as specified in this subsection. 
A. The slot machine operator shall collect and distribute 1 % of gross slot machine 
income to the Treasurer of State for deposit in the General Fund for the 
administrative expenses of the board. 
I 
B. The slot machine operator shall collect and distribute 39% 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: 
(I) Two 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; 
(2) Ten percent of the net slot machine in:ome 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; 
ilLIhree percent of the net slot machine income must be credited by the board 
to the Sire Stakes Fund created in section 281; 
(4) Three percent ofthe net slot machine income must be forwarded by the board 
to the Treasurer of State, who sha!! nedit the money to the Agricultural Fair 
Support Fund established in Title 7, section ~ :; 
(5) Five percent of the net slot machine income must be forwarded by the board 
to the Town of Standish to establish a drinking water protection fund to protect 
the -9uality of the drinking water for communities served by the Portland Water 
District and to establish a recreational area on Sebago Lake in Standish; 
(6) One 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; 
2L. 
(7) One percent of the net sIct machine income must be forwarded by the board 
1.0 the board oftrustees of the ,,,lame Community College System to be applied by 
the boarcl of trustees to fund its s:::holarships program under Title 20-A, section 
12716, subsectiul' 1: 
(8) Ten percent of the net sio~ Plachine income must be forwarded by the board 
to the Mountain Division Rail Line Authf)r~scribed in Title 23, section 9001 
to fund the acquisition, financing, construclic" 
)peration, improvement and 
repair of a railroad line from Portland through Vv ,"Jbrook, Gorham, Standish and 
Fryeburg to the New Hampshire border; 
(9) Two percent of the net slot machine income must be forwarded by the board 
to the Northern New England Passenger Rail Authority described in Title 23, 
section 8111 to support the operation of a train on the railroad line from Portland 
to the New Hampshire border that is overseen by the Northern New England 
5 
Passenger Rail Authority; 
(10) One percent of the net slot machine income must be forwarded by the board 
to the Department of Agriculture, Food and Rural Resources to be used for 
equine rescue and other animal protection programs; and 
(11) One percent of the net slot machine income must be forwarded directly to 
the municipality in which the slot machines are located. 
7. License contingency. A license to operate slot machines issued by the board 
pursuant to this subchapter is valid only so long as the entity or person to whom the 
license is issued possesses a valid license to hold harness horse races is:;'c,ed by t~5tat~ 
Harness Racing Commission pursuant to section 271 . 
8. Regulation by board. The operation of slot machine facilities; the registration, 
distribution and operation of slot machines authorized pursuant to this subchapter; and the 
licensing of a slot machine operator, slot machine distributor and gambling services 
vendor and employees of these entities are subject to the regulation, supervision and 
exercise of general control of the board pursuant to this chapter. 
Sec. 4. 23 MRSA c. 631 is enacted to read: 
CHAPTER 631 
MOUNTAIN DIVISION RAIL LINE AUTHORITY 
§9001. Authority established; purpose 
The Mountain Division Rail Line Authority, as established by section 12004-F, 
su bsection 19 and referred to in this chapter as "the authority," is a body both corporate 
and politic and a public instrumentality of the State established for the purpose of 
acquiring, financing, constructing, operating, improving and repairing the Mountain 
Division Rail Line from Portland through Westbrook, Gorham, Standish and Fryeburg to 
the New Hampshire border with all the rights, privileges and power necessary to carry out 
its purpose. 
The purposes of this chapter are public and the authority IS performing a 
governmental function in carrYing out this chapter. 
§9002. Board of trustees; appointment; chair; employees 
1. 
Membership. 
The authority is governed by the Board of Trustees of the 
Mountain Division Rail Line Authority, referred to in this chapter as "the board of 
trustees," composed of 5 voting members as follows: 
A. Four members appointed by the Governor and confirmed by the Legislature; and 
B. The Commissioner of Transportation or the commissioner's designee, who serves 
~x officio. 
2. 
Terms of office. 
Members appointed under subsection 1, paragraph A are 
illmQinted for 4-year terms except that, for initial appointments, one member'is appointed 
to a 2-year term, 2 members to 3-year terms and 2 members to 4-year terms. 
A member continues to hold office until a successor is appointed and qualified, but the 
term of the successor is not altered from the original expiration date of the holdover 
member's ternl. 
3. Limitation on terms; removal. Except for the ex officio member, a member of 
the board of trustees may serve no more than 2 full consecutive terms. Any member may 
be removeg. by the Governor for cause. 
4. Chair. The Governor shall appoint one member to serve as chair of the board of 
trustees. 
5. Meetings; compensation. All the powers of the authority may be exercised by 
the board of trustees in lawful meeting, and a majority of the members is necessary for a 
quorum. Regular meetings of the board of trustees may be established by bylaw. Notice 
of the regular meeting need not be given to the members. Each member is compensated 
according to the provisions of Title 5, chapter 379. 
6. Limitation of liability. A member of the board of trustees or an employee of the 
authority may not be subject to any personal liability for having acted within the course 
and scope of that person's membership or employment to carry out any power or duty 
under this chapter. The authority shall indemnify any member of the authority, any 
member of the board of trustees and any employee of the authority against expenses 
actually and necessarily incurred by that person in connection with the defense of any 
action or proceeding in which that person is made a party by reason of past or present 
association with the authority. 
7. Employees. The authority may employ an executive director and such other 
technical experts, agents and employees, permanent and temporary, that it requires and 
may determine their qualifications, duties and compensation. Permanent employees of the 
authority are eligible to elect to participate in the Maine State Retirement System, the 
state employee health plan under section 285, any state-deferred compensation plan or 
any other plan or program adopted by the board of trustees to the extent the board may 
determine. For required legal services, the authority may employ or retain its own counsel 
and legal staff. 
§9003. Receive, use and invest funds 
The authority may receive and accept from any source allocations, appropriations, 
loans, grants and contributions of money or other things of value to be held, used or 
applied to carry out this chapter, subject to the conditions upon which the loans, grants 
and contributions may be made, including, but not limited to, appropriations, allocations, 
loans, grants or gifts from any federal agency or governmental subdivision or the State 
and its agencies. 
The authority may invest funds received from any source for carrying out this chapter 
and expend interest and other earnings on those funds as appropriate to implement this 
chapter, including use for program and administrative costs. 
§9004. Acquisition, use and disposition of property 
All real and personal property owned by and in the name of the authority is property 
of the State and entitled to the privileges and exemptions of property of the State, except 
insofar as waived bv the duly authorized contract or other written instrument of the 
authority or by this chapter. 
The authority may acquire, use, lease, improve and dispose of real and personal 
property to accomplish the purposes of this chapter. Revenues to the authority resulting 
I 
from the lease, sale or other use of property in which the authority has an interest become 
operating revenues or assets of the authority. The authority may contract for services as 
necessary to accomplish this purpose. 
§9005. Taxation and fees 
Notwithstanding any other proVISIOn of law, for the purposes of this chapter, 
transactions and property of the authority must be treated as follows. 
1. Revenue obligation securities; exemption from taxation. Revenue obligation 
securities of the authority are issued for an essential public and governmental purpose, are 
public instruments and, together with interest and income, including the profit made from 
their transfer or sale, are exempt from taxation within the State. 
II 
2. Conveyances, leases, mortgages, deeds of trust; trust indentures; exemptions 
from taxation. Conveyances by or to the authority and leases, mortgages and deeds of 
trust or trust indentures by or to the authority are exempt from all taxation by the State or 
any of its political subdivisions, including, but not limited to, any applicable license, 
excise or other taxes imposed in respect of the privilege of engaging in any of the 
activities in which the authority may engage. 
3. Propertv exemption from taxation and other assessments. Property acquired, 
held or transferred by the authority is exempt from all taxes and from betterments and 
special assessments of the city, town, county, State or any political subdivision of State 
Government or county or local governments. The authority may agree to make payments 
in lieu oftaxes to the applicable political subdivisions. 
§9006. Bonds 
1. Authorization. The authority may provide by resolution for the issuance of 
bonds for the purpose of funding the acquisition, financing, construction, operation, 
improvement and repair of a railroad line from Portland through Westbrook, Gorham, 
Standish and Fryeburg to the New Hampshire border. The bonds of the authority do not 
constitute a debt of the State or of any agency or political subdivision of the State but are 
payable solely from the revenue of the authority, and neither the faith nor credit nor 
taxing power of the State or any political subdivision of the State is pledged to payment 
of the bonds. Notwithstanding any other provision of law, any bonds issued pursuant to 
this chapter are fully negotiable. If any member of the board of trustees whose signature 
appears on the bond or coupons ceases to be a member of the board of trustees before the 
delivery of those bonds, that signature is valid and sufficient for all purposes as if that 
member of the board of trustees had remained a member of the board of trustees until 
delivery. As used in this section, "railroad line" has the same meaning as in section 8002, 
subsection 3. 
2. Resolution; prospective issues. The authority may, by resolution authorizing 
prospective issues, provide: 
A. The manner of executing bonds and coupons; 
B. The form and denomination of bonds or coupons; 
C. Maturity dates; 
D. Interest rates on bonds or coupons; 
E. For redemption prior to maturity and the premium payable; 
F. The place or places for the payment of interest and principal; 
G. For registration if the authority determines it to be desirable; 
H. For the pledge of all or any of the revenue for securing payment; 
1. For the replacement of lost, destroyed or mutilated bonds; 
J. For the setting aside and the regulation and disposition of reserve and sinking 
funds; 
K. For limitation on the issuance of additional bonds; 
L. 
For the procedure, if any, by which the contract with a bondholder may be 
abrogated or amended; 
M. For the manner of sale and purchase of bonds; 
N. For covenants against pledging of any of the revenue ofthe authority; 
O. For covenants fixing and establishing rates and charges for use of the authority'S 
facilities and services made available so as to provide funds that will be sufficient to 
pay all costs of operation and maintenance, to meet and pay the principal and interest 
of all bonds as they severally become due and payable, for the creating of such 
revenues for the principal and interest of all bonds and for the meeting of 
contingencies and the operation and maintenance of its facilities as the board of 
] 
trustees determines; 
P. 
For such other covenants as to rates and charges as the board of trustees 
determines; 
Q. For covenants as to the rights, liability, powers and duties arising upon the breach 
by the authority of any covenant, condition or obligation; 
R. For covenants as to the bonds to be issued, as to the issuance of those bonds in 
escrow and otherwise and as to the use and disposition of the proceeds; 
S. For covenants as to the use of its facilities and their maintenance and replacement, 
and the insurance to be carried on them, and the use and disposition of insurance 
money; 
T. For the issuance of bonds in series; 
U. For the performance of any and all acts as may be in the discretion of the board of 
trustees necessary, convenient or desirable to secure bonds or that tend to make bonds 
more marketable; and 
V. For the issuance of bonds on terms and conditions to effectuate the purpose of this 
chapter. 
3. Money received. All money received from any bonds issued must be applied 
solely for the acquisition, financing, construction, operation, improvement and repair of a 
railroad line from Portland through Westbrook, Gorham, Standish and Fryeburg to the 
New Hampshire border and for the fulfillment of other undertakings that are within the 
power of the authority. There is created a lien upon the money until so applied in favor 
of the bondholders or any member of the board of trustees as may be provided in respect 
of the bonds. 
4. Trust indenture. In the discretion of the board of trustees, bonds may be secured 
by a trust indenture by and between the authority and a corporate trustee, which may be 
any trust company or bank having the powers of a trust company, located either within or 
outside the State. 
Such a trust indenture may pledge or assign the revenues of the 
authority or any part of it. Any trust indenture may set forth the rights and remedies of 
the bondholders and the trustee, restrict the individual right of action of bondholders and 
contain such other provisions as the board of trustees may consider reasonable and proper 
for the security of bondholders. Expenses incurred in carrying out any trust indenture 
may be treated as a part of maintenance. 
5. Rights of bondholders. Provisions may be made for protecting and enforcing the 
rights and remedies of bondholders, including covenants as to acquisition of property, 
construction, maintenance, operation and repair and insurance and the custody, security 
and application of all money. 
6. Depositories. Any trust company or bank having the powers of a trust company 
and located either within or outside the State may act as a depository of the proceeds of 
bonds and revenue and may furnish such indemnity or pledge such securities as may be 
required by the authority. 
7. Tax free. The purposes of this chapter being public and for the benefit of the 
people of the State, bonds of the authority are free from taxation by the State. 
8. Revenue refunding bonds. The authority may issue revenue refunding bonds for 
the purpose of refunding revenue bonds issued under this chapter. The issuance of any 
refunding bonds is the same as provided for in this chapter relating to revenue bonds. 
9. Default. In the event of default on bonds and in the event the default continues 
for a period of 3 months, action may be brought to enforce the rights of the bondholders 
by insuring that the operation by the board of trustees be in conformity with the 
covenants of the bonds or trust indenture. 
§9007. Interest of trustee or employee 
1. Acquisition of interest. A member of the board of trustees or employee of the 
authority may not acquire or hold a direct or an indirect personal financial interest in: 
A. 
An authority activity; 
B. 
Property or facilities included, planned to be included or expected to directly 
benefit from an authority activity; or 
C. 
A contract or proposed contract in connection with an authority activity. 
When an acquisition is involuntary, the interest acquired must be disclosed immediately 
in writing to the board of trustees and the disclosure must be entered in the board of 
trustees' minutes. 
2. Present or past interest in property. If a member of the board of trustees or 
employee of the authority presently owns or controls, or owned or controlled within the 
preceding 2 years, a direct or an indirect interest in property known to be included or 
planned to be included in an authority activity, that member or employee shall disclose 
this fact immediately in writing to the board of trustees and the disclosure must be 
entered in the board of trustees' minutes. 
3. Recusal. A member of the board of trustees or employee of the authority with an 
interest under subsection 2 may not participate in an action by the authority affecting that 
property. 
4. Violation. A violation of this section is a Class E crime. 
§9008. Audit 
The authority shall provide the Treasurer of State, within 120 days after the close of 
its fiscal year, its annual financial report certified by an independent certified public 
accountant, who may be the accountant who or a member of the firm of accountants that 
regularly audits the books and accounts of the authority, selected by the authority. The 
authority is also subject to the provisions of Title 5, chapter 11. The authority may 
combine for accounting pumoses any or all funds established for its programs and 
activities. 
§9009. Rules 
Pursuant to Title 5, chapter 375, the authority may adopt any rule, including its 
bylaws, necessary or useful for carrying out any of its powers or duties. Rules adopted 
pursuant to this section are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
Sec. 5. Statutory referendum procedure; submission at election; form of 
question; effective date. This Act must be submitted to the legal voters of the State at 
a statewide election held in the month of November following the passage of this Act. 
The municipal officers of this State shall notify the inhabitants of their respective cities, 
towns and plantations to meet, in the manner prescribed by law for holding a statewide 
election, to vote on the acceptance or rejection of this Act by voting on the following 
question: 
"Do you favor permitting additional slot machines at a harness horse 
racing track to support harness horse racing and passenger and freight 
train service?" 
The legal voters of each city, town and plantation shall vote by ballot on this question 
and designate their choice by a cross or check mark placed within a corresponding square 
below the word "Yes" or "No." The ballots must be received, sorted, counted and 
declared in open ward, town and plantation meetings and returns made to the Secretary of 
I 
State in the same manner as votes for members of the Legislature. The Governor shall 
review the returns. If a majority of the legal votes are cast in favor of this Act, the 
Governor shall proclaim the result without delay and this Act becomes effective 30 days 
after the date of the proclamation. 
The Secretary of State shall prepare and furnish to each city, town and plantation all 
ballots, returns and copies of this Act necessary to carry out the purposes of this 
referendum. 
SUMMARY 
This bill permits the operation of additional slot machines at a harness horse racing 
track in a municipality along the railroad line from Portland to the New Hampshire border 
II 
overseen by the Northern New England Passenger Rail Authority or the railroad line from 
Portland through Westbrook, Gorham, Standish and Fryeburg to the New Hampshire 
border known as the Mountain Division rail line. The bill limits the location of the 
operation of these slot machines to one harness horse racing track and to within 200 feet 
of the outside edge of the racing oval at that harness horse racing track. A municipality 
must approve the operation of slot machines before slot machines authorized by this bill 
may be operated in that municipality. 
An entity that operates an agricultural fair or a person licensed to operate a 
commercial track may apply to the Department of Public Safety, Gambling Control 
Board no later than December 31, 2009 for a license to operate slot machines authorized 
by this bill. The Gambling Control Board will choose one applicant to receive the license 
authorized by this bill. Slot machines authorized by this bill are subject to regulation and 
supervision by the Gambling Control Board. 
The bill is subject to approval by the voters of this State at referendum. 
The slot machine operator will be required to collect and distribute I % of gross slot 
machine income for deposit in the General Fund. The slot machine operator will be 
required to collect and distribute 39% ofthe net slot machine income as follows: 
1. Two percent for deposit in the General Fund for administrative expenses of the 
Gambling Control Board, including gambling addiction counseling services; 
2. Ten percent to supplement harness racing purses; 
3. Three percent for deposit in the Sire Stakes Fund; 
4. Three percent for deposit in the Agricultural Fair Support Fund; 
5. Five percent for the Town of Standish to establish a drinking water protection 
fund to protect the quality of the drinking water for communities served by the Portland 
Water District and to establish a recreational area on Sebago Lake in Standish; 
6. One percent for scholarships for students at the University of Maine System; 
I 
7. 
One percent for scholarships for students at the Maine Community College 
System; 
8. Ten percent for the Mountain Division Rail Line Authority, which is established 
in this bill and may issue bonds, to fund the acquisition, financing, construction, 
operation, improvement and repair of a railroad line from Portland through Westbrook, 
Gorham, Standish and Fryeburg to the New Hampshire border; 
9. Two percent for the Northern New England Passenger Rail Authority to support 
the operation of a train on the railroad line from Portland to the New Hampshire border; 
10. One percent for the Department of Agriculture, Food and Rural Resources to be 
lOused for equine rescue and other animal protection programs; and 
II 
11. One percent for the municipality in which the slot machines are located. 
Page II - 123LR2462(OI)-1