An Act To Authorize the Operation of Slot Machines on the Passamaquoddy Reservation Reference to the Conimittee on JUdiciary suggested and ordered printed. 71-~ m.1JlILC~{
Maine Legislature, Session 124, LD 1379
Sponsors: SOCTOMAH, RA YE, EATON, MITCHELL, PENDLETON, SCHATZ
Amends: 8 MRSA §1003, 8 MRSA §1011, 8 MRSA §1012, 8 MRSA §1018, 8 MRSA §1020, 8 MRSA §1036

Legislative Document 
No. 
H.P.969 
House of Representatives, April 2, 2009 
An Act To Authorize the Operation of Slot Machines on the 
Passamaquoddy Reservation 
Reference to the Conimittee on JUdiciary suggested and ordered printed. 
71-~ 
m.1JlILC~{ 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative SOCTOMAH ofthe Passamaquoddy Tribe. 
Cosponsored by Senator RA YE of Washington and 
Representatives: EATON of Sullivan, MITCHELL of the Penobscot Nation, PENDLETON of 
Scarborough, PEM Y of Calais, SCHATZ of Blue Hill. 
Pri~ltd't1n recycled paper 
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Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 8 MRSA §1003, sub-§2, E[M,as enacted by PL 2003, c. 687, Pt. A, §5 
and affected by Pt. B, § 11, is amended to read: 
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. 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 the Passamaquoddy Tribe. 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 
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. 
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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 ofthe slot machine operator's license. 
. . 
4. Requirement for license; agreement with municipality where slot mac~ines 
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 
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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 renew'ed upon application for 
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renewal in accordance with this subchapter, subject to board rules. 
Sec. 3. 8 MRS A §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 corirrnercial track with slot machines is located or, if the commercial track is in an 
unincorporated place, the applicatiori 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 machlnes 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 th~ 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 
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. 
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Sec. 5. 8 MRSA §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 $1 00 for each registered slot machine. 
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B. 
The initial application fee for a slot machine distributor license is $200,000. The 
annual renewal fee is $75,000. 
C. 
The initial application fee for a commercial track slot machine operator license is 
$200,000. and $10,000 for a license to operate slot machines held by the 
--Passamaquoddy Tribe. The annual renewal fee is $75,000 for a commercial track slot· 
machine operator license and $3,000 for a license to operate slot machines held by 
the Passamaquoddy Tribe plus an amount, set by rules of the board, equaJ- 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 
machiIie 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 10 15 is $250. 
The annual renewal fee is $25. 
In addition to the application fee for a license or l:l.nnual fee for a registered slot machine, 
the board may charge .a one-time application fee for a li.cense or registration listed in 
paragni.phs 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 projected 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 MRSA §1018, sub-§2, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, § 11, is amended t6 read: 
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 ofthe required fees and taxes and in 
accordance with rules adopted by the board, the board may renew a license for an 
additional 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. 
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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: 
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A. 
The total number of slot machines registered in the State may not exceed 1,500; 
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B. 
A slot m~chine operator may not oper.ate more than 1,500 slot machines at aHJ' 
eRe £ commercial track.,.; and 
C. The Passamaquoddy Tribe may not operate more than 100 slot machines. Those 
machines may be operated only on the Pleasant Point Reservation and Indian 
Township Reservation in Washington County and only on weekends that the tribe is 
licensed to and conducts high-stakes beano in accordance with· Title 17, section 
314-A. 
See. 8. 8 MRSA §1036, suh-§2, as amended by PL 2007, c. 466, Pt. A, §29, is 
further amended to read: 
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 sectiqn 
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 
Title 22, section 1511 and segregated into a separate account under Title 22, section 
1511, subsection 11, with the use of funds in the account restricted to the purposes 
described in Title 22, section 15 iI, subsection 6, paragraph E; 
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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 of the net slot machine income must be forwarded by the board to 
the board of trustees of the Main.e 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 forwarcted 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 tenninated when all commercial tracks have obtained a 
license to operate slot machines in accordance with this chapter; 
1. 
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 
I. 
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 §1036, sub-§2-A is enacted to read: 
2-A. Distribution from tribal gambling facility. The Passamaquoddy Tribe. shall 
collect and distribute 14% of the net slot machine income from slot machines operated by 
the tribe to the board for distribution by the board as follows: 
A. One 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 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 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. One 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; 
E .. Two percent of the net slot machine income must be forwarded by the board to 
the Maine Technology Institute under Title 5, section 15302; 
F. ' Two percent of the net slot machine income must be forwarded by the board to an 
economic development council in Washington County; 
G. One percent of the net slot machine income must be forwarded by the board to 
homeless shelters; 
H. . Two percent of the net slot machine income must be forwarded by the board to 
other federally recognized Indian tribes in the State that are not. licensed to operate 
slot machines; and 
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I. One percent of the net slot machine income must be forwarded by the board to an 
organization in the Bangor area that provides housing to families of chronically ill 
children in connection with the treatment of those children. 
____ SUMMARY 
This bill allows the Passamaquoddy Tribe to be licensed to operate not more than 100 
slot machines on the Pleasant Point Reservation .and Indian Township Reservation in 
Washington County in conjunction with high-stakes beano. 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, based on the maximum of 100 machines, 
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would be $10,000 and the annual renewal fee is $3,000. One percent of the gross slot 
machine revenue would be required to be deposited to the General Fund. Fourteen 
percent of the net slot machine revenue from slot machines operated by the 
Passamaquoddy Tribe would be distributed as follows: 
1. 
One 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 percent to the University of Maine System Scholarship Fund; 
3. Two percent to the Maine Community College System to fund its scholarships· 
. program; 
4. 
One percent to the Department of Defense, Veterans and Emergency· 
Management, Bureau of Maine Veterans' Services; 
5. Two percent to the Maine Technology Institute; 
6. Two percent to an economic development council in Washington County; 
7. One percent to homeless shelters; 
8. Two percent to be forwarded to other fedenilly recognized Indian tribes in the 
State that are not licensed to operate slot machines; and 
9. 
One percent to the Ronald McDonald House in Bangor, an organization that 
provides housing to families of chronically ill children in connection with the treatment 
of those children.