An Act To Allow Maine's Harness Racing Industry To Compete with Casino Gaming
Maine Legislature, Session 126, LD 1111
Committee Amendment CA_A-HA_B_H671 (House)
Amends: 7 MRSA §82, 7 MRSA §91, 8 MRSA §272-B, 8 MRSA §1011, 8 MRSA §1018, 8 MRSA §1019, 8 MRSA §1020, 8 MRSA §1036, 8 MRSA §1037, 8 MRSA §1054

HOUSE AMENDMENT "13" to COMMITTEE AMENDMENT "A" to H.P. 780, 
L.D. 1111, Bill, "An Act To Allow Maine's Harness Racing Industry To Compete with 
Casino Gaming" 
Amend the amendment by striking out everything after the first paragraph after the 
title and inserting the following: 
'Sec. 1. 7 MRSA §82, sub-§5, as amended by PL 2011, c. 358, §1, is further 
amended to read: 
5. Rulemaking. The commissioner shall adopt rules to establish procedures for 
licensing and awarding dates for agricultural fairs and performance standards for 
evaluating agricultural fairs. The commissioner, in consultation with the executive 
director of the State Harness Racing Commission, shall adopt rules that require 
agricultural fairs that receive a distribution of slot machine revenue in accordance with 
Title 8, section 1036, subsection subsections 2, 2-A and 2-D to submit information 
regarding the use of that revenue sufficient for the executive director to submit the report 
required by Title 8, section 1037. Rules adopted pursuant to this subsection are routine 
technical rules as defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 2. 7 MRSA §91, sub-§I, as amended by PL 2007, c. 539, Pt. G, §1 and 
affected by § 15, is further amended to read: 
1. Fund created. The Treasurer of State shall establish an account to be known as 
"the Agricultural Fair Support Fund" and shall credit to it all money received under Title 
8, section 1036, subsection 2, paragraph D, subsection 2-A, paragraph G and subsection 
2-D, paragraph B. The fund is a dedicated, nonlapsing fund. All revenues deposited in 
the fund must be disbursed in accordance with this section, except that assessments and 
advances may be withdrawn in accordance with Title 8, section 267-A. 
Sec. 3. 8 MRSA §272-B, sub-§l, ~E, as enacted by PL 2007, c. 211, §1 and 
affected by §2, is amended to read: 
E. The fund to supplement harness racing purses established under section 298 and 
receiving payment pursuant to section 1036, subsection 2, paragraph B, subsection 
2-A, paragraph H and subsection 2-D, paragraph A; and 
HOUSE AMENDMENT 
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HOUSE AMENDMENT ,~" to COMMITTEE AMENDMENT "A" to H.P. 780, L.D. 1111 
Sec. 4. 8 MRS A §298, sub-§l, as amended by PL 2007, c. 539, Pt. G, §10 and 
affected by § 15, is further amended to read: 
1. Fund created. A fund is established to supplement harness racing purses to 
which the commission shall credit all payments received pursuant to section 1036, 
subsection 2, paragraph B, subsection 2-A, paragraph H and subsection 2-D. paragraph A 
for distribution in accordance with this section. The fund is a dedicated, nonlapsing fund, 
and all revenues deposited in the fund remain in the fund and must be disbursed in 
accordance with this section, except that assessments and advances may be withdrawn in 
accordance with section 267-A. The commission shall distribute in accordance with this 
section amounts credited to the fund. 
Sec. 5. 8 MRS A §1011, sub-§2-A, as amended by PL 2011, c. 417, §2, is further 
amended to read: 
2-A. 
Persons eligible for casino operator license. 
The board may accept an 
application for a casino operator license to operate slot machines and table games at a 
casino from a commercial track that conducted harness racing at or within a 20-mile 
radius of the center of a commercial track with pari-mutuel wagering on at least 100 
calendar days in 2003 or a commercial track licensed to operate a slot machine facility on 
January 1, 2011 for the same location where slot machines were operated on January 1, 
2011 and any person if that person and casino satisfy the following criteria: 
A. The casino is located on a parcel of land in Oxford County that is: 
(1) No less than 50 acres in size; and 
(2) Located not more than: 
(a) Thirty miles from a Level lor Level II trauma center verified as such by 
the American College of Surgeons or successor organization; 
(b) Fifteen miles from the main office of a county sheriff; 
(c) Twenty-five miles from the main office of a state police field troop; 
(d) Thirty miles from an interchange of the interstate highway system; 
(e) Ten miles from a fire station; 
(f) Ten miles from a facility at which harness racing was conducted pursuant 
to a license from the State Harness Racing Commission for the 2009 racing 
year; and 
(g) One-half mile from a state highway as defined in Title 23, section 1903, 
subsection 15. 
For the purposes of this paragraph, distances are determined by measuring along the 
most commonly used roadway, as determined by the Department of Transportation; 
B. The criteria adopted through rulemaking by the board regarding the licensing of 
the operation of slot machines and table games; 
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HOUSE AMENDMENT::!J" to COMMITTEE AMENDMENT "A" to H.P. 780, L.D. 1111 
C. The operation of a casino is approved by the voters of the municipality in which 
the casino to be licensed is located in a referendum election or by a vote of the 
municipal officers in the municipality in which the casino is to be licensed and 
located held at any time after October 1, 2009 and on or before December 31, 2011; 
D. The person owns a facility that is within 10 miles of the proposed casino at which 
harness racing was conducted pursuant to a license from the State Harness Racing 
Commission for the 2009 racing year; and 
E. The slot machines and table games are located and operated in the casino. 
Sec. 6. 8 MRSA §1011, sub-§3, as amended by PL 2011, c. 417, §3, is further 
amended to read: 
3. 
Requirements for license; continued commercial track licensure; facility 
requirements. The board may not issue a license to operate a slot machine facility or a 
casino to any person unless that person demonstrates compliance with the qualifications 
set forth in sections 1016 and 1019. To maintain eligibility for a slot machine operator 
license or a casino operator license under subsection 2-A issued to a commercial track 
"'lith slot machines, a licensed cOlmnercial track must at all times maintain a license to 
operate a commercial track without lapse, suspension or revocation. A commercial track 
that is initially issued a casino operator license after January 1, 2014, in order to maintain 
eligibility for a casino operator license, must ensure that table games and slot machines 
are located in a facility immediately adjacent to a newly constructed or reconstructed 5/8-
mile racetrack that includes a dining facility that provides expansive views of the racing 
oval. The facility where table games and slot machines are operated must be part of a 
complex that comprises a hotel with a minimum of 100 rooms, spa facilities, indoor and 
outdoor swimming pools, an entertainment venue and retail space. 
Sec. 7. 8 MRSA §1018, sub-§l, ~C-l, as amended by PL 2011, c. 417, §4, is 
further amended to read: 
C-l. The initial application fee for a casino operator license is $225,000, except that 
the initial application fee for an applicant that is a commercial track that was licensed 
to operate slot machines as of January 1,2011 is $25,000. The annual renewal fee is 
$80,000 plus an amount, set by rules of the board, equal to the cost to the board of 
licensing casino operators and determined by dividing the costs of administering the 
casino operator licenses by the total number of casino operators licensed by the 
board. In addition, a casino operator shall pay an initial gaming table fee of $100,000 
for the privilege to operate each gaming table for a period of 20 years as long as the 
casino operator is licensed. Each gaming table is also subject to an annual gaming 
table renewal fee of $1,000. The gaming table fees authorize the casino operator to 
conduct any authorized table game at the gaming table during the 20-year period. A 
casino licensed in accordance with section 1011, subsection 2-A, paragraph A is not 
required to pay the gaming table fees until after one calendar year of table game 
operation. Fees collected in accordance with this paragraph must be deposited to the 
Gambling Control Board administrative expenses Other Special Revenue Funds 
account, which is a nonlapsing dedicated account. A casino operator license initially 
issued to a commercial track after January 1, 2014 is subject to a license fee as 
provided by section 1018-A, which may not be less than $50,000,000, and that must 
be paid to the Treasurer of State and deposited to the General Fund. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT 'b" to COMMITTEE AMENDMENT "A" to H.P. 780, L.D. 1111 
Sec. 8. 8 MRS A §1018, sub-§l-A, as enacted by PL 2011, c. 699, §2, is amended 
to read: 
I-A. Fees for slot machine and casino operator licenses on or after September 1, 
2012. Notwithstanding subsection 1, paragraphs C and C-1, beginning September 1, 
2012, an applicant for a slot machine operator license or a casino operator license must 
pay a $250,000 nonrefundable privilege fee to be submitted with the application for the 
license and a minimum license fee, or cash bid if the license is part of a competitive 
bidding process established by law, of $5,000,000. This subsection does not apply to a 
casino licensed for operation in the State as of September 1, 2012 or to a commercial 
track initially licensed as a casino after January 1, 2014. 
Sec. 9. 8 MRSA §1018, sub-§2, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, § 11, is amended to read: 
2. Term of license; renewal, renewal fees. All Except for a casino operator license 
issued pursuant to section 10 18-A, 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 additional year if 
municipal approval has been obtained as provided in section 1012. The board shall 
transfer $25,000 of the renewal fee required by subsection 1, paragraph C to the 
municipality in which the slot machines are operated. 
Sec. 10. 8 MRSA §§1018-A and 1018-B are enacted to read: 
§1018-A. 
Casino operator application and license fee for a commercial track 
licensed after January 1,2014 
Notwithstanding section 1018, subsection 1, the license fee for a casino operator 
license initially issued to a commercial track after January 1, 2014 must be determined in 
accordance with this section and is in addition to an application fee of $250,000. The 
application fee must be used by the board to cover the costs of administering the casino 
application and licensing process including background investigations and to fund a 
market study that must be conducted by the Department of Administrative and Financial 
Services, the purpose of which is to determine the market value of a casino operator 
license as of the date of the application. The commissioner shall meet with the owner or 
operator of the commercial track that has applied for or been initially issued a license to 
operate a casino after January 1, 2014 to negotiate an amount for a one-time license fee 
that may not be less than $50,000,000. 
The commissioner shall consider all of the 
elements in subsections 1 to 5 when negotiating the license fee with the commercial 
track. 
For the purposes of this section, "commissioner" means the Commissioner of 
Administrative and Financial Services. 
1. Recent transaction relating to casino ownership. The commissioner shall 
determine the amount paid by existing casino operator licensees as part of a contract to 
purchase a licensed existing casino or similar contracts between operators and entities 
who have funded efforts to pass legislation to authorize the use of slot machines in the 
State within the past 15 years. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT:b" to COMMITTEE AMENDMENT "A" to H.P. 780, L.D. 1111 
2. Gaming market. The commissioner shall consider the potential market for 
gaming in the State and specifically in the region where the commercial track that has 
initially applied for or received a casino operator license after January 1, 2014 is located 
or is to be located and including consideration of competition from gaming venues in the 
northeast region of the United States. The commissioner shall also consider the market 
risks associated with operating a resort casino with live harness racing. 
3. Live harness racing. The commissioner shall consider the extent to which the 
commercial track will be required by law to conduct live harness racing and any other 
operations that may not be profitable to the casino operator and consider the losses 
incurred by such operations. The commissioner shall consider secondmy benefits of 
harness racing to the local community, agricultural businesses and other businesses that 
directly benefit from harness racing in the State. 
4. Revenue distributions. The commissioner shall consider the distribution of 
revenues to be required of the commercial track once it is licensed as a casino and how 
those distributions benefit the State. 
5. Capital investment benefits. The commissioner shall consider the commercial 
track's willingness to accept conditions on licensure, including any capital investments 
required by law, and how any required investments will provide value to the local 
community and the State as a whole. Considerations must include facility investments to 
allow for horses owned and trained by licensees of the State Harness Racing Commission 
to be stabled at the location of the casino. 
If the commissioner and the commercial track are not able to reach an agreement on a 
license fee, the commissioner shall make the final detennination of the license fee. 
Detennination of a license fee must be made within 90 calendar days after the 
commencement of negotiations under this section. 
§1018-B. Licensing decision deadline 
The board shall make a final decision on issuance of a casino operator license within 
calendar days of receiving what it considers to be a complete application from a 
commercial track that initially applies for a casino operator license after January 1, 2014. 
Sec. 11. 8 MRS A §1019, sub-§6, as amended by PL 2011, c. 417, §5, is further 
amended to read: 
6. Proximity of licensed casinos and slot machine facilities. A casino operator 
license or slot machine operator license may not be issued under this chapter to operate 
any casino or slot machine facility located within 100 miles of a licensed casino or slot 
machine facility. This subsection does not apply to a commercial track initially licensed 
to operate a casino after January 1, 2014 and it does not prohibit a commercial track that 
was licensed to operate slot machines on January 1, 2011 from obtaining a casino 
operator license for the same facility where slot machines were operated as of January 1, 
2011. A commercial track that initially applies for a casino operator license after January 
1, 2014 may relocate to a new location as long as it is not closer to an existing casino in 
this State than the original location of the track was to an existing casino in this State. 
Sec. 12. 8 MRSA §1019, sub-§7, as amended by PL 2011, c. 417, §6, is further 
amended to read: 
HOUSE AMENDMENT 
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HOUSE AMENDMENT ,:!;" to COMMITTEE AMENDMENT "A" to H.P. 780, L.D. 1111 
7. Statewide and county referendum; municipal vote. Aftet: Unless otherwise 
specified by this subsection, after January 1, 2011, aHJ' ~ proposed casino or slot machine 
facility may not be issued a license unless it has been approved by a statewide 
referendum vote and a vote of the municipal officers or municipality in which the casino 
or slot machine facility is to be located, except that a commercial track licensed to operate 
slot machines on January 1, 2011 is only required, as a condition to obtain a casino 
license, to receive approval to operate a casino by means of a referendum of the voters of 
the county in which the commercial track is located. To be eligible for a casino operator 
license, a commercial track that initially applies for a casino operator license after 
January 1, 2014 is required to receive approval only of the voters of the municipality in 
which the casino will be located. 
Sec. 13. 8 MRSA §1019, sub-§8 is enacted to read: 
8. Slot machine and table game operation contingent upon facility construction. 
A commercial track initially licensed as a casino operator after January 1, 2014 may not 
begin operation of slot machines and table games prior to the completion of all phases of 
construction of a resort that includes a hotel, spa, pool, dining facility and entertainment 
venue and provides for a view of the racing oval from the dining facility and from the 
location of slot machines within the facility. 
Sec. 14. 8 MRSA §1020, sub-§3, ~A, as amended by PL 2011, c. 585, §8, is 
further amended to read: 
A. 
Except for slot machines used for training and educational purposes at 
postsecondary institutions as provided by section 1011, subsection I-B, the total 
number of slot machines registered in the State may not exceed ~ 
4,500; and 
Sec. 15. 8 MRSA §1036, sub-§2-D is enacted to read: 
2-D. 
Distribution of table game income and slot machine revenue from a 
commercial track licensed to operate a casino after January 1,2014. A commercial 
track initially licensed to operate a casino after January 1, 2014 shall collect and 
distribute revenue from the operation of slot machines and table games in accordance 
with this subsection. The casino operator shall collect and distribute 1 % of the gross slot 
machine income to the Treasurer of State for deposit in the General Fund for the 
administrative expenses of the board. The casino operator shall collect and distribute 
39% of net slot machine income and 16% of net table game income to the board. The 
total amount of net slot machine revenue and net table game revenue forwarded to the 
board must be distributed as follows: 
A. Sixteen percent 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; 
B. Six percent 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 
2.L 
C. Six percent must be forwarded by the board to the Treasurer of State, who shall 
credit the money to the Sire Stakes Fund created in section 281; 
HOUSE AMENDMENT 
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HOUSE AMENDMENT :.b " 
to COMMITTEE AMENDMENT "A" to H.P. 780, L.D. IIII 
D. One percent must be forwarded by the board directly to the municipality in which 
the slot machines and table games are located; 
E. One percent must be forwarded by the board directly to the county in which the 
slot machines and table games are located; 
F. One percent 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. The amount distributed under this paragraph must be divided equally 
among the eligible off-track betting facilities except that no off-track betting facility 
may receive more than 25% of the amount forwarded by the board under this 
paragraph. Any revenues remaining after distribution to off-track betting facilities 
must be credited to the General Fund. An off-track betting facility is eligible for a 
distribution under this paragraph if it was licensed by the State Harness Racing 
Commission to conduct and actually conducted wagering operations for a minimum 
of 250 days during the preceding 12-month period in which the first payment to the 
fund is required; and 
G. Sixty-nine percent must be forwarded by the board to the Treasurer of State for 
deposit to the General Fund, except that, of the amount calculated pursuant to this 
paragraph, $100,000 must be transferred annually to the Gambling Addiction 
Prevention and Treatment Fund established by Title 5, section 20006-B. 
Sec. 16. 8 MRSA §1037, first~, as enacted by PL 2011, c. 358, §6 and amended 
by c. 657, Pt. W, §6, is further amended to read: 
Beginning February 15, 2012, the executive director of the State Harness Racing 
Commission, in consultation with the Commissioner of Agriculture, Conservation and 
Forestry, annually shall submit a report to the joint standing committees of the 
Legislature having jurisdiction over slot machines, harness racing, agricultural fairs and 
appropriations and financial affairs regarding the use of slot machine revenue deposited 
in funds under section 1036, subsection 2, paragraphs B, C, D, Hand I, subsection 2-A, 
paragraphs G, H and I and subsection 2-D, paragraphs A to C. The executive director 
and the commissioner shall obtain the information as described in this section. The report 
required by this section must be completed using budgeted resources. The executive 
director may not distribute funds listed under section 1036, subsection 2, subsection 2-A 
and subsection 2-D, as applicable, to harness racing tracks, off-track betting facilities, 
agricultural fairs or the Sire Stakes Fund under section 281 until the information required 
to submit the report required by this section is provided. 
Sec. 17. 8 MRS A §1037, sub-§l, as enacted by PL 2011, c. 358, §6, is amended 
to read: 
1. Commercial tracks. A report required by this section must include the following 
information from commercial tracks licensed in accordance with chapter 11 that receive a 
distribution of slot machine revenue under section 1036, subsection 2, paragraph B, D or 
H, subsection 2-A, paragraph G, H or I or subsection 2-D, paragraph A, B or C: 
A. The total amount wagered on live harness races; 
B. The total amount wagered on intrastate simulcast races; 
C. The total amount wagered on interstate simulcast races; 
HOUSE AMENDMENT 
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HOUSE AMENDMENT ~"to COMMITTEE AMENDMENT "A" to H.P. 780, L.D. 1111 
D. 
The number of harness races originated in the State and made available for 
simulcast outside of the State; 
E. The amount of the harness racing handle from wagers at the commercial track 
kept by that commercial track and the distribution of the handle to the State and 
industry recipients under section 286; 
F. The amount received from the handle distribution from wagers at other tracks and 
off-track betting facilities under section 286; 
G. The amount of revenue received in accordance with section 1036, subsection 2, 
paragraphs B, D and H, subsection 2-A, paragraphs G, H and I and subsection 2-D, 
paragraphs A to C; 
H. The number of full-time and part-time employees at the commercial track; 
I. The amount, if any, spent on capital improvements to the commercial track and 
related facilities and a description of those improvements. The first report must 
include the amount spent since November 2005, shown by year. Subsequent annual 
reports must include the amount spent on capital improvements the immediately 
preceding calendar year; 
J. Operating costs for the commercial track; 
K. Profit and loss or depreciation figures for the commercial track; and 
L. Administrative costs to comply with reporting requirements and contributions to 
the State Harness Racing Commission's operating account described in section 
267-A. 
Sec. 18. 8 MRSA §1037, sub-§2, ~E, as enacted by PL 2011, c. 358, §6 and 
amended by c. 657, Pt. W, §6, is further amended to read: 
E. The amounts, reported separately, of revenue received in accordance with section 
1036, subsection 2, paragraphs Band D, subsection 2-A. paragraphs G and Hand 
subsection 2-D, paragraphs A and B, in accordance with the Stipend Fund under Title 
7, section 86 and from any other source in accordance with rules adopted under 
section 263-A, subsection 1, paragraph C and Title 7, section 82, subsection 5 by the 
Commissioner of Agriculture, Conservation and Forestry or the State Harness Racing 
Commission; and 
Sec. 19. 8 MRSA §1037, sub-§3, ~B, as enacted by PL 2011, c. 358, §6 and 
amended by c. 657, Pt. W, §6, is further amended to read: 
B. 
The amounts, reported separately, received from slot machine revenue in 
accordance with section 1036, subsection 2, paragraph D, subsection 2-A, paragraphs 
G and subsection 2-D, paragraph A, in accordance with the Stipend Fund under Title 
7, section 86 and from any other source in accordance with rules adopted under 
section 263-A, subsection 1, paragraph C and Title 7, section 82, subsection 5 by the 
Commissioner of Agriculture, Conservation and Forestry or the State Harness Racing 
Commission; and 
Sec. 20. 8 MRSA §1037, sub-§4, as enacted by PL 2011, c. 358, §6, is amended 
to read: 
HOUSE AMENDMENT 
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HOUSE AMENDMENT:b "to COMMITTEE AMENDMENT "A" to H.P. 780, L.D. 1111 
4. Breeders and owners within the Maine Standardbred program. A report 
required by this section must include the following information from horse breeders and 
owners within the Maine Standardbred program established pursuant to section 281 who 
receive a distribution under section 1036, subsection 2, paragraph C, subsection 2-A, 
paragraph I and subsection 2-D, paragraph C: 
A. The number of mares bred by each Maine Standardbred stallion as reported to the 
State Harness Racing Commission; 
B. An assessment of whether the number of Maine Standardbred horses in the State 
is sufficient to grow and sustain harness racing in the State; 
C. The number of yearling horses eligible and nominated to participate in sire stakes 
racmg; 
D. The amount received from slot machine revenue in accordance with section 1036, 
subsection 2, paragraph C, subsection 2-A, paragraph I and subsection 2-D, 
paragraph C; 
E. The total number of qualifying dashes for sire stakes races and the average purse 
for each dash sorted by the age of the horse and the average purse for each sire stakes 
final dash sorted by the age of the horse; and 
F. An accounting of the Sire Stakes Fund, including the total amount of the fund at 
the beginning and end of the racing season and, reported separately, expenditures 
used to supplement purses, pay breeder promotional contracts, pay advertising costs, 
make payments to a statewide horsemen association, pay administrative costs and 
make contributions to the operating account described in section 267-A. 
Sec. 21. 8 MRSA §1054, sub-§8, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, § 11, is amended to read: 
8. Failure to deposit funds. Violates section 1036, sUBsection 2; or' 
SUMMARY 
This amendment incorporates the provisions of House Amendment "A" into 
Committee Amendment "A" but removes the provision requiring the State to reimburse a 
percentage of the licensing fee if a slot machine operator or casino operator is licensed 
within 10 years of the commercial track's being licensed to operate a casino. 
FISCAL NOTE REQUIRED 
(See attached) 
SPONSORED~QQ~ 
(Representative MAREAN) 
TOWN: Hollis 
HOUSE AMENDMENT 
Approved: 03/07114 
~a-c. 
LD 1111 
LR 1490(05) 
An Act To Allow Maine's Harness Racing Industry To Compete with Casino Gaming 
Fiscal Note for House Amendment /;. to Committee Amendment" A" 
Sponsor: Rep. Marean of Hollis 
Fiscal Note Required: Yes 
Fiscal Note 
Future biennium revenue decrease - General Fund 
Future biennium revenue increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
This floor amendment retains the overall tax structure in the committee amendment but reduces the percentage 
distributed to the General Fund and increases distributions to various dedicated accounts. The estimate of the revenu 
reduction to the General Fund is $558,352 annually compared to the committee amendment, with revenue to Other 
Special Revenue Funds increased by the same amount. 
LR1490(05) - Fiscal Note - Page 1 of 1