An Act To Provide Income Tax Relief by Expanding Gaming Opportunities
Maine Legislature, Session 127, LD 1280
Committee Amendment CA_E_H580 (House)
Amends: 5 MRSA §12004-G, 8 MRSA §1001, 8 MRSA §1003, 8 MRSA §1005-A, 8 MRSA §1011, 8 MRSA §1011-A, 8 MRSA §1011-B, 8 MRSA §1018, 8 MRSA §1018-A, 8 MRSA §1019, 8 MRSA §1020, 8 MRSA §1036, 8 MRSA §1036-A, 37-B MRSA §516, 37-B MRSA §517

COMMITTEE AMENDMENT .. t;_ " to H.P. 876, L.D. 1280, Bill, "An Act To 
Provide Income Tax Relief by Expanding Gaming Opportunities" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Establish a Competitive Bidding Process for the Operation of a Resort-
style Casino in Southern Maine' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 5 MRSA §12004-G, sub-§32-A is enacted to read: 
32-A. 
Sport and 
Entertainment 
Casino Development Legislative Per 
Commission 
Diem and Expenses 
Sec. 2. 8 MRSA §1001, sub-§6-A is enacted to read: 
MRSA § 1005-A 
6-A. Commission. "Commission" means the Casino Development Commission 
created under section 1005-A. 
Sec. 3. 8 MRSA §1003, sub-§2, ~' as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, § 11, is amended to read: 
B. Hear and decide all license and registration applications under this chapter aBe 
issl:les a.ffeetiB.g the gnmtiB.g, SHSfleB.sieR, re'veea:tieB. er renewal ef lieeB.ses and 
registratieas, including but not limited to applications received by the board from a 
person awarded the privilege by the commission to submit an application to operate a 
casino; 
Sec. 4. 8 MRSA §1003, sub-§2, ,B-1 is enacted to read: 
B-1. Hear and decide issues affecting the granting, suspension, revocation or renewal 
of licenses and registrations; 
COMMITTEE AMENDMENT 
~ors 
-
COMMITTEE AMENDMENT"~" to H.P. 876, L.D. 1280 
Sec. 5. 8 MRSA §1005-A is enacted to read: 
§1005-A. Casino Development Commission 
1. Establishment. The Casino Development Commission, established in Title 5, 
section 12004-G, subsection 32-A, shall carry out the functions specified in this chapter 
with regard to awarding the privilege to apply for a casino or slot machine operator 
license through a competitive bid process and establishing a contract with the winning 
bidder upon issuance of a casino operator license by the board. The commission is 
affiliated with the board as specified in this chapter. 
2. Members. The commission consists of 5 members appointed by the Governor. 
All members must be members of the general public without affiliation to the gaming or 
hospitality industry. At least 3 of the commission members must have training or 
experience in at least one of the following fields: corporate finance, economics, law, 
economic development and accounting. A municipal employee, county employee, elected 
official or candidate for elective office may not serve as a commission member. 
3. Term of office. Members of the commission serve 3-year terms, except that the 
Governor shall initially appoint one member for a term of one year, 2 members for a term 
of 2 years and 2 members for a term of 3 years. A vacancy is filled by appointment for 
the remainder of the unexpired term of that member. Members whose terms expire serve 
until their successors are appointed and confirmed. Members may serve no more than 2 
full consecutive terms on the commission. 
4. Confirmation. Appointees to the commission must be reviewed by the joint 
standing committee of the Legislature having jurisdiction over gambling matters and are 
subject to confirmation by the Senate. 
5. Chair. The commission members shall elect one member to serve as chair for at 
least a 2-year term. 
6. Quorum. An action of the commission is not binding unless taken at a meeting at 
which at least 3 of the 5 members are present. 
7. Conflict of interest. In addition to the restrictions imposed pursuant to Title 5, 
section 18, a commission member may not participate in any matter before the 
commission in which the commission member has a personal bias or any other conflict of 
interest as the commission determines, either on the commission's own motion or in 
response to a written complaint. During a commission member's term of service and for 5 
years after the end of that commission member's service, any person with a direct and 
substantial interest in a gambling activity or gambling facility, including accommodations 
and amenities associated with a gambling facility, may not employ or be represented by 
the commission member or a member of the commission member's immediate family. 
For the purposes of this subsection, "direct and substantial" means ownership or control 
of more than 10% of the voting securities of a gambling facility, of an associated 
accommodation or associated amenity of a gambling facility or of an entity in contract, 
consort or cooperation with a gambling facility key executive. 
Sec. 6. 8 MRSA §1011, sub-§2-B, as enacted by PL 2011, c. 699, § 1, is repealed. 
Sec. 7. 8 MRSA §1011, sub-§2-C is enacted to read: 
COMMITTEE AMENDMENT 
"Rors 
/." 
COMMITTEE AMENDMENT 't:,," to H.P. 876, L.D. 1280 
2-C. Persons eligible for casino operator license on or after January 1, 2016. 
Beginning January 1, 2016, the board may not accept an application for an initial license 
to operate a casino, slot machine facility or any other gambling facility for which the 
board has licensing authority, unless that application is submitted by a successful bidder 
for the privilege to submit an application to the board chosen pursuant to section 1011-B 
and the applicant has received approval by the voters of the municipality where the casino 
will be located. 
Sec. 8. 8 MRSA §1011-A is enacted to read: 
§1011-A. County referendum 
This section applies to referendum requirements for counties in which the 
commission is authorized to receive bids for the privilege to submit an application for a 
casino operator license to the board. 
1. Secretary of State to prepare ballots and returns. Notwithstanding any law to 
the contrary, upon notification by the county commissioners of the date of a statewide 
election no sooner than June 1, 2017 and no later than July 1, 2018 at which a county has 
determined that the county will hold a referendum asking voters of the county to 
authorize the operation of a casino subject to a competitive bid process, the Secretary of 
State shall prepare and furnish to each city, town and plantation in that county ballots and 
returns for an election to be held no sooner than June 1, 2017 and no later than July 1, 
2018. The ballots must be received, sorted, counted and declared in open ward, town and 
plantation meetings and returns made to the Secretary of State in the same manner as 
votes for members of the Legislature. The Secretary of State shall determine the wording 
of the question to be submitted to the voters of the county. 
2. 
Referendum impact on competitive bid for privilege to submit casino 
operator license application. The commission may accept and consider a bid for the 
privilege to submit an application for a casino operator license to the board from a bidder 
who proposes to operate a casino in a county where the voters have approved the 
operation of a casino by referendum held in accordance with this section. 
The 
commission may not accept a bid for the privilege to submit an application to the board 
for a casino operator license in a county where voters rejected the operation of a casino in 
the county by referendum vote or in a county that did not hold a countywide referendum 
within the time frame prescribed by this section. 
Sec. 9. 8 MRSA §1011-B is enacted to read: 
§1011-B. Privilege to submit a casino operator license application for a southern 
casino pursuant to competitive bidding 
If the voters of either York County or Cumberland County, or both, approve the 
operation of a resort-style casino pursuant to a referendum held in accordance with 
section 1011-A. the commission shall develop a request for proposals designed to 
encourage vigorous bidding for the purpose of awarding one bidder the privilege to 
submit an application to the board for a casino operator license. The commission shall 
request bids for the privilege to submit an application to the board for one resort-style 
casino in either York County or Cumberland County. except that bids may not be 
requested for a proposal in a county in which the voters rejected the operation of a casino. 
COMMITTEE AMENDMENT 
~o~<:> 
/ 
COMMITTEE AMENDMENT"(/" to H.P. 876, L.D. 1280 
A request for proposals must instruct potential bidders to propose the scope of the 
gambling facility and amenities to be offered in conjunction with the facility and how the 
proposal will ensure that the proposed casino will provide the State with socially 
responsible economic growth while operating as a successful business for the operator, 
considering license fees, minimum capital investment requirements, regulatory standards 
and required rates of revenue distribution. The commission may require submission of 
documented expert analysis from a bidder to support the proposals submitted by the 
bidder. 
1. 
Consideration of bids for privilege to submit casino operator license 
application to the board. 
A bidder seeking award of the privilege to submit an 
application to the board for a license to operate a casino in York County or Cumberland 
County shall comply with the requirements determined by the commission. The 
commission shall require that a proposal for the privilege to submit an application to the 
board for the operation of a casino include a nonrefundable application fee of $250,000 
and an agreement to pay the costs of the board for processing an application and 
performing background investigations, as described in section 1018, subsection l, if 
awarded the privilege to submit an application to the board for a license to operate a 
casino. The commission shall ensure that the request for proposals clearly identifies the 
deadline for submission and all bid requirements. The commission shall follow, as nearly 
as practicable, the provisions governing competitive bidding prescribed by Title 5, 
chapter 155, subchapter 1-A and rules adopted pursuant to that subchapter. 
2. 
Request for proposals; factors; southern casino. 
When considering bids 
received in response to a request for proposals prescribed in subsection 1 for a location in 
York County or Cumberland County, the commission shall consider the following: 
A. Business and market factors, including: 
(1) The bidder's commitment and capacity to make an initial minimum capital 
investment of $250,000,000 for a resort-style casino facility. Land acquisition, 
license fees and off-site improvements are not considered to be part of the 
minimum capital investment; 
(2) How the bidder's proposal can be expected to preserve existing jobs in the 
State and the number of net new full-time and part-time jobs that can be expected 
to be created by the operation of the proposed facility; 
(3) The extent to which the bidder's market plans suit the character of the region 
and the local population in a way that encourages residents of the State to choose 
to patronize the bidder's proposed facility as opposed to gambling facilities in 
other states; 
(4) 
The potential created by the bidder's proposal to create commercial 
development opportunities in the host location and surrounding communities 
consistent with historic uses, regional character and local zoning and planning 
requirements; 
(5) The potential gross and net income to be generated by the bidder based upon 
documented, expert market analysis; 
COMMITTEE AMENDMENT 
lot..,,J,s(i"' 
~O~S 
COMMITIEE AMENDMENT "c" to H.P. 876, L.D. 1280 
(6) The extent to which the bidder's proposed facility can reasonably be expected 
to serve as a significant regional and national tourism destination; 
(7) How the bidder's proposal will result in the highest potential benefit and the 
highest prospective total revenues to the State from a bidder based upon 
documented, expert financial analysis; 
(8) The bidder's proposed capital investment in a gambling facility, proposed 
amenities associated with the facility and timing of capital investment 
expenditures in terms of ensuring the facility is economically competitive in the 
State and regionally; and 
(9) Other factors, properly disclosed in the commission's request for proposals, 
that the commission determines to be relevant; 
B. Economic development factors, including: 
( 1) The bidder's workforce development plan and the extent to which it will 
maximize use of the State's existing labor force and create new jobs in the 
marketplace; 
(2) The impact on economic development. existing and planned, in the region of 
the proposed facility; 
(3) How the proposal would benefit the harness racing industry in the State and 
sustain or create jobs associated with the harness racing industry, including 
whether the bidder has any plans to support the operation of a commercial track 
at the casino facility location that uses a 5/8-mile, all-weather-surface track; and 
(4) Other factors, properly disclosed in the commission's request for proposals, 
that the commission determines to be relevant; 
C. Site location factors, including: 
( 1) 
The adequacy of transportation infrastructure surrounding the proposed 
location of the gambling facility; 
(2) The need for additional public infrastructure expenditures at or immediately 
surrounding the proposed location of the gambling facility; 
(3) Any negative impact of the proposed location of the gambling facility on the 
municipality in which the facility is to be located, including but not limited to 
traffic congestion, worsened road safety conditions and increased safety concerns 
for pedestrian traffic; 
(4) The bidder's proposals for mitigating negative impacts identified under this 
paragraph; and 
(5) Other factors, properly disclosed in the commission's request for proposals, 
that the commission determines to be relevant; and 
D. Factors other than those listed in paragraphs A to C. including: 
COMMITTEE AMENDMENT 
~o-Ys 
COMMITTEE AMENDMENT"(" to H.P. 876, L.D. 1280 
( 1) The bidder's plan to identify, address and minimize the potential for and 
existence of negative consequences associated with gambling and the operation 
of the bidder's proposed facility, including but not limited to a financial 
commitment to efforts to address problem gambling prevention, intervention, 
treatment and research: 
(2) The effects, both positive and negative. that can be reasonably anticipated to 
be experienced by the municipality in which the facility is located and the 
communities in the region; and 
(3) 
The likelihood that the bidder will meet the casino operator license 
requirements described in section 1016. 
3. Bid award factor priorities; southern casino. The commission shall develop a 
system of assigning points to the factors required to be considered under subsection 2. 
The commission is authorized to hire or enter into a contract with vendors experienced in 
evaluating business plans for large-scale development and the impacts of development on 
the local and regional economies to assist with the consideration of bids and development 
of the point system required by this subsection. The development of a point system must 
ensure that factors that support the following are awarded the highest point value: 
A. The overall increase in the number of jobs created in the region that can be 
directly or indirectly attributed to the development and operation of the resort-style 
casino; 
B. The positive impacts on economic development, existing and planned, from the 
development and operation of the resort-style casino in the immediate region and the 
potential to positively impact the state economy, including opportunities to pursue 
developments that will create ongoing sources of revenue and employment for the 
region separate from the resort-style casino; 
C. The maximum potential benefits from the operation of the proposed resort-style 
casino on year-round tourism in the region: and 
D. The representation and incorporation by the proposed resort-style casino of the 
character of the State generally and, in particular, the character of the surrounding 
region consistent with historic uses, local planning and zoning requirements. 
4. Notice of award. Upon award of the privilege to submit an application for a 
casino operator license to the board, the commission shall cite how the successful 
bidder's proposal supported the priorities described in subsection 3. 
5. Contract required; southern casino. A person who is selected as the winning 
bidder for the privilege to submit an application to the board for a casino operator license 
shall agree to enter into a contract with the commission that obligates the casino operator 
to the proposals made in the bid submitted in accordance with this section. In addition, 
the contract must include: 
A. A framework ofreasonable financial penalties for failure of the casino operator to 
comply with the terms of the contract and the circumstances under which failure to 
comply with terms of the contract justifies withholding all net slot machine income 
and net table game income until the terms of the contract are satisfied; and 
COMMITTEE AMENDMENT 
~· 
~0~$ 
COMMITTEE AMENDMENT"[" to H.P. 876, L.D. 1280 
B. Annual reinvestment requirements that direct the casino operator, beginning no 
sooner than 5 years after commencing operation of slot machines at the casino, to 
either make capital improvements to the casino facility or deposit with the board, in 
an account described in section 1018, subsection 2-B, an amount no less than 3% but 
no greater than 4% of net slot machine income and net table game income generated 
by the casino during the previous year. 
The commission shall consult with the Office of the Attorney General during the 
negotiation and execution of the contract. The contract must be approved by the Attorney 
General. The casino operator license issued by the board does not take effect and the 
board may not accept the license fee required under section 1018, subsection 1, paragraph 
C-2 until the contract is executed. 
Sec. 10. 8 MRSA §1018, sub-§1, ,re, as enacted by PL 2003, c. 687, Pt. A, §5 
and affected by Pt. B, § 11, is amended to read: 
C. The initial application fee for a slot machine operator license is $200,000. The 
annual renewal fee is $75,000 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. This paragraph applies to slot machine 
operator licenses initially issued before January 1, 2016. 
Sec. 11. 8 MRSA §1018, sub-§1, ,rc-1, as amended by PL 2011, c. 417, §4, is 
further amended to read: 
C-1. 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. This paragraph applies to casino 
operator licenses initially issued before January 1, 2016. 
Sec. 12. 8 MRSA §1018, sub-§1, ,r,rC-2 and C-3 are enacted to read: 
C-2. 
The fee for a casino operator license for a casino in York County or 
Cumberland County, issued in accordance with section 1011-B, is $55,000,000. The 
license fee must be deposited in accordance with section 1018-A, except for 
$5,000,000, which must be deposited to the General Fund and used for the 
administrative expenses of the board. The license fee is separate from the 
COMMITTEE AMENDMENT 
ors 
~ 
COMMITTEE AMENDMENT"[" to H.P. 876, L.D. 1280 
nonrefundable application fee required pursuant to section 1011-B, subsection 1 and 
the payment of costs to the board for processing the application and performing 
background investigations. 
C-3. The annual registration fee for a slot machine and a table game operated at a 
casino licensed on or after January 1, 2016 is $100. 
Sec. 13. 8 MRSA §1018, sub-§1-A, as enacted by PL 2011, c. 699, §2, is 
repealed. 
Sec. 14. 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 issued before January 1, 2016; renewal; renewal fees. All 
Except for slot machine operator licenses and casino operator licenses issued on or after 
January 1, 2016, 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. 15. 8 MRSA §1018, sub-§§2-A, 2-B and 3-A are enacted to read: 
2-A. Term of license issued on or after January 1, 2016. A casino operator 
license issued by the board pursuant to section 1011, subsection 2-C is effective for 20 
years unless revoked or surrendered pursuant to subchapter 5. 
2-B. Annual reinvestment requirements; southern casino. A casino operator 
licensed by the board pursuant to section 1011, subsection 2-C operating a casino in York 
County or Cumberland County may deposit with the board the percentage of net slot 
machine income and net table game income required as an annual reinvestment pursuant 
to the contract executed in accordance with section 1011-B, subsection 5. The board 
shall hold the funds in an interest-bearing, nonlapsing account. The casino operator may 
request funds from the account for the purpose of making capital investments or 
improvements to the casino facility. If there are funds in the account and the casino 
ceases operation for a period of more than 90 days, the funds must be deposited to the 
General Fund. 
3-A. Licensee other than the original applicant; contract applicable; transfer 
fee. If a person initially licensed to operate a casino after January 1, 2016 in York 
County or Cumberland County surrenders the license or the license is revoked, a 
subsequent licensee authorized to operate the casino in accordance with this chapter is 
subject to the terms of the contract required by and executed under section 1011-B, 
subsection 5. A subsequent licensee is required to submit an application to the board and 
is subject to the licensing qualifications prescribed under section 1016 and may only 
operate the casino for the remainder of the 20-year license term applied to the initial 
licensee. The fee for the transfer of a casino operator license initially issued subsequent 
to the competitive bid process under section 1011-B is $500,000, which must be 
submitted to the board for deposit to the General Fund. 
COMMITTEE AMENDMENT 
~o1S 
COMMITTEE AMENDMENT"£" to H.P. 876:L.D. 1280 
Sec. 16. 8 MRSA §1018-A is enacted to read: 
§1018-A. Host municipality and county revenue loss mitigation 
The portion of the license fee submitted in accordance with section 1018, subsection 
1, paragraph C-2 must be deposited into a nonlapsing, dedicated account to be 
administered by the board. The purpose of the account is to maintain the level of revenue 
distributed to host municipalities under section 1011, subsection 4; section 1036, 
subsection 2, paragraph J; and section 1036, subsection 2-A, paragraph F and to a host 
county under section 1036, subsection 2-A, paragraph J and property tax revenue 
received by host municipalities. If a casino initially licensed to operate prior to January 
1, 2016 ceases operation within 5 years of the commencement of the operation of slot 
machines at a casino in York County or Cumberland County, the board shall distribute 
revenues to the county that received distributions under section 1036, subsection 2-A, 
paragraph J, if applicable, and the municipality in which the closed casino was operated. 
The board shall determine the distribution amount by calculating the average annual 
distribution to the host county or host municipality of the closed casino from the last 5 
full calendar years in which distributions were received from casinos initially licensed 
prior to January 1, 2016 and by factoring in any reduction in the amount of property tax 
revenues received by the municipality directly related to the cessation of casino 
operations. The distribution amount determined by the board must be decreased by the 
amounts distributed from a casino operated in York County or Cumberland County under 
section 1036, subsection 2-D, paragraphs K, M and N. The board shall determine the 
distribution amounts within 90 days of the closure of a casino initially licensed prior to 
January 1, 2016 and begin making distributions to the municipality and county, as 
applicable, as soon as practicable thereafter. Nothing in this section prohibits distribution 
to each municipality or county in which a casino initially licensed prior to January 1, 
2016 is operated as long as the casino ceases operation within 5 years after the 
commencement of the operation of slot machines at a casino in York County or 
Cumberland County. Distributions made to a municipality or county in accordance with 
this section continue for a period of 5 years after receiving an initial distribution from the 
board in accordance with this section. If the amount in the account is insufficient to make 
distributions to the county or municipalities as required by this section, the board may 
require additional payment from the operator of the casino in York County or 
Cumberland County to make distributions required by this section. If no casino initially 
licensed prior to January l, 2016 ceases operation within 5 years of the commencement 
of slot machine operation at a casino in York County or Cumberland County or if funds 
remain in the account after distributions are made in accordance with this section for the 
5-year period, the funds must be deposited in the Department of Transportation, Highway 
and Bridge Capital program, Other Special Revenue Funds account within the Highway 
Fund as established by Title 23, section 1651 for capital improvement purposes. 
Sec. 17. 8 MRSA §1019, sub-§6, as amended by PL 2011, c. 417, §5, is repealed. 
Sec. 18. 8 MRSA §1019, sub-§7, as amended by PL 2011, c. 417, §6, is repealed. 
Sec. 19. 8 MRSA §1020, sub-§3, as amended by PL 2011, c. 585, §8, is further 
amended to read: 
COMMITTEE AMENDMENT 
v..O~S 
COMMITTEE AMENDMENT"£" to H.P. 876, L.D. 1280 
3. Limits on total slot machines. The board shall determine the number of slot 
machines to be registered in the State for casinos initially licensed prior to January 1, 
2016. 
The board shall make this determination based upon the minimum net slot 
machine income, when distributed pursuant to section 103 6, necessary to maintain the 
harness horse racing industry in this State, except that: 
A. 
Except for slot machines used for training and educational purposes at 
postsecondary institutions as provided by section 1011, subsection 1-B, the total 
number of slot machines registered in the State for operation at casinos initially 
licensed prior to January 1, 2016 may not exceed 3,000; and 
B. 
A slot machine operator initially licensed prior to January 1, 2016 may not 
operate more than 1,500 slot machines at any one commercial track and a casino 
operator initially licensed prior to January 1, 2016 may not operate more than 1,500 
slot machines at a casino. 
Sec. 20. 8 MRSA §1036, sub-§§2-D and 2-E are enacted to read: 
2-D. Distribution of slot machine income from a casino in York County or 
Cumberland County. A casino operator licensed to operate a casino in York County or 
Cumberland County pursuant to section 1011-B shall collect and distribute 40% of net 
slot machine income to the board for distribution by the board as follows: 
A. Seven and one-half percent of the net slot machine income must be forwarded by 
the board to the Treasurer of State, who shall deposit the income into the Department 
of Transportation, Highway and Bridge Capital program, Other Special Revenue 
Funds account within the Highway Fund as established by Title 23, section 1651 for 
capital improvement purposes: 
B. Five and one-half percent of the net slot machine income must be forwarded by 
the board to the Treasurer of State, who shall credit the income to the fund 
established in section 298 to supplement harness racing purses: 
C. Six percent of the net slot machine income must be deposited by the board into 
the Fund to Reform Veterans Services established by Title 3 7-B, section 516; 
D. One percent of the net slot machine income must be forwarded by the board 
directly to the county in which the slot machines are located; 
E. Two percent of the net slot machine income must be deposited to the General 
Fund for administrative expenses of the board in accordance with rules adopted by 
the board, 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: 
F. One and one-half percent of the net slot machine income must be credited by the 
board to the Sire Stakes Fund created in section 281; 
G. One and one-half percent of the net slot machine income must be forwarded by 
the board to the Treasurer of State. who shall credit the income to the Agricultural 
Fair Support Fund established in Title 7, section 91; 
COMMITTEE AMENDMENT 
"'41~, 
~o1S 
/ 
COMMITTEE AMENDMENT" t" to H.P. 876, L.D. 1280 
H. One percent of the net slot machine income must be forwarded by the board to the 
Treasurer of State, who shall credit the income to the Fund to Stabilize Off-track 
Betting Facilities established by section 300; 
I. One percent of the net slot machine income must be forwarded by the board 
directly to the municipality in which the slot machines are located; 
J. One percent of the net slot machine income must be forwarded by the board 
directly to the municipalities that abut the municipality in which the slot machines are 
located. The revenues must be paid in equal portions to each abutting municipality; 
K. Three-fourths of one percent of the net slot machine income must be forwarded 
by the board directly to Oxford County; 
L. Three-fourths of one percent of the net slot machine income must be forwarded by 
the board directly to Penobscot County; 
M. One-half of one percent of the net slot machine income must be forwarded by the 
board directly to the City of Bangor; 
N. One-half of one percent of the net slot machine income must be forwarded by the 
board directly to the Town of Oxford; 
0. Four and one-half percent of the net slot machine income must be forwarded by 
the board directly to the Treasurer of State, who shall credit the income to the 
Department of Education for distribution to school administrative units eligible to 
receive targeted public preschool program to grade 2 funds; 
P. One 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 and to the Board of Trustees of the Maine Maritime Academy to be 
applied by the board of trustees to fund its scholarship program. The slot machine 
income under this paragraph must be distributed as follows: 
( 1) The University of Maine System share is the total amount of the distribution 
multiplied by the ratio of enrolled students in the system to the total number of 
enrolled students both in the system and at the Maine Maritime Academy; and 
(2) The Maine Maritime Academy share is the total amount of the distribution 
multiplied by the ratio of enrolled students at the academy to the total number of 
enrolled students both in the system and at the academy; 
0. One 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; 
R. One and sixty-three hundredths percent of the net slot machine income must be 
forwarded by the board to the Treasurer of State, who shall distribute the funds in 
equal proportion to the tribal governments of the Penobscot Nation, the 
Passamaquoddy Tribe, the Houlton Band of Maliseet Indians and the Aroostook 
Band of Micmacs; 
COMMITTEE AMENDMENT 
v..O~S 
COMMITTEE AMENDMENT .. £_ .. to H.P. 876, L.D. 1280 
S. Thirty-one hundredths of one percent of the net slot machine income must be 
forwarded by the board to the State Controller and, except as otherwise provided in 
this paragraph, 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 pm:poses 
described in Title 22, section 1511, subsection 6, paragraph E; and 
T. Six hundredths of one 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 Maine Milk 
Pool, Other Special Revenue Funds account within the Department of Agriculture, 
Conservation and Forestry to help fund dairy farm stabilization pursuant to Title 7, 
sections 3153-B and 3153-D. 
2-E. 
Distribution of table game income from a casino in York Countv or 
Cumberland County. A casino operator licensed to operate a casino in York County or 
Cumberland County pursuant to section 1011-B shall collect and distribute 16% of net 
table game income to the board to be deposited by the board into the Fund to Reform 
Veterans Services established by Title 37-B, section 516. 
Sec. 21. 8 MRSA §1036-A is enacted to read: 
§1036-A. Distributions of slot machine and table game income upon operation of a 
gambling facility licensed after January 1, 2016 
· 
The board may not make distributions as provided by section 1036, subsections 1, 2, 
2-A, 2-B and 2-C after the commencement of operations of a gambling facility subject to 
licensure by the board initially licensed after January 1, 2016. Net slot machine income 
and net table game income collected by a casino operator or slot machine facility operator 
in accordance with section 1036, subsections 1, 2, 2-A, 2-B and 2-C must be held by the 
board until a distribution of 40% of net slot machine income and a distribution of 16% of 
net table game income is established by the Legislature that provides for a distribution of 
net slot machine income and net table game income that applies, in the same manner, to 
each gambling facility licensed in accordance with this chapter. 
Sec. 22. 37-B MRSA §516 is enacted to read: 
§516. Fund to Reform Veterans Services 
The Fund to Reform Veterans Services is established to develop a coordinated 
delivery system of benefits and services to veterans in the State. The fund is a dedicated, 
nonlapsing account. Benefits and services to be coordinated within this system are not 
limited to those established and administered by the State, but may also include those 
provided by federal agencies, service-oriented nonprofit organizations and veterans' 
service organizations. 
The director shall administer the fund based on the 
recommendations and funding priorities established by the Maine Veterans Assistance 
Council established under section 517. Allocations from the fund in any one calendar 
year may not exceed 85% of the balance of the fund at the beginning of the calendar year. 
The director may request allocations from the fund once per calendar year, not to exceed 
% of the balance of the fund at the beginning of the calendar year, to cover the costs of 
administration of the Maine Veterans Assistance Council. 
COMMITTEE AMENDMENT 
~ 
v-.0~$ 
COMMITTEE AMENDMENT"£" to H.P. 876, L.D. 1280 
Sec. 23. 37-B MRSA §517 is enacted to read: 
§517. Maine Veterans Assistance Council 
1. Maine Veterans Assistance Council; establishment and purpose. The Maine 
Veterans Assistance Council, referred to in this section as "the council," is established to 
develop policies and recommendations for the allocation of funds from the Fund to 
Reform Veterans Services as established under section 516. referred to in this section as 
"the fund." Except as otherwise provided by this subsection. allocations from the fund 
must be made in the form of grants to qualified entities based on applications submitted 
to the director. The director is authorized to make grant award decisions based on the 
criteria for award established by the council. The council. upon unanimous agreement. 
may make allocations directly to the director to support the duties of the bureau. 
2. Members. In addition to the director. the council consists of the following 
members appointed by the director: 
A. One member representing the interests of the Military Officers Association of 
America or a successor organization: 
B. One member representing the interests of the Treasurer of State; 
7 
C. One member representing the interests of the American Legion or a successor 
organization; 
D. One member representing the interests of the Veterans of Foreign Wars or a 
successor organization: 
E. 
One member representing the interests of Disabled American Veterans or a 
successor organization: 
F. 
One member representing the interests of American Veterans or a successor 
organization: 
G. One member representing the interests of the Fleet Reserve Association or a 
successor organization: and 
H. One member representing the interests of an organization that provides a forum 
for veterans' organizations to work together on behalf of veterans in the State. 
3. Vacancies. In the event of a vacancy on the council, the director shall appoint a 
new member to fill the vacancy until the expiration of the term. A vacancy on the council 
must be filled in the same manner as the original appointment was made under subsection 
2. 
4. Terms. Members of the council are appointed for 3-year terms. 
5. Removal. The director may remove a member of the council for cause. 
5 
6. Voting; quorum. A quorum consists of 5 members of the council. Each member 
has one vote. A policy or a recommendation may not be approved by the council without 
at least 3 affirmative votes. 
7. Council proceedings. The council shall meet not less than 6 times per calendar 
year at a date and time set by the director. The director shall prepare the agenda and 
prepare and keep a summarized record of meetings. The council may not make binding 
COMMITTEE AMENDMENT 
~01$ 
,,, 
COMMITTEE AMENDMENT"/:;:" to H.P. 876, L.D. 1280 
decisions but shall vote on policies and recommendations. The director shall be present 
at the meetings to facilitate the meetings. The director does not have a vote. 
Sec. 24. 
Executive director of State Harness Racing Commission to 
submit report regarding Sire Stakes Fund. No later than February 15, 2017, the 
executive director of the State Harness Racing Commission within the Department of 
Agriculture, Conservation and Forestry shall submit a report to the joint standing 
committees of the Legislature having jurisdiction over agricultural matters and casino 
matters regarding the Sire Stakes Fund established in the Maine Revised Statutes, Title 8, 
section 281. 
The executive director shall include in the report recommendations, 
developed in consultation with the State Harness Racing Commission and after seeking 
comment from members of the harness racing industry, to increase the number of 
breeders eligible to receive funds and ways to structure distributions so that distributions 
from the fund are not concentrated among a small percentage of breeders of standardbred 
horses. 
Sec. 25. Appropriations and allocations. The following appropriations and 
allocations are made. 
DEFENSE, VETERANS AND EMERGENCY MANAGEMENT, DEPARTMENT 
OF 
Veterans Services 0110 
Initiative: Establishes the Fund to Reform Veterans Services with a base allocation. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOT AL 
2015-16 
$0 
$0 
2016-17 
$500 
$500 
SUMMARY 
This amendment replaces the bill and is the majority report of the committee. The 
amendment establishes a competitive bid process for the operation of a resort-style casino 
in either York County or Cumberland County. The amendment establishes the Casino 
Development Commission, which is an independent board of 5 members appointed by 
the Governor and confirmed by the Senate. The commission's purpose is to develop a 
request for proposals for the privilege to submit an application to the Department of 
Public Safety, Gambling Control Board for a casino operator license. Prior to submitting 
a request for proposals, either York County or Cumberland County, or both, would have 
to hold a referendum vote asking voters to allow the operation of a casino in their county. 
The referendum must be held on the same date as a statewide election no sooner than 
June 1, 2017 and no later than July 1, 2018. The fee to submit a bid is $250,000. The 
amendment provides for specific supporting information to be submitted by the bidder 
and considered by the commission including the bidder's ability to make a minimum 
$250,000,000 capital investment in the resort-style casino and information regarding job 
creation, economic development, plans to mitigate negative infrastructure impacts and the 
bidder's support of the harness racing industry. Under the amendment, the commission is 
COMMITTEE AMENDMENT 
~ors 
COMMITTEE AMENDMENT "c" to H.P. 876, L.D. 1280 
directed to develop a point system for the factors to be considered in evaluating proposals 
and give priority to proposals that create jobs, promote economic development, increase 
tourism and support a casino that fits the character of the State. The winning bidder must 
enter into a contract with the commission that obligates the casino operator to abide by 
the proposals made in the winning bid. Failure to abide by the terms of the contract could 
result in financial penalties to the casino operator. 
The license fee for a casino under the amendment is $55,000,000, of which 
$5,000,000 is deposited into the General Fund to be used for administrative expenses of 
the Gambling Control Board. The remaining $50,000,000 is deposited into an account to 
be used to mitigate the impact of lost revenue on the municipalities and a county in which 
casinos are currently located. The Gambling Control Board will distribute money from 
the account to the municipalities and county based on distributions the municipalities and 
county had been receiving from the casino. 
If a person initially licensed to operate the casino surrenders the license or the license 
is revoked, a subsequent licensee may operate the casino only for the remainder of the 
license term and is subject to a $500,000 transfer fee. A subsequent licensee is subject to 
the contract executed when the casino in either York County or Cumberland County was 
initially licensed. 
The amendment sets the distribution of net slot machine revenue at 40% and the 
distribution of net table game revenue at 16% for the resort-style casino. It directs the 
Gambling Control Board to withhold distributions of slot and table game revenues from 
the existing casinos upon the commencement of operation of the casino authorized by this 
amendment until the required distributions are established at those rates for all casinos by 
the Legislature. The amendment provides for various recipients of slot machine revenue 
and requires table game revenue to be deposited to the Fund to Reform Veterans 
Services. Allocations from the fund are made through grants to support the needs of 
veterans as governed by the policies and objectives of the Maine Veterans Assistance 
Council, which is established by this amendment. 
The amendment requires the executive director of the State Harness Racing 
Commission to submit a report to the joint standing committees of the Legislature having 
jurisdiction over casino matters and agricultural matters. 
The executive director is 
required to consult with the commission and members of the harness racing industry to 
make recommendations that will increase the number of breeders in the Sire Stakes Fund 
program and structure distributions so that the money is not concentrated among a small 
percentage of breeders. 
The amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/10/16 ;tvae 
LD 1280 
LR 1572(15) 
An Act To Provide Income Tax Relief by Expanding Gaming Opportunities 
Fiscal Note for Bill as Amended by Committee Amendment '{~,' { 1-J-58{)} 
Committee: Veterans and Legal Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Contingent future biennium cost increase - General Fund 
Contingent future biennium revenue decrease - General Fund 
Contingent future biennium cost increase - Other Special Revenue Funds 
Contingent future biennium revenue increase - Other Special Revenue Funds 
FY 2015-16 
FY2016-17 
Projections 
FY 2017-18 
Appropriations/ Allocations 
Other Special Revenue Funds 
Fiscal Detail and Notes 
$0 
$500 
$500 
Projections 
FY2018-19 
$500 
If York and Cumberland counties choose to hold referendums during the state primary election in June 2017, the 
Department of Secretary of State would need a General Fund appropriation of $45 ,812 for ballot printing costs and 
postage. If the counties choose to hold referendums during the general election in November 2017, the Department 
of Secretary of State would need a General Fund appropriation of$45,812 for ballot printing costs and postage only 
if the questions require printing a separate ballot. 
The bill establishes the Fund to Reform Veterans Services in the Department of Defense, Veterans and Emergency 
Services with a base Other Special Revenue Funds (OSRF) allocation of $500 beginning in fiscal year 2016-17 in 
order to allow the department to spend any monies received. 
The bill creates a commission to use a competitive bid process to award the privilege to apply for a casino to a single 
applicant. Bidders will pay a $250,000 bidding fee to win the right to be the applicant. The Gambling Control Board 
will accept an application for a casino license in either York County or Cumberland County from the winning bidder 
as long as the voters of the county where the proposed casino will be located have voted to approve a casino. Only 
one casino, in either York or Cumberland County, may be licensed. 
The facility would be taxed at the rate of 40% ofnet slot income and 16% ofnet table game income. The bill requires 
a casino, beginning no sooner than 5 years after operation of slot machines, to make annual capital improvements to 
the casino using 3% to 4% of both net slot machine income and net table game income generated during the previous 
year or direct those funds to the Gambling Control Board. This fiscal note assumes the facility will not direct these 
funds to the Gambling Control Board. This fiscal note assumes a total of 1,000 slot machines and 24 table games, 
generating an estimated annual revenue of$27,635,877 in OSRF revenue and $1,257,931 in General Fund revenue. 
LR1572(15) - Fiscal Note - Page 1 of3 
~ 
IO(C)U 
L. L 
L  I 
-.JU-,/) 
Each non-refundable bid proposal will generate $250,000 in General Fund revenue. The casino operator license is 
$55,000,000, with $5,000,000 going to the General Fund and $50,000,000 going into an OSRF account within the 
Gambling Control Board. $126,400 in annual OSRF revenue will be generated from registration fees on slot 
machines and table games. The $50,000,000 will remain in the OSRF account for 5 years after the new casino in 
York or Cumberland County becomes operational and then be transferred to the Department of Transportation, 
Highway and Bridge Capital Program if Oxford Casino and Hollywood Casino continue to operate and provide 
revenue to host municipalities and counties. If either ceases to operate, then distributions will be made from the 
OSRF account to compensate certain municipalities and counties, with the distributions lasting 5 years and any 
remaining monies being transferred to the Highway and Bridge Capital Program. Annual state costs associated with 5 
inspectors, 1 auditor, 1 detective and 1 office specialist and other related expenses are estimated to be $763,705. 
Under current law, if the Penobscot Nation and Passamaquoddy Tribe, the fund to supplement harness racing purses 
or the Sire Stakes Fund receive funds from a casino other than Oxford Casino or Hollywood Casino, then the 
recipient may not receive funds from Oxford Casino. This would cause Oxford Casino's tax rate on net slot revenue 
to be reduced to 40% from the current 46% rate, resulting in an estimated annual OSRF revenue loss of $3,032,560 
starting in the year the new southern Maine casino becomes operational and makes distributions to all three 
recipients. 
WhiteSand Gaming's market feasibility study on expanded gaming in Maine estimated a 20% reduction in revenue to 
Oxford Casino if a new southern Maine casino were to open. This fiscal note assumes the same 20% reduction, 
resulting in an estimated annual General Fund revenue loss of$379,070 and OSRF revenue loss of$5,134,388 when 
the southern Maine casino becomes operational. An assessment of the impact on revenues generated by Hollywood 
Casino has not been done at this time. 
Under current law, State revenue from both Oxford Casino and Hollywood Casino go to various funds, but this bill 
directs all State revenue from these casinos to go to the Gambling Control Board when the new southern Maine 
casino becomes operational, until a new distribution of slot machine and table game revenue is established in law. 
This results in an estimated annual General Fund revenue decrease of$8,382,405 and an annual OSRF revenue 
increase of$8,382,405. The bill requires the new distribution to be 40% of net slot machine revenue and 16% of net 
table game revenue for both Oxford Casino and Hollywood Casino, resulting in an estimated annual OSRF revenue 
loss of$2,285,71 lat the time the new tax rates become law. Due to the recipients of future net slot machine and net 
table game distributions being unknown at this time, there is no current estimate on the amount of net slot machine 
and net table game revenue that would go to the General Fund and OSRF. 
The additional costs to the Office of the Attorney General are expected to be minor. 
Summary of Casino Revenue 
Gross Slot Income (total value of money, tokens, credits and other value used to play slots) 
Player Payback - Slot Income 
Net Slot Income 
Share ofNet Slot Income for Distribution - 40% 
Operator Share ofNet Slot Income - 60% 
Net Table Game Income 
Share of Net Table Game Income for Distribution - 16% 
Operator Share of Net Table Game Income - 84% 
LR1572(15)- Fiscal Note - Page 2 of3 
Annual 
Estimate 
$659,190,000 
$591,293,430 
$67,896,570 
$27,158,628 
$40,737,942 
$10,844,880 
$1,735,181 
$9,109,699 
State Revenues by Fund 
General Fund 
General Fund for Southern Maine Casino 
Oxford Casino revenue reduced from Southern Maine Casino 
Oxford Casino revenue was GF, now OSRF 
Hollywood Casino revenue was GF, now OSRF 
Total General Fund Revenue 
'-'"" 
'"-"' 
'- ' . 
Annual 
Estimate 
$1,257,931 
($379,070) 
($1,516,280) 
($6,866.125) 
($7,503,544) 
Casino Operator License - 1st year Only, Renewed After 20 Years 
Bidding Fee - assumes 2 bidders 
$5,000,000 
$500,000 (one-time) 
Other Special Revenue Funds 
Gambling Control Board - Annual Registration Fees 
Department of Transportation Highway and Bridge Capital Program 
Fund to Supplement Harness Racing Purses 
Fund to Reform Veterans Services 
County Where Slot Machines are Located 
Gambling Addiction Prevention and Treatment Fund 
Sire Stakes Fund 
Agricultural Fair Support Fund 
Fund to Stabilize Off-track Betting Facilities 
Municipality Where Slot Machines are Located 
Abutting Municipalities 
Oxford County 
Penobscot County 
City of Bangor 
Town of Oxford 
Department of Education 
University of Maine Scholarship System and Maine Maritime Academy Scholarships 
Maine Community College System Scholarships 
Penobscot Nation, Passamaquoddy Tribe, Houlton Band ofMaliseet Indians and 
Aroostook Band ofMicmacs 
Fund for a Healthy Maine 
Maine Milk Pool 
Oxford Casino Revenue Reduced 
Hollywood Casino Revenue Reduced 
Oxford Casino Revenue was GF, now OSRF 
Hollywood Casino Revenue was GF, now OSRF 
Total Other Special Revenue Funds Revenue 
Casino Operator License - 1st Year Only, Renewed After 20 Years 
$50,000,000 
Total Revenue - All Funds 
Summary of Expenditure Impacts to the State 
Other Special Revenue Funds 
-- Public Safety 
General Fund 
-- Public Safety 
Total Expenditure Impacts to the State 
LR1572(15) - Fiscal Note - Page 3 of3 
$126,400 
$5,092,243 
$3,734,311 
$5,808,975 
$678,966 
$100,000 
$1,018,449 
$1,018,449 
$678,966 
$678,966 
$678,966 
$509,224 
$509,224 
$339,483 
$339,483 
$3,055,346 
$1,018,449 
$1,018,449 
$1,106,714 
$210,479 
$40,738 
($8, 166,948) 
($2,285,711) 
$1,516,280 
$6,866,125 
$25,692,023 
$18,188,480 
$126,400 
$637,305 
$763,705 
~~!<,{•'