An Act To Amend the Laws Relating to Harness Racing
Maine Legislature, Session 129, LD 1590
Committee: Veterans and Legal Affairs
Sponsors: MAREAN
Amends: 8 MRSA §267, 8 MRSA §270, 8 MRSA §271, 8 MRSA §275-A, 8 MRSA §275-C, 8 MRSA §275-D, 8 MRSA §275-P, 8 MRSA §298, 8 MRSA §299-A

Legislative Document
No. 1590
H.P. 1149
House of Representatives, April 18, 2019
An Act To Amend the Laws Relating to Harness Racing
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative MAREAN of Hollis.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  8 MRSA §267, sub-§1, as amended by PL 2017, c. 231, §5, is repealed 
and the following enacted in its place:
1.  Budget.  On or before August 1st of every even-numbered year, the department in 
consultation with the commission shall develop a recommended operating budget 
covering All Other account expenses for the biennium that provides for the conduct of 
core activities necessary to carry out the provisions of this chapter and expenditures for 
additional discretionary activities.  The department shall provide a draft of the budget to 
the commission, which shall review the draft budget and may make recommendations 
concerning any expenditures for core activities or discretionary activities.  The 
commissioner shall consider each recommendation of the commission and may 
incorporate the recommendation in the final draft of the recommended budget, which the 
commissioner shall transmit to the Department of Administrative and Financial Services, 
Bureau of the Budget. During the biennium, the commission may implement an 
expenditure for a discretionary activity in the budget if the commission determines that 
the activity is in the best interest of the harness racing industry.
Sec. 2.  8 MRSA §270, sub-§5 is amended to read:
5.  If racing plant owned or leased.  Whether or not the racing plant is owned or 
leased, and if leased, the name and residence of the fee owner of the real estate, or if a 
corporation, of the directors and stockholders thereof; who, unless the fee owner is a 
governmental entity or agricultural fair association, shall provide the following:
A.  A current financial statement of the owner showing assets and liabilities;
B.  A current operating statement of the owner showing income and expenses relating 
to the real estate;
C.  If the owner is an individual, the residence of the owner;
D.  If the owner is a partnership or a corporation whose stock is not publicly traded, 
the principal address of the partnership or corporation and the name, address and 
occupation of each partner, officer, director and shareholder of the partnership or 
corporation; and
E.  If the owner is a corporation whose stock is publicly traded, the principal address 
of the corporation and the name, address and occupation of each officer and director 
and each shareholder owning or controlling 10% or more of the stock of the 
corporation and, for a shareholder owning 10% or more of the stock of the 
corporation that is a partnership or corporation, the principal address of the 
partnership or corporation and the name, address and occupation of each partner, 
officer, director and shareholder of the partnership or corporation;
Sec. 3.  8 MRSA §271, sub-§2, ¶A, as amended by PL 2007, c. 539, Pt. G, §7 and 
affected by §15, is further amended to read:
A.  The revenues to be generated, consistent with the profitability and financial health 
of the licensee and the development of revenues from interstate simulcasting of the 
licensee's race programming, for the operating account pursuant to section 287; the 
purse supplements pursuant to section 286; the Sire Stakes Fund pursuant to section 
281; and the Stipend Fund pursuant to Title 7, section 86;
Sec. 4.  8 MRSA §271, sub-§2, ¶B, as amended by PL 1995, c. 408, §2, is further 
amended to read:
B.  The quality of race programming and facilities offered and to be offered by the 
licensee and, the suitability of the applicant's racing facilities for operation at the 
season for which the race dates are requested and the ability of the applicant to offer 
racing at night;
Sec. 5.  8 MRSA §271, sub-§2, ¶C, as amended by PL 2017, c. 231, §9, is further 
amended to read:
C.  The necessity of having and maintaining proper physical facilities for racing 
meetings, including the ability to maintain ownership of or a leasehold on the 
facilities; and consequently, to ensure the continuance of the facilities, the quality of 
the licensee's maintenance of its track and plant, the adequacy of its provisions for 
rehabilitation and capital improvements and the necessity of fair treatment of the 
economic interests and investments of those who, in good faith, have provided and 
maintained racing facilities;
Sec. 6.  8 MRSA §275-A, sub-§1, as amended by PL 2017, c. 231, §14, is further 
amended to read:
1.  Commercial track.  "Commercial track" means any harness horse racing track 
that is a for-profit business and is licensed under this chapter to conduct harness horse 
racing with pari-mutuel wagering that is not associated with an agricultural fair as defined 
in Title 7, section 81 and that:
A.  If the population of the region is 300,000 or more, based on the 1990 U.S. 
Census, conducted racing on more than 69 days in each of the previous 2 calendar 
years, except that if a racetrack that qualifies as a commercial track under this 
paragraph ceases operation, a separate racetrack operated by the owner or operator of 
the racetrack that ceased operation qualifies as a commercial track, and for all 
purposes is considered the same commercial track as the track that ceased operation, 
if the population of the region of that separate racetrack is 300,000 or more, based on 
the 1990 U.S. Census, and the sum of the number of days on which racing was 
conducted at the track that ceased operation and the number of days on which racing 
was conducted at the separate racetrack equals at least 70 days in each of the 2 
preceding calendar years year after the track was initially licensed as a commercial 
track, unless a lesser number of days of racing was conducted in a year due to 
conditions beyond the control of the racetrack owner or operator as approved by the 
commission; or
B.  If the population of the region is less than 300,000, based on the 1990 U.S. 
Census, conducted racing on more than 34 days in each of the previous 2 calendar 
years, except that if a racetrack that qualifies as a commercial track under this 
paragraph ceases operation, a separate racetrack operated by the owner or operator of 
the racetrack that ceased operation qualifies as a commercial track, and for all 
purposes is considered the same commercial track as the track that ceased operation, 
if the population of the region of that separate racetrack is less than 300,000, based on 
the 1990 U.S. Census, and the sum of the number of days on which racing was 
conducted at the track that ceased operation and the number of days on which racing 
was conducted at the separate racetrack equals at least 35 days in each of the 2 
preceding calendar years; year after the track was initially licensed as a commercial 
track, unless a lesser number of days of racing was conducted in a year due to 
conditions beyond the control of the racetrack owner or operator as approved by the 
commission.
C.  Began operation after January 1, 2014 in a region with a population of 300,000 or 
more, based on the 1990 U.S. Census, to replace a commercial track as defined by 
paragraph A that ceased operation after January 1, 2014 and for which no separate 
racetrack has been opened by the owner or operator of that commercial track that 
ceased operation.  For purposes of this paragraph, a racetrack is not required to have 
conducted racing during the 2 preceding calendar years but is required to conduct 
racing on at least 70 days during each calendar year after the track is initially licensed 
as a commercial track.  If a commercial track under this paragraph has not been 
granted 70 race days by the commission for the initial calendar year of operation, race 
days conducted during that year by the commercial track that ceased operation after 
January 1, 2014 are credited to the replacement commercial track; or
D.  Began operation after January 1, 2014 in a region with a population of less than 
300,000, based on the 1990 U.S. Census, to replace a commercial track as defined by 
paragraph B that ceased operation after January 1, 2014 and for which no separate 
racetrack has been opened by the owner or operator of that commercial track that 
ceased operation.  For purposes of this paragraph, a racetrack is not required to have 
conducted racing during the 2 preceding calendar years but is required to conduct 
racing on at least 35 days during each calendar year after the track is initially licensed 
as a commercial track.  If a commercial track under this paragraph has not been 
granted 35 race days by the commission for the initial calendar year of operation, race 
days conducted during that year by the commercial track that ceased operation after 
January 1, 2014 are credited to the replacement commercial track.
For the purposes of this subsection, "region" is determined by measuring a distance of 50 
miles from the center of the racing track along the most commonly used roadway, as 
determined by the Department of Transportation, drawing a circle around the center of 
the racing track using that 50-mile measurement and excluding those municipalities or 
unorganized territories that do not have boundaries contained entirely by that circle.
For the purpose of determining the number of days a race track conducted racing under 
this subsection, if a race day is canceled due to a natural or other disaster, or due to a 
horse supply shortage as verified by the state steward, the track is considered to have 
conducted racing on that day.
Sec. 7.  8 MRSA §275-C, sub-§4 is enacted to read:
4.  Payment to a commercial track conducting live racing.  An off-track betting 
facility located within a 50-mile radius of a commercial track may not present a simulcast 
on a day when the commercial track is conducting live racing unless the off-track betting 
facility pays the commercial track 1% of the wagers made at the off-track betting facility 
during the time that live racing is being conducted at the commercial track on that race 
day and 0.5% of the wagers made at the off-track betting facility during the time that live 
racing is not being conducted on that race day.
Sec. 8.  8 MRSA §275-D, sub-§1, as amended by PL 2011, c. 99, §1, is further 
amended to read:
1.  Off-track betting on simulcast racing.  A person may conduct pari-mutuel 
wagering at an off-track betting facility that is licensed under this section, if the person 
facility is located and operated within a licensed to operate a hotel, as defined in Title 
28-A, section 2, subsection 15, paragraph H, with public dining facilities, a Class A 
lounge, as defined in Title 28-A, section 2, subsection 15, paragraph L, a Class A 
restaurant, as defined in Title 28-A, section 2, subsection 15, paragraph R, or a Class A 
restaurant/lounge, as defined in Title 28-A, section 2, subsection 15, paragraph R-1 
establishment under Title 28-A, section 2, subsection 15.
Sec. 9.  8 MRSA §275-D, sub-§3, as amended by PL 2003, c. 401, §12, is 
repealed.
Sec. 10.  8 MRSA §275-D, sub-§4, as amended by PL 2003, c. 401, §13, is 
further amended to read:
4.  Notice to off-track betting facilities; objections.  An applicant shall send written 
notice of its application for an off-track betting license to any existing off-track betting 
facility in whose market area the proposed facility will be located and shall present proof 
to the commission that it has provided the notice.  The notice must include all information 
contained in the application except information described in subsection 2, paragraph Q.  
An existing off-track betting facility shall notify the commission within 30 days of 
receiving notice if the facility objects to the location of the proposed facility.  The 
commission shall suspend consideration of the application for the 30-day objection 
period.  If the commission receives an objection from an off-track betting facility in 
whose market area the facility would be located within the 30-day period, the commission 
shall reject the application.  If the commission does not receive an objection within that 
period, the commission may proceed to consider the application.  For purposes of this 
subsection, the market area is determined by measuring a distance of 35 15 miles from 
the off-track betting facility along the most commonly used roadway adjacent to the off-
track betting facility, as determined by the Department of Transportation, drawing a circle 
around the center of the off-track betting facility using that 35-mile 15-mile 
measurement.
Sec. 11.  8 MRSA §275-D, sub-§5, ¶A, as enacted by PL 1993, c. 388, §8, is 
amended to read:
A.  Within 15 days after receiving an application for an off-track betting facility 
license or within 15 days after the expiration of the 30-day objection period described 
in subsections 3 and subsection 4 when the proposed facility is located within the 
market area of an existing off-track betting facility or a commercial racetrack, the 
commission shall notify the municipal officers of the municipality in which the 
facility is to be located and shall send a copy of the application to those officers.  The 
municipal officers shall hold a public hearing for the consideration of the application 
in accordance with this subsection.
Sec. 12.  8 MRSA §275-D, sub-§6, ¶A, as enacted by PL 1993, c. 388, §8, is 
amended to read:
A.  The commission finds that the facility:
(1)  Will not adversely affect the public interest;
(2)   Will not adversely affect the integrity of live racing;
(3)  Will not have an adverse impact on the local community;
(4)  Provides a potential for job creation, including jobs in the racing and 
wagering industries and other service jobs;
(5)  Has adequate seating facilities, toilet facilities and parking;
(6)  Will not adversely affect the value of abutting property;
(7)  Will be operated by an applicant with financial ability to maintain the facility 
in a manner that meets the standards set forth in this paragraph;
(8)  Provides segregated areas for conducting betting separate from the areas in 
which restaurant or other services are provided to the general public for 
nonbetting purposes; and
(9) Will not adversely affect existing licensed off-track betting facilities within 
15 miles of the proposed facility.
Sec. 13.  8 MRSA §275-D, sub-§6, ¶D, as enacted by PL 1993, c. 388, §8, is 
amended to read:
D.  No commercial racetrack or off-track betting facility in whose market area the 
facility would be located has filed a written objection to the facility within the time 
period prescribed in subsections 3 and subsection 4.
Sec. 14.  8 MRSA §275-D, sub-§9, as amended by PL 1997, c. 528, §23, is 
further amended to read:
9.  Annual report.  The department shall report annually by January March 1st to the 
joint standing committee of the Legislature having jurisdiction over legal affairs matters 
and to the joint standing committee of the Legislature having jurisdiction over 
agricultural matters on the effect of off-track betting facilities on the local economy, the 
public interest, the integrity of live racing and other matters the department finds 
appropriate.  The department may include in its report any recommendations for 
necessary changes in laws governing off-track betting.
Sec. 15.  8 MRSA §275-P is enacted to read:
§275-P.  Reduced payments for facilities licensed after January 1, 2019
1.  Eligible licensees.  A licensee that is first licensed after January 1, 2019, owned 
by a federally recognized Indian tribe and located and operated within a licensed 
establishment under Title 28-A, section 2, subsection 15 is eligible for reduced payments 
under this section.
2.  Off-track betting facility interstate simulcasting.  For an off-track betting 
facility that is eligible for reduced payments under subsection 1, the distribution of the 
commission on simulcasting of races originating at a racetrack in the State is calculated as 
a percentage of the handle and distributed as follows.
A.  On exotic wagers:
(1) The state share is 1.50%;
(2) The Sire Stakes Fund share is 1.50%;
(3) The Stipend Fund share is 1.50%;
(4) The Harness Racing Promotional Fund share is 0.50%;
(5) The horsemen's purse share is 7.00%;
(6) The track share is 7.50%; and
(7) The off-track betting facility share is 6.50%.
B.  On regular wagers:
(1) The state share is 0.25%;
(2) The Sire Stakes Fund share is 0.05%;
(3) The Stipend Fund share is 1.25%;
(4) The horsemen's purse share is 4.75%;
(5) The track share is 7.75%; and
(6) The off-track betting facility share is 3.95%.
3.  Off-track betting facility interstate simulcasting with commingled pools.  The 
distribution of the commission on simulcasting of races with commingled pools 
originating at a racetrack in another state by an off-track betting facility is calculated as a 
percentage of the net commission and distributed as follows.
A.  On exotic wagers:
(1) The state share is 5.00%;
(2) The Sire Stakes Fund share is 5.00%;
(3) The Stipend Fund share is 4.50%;
(4) The Harness Racing Promotional Fund share is 25.00%;
(5) The purse supplement share is 15.50%;
(6) The off-track betting facility simulcast fund share is 10.50%; and
(7) The off-track betting facility share is all amounts not otherwise assigned.
B.  On regular wagers:
(1) The Sire Stakes Fund share is 0.40%;
(2) The Stipend Fund share is 7.00%;
(3) The Harness Racing Promotional Fund share is 1.50%;
(4) The purse supplement share is 7.00%;
(5) The off-track betting facility simulcast fund share is 18.50%; and
(6) The off-track betting facility share is all amounts not otherwise assigned.
4.  Off-track betting facility interstate simulcasting with noncommingled pools.  
The distribution of the commission on simulcasting of races with noncommingled pools 
originating at a racetrack in another state by an off-track betting facility is calculated as a 
percentage of the handle and distributed as follows.
A.  On exotic wagers:
(1) The state share is 1.00%;
(2) The Sire Stakes Fund share is 1.25%;
(3) The Stipend Fund share is 2.00%;
(4) The Harness Racing Promotional Fund share is 1.50%;
(5) The purse supplement share is 4.00%;
(6) The off-track betting facility simulcast fund share is 3.00%; and
(7) The off-track betting facility share is 13.25%.
B.  On regular wagers:
(1) The state share is 0.05%;
(2) The Sire Stakes Fund share is 0.05%;
(3) The Stipend Fund share is 1.25%;
(4) The Harness Racing Promotional Fund share is 0.25%;
(5) The purse supplement share is 1.20%;
(6) The off-track betting facility simulcast fund share is 3.20%; and
(7) The off-track betting facility share is 12.00%.
5.  Payment from the Stipend Fund.  Notwithstanding any other provision of law, 
the amounts payable to the Stipend Fund under this section must be divided among all 
agricultural fair licensees based upon days raced in conjunction with the annual 
agricultural fairs of the licensees.
Sec. 16.  8 MRSA §298, sub-§2-A, as enacted by PL 2007, c. 183, §2 and 
affected by §3, is amended to read:
2-A.  Distribution.  On April 30th, July 30th, October 30th and January 30th of each 
year, all amounts credited to the fund established by this section as of the last day of the 
preceding month and not distributed before that day must be distributed to each 
commercial track, as defined in section 275-A, subsection 1, to each agricultural fair 
licensee that conducts live racing on fair dates assigned by the commissioner pursuant to 
Title 7, section 84 and to each agricultural fair licensee that conducts an extended meet as 
long as that licensee conducted an extended meet in 2005, with each commercial track 
and each agricultural fair licensee receiving an amount of money determined by 
multiplying the amount of money available for distribution by a fraction, the numerator of 
which is the total number of live race dashes assigned to the commercial track or 
agricultural fair licensee for the year and the denominator of which is the total number of 
race dashes assigned to all commercial tracks and agricultural fair licensees for the year. 
The payment in January must be adjusted so that for the prior year each commercial track 
or agricultural fair licensee entitled to a distribution receives that portion of the total 
money distributed for the full year from the fund established by this section that is 
determined by multiplying the total amount of money by a fraction, the numerator of 
which is the number of live race dashes conducted by the commercial track or agricultural 
fair licensee during the calendar year that qualify for a distribution and the denominator 
of which is the total number of race dashes conducted during that calendar year that 
qualify for a distribution. For purposes of this subsection, a race dash qualifies for 
distribution if the dash was conducted by a commercial track or by an agricultural fair 
licensee on dates assigned under Title 7, section 84 or during an extended meet. The 
funds distributed pursuant to this subsection must be used to supplement harness racing 
purses. 
This subsection takes effect December 31, 2009.
Sec. 17.  8 MRSA §299-A, sub-§1, as enacted by PL 2017, c. 371, §5, is amended 
to read:
1.  Fund created.  The Harness Racing Promotional Fund, referred to in this section 
as "the fund," is established to be used solely for the marketing and promotion of harness 
racing in the State.  The fund consists of any money received through the commission on 
wagers pursuant to section 286 and any contributions, grants or appropriations from 
private and public sources.  The fund, to be accounted for within the commission, must be 
held separate and apart from all other money, funds and accounts.  Any balance 
remaining in the fund at the end of a fiscal year does not lapse but must be carried 
forward to the next fiscal year.  The fund may not be charged for indirect costs under a 
departmental indirect cost allocation plan.
SUMMARY
This bill amends the harness racing laws in the following ways.
1.  It requires the Department of Agriculture, Conservation and Forestry to develop a 
biennial operating budget for the State Harness Racing Commission with input from the 
commission that allows for expenditures for discretionary activities by the commission 
during the biennium if the commission determines the activities are in the best interest of 
the harness racing industry.
2.  It protects the Harness Racing Promotional Fund from being charged for indirect 
costs under a departmental indirect cost allocation plan.
3.  It requires a harness racing license application of a pari-mutuel betting licensee 
who leases a racing plant to list financial and corporate information of the owner of the 
real estate.
4.  It requires the commission, when assigning race dates to licensees, to consider the 
development of revenues from interstate simulcasting, the ability to offer night racing and 
the ability to maintain ownership of or a leasehold on facilities.
5.  It changes the definition of "commercial track" for regions with a population of 
300,000 or more and with a population of less than 300,000 by removing language for 
racetracks that have ceased operations.
6.  It provides that an off-track betting facility within a 50-mile radius of a 
commercial track must pay 1% of the wagers made during the time live racing is being 
conducted on race day and 0.5% of the wagers made during the time that live racing is 
not being conducted on race day.
7.  It allows an off-track betting facility to be located within a facility licensed to 
serve alcohol that is owned by an owner other than the off-track betting facility owner.
8.  It removes the requirement that an applicant for an off-track betting license notify 
commercial tracks within 50 miles of the proposed off-track betting facility.
9.  It provides that an applicant for an off-track betting license must notify and allow 
objections from existing off-track betting facilities within 15 miles of the proposed off-
track betting facility, instead of within 35 miles as in current law.
10.  It changes the date of the Department of Agriculture, Conservation and Forestry's 
annual report to the Legislature on off-track betting from January 1st to March 1st.
11.  It provides for reduced payments from revenues derived by an off-track betting 
facility first licensed after January 1, 2019 that is owned by a federally recognized Indian 
tribe and is located and operated in an establishment licensed to serve alcohol.
12.  It allows an agricultural fair licensee to qualify for funds from the fund to 
supplement harness racing purses by conducting an extended meet, removing the 
requirement that the licensee must have conducted an extended meet in 2005.