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An Act To Ensure Fair Competition by and between Maine's Commercial Tracks
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 8 MRSA §1011, sub-§2, as amended by IB 2009, c. 2, §29, is further amended to read:
 
2. Eligible persons.   The board may accept applications for a license to operate slot machines or a casino from any person who is licensed as of December 31, 2003 to operate a commercial track that satisfies the following criteria:
 
A. The commercial track is located at or within a 5-mile12-mile radius of the center of a commercial track that conducted harness racing with pari-mutuel wagering on more than 25 days during calendar year 2002; and
 
B. The operation of slot machines at the commercial track is approved by the voters of the municipality in which the commercial track to be licensed is located by referendum election held at any time after December 31, 2002 and before December 31, 2003.;
 
C.  The slot machines and all gambling activities are located within a building immediately adjacent to the racetrack from which the races can be seen and that features a principal dining facility with a clear view of the racing oval, and the building is part of a complex that includes a resort hotel with at least 100 rooms, a spa, indoor and outdoor pools, entertainment facilities and retail space; and
 
D.  The racing oval is at least 5/8 of a mile long.
 
Any additional assurances the commercial track provides to the Commissioner of Administrative and Financial Services as part of the procedures to establish the competitive bidding and fair market value license fee for that commercial track in accordance with section 1018, subsection 1-B must be imposed as conditions on the commercial track's license as a slot machine operator or a casino, and the commercial track must be in compliance with those conditions in order to operate any gambling activities for which the license is required.
Sec. 2. 8 MRSA §1018, sub-§1-A, as enacted by PL 2011, c. 699, §2, is amended to read:
 
1-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 licensed before January 1, 2003 that was first licensed to operate slot machines or a casino on or after January 1, 2013. A commercial track first licensed to operate slot machines or a casino on or after January 1, 2013 shall pay a nonrefundable application fee of $250,000 and at the time of licensing shall also pay a competitive bidding and fair market value license fee determined in accordance with subsection 1-B. The fee must be paid to the Treasurer of State and credited to the General Fund. The competitive bidding and fair market value license fee must be returned to the licensee by the State if, during the 10 years following payment, any other person receives an initial license from the State or is otherwise authorized by the State to operate within 50 miles of the commercial track a slot machine facility with more than 5 slot machines or a casino.
Sec. 3.  8 MRSA §1018, sub-§1-B  is enacted to read:
 
1-B.  Competitive bidding and fair market value license fee.     The Commissioner of Administrative and Financial Services shall assess the competitive bidding and fair market value license fee under subsection 1-A to a commercial track that after January 1, 2014 becomes eligible for and applies for a slot machine operator or casino operator license. The commercial track shall negotiate with the commissioner to reach an agreement on the fee amount, taking into account the factors listed in paragraphs A to I. If an agreement under this subsection is not reached, the commissioner shall conduct a hearing and make a determination of the competitive bidding and fair market value license fee for that commercial track, taking into account the following factors:
 
A.  The amounts that have been previously paid for the value of licensing under this subchapter as determined by the commissioner;
 
B.  The likely gambling market of the commercial track;
 
C.  The extent to which the commercial track is required under its racing and gambling licenses to conduct live harness racing and other activities that are not likely to generate additional profits but that serve other interests of the State or the local community and the likely costs and benefits of those activities;
 
D.  The taxation and other laws that apply to the commercial track's gambling operations;
 
E.  Any commitment the commercial track makes in writing to accept conditions on its gambling licenses that add expense and capital obligations but that, in the opinion of the commissioner, provide substantial value to the people of the State or the local community;
 
F.  The market risks associated with the commercial track's existing and proposed business;
 
G.  The capital investment likely to be required of the commercial track to carry on all racing, gambling and other activities required as conditions to its gambling and racing licensure;
 
H.  The extent to which the commercial track, as a condition of licensure, is willing to commit to create on-site stabling facilities for horses owned and trained by licensees of the State Harness Racing Commission and the likely capital investment associated with such facilities; and
 
I.  The existing and likely competition the commercial track faces from within and outside the State for gambling and other revenues.
 
A fee determination by the Commissioner of Administrative and Financial Services under this subsection constitutes final agency action.
Sec. 4. 8 MRSA §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, subsection 7 and section 1011, subsection 2-B do 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 or a commercial track that was licensed to accept any form of wagers prior to December 31, 2002 from obtaining a casino operator license or a slot machine operator license for any facility where bets on harness racing were taken prior to December 31, 2002 or at any other new facility that, under section 275-A, subsection 1, is considered the same commercial track as such a facility and is not located nearer to any existing casino or slot machine facility than was the commercial track that it replaced.
Sec. 5. 8 MRSA §1019, sub-§7, as amended by PL 2011, c. 417, §6, is further amended to read:
 
7. Statewide and county referendum; municipal vote.   After January 1, 2011, any 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, 2011or a casino that is required to pay a competitive bidding and fair market value license fee under section 1018, subsection 1-B is not required to obtain referendum approval other than local referendum approval as may be required by law, and except that any commercial track licensed to operate slot machines that is not required to pay a competitive bidding and fair market value license fee 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.
Sec. 6. 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 1-B, the total number of slot machines registered in the State may not exceed 3,0007,500; and
Sec. 7. 8 MRSA §1036, sub-§1, as amended by PL 2011, c. 417, §7, is further amended to read:
 
1. Distribution for administrative expenses of board.   A slot machine operator licensed under section 1011, subsection 2 or a casino operator that is a commercial track that was licensed to operate slot machines under section 1011, subsection 2 on January 1, 2011 shall collect and distribute 1% of gross slot machine income to the Treasurer of State for deposit in the General Fund for the administrative expenses of the board.
Sec. 8.  8 MRSA §1036, sub-§2-D  is enacted to read:
 
2-D.  Distribution of net slot machine income and net table game income from a casino with a commercial track licensed to operate slot machines and table games after January 1, 2014.     A casino operator that is a commercial track that was initially licensed to operate slot machines and table games under section 1011, subsection 2-A after January 1, 2014 shall collect and distribute 39% of the net slot machine income from slot machines and 16% of net table game income from table games operated by the casino operator to the board for distribution by the board as follows:
 
A.  Two and one-half percent of the net slot machine income and net table game 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;
 
B.  Twenty percent of the net slot machine income and net table game income 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;
 
C.  Five percent of the net slot machine income and net table game income must be credited by the board to the Sire Stakes Fund created in section 281;
 
D.  Eight and one-half percent of the net slot machine income and net table game income must be forwarded by the board to the Treasurer of State, who shall credit the money to the Agricultural Fair Support Fund established in Title 7, section 91;
 
E.  Five percent of the net slot machine income and net table game income must be forwarded directly to the municipality in which the slot machines are located;
 
F.  Two and one-half percent of the net slot machine income and net table game income must be forwarded by the board to the Treasurer of State, who shall credit the money to the Fund to Stabilize Off-track Betting Facilities established by section 300, as long as a facility has conducted off-track wagering operations for a minimum of 250 days during the preceding 12-month period in which the first payment to the fund is required; and
 
G.  All remaining amounts under this subsection must be forwarded to the Treasurer of State, who shall credit the money to the General Fund.
 
SUMMARY
This bill eliminates the deadline for local approval of the operation of slot machines or a casino at a commercial track in the State and allows the commercial track greater latitude in relocating to a municipality that supports the commercial track and harness racing as long as the commercial track does not relocate closer to any existing casino or slot machine facility. The bill also requires that gaming operations be located at the racetrack as part of a fully integrated destination resort and also requires a one-time competitive bidding and fair market value license fee to be determined by the Commissioner of Administrative and Financial Services. The bill provides that most of the revenues distributed from the commercial track are credited to the General Fund.