Bill Summary – FastDemocracy

130th MAINE LEGISLATURE
                  FIRST REGULAR SESSION-2021
Legislative Document                                                                        No. 1060
H.P. 789                                                     House of Representatives, March 11, 2021
           An Act To Increase the State Revenue from Casino Net Income,
           Reallocate the State Distribution and Provide Tax Uniformity
   Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed.
                                                                                 ROBERT B. HUNT
                                                                                            Clerk
Presented by Representative BABBIDGE of Kennebunk.
Cosponsored by Representatives: DUNPHY of Old Town, HYMANSON of York, PERRY of
Calais, RECKITT of South Portland, Senator: RAFFERTY of York.
                                       Printed on recycled paper
 Be it enacted by the People of the State of Maine as follows:
     Sec. 1. 8 MRSA §1001, sub-§29-A, as enacted by PL 2005, c. 663, §3, is amended
 to read:
     29-A. Net slot machine income. "Net slot machine income" means money, tokens,
 credits or similar objects or things of value used to play a slot machine minus money,
 credits or prizes paid out to winners and amounts paid pursuant to section 1036, subsection
 1.
     Sec. 2. 8 MRSA §1036, as amended by PL 2017, c. 284, Pt. C, §§1 and 2, is further
 amended to read:
 §1036. Allocation of funds
     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.
      2. Distribution of net slot machine income from casino with commercial track. 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 39% 47% of the net slot
 machine income from slot machines operated by the slot machine that operator to the board
 for distribution by the board as follows:
     A. Three percent of the net slot machine income must be deposited to the General
     Fund for administrative expenses of the board in accordance with rules adopted by the
     board, except that of the amount calculated pursuant to this paragraph, the following
     amounts must be transferred annually to the Gambling Addiction Prevention and
     Treatment Fund established by Title 5, section 20006‑B:
            (1) For the fiscal year beginning July 1, 2011, $50,000;
            (2) For the fiscal year beginning July 1, 2012, $50,000; and
            (3) For the fiscal year beginning July 1, 2013 and for each fiscal year thereafter,
            $100,000;
     B. Ten percent of the net slot machine income must be forwarded by the board to the
     Treasurer of State, who shall credit the money to the fund established in section 298 to
     supplement harness racing purses;
     C. Three percent of the net slot machine income must be credited by the board to the
     Sire Stakes Fund created in section 281;
     D. Three percent of the net slot machine income must be forwarded by the board to
     the Treasurer of State, who shall credit the money to the Agricultural Fair Support Fund
     established in Title 7, section 91;
     E. Ten percent of the net slot machine income must be forwarded by the board to the
     State Controller 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
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 account under Title 22, section 1511, subsection 11, with the use of funds in the account
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 restricted to the purposes described in Title 22, section 1511, subsection 6, paragraph
44
 E. For the fiscal years ending June 30, 2010, June 30, 2011 and June 30, 2012, the
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 amount credited annually by the State Controller to the Fund for a Healthy Maine under
46
 this paragraph may not exceed $4,500,000 annually and any funds in excess of
47
 $4,500,000 annually during these fiscal years must be credited as General Fund
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 undedicated revenue, and, for the fiscal year ending June 30, 2013, the amount credited
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 by the State Controller to the Fund for a Healthy Maine under this paragraph is $0;
 F. Two percent of the net slot machine income must be forwarded by the board to the
 University of Maine System Scholarship Fund created in Title 20‑A, section 10909 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;
 G. One 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;
 H. Four percent of the net slot machine income must be forwarded by the board to the
 Treasurer of State, who shall credit the money to the Fund to Encourage Racing at
 Maine's Commercial Tracks, established in section 299;
 I. Two percent of the net slot machine income must be forwarded by the board to the
 Treasurer of State, who shall credit the money to the Fund to Stabilize Off-track Betting
 Facilities established by section 300, as long as a facility has conducted off-track
 wagering operations for a minimum of 250 days during the preceding 12-month period
 in which the first payment to the fund is required. After 48 months of receiving an
 allocation of the net slot machine income from a licensed operator, the percent of net
 slot machine income forwarded to the Fund to Stabilize Off-track Betting Facilities is
 reduced to 1% with the remaining 1% to be forwarded to the State in accordance with
 subsection 1 paragraph A; and
 J. One percent of the net slot machine income must be forwarded directly to the
 municipality in which the slot machines are located.;
 K. Five percent of the net slot machine income must be forwarded by the board to the
 Treasurer of State, who shall distribute the funds to the tribal governments of the
 federally recognized Indian tribes in the State in the proportions established by the
 Indian Casino Revenue Distribution Committee pursuant to section 1036-A. If a
 federally recognized Indian tribe owns or operates a licensed slot machine facility or
 casino in the State, the net slot machine income described in this paragraph must be
 deposited in the General Fund; and
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     L. Three percent of the net slot machine income must be deposited in the General
     Fund.
     2-A. Distribution from casino of slot machine income. A casino operator licensed
 in accordance with section 1011, subsection 2-A, paragraph A shall collect and distribute
 46% 50% of the net slot machine income from slot machines operated by the casino
 operator to the board for distribution by the board as follows:
     A. Twenty-five percent of the net slot machine income must be forwarded directly by
     the board to the Treasurer of State, who shall credit the money to the Department of
     Education, to be used for essential programs and services for kindergarten to grade 12
     under Title 20‑A, chapter 606‑B;
     B. Four 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;
     C. Three percent of the net slot machine income must be forwarded by the board to
     the Board of Trustees of the Maine Community College System to be applied by the
     board of trustees to fund its scholarships program under Title 20‑A, section 12716,
     subsection 1;
     D. Four percent of the net slot machine income must be forwarded by the board to the
     Treasurer of State, who shall distribute the funds to the tribal governments of the
     Penobscot Nation and the Passamaquoddy Tribe;
     E. Three percent of the net slot machine income must be deposited to the General Fund
     for administrative expenses of the board, including gambling addiction counseling
     services, in accordance with rules adopted by the board;
     F. Two percent of the net slot machine income must be forwarded directly to the
     municipality in which the casino is located;
     G. 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 Agricultural Fair Support Fund
     established in Title 7, section 91;
     H. 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 fund established in section 298 to
     supplement harness racing purses;
     I. One percent of the net slot machine income must be credited by the board to the Sire
     Stakes Fund created in section 281;
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     J. One percent of the net slot machine income must be forwarded directly to the county
     in which the casino is located to pay for mitigation of costs resulting from gaming
     operations;
     L. Beginning July 1, 2013, 1/2 of 1% 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; and
     M. Beginning July 1, 2013, 1/2 of 1% of the net slot machine income must be
     forwarded by the board to the Treasurer of State, who shall credit the money to the
     Dairy Improvement Fund established under Title 10, section 1023‑P.;
     N. Five percent of the net slot machine income must be forwarded by the board to the
     Treasurer of State, who shall distribute the funds to the tribal governments of the
     federally recognized Indian tribes in the State in the proportions established by the
     Indian Casino Revenue Distribution Committee pursuant to section 1036-A. If a
     federally recognized Indian tribe owns or operates a licensed slot machine facility or
     casino in the State, the net slot machine income described in this paragraph must be
     deposited in the General Fund; and
     O. Three percent of the net slot machine income must be deposited in the General
     Fund.
 If a recipient of net slot machine income in paragraph D, H or I owns or receives funds
 from a slot machine facility or casino, other than the casino in Oxford County or the slot
 machine facility in Bangor, then the recipient may not receive funds under this subsection,
 and those funds must be retained by the Oxford County casino operator.
     2-B. Distribution from casino of table game income. A casino operator licensed in
 accordance with section 1011, subsection 2‑A, paragraph A shall collect and distribute 16%
 50% of the net table game income from table games operated by the casino operator to the
 board for distribution by the board as follows:
     A. Ten percent of the net table game income must be forwarded directly by the board
     to the Treasurer of State, who shall credit the money to the Department of Education,
     to be used for essential programs and services for kindergarten to grade 12 under Title
     20‑A, chapter 606‑B;
     B. Three percent of the net table game income must be deposited to the Gambling
     Control Board administrative expenses Other Special Revenue Funds account, which
     is a nonlapsing dedicated account;
     C. Two percent of the net table game income must be forwarded directly to the
     municipality in which the table games are located; and
     D. One percent of the net table game income must be forwarded directly to the county
     in which the table games are located to pay for mitigation of costs resulting from
     gaming operations.;
     E. Five percent of the net table game income must be forwarded by the board to the
     Treasurer of State, who shall distribute the funds to the tribal governments of the
     federally recognized Indian tribes in the State in the proportions established by the
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44
     Indian Casino Revenue Distribution Committee pursuant to section 1036-A. If a
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     federally recognized Indian tribe owns or operates a licensed slot machine facility or
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     casino in the State, the net table game income described in this paragraph must be
47
     deposited in the General Fund; and
     F. Twenty-nine percent of the net slot machine income must be deposited in the
     General Fund.
     2-C. Distribution of table game income from casino with a commercial track. A
 casino operator that is a commercial track and was licensed to operate slot machines on
 January 1, 2011 shall collect and distribute 16% 50% of the net table game income from
 table games operated by the casino operator to the board for distribution by the board as
 follows:
     A. Nine percent of the net table game income must be deposited to the General Fund
     for administrative expenses of the board, including gambling addiction counseling
     services, in accordance with rules adopted by the board;
     B. Three percent of the net table game income must be deposited to the Gambling
     Control Board administrative expenses Other Special Revenue Funds account, which
     is a nonlapsing dedicated account;
     C. Two percent of the net table game income must be forwarded directly to the
     municipality in which the table games are located; and
     D. Two percent of the net table game income must be deposited into the Coordinated
     Veterans Assistance Fund established in Title 37‑B, section 514.;
     E. Five percent of the net table game income must be forwarded by the board to the
     Treasurer of State, who shall distribute the funds to the tribal governments of the
     federally recognized Indian tribes in the State in the proportions established by the
     Indian Casino Revenue Distribution Committee pursuant to section 1036-A. If a
     federally recognized Indian tribe owns or operates a licensed slot machine facility or
     casino in the State, the net table game income described in this paragraph must be
     deposited in the General Fund; and
     F. Twenty-nine percent of the net slot machine income must be deposited in the
     General Fund.
     3. Failure to deposit funds. A slot machine operator or casino operator who
 knowingly or intentionally fails to comply with this section commits a Class C crime. In
 addition to any other sanction available by law, the license of the operator may be revoked
 by the board and the slot machines or table games operated by that slot machine operator
 or casino operator may be disabled, and the slot machines or table games, slot machines' or
 table games' proceeds and associated equipment may be confiscated by the board and are
 subject to forfeiture under Title 17‑A, section 959 or 960.
     4. Late payments. The board may adopt rules establishing the dates on which
 payments required by this section are due. All payments not remitted when due must be
 paid together with interest on the unpaid balance at a rate of 1.5% per month.
     Sec. 3. 8 MRSA §1036-A is enacted to read:
 §1036-A. Indian Casino Revenue Distribution Committee
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    1. Committee established; membership. The Indian Casino Revenue Distribution
 Committee, referred to in this section as "the committee," is established. The committee
 consists of the following 17 members:
     A. One member to be appointed by the Penobscot Nation, one member to be appointed
     by the Passamaquoddy Tribe, one member to be appointed by the