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Appropriation 010-29A-4213-012

State of Maine
Office of the Secretary of State
Augusta, Maine 04333

For information about how or where you vote, you may contact your local municipal clerk or call Maine’s Division of Elections at 624-7650. Information is also available online at www.maine.gov/sos.

Do you want to allow slot machines at certain commercial horse racing tracks if part of the proceeds are used to lower prescription drug costs for the elderly and disabled, and for scholarships to the state universities and technical colleges?

Question 3: Citizen Initiative

Do you want to allow a casino to be run by the Passamaquoddy Tribe and Penobscot Nation if part of the revenue is used for state education and municipal revenue sharing?

Do you favor a $6,950,000 bond issue for the following purposes:

Do you favor a $19,000,000 bond issue to make repairs, upgrades and other facility improvements and enhance access for students with disabilities and upgrade classroom equipment at various campuses of the University of Maine System; the Maine Maritime Academy; and the Maine Community College System, which was formerly the Maine Technical College System, and to provide grants to construct and renovate public libraries and to improve community access to electronic resources?

Do you favor a $63,450,000 bond issue for improvements to highways and bridges, airports, state-owned ferry vessels and ferry and port facilities and port and harbor structures; development of rail corridors and improvements to railroad structures and intermodal facilities; investment in the statewide public transportation fleet and public park and ride and service facilities; statewide trail and pedestrian improvements; and expansion of the statewide air-medical response system through construction of hospital helipads, building additional refueling facilities, upgrading navigational systems and acquiring training equipment to improve access to health care that makes the State eligible for $217,000,000 in matching federal funds?

          The State of Maine borrows money by issuing bonds. Bonds spread the payments for projects over their useful life so that all benefiting from the projects pay for them. Bonding is a multi-step process which can generally be described as follows: 1. The Legislature decides which projects it believes should be funded from bond proceeds (money acquired from the sale of bonds) and puts the projects out for voter approval as required by the State Constitution. 2. The voters, at a statewide election, approve or reject each proposed project. 3. The State Treasurer issues bonds to pay for those projects approved by the voters or otherwise authorized by the Constitution. A person or institution purchasing the bonds is, in effect, loaning the State of Maine money in return for interest payments during the term of the bond. 4. The Treasurer distributes the money acquired from the sale of bonds in accordance with the legislation authorizing bonds for approved projects. 5. The Treasurer pays interest twice yearly to bond purchasers until the maturity date when the Treasurer pays them principal as well.

      The following is a summary of the bond debt of the State of Maine as of July 31, 2003.

Bonds Outstanding (Issued and Maturing Through 2013):		Principal	Interest	Total
	Highway fund General fund Total	$ 61,225,000 $285,765,000 $346,990,000	$ 8,842,646 $46,511,468 $55,354,114	$ 70,067,646 $332,276,468 $402,344,114

Unissued Bonds Authorized by Voters:	$262,882,031
Unissued Bonds Authorized by the Constitution and Laws:	$ 99,000,000
Total Unissued Bonds:	$361,882,031
The Total Amount That Must Be Paid in the Present Fiscal Year for Debt Already Outstanding (for FY 2004 Principal & Interest)	$ 88,031,189.28

          If the bonds submitted here are approved by voters and issued for the full statutory period authorized, an estimate of the total interest and principal that may reasonably be expected to be paid is $112,755,750 representing $89,400,000 in principal and $23,355,750 in interest.

DALE McCORMICK
TREASURER OF STATE

Question 1A: Citizen Initiative

Do you want the State to pay 55% of the cost of public education, which includes all special education costs, for the purpose of shifting costs from the property tax to state resources?

STATE OF MAINE

"School Finance and Tax Reform Act of 2003"

          Sec. 1. 20-A MRSA c. 606-C is enacted to read:

          This chapter may be known and cited as the "School Finance Act of 2003."

          Notwithstanding any other provision of law, the Legislature each year shall provide at least 55% of the cost of the total allocation for kindergarten to grade 12 education from General Fund revenue sources.

          For the purpose of this chapter, and until such time as the Legislature may implement an alternative school funding system, "total allocation" means the foundation allocation for a year, the debt service allocation for that year, the sum of all adjustments for that year and the total of the additional local appropriations for the prior year. In the event the Legislature implements an alternative school funding model that alters the meaning of the terms used in this Title or otherwise makes obsolete the system of allocations and local appropriations established by this Title, the term "total allocation" as it applies to the mandatory appropriation required by this section means the amount reasonably calculated as the equivalent of this definition.

          Notwithstanding any other provision of law, the Legislature shall provide 100% of the state and local cost of providing all special education services mandated under federal or state law, rule or regulation.

          For the purposes of the mandatory appropriation required by this section, the commissioner shall identify and provide in the commissioner’s recommendation pursuant to section 15605 the total costs to the individual school administrative units associated with providing all special education services mandated under federal or state law, rule or regulation for the school year concluding on the previous June 30th. In addition to any appropriations required by section 15607, the Legislature shall appropriate and ensure the accurate distribution of the total amount identified by the commissioner, adjusted by the actual state and federal reimbursements for the costs of special education services mandated by federal or state law, rule or regulation and previously provided to the individual school administrative units for that same school year.

          The Fund for the Efficient Delivery of Educational Services, referred to in this section as "the fund," is established.

          Two percent of the funds annually appropriated pursuant to this chapter must be dedicated to the fund and distributed from the fund to those school administrative units and municipalities that can demonstrate significant and sustainable savings in the cost of delivering educational services through changes in governance, administrative structure or adopted policy that result in the creation of consolidated school administrative units, broad-based purchasing alliances, enhanced regional delivery of educational services or collaborative school-municipal service delivery or service support systems.

          The State’s school administrative units and municipalities are entitled to the appropriations required by this chapter.

          Sec. 2. 30-A MRSA §5681, sub-§3, as amended by PL 1999, c. 731, Pt. U, §2, is further amended to read:

          3. Revenue-sharing funds. To strengthen the state-municipal fiscal relationship pursuant to the findings and objectives of subsection 1, there is established the Local Government Fund. To provide additional support for municipalities experiencing a higher-than-average property tax burden, there is established the Disproportionate Tax Burden Fund. To assist those municipalities that collaborate with other municipalities, counties or state agencies to obtain savings in the cost of delivering local and regional governmental services there is established the Fund for the Efficient Delivery of Local and Regional Services.

          Sec. 3. 30-A MRSA §5681, sub-§5-B is enacted to read:

          5-B. Fund for the Efficient Delivery of Local and Regional Services. For the months beginning on or after July 1, 2004 and before the distributions required by subsections 4-A and 4-B, 2% of all receipts transferred each month pursuant to subsection 5 must be deposited in the Fund for the Efficient Delivery of Local and Regional Services, as established in subsection 3, and distributed to those municipalities that can demonstrate significant and sustainable savings in the cost of delivering local and regional governmental services through collaborative approaches to service delivery, enhanced regional delivery systems, the consolidation of administrative services, the creation of broad-based purchasing alliances or the execution of interlocal agreements.

          Sec. 4. Legislative duties. In carrying out its duties under this Act, the Legislature and its joint standing committees shall act to provide substantial property tax relief statewide in a manner that is sustained over time, reduce unnecessary spending, provide tax reform, avoid adding to the overall tax burden of citizens of this State and coordinate those efforts among the school administrative units and local and regional governments.

          1. State tax revenue. As soon as possible, but no later than March 1, 2004, the joint standing committee of the Legislature having jurisdiction over taxation matters shall report out revenue-neutral legislation designed in accordance with the intentions of this Act to generate the additional revenue necessary to provide adequate funding for public education from kindergarten to grade 12 pursuant to the Maine Revised Statutes, Title 20-A, chapter 606-C. The legislation may not defeat the intent of this Act by reducing, freezing, eliminating or otherwise restricting the state revenues, appropriations or reimbursements that historically have been provided to or shared with municipalities, including without limitation: state-municipal revenue sharing established in Title 30-A, chapter 223, subchapter 2; property tax homestead exemption reimbursement established in Title 36, chapter 105, subchapter 4-B; the County Jail Prisoner Support and Community Corrections Fund established in Title 34-A, section 1210-A; the tree growth tax reimbursement program established in Title 36, section 578; the general assistance reimbursement program established in Title 22, section 4311; and the Rural Road Initiative and Urban Compact Initiative established in Title 23, section 1803-B.

          2. Fund for the Efficient Delivery of Educational Services. As soon as possible, but no later than March 1, 2004, the joint standing committee of the Legislature having jurisdiction over education matters shall report out legislation designed in accordance with the intentions of this Act to govern the design, implementation, management and oversight of the Fund for the Efficient Delivery of Educational Services established in the Maine Revised Statutes, Title 20-A, section 15684.

          3. Fund for the Efficient Delivery of Local and Regional Services. As soon as possible, but no later than March 1, 2004, the joint standing committee of the Legislature having jurisdiction over state and local government matters shall report out legislation designed in accordance with the intentions of this Act to govern the design, implementation, management and oversight of the Fund for the Efficient Delivery of Local and Regional Services established in the Maine Revised Statutes, Title 30-A, section 5681, subsection 3.

          4. Tax burden management. As soon as possible, but no later than March 1, 2004, the joint standing committees of the Legislature having jurisdiction over taxation matters and appropriations and financial affairs shall jointly develop and report out legislation that consists of a comprehensive plan that integrates the efforts of state, county and local governments and schools to reduce unnecessary spending, identifies cost savings in the delivery of governmental services and otherwise addresses the issue of the overall tax burden in this State.

          This initiated bill requires the State to provide at least 55% of the total state and local cost of kindergarten to grade 12 public education, including 100% state support for special education services mandated by state or federal law.

          Two percent of the annual state appropriation for education required by this initiated bill is dedicated to the Fund for the Efficient Delivery of Educational Services, which is dedicated to providing incentive-based resources to those school administrative units or municipalities that would effect certain system changes that provide significant and sustainable cost savings in the delivery of educational services.

          The Fund for the Efficient Delivery of Local and Regional Services is established within the Local Government Fund, which is the fund from which state-municipal revenue sharing is distributed. This fund is capitalized by setting aside 2% of the sales and income tax revenue that would otherwise be distributed according to the revenue-sharing formula. This 2% is distributed to those municipalities that can demonstrate cost savings in the delivery of local and regional governmental services through collaboration with other local and regional governments and participating state agencies. This initiated bill directs the Legislature to develop the necessary implementing legislation to fully implement the Fund for the Efficient Delivery of Educational Services and the Fund for the Efficient Delivery of Local and Regional Services.

          This initiated bill also directs the Legislature to develop the necessary implementing legislation to provide for the necessary state revenue to meet the State’s obligation to support public education without undermining existing municipal support systems such as municipal revenue sharing, the property tax homestead exemption and local road assistance, among others.

          Finally, this initiated bill directs the Legislature to develop a comprehensive plan as soon as possible but no later than March 1, 2004 that integrates the efforts of state, county and local government and schools to reduce unnecessary spending, identifies cost savings in the delivery of governmental services and otherwise addresses the issue of the overall tax burden in this State.

Do you want to lower property taxes and avoid the need for a significant increase in state taxes by phasing in a 55% state contribution to the cost of public education and by providing expanded property tax relief?

Competing Measure Resolutions of 2003

"RESOLUTION, Proposing a Competing Measure under the Constitution of Maine To Reduce the Cost of Local Government through Increased State Education Funding and Provide Property Tax Relief"

          RESOLVED: That, pursuant to the Constitution of Maine, Article IV, Part Third, Section 18, subsection 2, the Legislature intends that the following be submitted to the electors of the State as a competing measure to Initiated Bill 3, Legislative Document 1372 of the 121st Legislature, "An Act To Enact the School Finance and Tax Reform Act of 2003."

          Sec. A-1. 20-A MRSA §15671, sub-§7, ¶B, as enacted by PL 2003, c. 504, Pt. A, §5, is amended to read:

          Sec. A-2. 20-A MRSA §15671-A is enacted to read:

          1. Definitions. For the purposes of this section, unless the context otherwise indicates, the following terms have the following meanings.

          2. Local cost share expectation established. The local cost share expectation is established as follows.

          Sec. A-3. 20-A MRSA §15684, sub-§3 is enacted to read:

          3. Repeal. This section is repealed on July 1, 2005.

          Sec. A-4. 20-A MRSA §15686, as enacted by PL 2003, c. 504, Pt. A, §6, is amended to read:

           For each of the fiscal years described in section 15671, subsection 7, the commissioner shall establish a transition adjustment calculated to minimize the adverse fiscal impact that may be experienced by some municipalities as a result of the phase-in of this Act. The transition adjustment for a municipality must be directly related to the phase-in of essential programs and services and the local cost share expectation method of determining the local contribution to the cost of funding essential programs and services. The amount of this adjustment is established at $10,000,000 for fiscal year 2005-06 and must decline with each successive fiscal year. The adjustments must end no later than fiscal year 2009-10.

          Sec. A-5. 20-A MRSA §15688 is enacted to read:

          1. School administrative unit; total cost. For each school administrative unit, the commissioner shall annually determine the school administrative unit’s total cost of education. A school administrative unit’s total cost of education must include:

          2. Member municipalities in school administrative districts or community school districts; total costs. For each municipality that is a member of a school administrative district or community school district, the commissioner shall annually determine each municipality’s total cost of education. A municipality’s total cost of education is the school administrative district’s or community school district’s total cost of funding times the percentage that the municipality’s most recent calendar year average pupils is to the school administrative district’s or community school district’s most recent calendar year average pupils.

          3. School administrative unit; contribution. For each school administrative unit, the commissioner shall annually determine the school administrative unit’s contribution in accordance with the following.

          4. Effective date. This section takes effect July 1, 2005.

          Sec. A-6. Basis for funding costs of education from kindergarten to grade 12. Notwithstanding any other provision of law, beginning in fiscal year 2005-06, funding of the costs of education from kindergarten to grade 12 must be based on the cost of providing essential programs and services as described in the Maine Revised Statutes, Title 20-A, chapter 606-B.

          Sec. B-1. Analysis and report. By January 2, 2010, the Department of Education and the Department of Administrative and Financial Services, Bureau of Revenue Services shall jointly analyze the effectiveness of this resolution in lowering property taxes and in meeting the goals of funding public education. The Department of Education and the Bureau of Revenue Services shall submit a report by January 1, 2010 to the joint standing committee of the Legislature having jurisdiction over taxation matters containing their findings and recommendations. The joint standing committee of the Legislature having jurisdiction over taxation matters may report out legislation if necessary to the Second Regular Session of the 124th Legislature by March 1, 2010 to accomplish the tax reduction and education funding goals of this resolution.

          Sec. C-1. 36 MRSA §683, sub-§1, as repealed and replaced by PL 2003, c. 20, Pt. BB, §1 and affected by §3, is repealed and the following enacted in its place:

          1. Exemption amount. The estate up to the just value of $7,000 of the homestead of a permanent resident of this State who has owned a homestead in this State for the preceding 12 months is exempt from taxation except for assessments for special benefits. In determining the local assessed value of the exemption, the assessor shall multiply the amount of the exemption by the ratio of current just value upon which the assessment is based as furnished in the assessor’s annual return pursuant to section 383. If the title to a homestead is held by the applicant jointly or in common with others, the exemption may not exceed $7,000 of the just value of the homestead, but may be apportioned among the owners who reside on the property to the extent of their respective interests. A municipality responsible for administering the homestead exemption has no obligation to create separate accounts for each partial interest in a homestead owned jointly or in common.

          Sec. C-2. 36 MRSA §683, sub-§1-A, as enacted by PL 2003, c. 20, Pt. BB, §2 and affected by §3, is repealed.

          Sec. C-3. 36 MRSA §6207, sub-§1, ¶A-1, as amended by PL 1997, c. 557, Pt. A, §3 and affected by Pt. G, §1, is further amended to read:

          Sec. C-4. 36 MRSA §6207, sub-§1, ¶¶B to D are enacted to read:

          Sec. C-5. 36 MRSA §6207, sub-§2, as amended by PL 1997, c. 557, Pt. A, §3 and affected by Pt. G, §1, is repealed.

          Sec. C-6. 36 MRSA §6207, sub-§2-A is enacted to read:

          2-A. Income eligibility. Households are not eligible for a benefit if household income exceeds the following amounts:

          Sec. C-7. 36 MRSA §6209, sub-§1, as amended by PL 1989, c. 508, §25, is further amended to read:

          1. Household limitation adjustment. Beginning March 1, 1989, and annually thereafter, the State Tax Assessor shall determine the household income eligibility adjustment factor. That factor must be multiplied by the income limitations in section 6206, applicable for the year prior to that for which relief is requested. The result must be rounded to the nearest $100 and applies to the year for which relief is requested corresponding to the year on which the annualized cost of living adjustments were based. Beginning March 1, 1991, the same procedure must be employed to adjust the income limitation in section 6207, subsection 2-A.

          Sec. C-8. Application. Those portions of this Part that repeal and replace the Maine Revised Statutes, Title 36, section 683, subsection 1 and repeal subsection 1-A apply to property taxes based on the status of property on or after April 1, 2004.

          Sec. C-9. Appropriations and allocations. The following appropriations and allocations are made.

Initiative: Appropriates funds to revert the tiered homestead property tax exemption back to a $7,000 exemption regardless of property value beginning in fiscal year 2004-05.

Initiative: Appropriates funds required due to the expansion of the Maine Residents Property Tax Program.

Initiative: Provides funds for one Tax Examiner position effective June 1, 2005 and other related costs associated with an increase in the number of applications for the Maine Residents Property Tax Program.

DEPARTMENT TOTALS           GENERAL FUND           DEPARTMENT TOTAL – ALL FUNDS

2003-04 $0 __________ $0

2004-05 $14,915,437 __________ $14,915,437

PART D

          Sec. D-1. Intent of Legislature; competing measure. It is the intent of the Legislature that this Resolution be interpreted as a competing measure within the meaning of the Constitution of Maine, Article IV, Part Third, Section 18, Subsection 2 with Initiated Bill 3, Legislative Document 1372 of the 121st Legislature, "An Act To Enact the School Finance and Tax Reform Act of 2003." It is the further intent of the Legislature that this measure be subject to referendum as a competing measure with that bill.

          Sec. D-2. Statutory referendum procedure; submission at statewide election; form of question; effective date. This Resolution must be submitted to the legal voters of the State of Maine at the next statewide election in the month of November following passage of this Resolution as a competing measure with Initiated Bill 3, Legislative Document 1372 of the 121st Legislature, "An Act To Enact the School Finance and Tax Reform Act of 2003." The municipal officers of this State shall notify the inhabitants of their respective cities, towns and plantations to meet, in the manner prescribed by law for holding a statewide election, to vote on the acceptance or rejection of this Resolution by voting on the following question:

          The legal voters of each city, town and plantation shall vote by ballot on this question and the question established by the Secretary of State for Initiated Bill 3 and shall designate their choice by a cross or check mark placed in the corresponding square next to either the question relating to Initiated Bill 3, the question relating to the competing measure or an option of against both Initiated Bill 3 and the competing measure. 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 Governor shall review the returns and, if it appears that a majority of the legal votes are cast in favor of the Resolution, the Governor shall proclaim that fact without delay, and the Resolution takes effect in accordance with the Constitution of Maine, Article IV, Part Third, Section 19.

See title page for effective date.

          This referendum requires the voters to choose among a proposed law initiated by petition (1A), a competing measure approved by the Legislature for submittal to the voters (1B), or to reject both (1C).

           AN ACT to Enact the School Finance and Tax Reform Act of 2003

          This initiated legislation provides that the State shall pay at least 55% of the total costs of public education for kindergarten through grade 12, and 100% of the costs of special education services that are mandated by federal or state law. The proposal does not specify how the State would fund those costs. Instead, it directs the Legislature’s taxation committee to report out legislation by March 1, 2004, to generate the additional revenue necessary to achieve these funding levels.

           In addition, 2% of the funds appropriated by the Legislature under this Act would be deposited in a new fund, entitled the "Fund for the Efficient Delivery of Educational Services," for distribution to schools and municipalities that are able to demonstrate significant and sustainable savings in educational services costs through collaborative efforts, regionalization or consolidation.

           Another fund, entitled the "Fund for the Efficient Delivery of Local and Regional Services," would be created using 2% of the tax revenue deposited in the municipal revenue sharing account and distributed to those municipalities that can demonstrate significant and sustainable cost savings in the delivery of governmental services through regional and collaborative efforts.

          This resolution, approved by the Legislature for submittal to the voters as a competing measure to the citizen initiative described above, would increase the State’s share of funding kindergarten to grade 12 public education from 50% to 55% over five years. It would establish the new essential programs and services model, adopted by the Legislature this spring, as the basis for calculating state and local shares of education funding. The Commissioner of Education would determine the maximum dollar amount of the local cost share expectation, as well as the local mill rate that is required to raise the total amount.

          This measure also would expand the Maine Residents Property Tax Program, commonly referred to at the "circuit breaker" program, by increasing the income eligibility limits over a 3-year period, as well as by increasing the amount of taxes that would be refundable as a percentage of household income.

          In addition, the measure would restore the Maine Homestead Property Tax Exemption for up to the just value of $7,000 for all homesteads owned by permanent residents of the state. This exemption had been eliminated by budget legislation enacted this spring.

          The Department of Education and the Bureau of Revenue Services would be required by January 2, 2010 to analyze and report on the effectiveness of this resolution in lowering property taxes and in meeting the goals of funding public education, and the Legislature’s taxation committee would report out new legislation, if necessary, by March 1, 2010, to accomplish those goals.

1.C. AGAINST BOTH THE CITIZEN INITIATIVE AND THE COMPETING MEASURE

Question 2: Citizen Initiative

Do you want to allow slot machines at certain commercial horse racing tracks if part of the proceeds are used to lower prescription drug costs for the elderly and disabled, and for scholarships to the state universities and technical colleges?

"An Act to Allow Slot Machines at Commercial Horse Racing Tracks"

          Sec. 1. 7 MRSA §76 is enacted to read:

          1. Fund created. The Treasurer of State shall establish an account to be known as the "Agricultural Fair Support Fund" and shall credit to it all the money received for that purpose under Title 8, section 923, subsection 1, paragraph A, subparagraph 4.

          2. Disbursement. No later than January 31st of each year, all funds held as of the end of the previous calendar year in the Agricultural Fair Support Fund must be distributed by the Treasurer of State as follows:

          Sec. 2. 8 MRSA §263-C, sub-§4, as reallocated by PL 1999, c. 790, Pt. A, §8, is amended to read:

          Sec. 3. 8 MRSA §271, sub-§1, as amended by PL 2001, c. 567, §3, is further amended to read:

          1. Licensing. If the commission is satisfied that all of this chapter and rules prescribed by the commission have been substantially complied with during the past year and will be fully complied with during the coming year by the person, association or corporation applying for a license; that the applicant, its members, directors, officers, shareholders, employees, creditors and associates are of good moral character; that the applicant is financially responsible; and that the award of racing dates to the applicant is appropriate under the criteria contained in subsection 2, it may issue a license for the holding of harness horse races or meets for public exhibition with pari-mutuel pools, which must expire on December 31st. The fee for a license is $100 or $10 per week, whichever is higher. The commission shall provide a booklet containing harness racing laws and rules and relevant portions of the Maine Administrative Procedure Act to every initial licensee and a fee not to exceed $10 must be included in the license fee to cover the cost of this publication. The commission shall provide necessary revisions of this booklet to those persons renewing licenses at the time of renewal and shall include the cost of the revisions, not to exceed $10, in the renewal fee. The license must set forth the name of the licensee, the place where the races or race meets are to be held and the specific race dates and time of day or night during which racing may be conducted by the licensee. If the commission determines that the location where a commercial track is licensed to conduct races is unavailable, it may permit a licensee to transfer its license to another location. The substitute location and the races conducted there by the licensee must be conducted in accordance with this chapter. The District Court Judge, as designated in Title 4, chapter 5, may revoke any license issued at any time for violation of the commission’s rules or licensing provisions upon notice and hearing. A license issued under this section is transferable or assignable as long as the commission finds that the transferee or assignee satisfies all elements for the issuance of the license being transferred or assigned. A change in ownership, legal or equitable, of 50% or more of the voting stock of a corporation licensed under this section constitutes a transfer of the license.

          Sec. 4. 8 MRSA §§296 and 297 are enacted to read:

          1. Fund created. A fund is established to supplement harness racing purses to which the commission shall credit all payments received pursuant to section 923, subsection 1, paragraph A, subparagraph (2) for distribution in accordance with this section.

          2. Distribution. On May 30th, September 30th and January 30th, 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 licensed to operate slot machines under section 911, with each track receiving that amount of the money available for distribution determined by multiplying that amount times a fraction, the numerator of which is the total number of live race days conducted by the commercial track during the preceding time period and the denominator of which is the total number of race days conducted by all commercial tracks licensed to operate slot machines under section 911 during that time period. The payment in January must be adjusted so that for the prior 3 time periods each commercial track receives that fraction of the total money distributed over the full year from the fund established by this section, the amount determined by multiplying the total amount of money times a fraction, the numerator of which is the number of live race days conducted by the commercial track during the calendar year and the denominator of which is the total number of race days conducted by all commercial tracks licensed to operate slot machines under section 911 during that calendar year. The funds distributed pursuant to this section must be used to supplement harness racing purses.

          3. Rules. The commission may adopt rules to enforce the obligation of licensees to use funds distributed under this section to supplement harness racing purses and to require licensees to account for funds.

          The commission is authorized to establish an advance to the commission from any licensee under section 911 in an amount of up to $250,000 to fund any necessary start-up costs associated with the implementation of a system of slot machines in the State pursuant to chapter 30. Funds advanced for this purpose must be credited against the licensee’s obligation to pay the first $250,000 to the commission under section 923.

          Sec. 5. 8 MRSA c. 30 is enacted to read:

          As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

          1. Associated equipment. "Associated equipment" means any proprietary device, machine or part used in the manufacture or maintenance of a slot machine, including, but not limited to, integrated circuit chips, printed wire assemblies, printed wire boards, printing mechanisms, video display monitors and metering devices.

          2. Commission. "Commission" means the State Harness Racing Commission within the Department of Agriculture, Food and Rural Resources.

          3. Director. "Director" means the executive director of the commission.

          4. Drug abuser. "Drug abuser" has the same meaning as set forth in Title 5, section 20003, subsection 10.

          5. Drug addict. "Drug addict" has the same meaning as set forth in Title 5, section 20003, subsection 11.

          6. Drug-dependent person. "Drug-dependent person" has the same meaning as set forth in Title 5, section 20003, subsection 12.

          7. Distribute. "Distribute" means to sell, lease, license, place or otherwise make available for use in the State.

          8. Fugitive from justice. "Fugitive from justice" has the same meaning as set forth in Title 15, section 201, subsection 4.

          9. Gross slot income. "Gross slot income" means money or credits inserted into a slot machine minus money or credits or prizes paid out to winners.

          10. Licensee. "Licensee" means a person licensed by the commission to operate a slot machine in accordance with section 911.

          11. Operate. "Operate" means to offer for public use.

          12. Pari-mutuel facility. "Pari-mutuel facility" means a location at which a person is licensed under chapter 11 to accept pari-mutuel wagers on horse races.

          13. Person. "Person" means an individual, corporation, association, partnership, trust or other business organization.

          14. Slot machine. "Slot machine" means any mechanical, electrical or electronic device, contrivance or machine or other device, contrivance or machine that, upon insertion of a coin, token, credit or similar object or thing of value, is available to play or operate, the play or operation of which by the element of chance may deliver or entitle the person playing or operating the device, contrivance or machine to receive cash, tokens or credits to be exchanged for cash, merchandise or anything of value, whether the payoff is made automatically from the device, contrivance or machine or in any other manner, and includes progressive electronic gaming devices with a payoff that increases as the electronic gaming device is played.

          15. Slot machine distributor. "Slot machine distributor" means a person who is licensed under this chapter to distribute slot machines and associated equipment for use in the State.

          16. Uniform location agreement. "Uniform location agreement" means a written agreement between a licensee and a slot machine distributor that governs the terms and conditions of the placement of slot machines on the premises of the licensee.

          1. Operation of slot machines. A person may operate a slot machine in this State if the person is licensed to do so by the commission under section 911, but not otherwise.

          2. Distribution of slot machines. A person may distribute a slot machine and associated equipment for use in this State if the person is licensed to do so by the commission under section 913, but not otherwise.

          3. Slot machines. A person may not operate or distribute a slot machine in this State unless the machine is registered with the commission under section 912.

          4. Ownership of slot machines. A person may not place or operate a slot machine for use in this State if the slot machine is owned by any person other than a slot machine distributor licensed under section 913.

          The commission shall enforce and administer the provisions of this chapter.

          1. Eligible persons. The commission may issue a license to operate slot machines to any person who is licensed to operate a commercial track, as defined in section 275-A, that satisfies the following criteria:

          2. Requirements for license. The person applying for a license under subsection 1 must satisfy the qualifications set forth in section 914.

          3. Operation of machines. A licensee may operate a slot machine on any day during the calendar year at the location where the commercial track is licensed to accept pari-mutuel wagers on horse races, without restriction on hours of operation.

          4. Placement of slot machines. A licensee shall prohibit persons under 21 years of age from any area in which a slot machine is located except that persons 18 to 20 years of age may be present if directly employed by the licensee or a slot machine distributor.

          5. Uniform location agreement. Each slot machine is subject to a uniform location agreement between the slot machine distributor and the licensee. A copy of the agreement must be submitted to the commission. The uniform location agreement is the complete and sole agreement between the licensee and the slot machine distributor regarding slot machines. No other agreement between the licensee and the slot machine distributor is legally binding.

          6. Disclosure of other contracts and agreements. A licensee must disclose to the director any and all contracts or agreements the licensee establishes with a slot machine distributor.

          7. Restriction against proliferation. A license may not be issued under subsection 1 to any commercial track located within 100 miles of any existing licensee.

          1. Registration required. A slot machine may not be operated or distributed in this State unless the slot machine is registered by the commission, the operator is licensed by the commission under section 911 and the distributor of the slot machine is licensed under section 913.

          2. Requirements for registration. To be registered, a slot machine:

          3. Examination of prototypes. The commission shall examine prototypes of slot machines and associated equipment of slot machine distributors seeking registration as required in this chapter. The commission shall require the slot machine distributor seeking examination and approval of the slot machine or associated equipment to pay the anticipated cost of the examination before the examination occurs. After the examination occurs, the commission shall refund overpayments or charge and collect amounts sufficient to reimburse the commission for underpayments of actual cost. The commission may contract for the examinations of slot machines and associated equipment as required by this section.

          4. Unregistered slot machine subject to confiscation. Any slot machine that is not registered as required by this section is contraband and a public nuisance and is subject to confiscation by any law enforcement officer.

          1. License required. A person may not distribute any slot machine in the State unless the person is licensed under this section.

          2. Requirements for license. The commission may issue a license to distribute slot machines to an applicant that meets the qualifications set out in section 914.

          1. Minimum qualifications. A person must satisfy the following qualifications to be a licensee under section 911 or a slot machine distributor under section 913.

          2. Background investigation; additional qualifications. Before a license is granted under this chapter, the commission shall conduct a thorough background investigation of the applicant to ensure satisfaction of the qualifications set forth in this chapter and such additional qualifications as the commission may establish by rules adopted under section 904. The applicant shall provide information on a form as required by the director.

          1. Form. An application for a license required under this chapter must be on the form provided by the director. The application must contain, but is not limited to, the following information regarding the individual applicant and each officer, director, partner or owner of any legal or beneficial interest in a person applying for a license:

          2. Signature as certification. The applicant, by affixing the applicant’s signature to the application, certifies the following:

          3. Consent to review records. At the request of the commission, the applicant shall take whatever action is necessary to permit the director to examine all accounts and records in the applicant’s possession, under the applicant’s control or under the control of 3rd parties but accessible by consent of the applicant, and must authorize all 3rd parties in possession or in control of those accounts or records to allow the director or a designee to examine the accounts and records as the director determines necessary, to ascertain:

          4. Existing license. Commercial tracks with a license to operate under chapter 11 in force as of the effective date of this chapter that satisfy the eligibility requirements of section 911 must be automatically considered a licensee under section 911 and are not required to submit an application for a license under section 911.

          1. Fees. The annual fee for a license or registration issued under this chapter is as follows:

          2. Term of license and registration. All licenses and registrations issued by the director under this chapter are effective for 10 years and are automatically renewable at the conclusion of the term for an additional term of 10 years, unless revoked pursuant to section 917.

          3. Transferable. A license issued under this chapter is transferable or assignable as long as the director finds that the transferee or assignee satisfies all requirements for the issuance of the license transferred or assigned.

          1. Suspension or revocation of license; refusal to renew. The commission may refuse to renew a license or registration or revoke a license or registration after a hearing in accordance with the Maine Administrative Procedure Act for just cause, including any of the following:

          2. Ineligibility period following refusal to issue or renew license or revocation of license. A person may not apply to the commission for any license under section 911 or 913 less than 2 years after the commission refused to issue or renew a license under section 911 or 913 or less than one year after the revocation of a license issued to the person under section 911 or 913.

          1. Age of player. A licensee may not permit a person under 21 years of age to play a slot machine.

          2. Time and money limits not required. A licensee is not required to impose a limit on the amount of time or money spent by an individual playing the slot machines on the licensee’s premises. A licensee has no civil or criminal liability for the amount of time or money spent by an individual playing slot machines on the licensee’s premises.

          A licensee shall redeem credits for players who earn credits on a slot machine located on the premises of that licensee in accordance with rules adopted by the commission.

          1. Distribution from commercial track. A licensee shall collect and distribute gross slot income from slot machines operated by the licensee as follows.