Community Disbursements

(1) Pursuant to M.G.L. c. 23K, § 15(11), not less than $50,000 of the initial application fee for a gaming license shall be used to reimburse the host and surrounding municipalities in accordance with 205 CMR 114.03 for the cost of determining the impact of a proposed gaming establishment and for negotiating community impact mitigation agreements. (2) (a) Based on a letter of authorization to the commission signed by authorized representa­ tives of an applicant and a host or surrounding municipality or by an applicant and a regional planning agency, the commission may, at any time and from time to time, make community disbursements to that host or surrounding municipality or regional planning agency from available amounts paid by that applicant to the commission for community disbursements. If the total amount of payments authorized by an applicant exceeds the initial $50,000 amount, the applicant shall immediately pay to the commission all such additional amounts authorized by such letters of authorization for community disbursements. If the applicant fails to pay any such additional amount to the commission within 30 days after notification from the commission of insufficient funds, the application shall be rejected. (b) 1. In addition to the process provided in 205 CMR 114.03(2)(a), 21 days after the execution of the host community agreement, or, in the case of a prospective surrounding community to a Category 1 gaming establishment, at any time within 90 days prior to the deadline for submission by an applicant of an RFA-2 application for a Category 1 gaming license, or, in the case of a prospective surrounding community to a Category 2 gaming establishment, at any time within 60 days prior to the deadline for submission by an applicant of an RFA-2 application for a Category 2 license, any community that believes it may be a surrounding community to the gaming establishment that is the subject of the host community agreement may apply to the Commission for community disbursements without a letter of authorization signed by the applicant. To do so, the community must submit an application on a form provided by the Commission and shall identify all legal, 114.03: continued financial and other professional services deemed necessary by the community for the cost of determining the impact of the proposed gaming establishment and for the negotiation and execution of a host or surrounding community agreement and the attendant costs. Further, the application shall include a statement from the community attesting that a request for the subject funds was made directly to the applicant and denied, and that a copy of the application was served upon the applicant prior to being filed with the Commission. An applicant may file a response to the request for funds no later than seven days after service of the application by the community. The Commission may take action on the application either upon administrative review of the filings or it may convene a hearing on the application at which it may allow presentations from the community and applicant. 2. The Commission may approve the application upon a finding that there is a reasonable likelihood that the community will be designated a surrounding community pursuant to 205 CMR 125.01, that the request is reasonable in scope and that the risk that the community will not be able to properly determine the impacts of a proposed gaming establishment without the requested funds outweighs the burden of the actual financial cost that will be borne by the applicant. 3. If the application is approved, the community shall be designated a surrounding community for the limited purpose of receiving funding to pay for the cost of determining the impacts of a proposed gaming establishment and for potentially negotiating a surrounding community agreement. Such determination, however, shall not be considered evidence that the community receiving disbursements is or should be designated as a surrounding community pursuant to 205 CMR 125.01. 4. The Commission shall make the approved community disbursements from available amounts paid by the applicant to the Commission for community disbursements. If the total amount of payments authorized by the Commission exceeds the initial $50,000 amount, the applicant shall immediately pay to the Commission all such additional authorized amounts for community disbursements. If the applicant fails to pay any such additional amount to the Commission within 30 days after notification from the Commission of insufficient funds, the application shall be rejected. (3) If 30 days have elapsed after the final issuance, denial or withdrawal of an application for a gaming license and there remains a balance of funds previously paid by the applicant for community disbursements and not previously encumbered or disbursed pursuant to 205 CMR 114.03(2), the funds shall be distributed as follows: (a) If the funds represent a remaining balance of the initial $50,000 portion of the $400,000 application fee filed in accordance with M.G.L. c. 23K, § 15(11), the funds shall be deposited in the Community Mitigation Fund established in accordance with M.G.L. c. 23K, § 61; or (b) If the funds represent monies paid to the Commission by the applicant in accordance with 205 CMR 114.03(2)(a) or (b)4., the monies shall be refunded to the applicant. (4) The provisions of 205 CMR 114.03 do not prohibit community contributions permitted and reported in accordance with M.G.L. c. 23K, § 47, and 205 CMR 108.02: Mandatory Disclosure of Political Contributions and Community Contributions.