<section article="gbr" article_name="Business Regulation" number="11-101" title_number="11" title_name="Horse Racing" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Breakage” means the odd cents that remain after all successful bettors are paid to the next lowest multiple of 10 cents.</text> </level> <level label="c"> <text>“Central Repository” means the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services.</text> </level> <level label="d"> <text>“Commission” means the State Racing Commission.</text> </level> <level label="e"> <text>“Handle” means the gross amount, less refunds, of money bet.</text> </level> <level label="f"> <text>“Harness racing” means the racing of horses that trot or pace in harness while pulling drivers in sulkies.</text> </level> <level label="g"> <text>“Intertrack betting” means:</text> <level label="1"> <text>pari-mutuel betting at a receiving track in the State on a race that is:</text> <level label="i"> <text>held live or by interstate simulcast at a sending track in the State; and</text> </level> <level label="ii"> <text>shown simultaneously by video signal at the receiving track; and</text> </level> </level> <level label="2"> <text>transmission of the bets at the receiving track to the sending track.</text> </level> </level> <level label="h"> <text>“License” means a license issued by the Commission to hold a race meeting.</text> </level> <level label="i"> <text>“Licensee” means a person who has been awarded racing days for the current calendar year.</text> </level> <level label="j"> <text>“Mile thoroughbred racing” means thoroughbred horse races at a track that is at least 1 mile long.</text> </level> <level label="k"> <text>“Multiple mutuel pool” means a separate pari-mutuel betting pool in which an interest is represented by a single bet on 2 or more horses.</text> </level> <level label="l"> <text>“Mutuel pool” includes a multiple mutuel pool and a regular mutuel pool.</text> </level> <level label="m"> <text>“Pari-mutuel betting” means the system of betting in which those who successfully bet on horses that finish in specified positions share the mutuel pool, less the takeout and the breakage.</text> </level> <level label="n"> <text>“Purse” means the prize money divided among the owners of horses that finish in specified positions in a race.</text> </level> <level label="o"> <text>“Race meeting” means a period of time to hold racing that extends between specific dates over a number of racing days at a single track.</text> </level> <level label="p"> <text>“Racing” includes:</text> <level label="1"> <text>harness racing;</text> </level> <level label="2"> <text>mile thoroughbred racing;</text> </level> <level label="3"> <text>special thoroughbred racing;</text> </level> <level label="4"> <text>steeplechase or hurdle racing;</text> </level> <level label="5"> <text>flat racing; and</text> </level> <level label="6"> <text>quarter horse racing.</text> </level> </level> <level label="q"> <text>“Receiving track” means a track where pari-mutuel betting is done on races held at another track.</text> </level> <level label="r"> <text>“Regular mutuel pool” means a separate pari-mutuel betting pool in which an interest is represented by a single bet on 1 horse.</text> </level> <level label="s"> <text>“Sending track” means a track where a race is held live or by interstate simulcast and is sent simultaneously by video signal to a receiving track or a satellite simulcast facility under Subtitle 8, Part III of this title.</text> </level> <level label="t"> <text>“Special thoroughbred racing” means thoroughbred horse racing held by the Maryland State Fair and Agricultural Society, Inc., or the Maryland-National Capital Park and Planning Commission.</text> </level> <level label="u"> <text>“Takeout” means the part of the handle that is not returned to successful bettors but is otherwise allocated under this title.</text> </level> <level label="v"> <text>“Track” means a place where racing is held.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-102" title_number="11" title_name="Horse Racing" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>This title is statewide and exclusive in its effect.</text> </level> <level label="b"> <text>A county, municipal corporation, or other political subdivision of the State may not:</text> <level label="1"> <text>make or enforce a local law, ordinance, or regulation about racing; or</text> </level> <level label="2"> <text>impose or collect any tax or additional license fee as to racing, except the general property tax.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-103" title_number="11" title_name="Horse Racing" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <text>Unless pari-mutuel betting is held, this title does not apply to:</text> <level label="1"> <text>the Elkridge-Harford Point to Point;</text> </level> <level label="2"> <text>the Grand National;</text> </level> <level label="3"> <text>the Marlboro Trials;</text> </level> <level label="4"> <text>the Maryland Hunt Cup;</text> </level> <level label="5"> <text>the Potomac Trials;</text> </level> <level label="6"> <text>a race at the Cape Pine Farm in Church Hill, Queen Anne’s County;</text> </level> <level label="7"> <text>a race held by the Pocomoke City Fair Committee, Inc. on any day during and in conjunction with the Great Pocomoke Fair; and</text> </level> <level label="8"> <text>any other steeplechase or hunt-type race.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-201" title_number="11" title_name="Horse Racing" subtitle_number="2" subtitle_name="State Racing Commission"> <text>There is a State Racing Commission in the Department.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-202" title_number="11" title_name="Horse Racing" subtitle_number="2" subtitle_name="State Racing Commission"> <level label="a"> <text>The Commission consists of 9 members, appointed by the Governor with the advice and consent of the Senate.</text> </level> <level label="b"> <text>At the time of appointment and qualification:</text> <level label="1"> <text>each member shall be:</text> <level label="i"> <text>at least 25 years old;</text> </level> <level label="ii"> <text>a resident of the State who has resided in the State for at least the last 5 years;</text> </level> <level label="iii"> <text>a qualified voter of the State; and</text> </level> <level label="iv"> <text>an individual who has not been convicted of a crime that involves moral turpitude;</text> </level> </level> <level label="2"> <text>at least 3 members of the Commission shall be knowledgeable or experienced in an aspect of thoroughbred racing; and</text> </level> <level label="3"> <text>at least 3 other members shall be knowledgeable or experienced in an aspect of harness racing.</text> </level> </level> <level label="c"> <level label="1"> <text>A member of the Commission may not hold an official relation to a licensee or hold any stocks, bonds, or other financial interest in a licensee.</text> </level> <level label="2"> <text>Not more than 4 members who are appointed after July 1, 1989, may have a financial interest in racing in the State.</text> </level> <level label="3"> <text>Not more than 6 members may be of the same political party.</text> </level> </level> <level label="d"> <text>Before taking office, each appointee to the Commission shall take the oath required by Article I, § 9 of the Maryland Constitution.</text> </level> <level label="e"> <level label="1"> <text>The term of a member of the Commission is 4 years and begins on July 1.</text> </level> <level label="2"> <text>The terms of members are staggered as required by the terms provided for members of the Commission on October 1, 1992.</text> </level> <level label="3"> <text>At the end of a term, a member continues to serve until a successor is appointed and qualifies.</text> </level> <level label="4"> <text>A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.</text> </level> </level> <level label="f"> <level label="1"> <text>Subject to the hearing requirements of subsection (g) of this section, the Governor, with the advice of the Secretary, may remove a member of the Commission for inefficiency, misconduct in office, or neglect of duty.</text> </level> <level label="2"> <text>Except as provided in paragraph (3) of this subsection and subject to paragraph (4) of this subsection, a member shall be considered to have resigned if the member did not attend at least two–thirds of the Board meetings held during any consecutive 12–month period while the member was serving on the Board.</text> </level> <level label="3"> <text>The Governor may waive a member’s resignation and allow the member to continue serving if the member has been unable to attend meetings for reasons satisfactory to the Governor and the reasons are made public.</text> </level> <level label="4"> <text>In accordance with § 8–501 of the State Government Article, the chairman shall provide notice to the Governor and the Governor shall appoint a successor.</text> </level> </level> <level label="g"> <level label="1"> <text>Before the Governor removes a member, the Governor shall give the member an opportunity for a public hearing.</text> </level> <level label="2"> <text>At least 10 days before the hearing, the Governor shall give the member:</text> <level label="i"> <text>a copy of the charges; and</text> </level> <level label="ii"> <text>notice of the time and place of the hearing.</text> </level> </level> <level label="3"> <text>The member may be represented at the hearing by counsel.</text> </level> <level label="4"> <text>If the Governor removes a member, the Governor shall submit to the Secretary of State:</text> <level label="i"> <text>a statement of all charges made against the member;</text> </level> <level label="ii"> <text>the findings of the Governor; and</text> </level> <level label="iii"> <text>a record of the proceedings.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-203" title_number="11" title_name="Horse Racing" subtitle_number="2" subtitle_name="State Racing Commission"> <level label="a"> <text>The Governor shall designate a chairman from among the members of the Commission.</text> </level> <level label="b"> <level label="1"> <text>The term of the chairman is 1 year.</text> </level> <level label="2"> <text>The chairman may not serve more than 2 consecutive terms as chairman.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-204" title_number="11" title_name="Horse Racing" subtitle_number="2" subtitle_name="State Racing Commission"> <level label="a"> <text>Except as provided in § 11-310 of this title, a majority of the members then serving on the Commission is a quorum.</text> </level> <level label="b"> <text>The Commission shall meet in the State, at the times and places that the Commission determines.</text> </level> <level label="c"> <text>Each member of the Commission is entitled to:</text> <level label="1"> <text>compensation in accordance with the State budget; and</text> </level> <level label="2"> <text>reimbursement under the Standard State Travel Regulations for expenses for each Commission meeting attended, as provided in the State budget.</text> </level> </level> <level label="d"> <text>While in office, each member of the Commission shall be covered by a surety bond or an insurance policy of the type and in the amount of coverage determined by the State Treasurer under § 5–108 of the State Government Article.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-205" title_number="11" title_name="Horse Racing" subtitle_number="2" subtitle_name="State Racing Commission"> <level label="a"> <level label="1"> <text>With the approval of the Governor, the Secretary shall appoint an executive director for the Commission from a list of at least 3 nominees submitted by the Commission.</text> </level> <level label="2"> <text>The executive director is in the executive service in the State Personnel Management System and serves at the pleasure of the Secretary.</text> </level> </level> <level label="b"> <text>The executive director shall:</text> <level label="1"> <text>collect the taxes and fees imposed under this title or regulations adopted by the Commission;</text> </level> <level label="2"> <text>keep the records and papers of the Commission, including a record of each proceeding;</text> </level> <level label="3"> <text>administer the licensing of individuals who work in connection with racing;</text> </level> <level label="4"> <text>prepare, issue, and submit reports of the Commission;</text> </level> <level label="5"> <text>administer the daily operation of the office of the Commission; and</text> </level> <level label="6"> <text>perform any other duty that the Commission directs.</text> </level> </level> <level label="c"> <text>With the approval of the Commission, the executive director shall set the conditions under which a licensee must add to, change, make a reasonable improvement to, or repair property that a licensee owns or leases for racing.</text> </level> <level label="d"> <text>The executive director is entitled to:</text> <level label="1"> <text>compensation in accordance with the State budget; and</text> </level> <level label="2"> <text>reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-206" title_number="11" title_name="Horse Racing" subtitle_number="2" subtitle_name="State Racing Commission"> <level label="a"> <text>With the approval of the Commission and, except as otherwise provided by law, subject to the provisions of the State Personnel and Pensions Article, the executive director shall appoint a staff of the Commission.</text> </level> <level label="b"> <level label="1"> <text>The Commission may employ 4 stewards and 4 harness judges.</text> </level> <level label="2"> <text>The stewards and harness judges shall be recommended by the executive director.</text> </level> <level label="3"> <text>Each licensee and organization that represents owners and trainers may recommend individuals to the Commission and executive director for appointment as stewards or harness judges.</text> </level> <level label="4"> <text>The stewards and harness judges are special appointments of the skilled service or the professional service in the State Personnel Management System.</text> </level> </level> <level label="c"> <text>Each member of the staff of the Commission, steward, and harness judge is entitled to:</text> <level label="1"> <text>compensation in accordance with the State budget; and</text> </level> <level label="2"> <text>reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </level> <level label="d"> <text>An individual who holds a position under the Commission may not hold an official relation to a licensee or hold any stocks, bonds, or other financial interest in a licensee.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-207" title_number="11" title_name="Horse Racing" subtitle_number="2" subtitle_name="State Racing Commission"> <level label="a"> <text>On the recommendation of the executive director, the Commission may employ additional employees or agents, including auditors, experts, guards, inspectors, a breathalyzer operator at each harness racing track, scientists, Commission secretaries, specimen collectors, veterinarians, and others whom the Commission considers to be essential at or in connection with a race meeting in the best interests of racing.</text> </level> <level label="b"> <text>The licensee who holds the race meeting for which an additional employee is used shall pay:</text> <level label="1"> <text>the employer contribution for the employee under the Employees’ Pension System;</text> </level> <level label="2"> <text>the employer contribution, as determined by the Department of Budget and Management, for the retiree under § 2-508 of the State Personnel and Pensions Article; and</text> </level> <level label="3"> <text>an amount required under § 23-306.1(b) of the State Personnel and Pensions Article, if any.</text> </level> </level> <level label="c"> <text>A licensee who holds a race meeting shall employ and pay the officials at the race meeting, other than stewards and harness judges, including each clerk of the course, clerk of the scales, handicapper, paddock judge, patrol judge, placing judge, racing secretary, starter, assistant starter, and timer.</text> </level> <level label="d"> <text>Notwithstanding any other provision of this title, if a licensee is required to allocate 0.25% of handle to either the Maryland Race Track Employees Pension Fund or the Maryland Harness Track Employees Pension Fund, the licensee shall first pay from the allocation any amounts required to be paid by the licensee under subsection (b) of this section and the remainder shall be paid to the appropriate pension fund.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-208" title_number="11" title_name="Horse Racing" subtitle_number="2" subtitle_name="State Racing Commission"> <level label="a"> <text>Each law enforcement officer shall cooperate with the Commission to enforce this title.</text> </level> <level label="b"> <text>On request of the Commission, the Governor may order the Police Commissioner of Baltimore City or the sheriff of a county to assign enough law enforcement officers to prevent unauthorized racing.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-209" title_number="11" title_name="Horse Racing" subtitle_number="2" subtitle_name="State Racing Commission"> <level label="a"> <text>Besides its other powers under this title, the Commission has the powers necessary or proper to carry out fully all the purposes of this title.</text> </level> <level label="b"> <level label="1"> <text>The jurisdiction, supervision, powers, and duties of the Commission extend to each person who holds racing for a purse, reward, or stake.</text> </level> <level label="2"> <text>In exercising the jurisdiction, supervision, powers, and duties of the Commission under this title, the Commission shall consider, in addition to any other factor the Commission considers important, the health, safety, and welfare of horses engaged in racing and training at tracks and training facilities in the State.</text> </level> </level> <level label="c"> <level label="1"> <text>The Commission shall establish an Equine Health, Safety, and Welfare Advisory Committee.</text> </level> <level label="2"> <text>The Executive Director of the Commission shall appoint a member of the Commission to chair the Advisory Committee.</text> </level> <level label="3"> <text>The Advisory Committee consists of the following members:</text> <level label="i"> <text>three members of the Commission, appointed by the Executive Director of the Commission;</text> </level> <level label="ii"> <text>one representative of each racing licensee;</text> </level> <level label="iii"> <text>one representative of the horsemen, appointed by an organization that represents the horsemen;</text> </level> <level label="iv"> <text>one representative of the horse breeders, appointed by an organization that represents the horse breeders;</text> </level> <level label="v"> <text>the Commission’s Equine Medical Director;</text> </level> <level label="vi"> <text>a veterinarian licensed in the State; and</text> </level> <level label="vii"> <text>any other individual with expertise in equine or racing industries that the Executive Director of the Commission appoints.</text> </level> </level> <level label="4"> <text>The Executive Director of the Commission shall determine the time and location of Advisory Committee meetings.</text> </level> <level label="5"> <text>The Advisory Committee shall serve as an advisory body to the Commission on matters related to the health, safety, and welfare of horses engaged in racing and training at tracks and training facilities in the State.</text> </level> <level label="6"> <text>The Chairman of the Advisory Committee shall report regularly to the Commission on the activities of the Advisory Committee, including any recommendations for changes to rules, regulations, laws, or other conditions of racing.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-210" title_number="11" title_name="Horse Racing" subtitle_number="2" subtitle_name="State Racing Commission"> <level label="a"> <text>Except as provided in subsection (b) of this section, the Commission may:</text> <level label="1"> <text>adopt regulations and conditions to govern racing and betting on racing in the State; and</text> </level> <level label="2"> <text>approve or disapprove:</text> <level label="i"> <text>prices that a licensee may set for admission to a race, a service performed, or an article sold at a track; and</text> </level> <level label="ii"> <text>the size of the purse, reward, or stake to be offered at a race.</text> </level> </level> </level> <level label="b"> <text>The Commission may not adopt regulations that allow:</text> <level label="1"> <text>racing a breed of horse not now authorized by law; or</text> </level> <level label="2"> <text>holding currently unauthorized:</text> <level label="i"> <text>intertrack betting;</text> </level> <level label="ii"> <text>off-track betting; or</text> </level> <level label="iii"> <text>telephone betting other than telephone account betting.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-211" title_number="11" title_name="Horse Racing" subtitle_number="2" subtitle_name="State Racing Commission"> <level label="a"> <text>The Commission may:</text> <level label="1"> <text>enter or investigate the office, track, or place of business of a licensee to ensure that the regulations of the Commission are strictly complied with; and</text> </level> <level label="2"> <text>place an expert accountant or other individual in the office, track, or place of business of a licensee and require that the licensee pay the salary and expenses of the expert accountant or other individual.</text> </level> </level> <level label="b"> <text>The Commission may require that an employee or official of the licensee be removed from the job.</text> </level> <level label="c"> <text>The Commission may require that a licensee keep financial records in the way that the Commission determines.</text> </level> <level label="d"> <text>The Commission may administer oaths.</text> </level> <level label="e"> <text>The Commission may issue a subpoena for the attendance of a witness to testify or to produce evidence.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-212" title_number="11" title_name="Horse Racing" subtitle_number="2" subtitle_name="State Racing Commission"> <level label="a"> <text>The Commission may maintain a testing laboratory and have tests done elsewhere.</text> </level> <level label="b"> <level label="1"> <text>Each licensee shall pay a fraction of the yearly costs of the testing laboratory and of the tests done elsewhere.</text> </level> <level label="2"> <text>The numerator of the fraction shall be the number of racing days with pari-mutuel betting privileges that the licensee holds during the year.</text> </level> <level label="3"> <text>The denominator of the fraction shall be the whole number of racing days with pari-mutuel betting privileges held in the State during the year.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-213" title_number="11" title_name="Horse Racing" subtitle_number="2" subtitle_name="State Racing Commission"> <level label="a"> <text>On or before September 15 of each year, the Commission shall submit a report to the Secretary and, in accordance with § 2–1257 of the State Government Article, the Legislative Policy Committee about the preceding calendar year.</text> </level> <level label="b"> <text>Each report shall include:</text> <level label="1"> <text>a statement of receipts and disbursements of the Commission;</text> </level> <level label="2"> <text>a summary of major events that occurred the preceding year that affected horse racing in the State, including any significant changes at tracks in the region as well as a discussion of legislative initiatives in the State;</text> </level> <level label="3"> <text>a 5–year assessment of each track regarding:</text> <level label="i"> <text>attendance;</text> </level> <level label="ii"> <text>purse distributions;</text> </level> <level label="iii"> <text>live racing days that are allocated and used;</text> </level> <level label="iv"> <text>betting on live racing that is held at that track broken down by the following categories:</text> <level label="1"> <text>betting conducted at the live track;</text> </level> <level label="2"> <text>betting conducted at other Maryland tracks;</text> </level> <level label="3"> <text>betting conducted at satellite simulcast facilities in the State; and</text> </level> <level label="4"> <text>betting conducted through out–of–state satellite simulcasting;</text> </level> </level> <level label="v"> <text>betting that is conducted at the live track on races simulcast from other tracks in the State; and</text> </level> <level label="vi"> <text>betting that is conducted at the live track on races simulcast from out–of–state tracks;</text> </level> </level> <level label="4"> <text>information on all simulcast betting at satellite simulcast facilities in the State, including information on how much is wagered on in–State races and how much is bet on out–of–state races;</text> </level> <level label="5"> <text>information on all simulcast betting that is conducted out of state on races being run live in this State;</text> </level> <level label="6"> <text>to the extent available, information on the breeding industry in the State, including:</text> <level label="i"> <text>the number of breeders in the State;</text> </level> <level label="ii"> <text>the number of foals registered in the State;</text> </level> <level label="iii"> <text>the average sales prices of foals; and</text> </level> <level label="iv"> <text>any other information pertaining to the regional and national ranking of the State for breeding;</text> </level> </level> <level label="7"> <text>all other information that is currently provided by the Commission in its annual report;</text> </level> <level label="8"> <text>additional information on satellite simulcast facilities, as required under § 11–831 of this title;</text> </level> <level label="9"> <text>a summary of the activities of the Equine Health, Safety, and Welfare Advisory Committee and any recommendations by the Commission for changes to State law necessary for the enhancement of the health, safety, or welfare of horses engaged in racing and training at tracks and training facilities in the State; and</text> </level> <level label="10"> <text>any other information that is useful in explaining the financial viability of horse racing in the State and any recommendations to improve the industry.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-214" title_number="11" title_name="Horse Racing" subtitle_number="2" subtitle_name="State Racing Commission"> <text>The Commission exercises its powers and performs its duties subject to the authority of the Secretary.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-301" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <text>In this subtitle, “beneficial ownership” includes:</text> <level label="1"> <text>record ownership;</text> </level> <level label="2"> <text>stock or other ownership in an entity in a chain of parent and subsidiary or affiliated entities, any 1 of which participates in the capital or profits of a licensee, regardless of the percentage of ownership involved;</text> </level> <level label="3"> <text>an interest that entitles a person to benefits substantially equivalent to ownership by an agreement, relationship, or other arrangement even though the person is not an owner of record; and</text> </level> <level label="4"> <text>unless there are special circumstances, ownership of a security by a relative of an individual who lives in the home of the individual.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-302" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <text>A person must have an appropriate license whenever the person holds a race meeting in the State where pari-mutuel betting is allowed or a purse, reward, or stake is offered.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-303" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <level label="a"> <text>An applicant for a license shall submit to the executive director of the Commission an application:</text> <level label="1"> <text>in the form that the Commission requires; and</text> </level> <level label="2"> <text>on or before a day that the Commission sets.</text> </level> </level> <level label="b"> <text>The application shall state:</text> <level label="1"> <text>the dates of the race meetings desired;</text> </level> <level label="2"> <text>the maximum number of racing days desired; and</text> </level> <level label="3"> <text>any other information that the Commission requires.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-304" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <level label="a"> <text>The Commission shall issue a license to each applicant who:</text> <level label="1"> <text>is awarded racing days in a race meeting; and</text> </level> <level label="2"> <text>pays the appropriate license fee.</text> </level> </level> <level label="b"> <text>A license shall state:</text> <level label="1"> <text>the dates of the race meeting awarded;</text> </level> <level label="2"> <text>the total number of racing days awarded; and</text> </level> <level label="3"> <text>the kind of racing to be held.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-305" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <text>A licensee is subject to all rights, regulations, and conditions that the Commission sets for the calendar year in which a race meeting of the licensee is held.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-306" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <text>An award of a racing day to a licensee gives the licensee a license for the racing day, but it does not give the licensee an ownership right in the racing day.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-307" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <level label="a"> <level label="1"> <text>On request of a licensee, the Commission may return to the licensee a fee paid for racing on a day when the licensee fails to hold racing if:</text> <level label="i"> <text>on that day, racing is impossible, impracticable, or inadvisable;</text> </level> <level label="ii"> <text>the licensee is not in default; and</text> </level> <level label="iii"> <text>the reason for the lack of racing is beyond the control of the licensee.</text> </level> </level> <level label="2"> <text>The decision of the Commission is final.</text> </level> </level> <level label="b"> <text>If a licensee does not hold racing on the full number of its authorized racing days because of bad weather conditions, the Commission may award to the licensee replacement races or racing days.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-308" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <level label="a"> <text>Subject to the hearing provisions of §§ 11-309 and 11-310 of this subtitle, the Commission may deny a license to an applicant or discipline a licensee in accordance with this section.</text> </level> <level label="b"> <text>The Commission may deny a license to any applicant for any reason that the Commission considers sufficient.</text> </level> <level label="c"> <level label="1"> <text>The Commission may reprimand any licensee or suspend or revoke a license if the licensee violates:</text> <level label="i"> <text>this title;</text> </level> <level label="ii"> <text>a regulation adopted under this title; or</text> </level> <level label="iii"> <text>a condition set by the Commission.</text> </level> </level> <level label="2"> <text>The Commission shall suspend or revoke a license if the applicant or licensee fails to:</text> <level label="i"> <text>keep records and make reports of ownership of stock that are required under § 11-314 of this subtitle; or</text> </level> <level label="ii"> <text>make a reasonable effort to get affidavits required under § 11-314(b) and (c) of this subtitle.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The Commission may impose a penalty not exceeding $5,000 for each racing day that the licensee is in violation of subsection (c) of this section:</text> <level label="i"> <text>instead of suspending or revoking a license under subsection (c)(1) of this section; and</text> </level> <level label="ii"> <text>in addition to suspending or revoking a license under subsection (c)(2) of this section.</text> </level> </level> <level label="2"> <text>To determine the amount of the penalty imposed under paragraph (1) of this subsection, the Commission shall consider:</text> <level label="i"> <text>the seriousness of the violation;</text> </level> <level label="ii"> <text>the harm caused by the violation; and</text> </level> <level label="iii"> <text>the good faith or lack of good faith of the licensee.</text> </level> </level> <level label="3"> <text>A penalty imposed on a licensee shall be paid from the licensee’s share of the takeout.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-309" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <level label="a"> <text>Except as otherwise provided in § 10-226 of the State Government Article, before the Commission takes any final action under § 11-308 of this subtitle, it shall give the person against whom the action is contemplated an opportunity for a hearing before the Commission or, as provided under § 11-310 of this subtitle, a hearing committee.</text> </level> <level label="b"> <text>The Commission shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.</text> </level> <level label="c"> <text>If, after due notice, the person against whom the action is contemplated does not appear, nevertheless the Commission may hear and determine the matter.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-310" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <level label="a"> <text>The Commission may delegate to a hearing committee of at least 3 of its members the power to hold adjudicatory proceedings under this title, including evidentiary hearings.</text> </level> <level label="b"> <level label="1"> <text>A unanimous decision by the hearing committee is binding and is a final decision of the Commission.</text> </level> <level label="2"> <text>If the decision of the hearing committee is not unanimous, a de novo hearing shall be conducted by the Commission.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-311" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <text>A party to a proceeding before the Commission who is aggrieved by a final decision of the Commission in a contested case, as defined in § 10-202 of the State Government Article, may take an appeal as allowed in §§ 10-222 and 10-223 of the State Government Article.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-312" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <level label="a"> <text>On request of the Commission, the following individuals shall give the Commission their fingerprints:</text> <level label="1"> <text>each individual licensee;</text> </level> <level label="2"> <text>each individual member of an unincorporated association that is a licensee;</text> </level> <level label="3"> <text>each officer or director of a corporation that is a licensee;</text> </level> <level label="4"> <text>each employee of a licensee who actively participates in the racing action of the licensee;</text> </level> <level label="5"> <text>each individual who actively participates in the racing action of a licensee, including each agent, blacksmith, driver, apprentice jockey, jockey, manager, owner, trainer, stable employee, and veterinarian;</text> </level> <level label="6"> <text>each member of the Commission;</text> </level> <level label="7"> <text>the Executive Director of the Commission;</text> </level> <level label="8"> <text>each employee of the Commission under §§ 11-206 and 11-207 of this title; and</text> </level> <level label="9"> <text>each individual who is subject to § 11-316 of this subtitle.</text> </level> </level> <level label="b"> <text>The Commission shall:</text> <level label="1"> <text>apply to the Central Repository for a State and national criminal history records check for each individual listed in subsection (a) of this section; and</text> </level> <level label="2"> <text>as part of the application for a criminal history records check, submit to the Central Repository:</text> <level label="i"> <text>a complete set of the individual’s legible fingerprints taken on a form approved by the Director of the Central Repository; and</text> </level> <level label="ii"> <text>the fee authorized under § 10-221(b)(7) of the Criminal Procedure Article for access to Maryland criminal history records.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>In addition to a State criminal history records check under this section, the Commission may require an individual listed in subsection (a) of this section to obtain a criminal history records check from the Federal Bureau of Investigation, through the Central Repository.</text> </level> <level label="2"> <text>For each applicant who is required by the Commission to obtain a criminal history records check from the Federal Bureau of Investigation under paragraph (1) of this subsection, the Commission shall apply to the Central Repository for a national criminal history records check.</text> </level> <level label="3"> <text>As part of the application for a national criminal history records check, the Commission shall submit to the Central Repository:</text> <level label="i"> <text>a complete set of the individual’s legible fingerprints taken on a form approved by the Director of the Federal Bureau of Investigation; and</text> </level> <level label="ii"> <text>the mandatory processing fee required by the Federal Bureau of Investigation for a national criminal history records check.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>In accordance with §§ 10-201 through 10-234 of the Criminal Procedure Article, the Central Repository shall forward to the individual and the Commission the individual’s criminal history record information.</text> </level> <level label="2"> <text>Information obtained from the Central Repository under this section shall be:</text> <level label="i"> <text>confidential and may not be disseminated; and</text> </level> <level label="ii"> <text>used only for the purpose authorized by this section.</text> </level> </level> <level label="3"> <text>The subject of a criminal history records check under this section may contest the contents of the printed statement issued by the Central Repository as provided in § 10-223 of the Criminal Procedure Article.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-313" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <level label="a"> <text>The Commission shall require a licensee, and each officer or stockholder of a licensee, to disclose to the Commission each financial interest that the person has in racing.</text> </level> <level label="b"> <text>On or before the 90th day following the end of a licensee’s fiscal year, the licensee shall submit to the Commission in the form that the Commission requires:</text> <level label="1"> <text>an itemized statement under oath for the preceding fiscal year of receipts from all sources and of all expenses and disbursements, including salaries of officers, attorney fees, and lobbying expenses; and</text> </level> <level label="2"> <text>a certified audit by a certified public accountant of the financial records of the licensee for the preceding fiscal year.</text> </level> </level> <level label="c"> <text>The audited statements of all licensees shall be sent to the Governor and, subject to § 2-1257 of the State Government Article, to the General Assembly.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-314" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <level label="a"> <text>The Commission shall require each licensee to keep records that show the beneficial ownership of the stock of the licensee, whether or not the beneficial ownership is registered or stated on the stock.</text> </level> <level label="b"> <level label="1"> <text>The Commission shall require a licensee at least once each calendar year to get by written request an affidavit from each owner of record of the licensee.</text> </level> <level label="2"> <text>The affidavit shall state, to the best of the affiant’s knowledge, information, and belief:</text> <level label="i"> <text>whether a person other than the affiant has a right of beneficial ownership in the stock held in the name of the affiant;</text> </level> <level label="ii"> <text>the name and address of any other person who has a right of beneficial ownership; and</text> </level> <level label="iii"> <text>the amount and nature of the beneficial ownership.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>If a licensee learns that a person, other than a record owner of stock in a licensee, has a beneficial ownership interest in stock of the licensee, the licensee promptly shall request in writing that the person submit an affidavit within 60 days to the licensee.</text> </level> <level label="2"> <text>The affidavit shall state to the best of the affiant’s knowledge, information, and belief:</text> <level label="i"> <text>whether the affiant has a right of beneficial ownership in the stock of the licensee that is described in the notice;</text> </level> <level label="ii"> <text>the amount and nature of the beneficial ownership;</text> </level> <level label="iii"> <text>whether a person other than the affiant and the record owner has a right of ownership of any kind in that stock of the licensee; and</text> </level> <level label="iv"> <text>the amount and nature of the ownership of that stock by a person other than the affiant and the record owner.</text> </level> </level> </level> <level label="d"> <text>Notwithstanding the affidavit requirements of this section, the Commission may excuse the reporting of beneficial ownership that is less than 2% of the licensee.</text> </level> <level label="e"> <level label="1"> <text>A licensee shall submit the beneficial ownership records and affidavits required under this section to the Commission at least once each year and at any other time that the Commission requires.</text> </level> <level label="2"> <text>A licensee shall report promptly to the Commission each change in beneficial ownership.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-315" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <text>A statement required to be submitted to the Commission under § 11-313 or § 11-314 of this subtitle shall be under oath and signed by each officer of the corporate licensee or by the owner or each partner of an unincorporated licensee.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-316" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <level label="a"> <text>Before a prospective buyer buys a majority controlling interest in a licensee, the Commission shall review the personal and financial background of the prospective buyer.</text> </level> <level label="b"> <level label="1"> <text>The Commission shall adopt regulations to carry out this section.</text> </level> <level label="2"> <text>The regulations shall:</text> <level label="i"> <text>require a personal and financial background check of the prospective buyer;</text> </level> <level label="ii"> <text>specify a period of time to review the required personal and financial information before a purchase or transfer of racing days is made; and</text> </level> <level label="iii"> <text>require that notice and an invitation to comment be given to the Legislative Policy Committee at least 15 days before final approval of a purchase or transfer of racing days resulting from a purchase.</text> </level> </level> <level label="3"> <text>The background check shall include:</text> <level label="i"> <text>a review by a certified public accountant of certified financial statements, including contingent or pledged liabilities, sufficient to determine the ability of the prospective buyer to buy and maintain the licensee;</text> </level> <level label="ii"> <text>an income statement for the most recent year;</text> </level> <level label="iii"> <text>a statement of financial and related records of any person in which the prospective buyer has at least a majority interest;</text> </level> <level label="iv"> <text>a disclosure of each financial interest in racing;</text> </level> <level label="v"> <text>a disclosure of each person who will have beneficial ownership of the licensee as a result of the purchase;</text> </level> <level label="vi"> <text>a criminal history records check under § 11-312 of this subtitle; and</text> </level> <level label="vii"> <text>a character review.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-317" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <level label="a"> <text>Before a license or racing days may be transferred to a buyer or a lessee of a track:</text> <level label="1"> <text>the Legislative Policy Committee shall have been notified at least 15 days before the transfer;</text> </level> <level label="2"> <text>the Legislative Policy Committee, if it has chosen to do so, shall have provided comment to the Commission about the transfer; and</text> </level> <level label="3"> <text>the transfer shall have been approved by the Commission.</text> </level> </level> <level label="b"> <text>At least 30 days before the owner of a track enters into a contract to sell the track, the owner shall provide confidential notice of the contract to the governing body of the jurisdiction where the track is located.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-318" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <text>The Commission may require a licensee to get its approval before the licensee:</text> <level label="1"> <text>contracts to pay money;</text> </level> <level label="2"> <text>sets a salary, fee, or compensation to be paid; or</text> </level> <level label="3"> <text>builds, extends, or improves a track or structure on property that the licensee owns or leases.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-319" title_number="11" title_name="Horse Racing" subtitle_number="3" subtitle_name="Licensing and Responsibilities of Licensees"> <level label="a"> <text>The Maryland Backstretch Employees Pension Fund shall be administered by the organization that represents a majority of the owners and trainers who race thoroughbred horses in the State.</text> </level> <level label="b"> <text>The Maryland Race Track Employees Pension Fund shall be administered by representatives of:</text> <level label="1"> <text>each mile thoroughbred racing licensee;</text> </level> <level label="2"> <text>the Maryland State Fair and Agricultural Society, Inc.; and</text> </level> <level label="3"> <text>the employees of the licensees and of the Maryland State Fair and Agricultural Society, Inc.</text> </level> </level> <level label="c"> <text>The Maryland Harness Track Employees Pension Fund shall be administered by representatives of each harness racing licensee and its employees.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-401" title_number="11" title_name="Horse Racing" subtitle_number="4" subtitle_name="Special Fund"> <text>There is a Special Fund.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-402" title_number="11" title_name="Horse Racing" subtitle_number="4" subtitle_name="Special Fund"> <text>The Special Fund consists of:</text> <level label="1"> <text>the State share of daily licensee fees;</text> </level> <level label="2"> <text>pari–mutuel taxes;</text> </level> <level label="3"> <text>the impact aid under § 11–812 of this title;</text> </level> <level label="4"> <text>money from uncashed pari–mutuel tickets that are from bets made into the betting pools of licensees;</text> </level> <level label="5"> <text>any permit fees under §§ 11–820 and 11–832 of this title;</text> </level> <level label="6"> <text>subject to § 11–403(a)(9) and (b) of this subtitle, money from the State Lottery Fund distributed under § 9–120(b) of the State Government Article; and</text> </level> <level label="7"> <text>any fines collected under § 11–1002(d) of this title.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-403" title_number="11" title_name="Horse Racing" subtitle_number="4" subtitle_name="Special Fund"> <level label="a"> <text>The Comptroller shall pay from the Special Fund an annual grant of:</text> <level label="1"> <text>$825,000 to the Maryland Agricultural Fair Board to promote State and county agricultural fairs and exhibits;</text> </level> <level label="2"> <text>$100,000 to Prince George’s County to replace money formerly received from the admissions and amusement tax;</text> </level> <level label="3"> <text>$40,000 to the Great Frederick Fair to support exhibition harness racing with money for construction and maintenance of new stalls, track maintenance, and purses;</text> </level> <level label="4"> <text>$50 to the City of Bowie for each day that the training facilities are open at the Bowie Race Course Training Center;</text> </level> <level label="5"> <text>an amount not to exceed $30,000 in fiscal year 1998 and $20,000 in each fiscal year thereafter to the Great Pocomoke Fair, Inc. to support exhibition harness racing with money for construction and maintenance of new stalls, track maintenance, and purses;</text> </level> <level label="6"> <text>$500,000 to the Maryland Million, Ltd. to support and promote the running of Maryland Million races;</text> </level> <level label="7"> <text>$350,000 to the Maryland Standardbred Race Fund for the Sire Stakes Program; and</text> </level> <level label="8"> <text>beginning July 1, 2017, from the money distributed under § 9–120(b) of the State Government Article up to $500,000 to a purse for the Maryland International thoroughbred race under § 11–522.1 of this title.</text> </level> </level> <level label="b"> <level label="1"> <text>In fiscal year 2017, the Comptroller shall pay, from the money distributed to the Special Fund, $500,000 to the Maryland Racing Commission to be used, in a manner determined by the Maryland Racing Commission, for a bonus award program for Maryland–bred or Maryland–sired horses running in the Preakness Stakes.</text> </level> <level label="2"> <text>The Maryland Racing Commission shall consult with representatives of the thoroughbred racing industry prior to establishing the rules and criteria for the bonus award program.</text> </level> <level label="3"> <text>If, under the rules of the bonus award program, funds remain in the program after the Preakness Stakes is conducted on one or more occasions, remaining funds shall carry over to the next fiscal year and may not revert to the General Fund.</text> </level> </level> <level label="c"> <text>If the Maryland State Fair remains at the Timonium Fair Grounds, the Comptroller shall pay from the Special Fund an annual grant of:</text> <level label="1"> <text>$500,000 to the Maryland State Fair and Agricultural Society, Inc., to:</text> <level label="i"> <text>promote and enhance the Maryland State Fair; and</text> </level> <level label="ii"> <text>maintain and develop youth programs, with premium money provided to organizations, such as 4–H Clubs and the Future Farmers of America, for recognition and awards; and</text> </level> </level> <level label="2"> <text>$50,000 to Baltimore County to replace the money formerly received by the county under this subtitle.</text> </level> </level> <level label="d"> <text>Any amounts paid by the Comptroller for the purposes specified under subsections (a)(8) and (b) of this section shall remain available for those purposes and may not be used for any other purpose.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-404" title_number="11" title_name="Horse Racing" subtitle_number="4" subtitle_name="Special Fund"> <level label="a"> <level label="1"> <text>To help pay for facilities and services in communities within 2 miles of the Pimlico Race Course or 3 miles of the Laurel Race Course, the Comptroller shall pay money to Baltimore City, the City of Laurel, and Anne Arundel and Howard counties in accordance with this section.</text> </level> <level label="2"> <text>The money shall be paid from the Special Fund in an annual grant.</text> </level> </level> <level label="b"> <text>In any year, payments required under this section may not be less than the total allocated for 140 days of live racing at each track.</text> </level> <level label="c"> <level label="1"> <text>If 140 or more days of live racing in a year are held at Pimlico Race Course, the Comptroller shall pay to Baltimore City:</text> <level label="i"> <text>$2,800 for each day of live racing; and</text> </level> <level label="ii"> <text>$1,400 for each additional day of intertrack betting without live racing held.</text> </level> </level> <level label="2"> <text>If fewer than 140 days of live racing in a year are held at Pimlico Race Course, the Comptroller shall pay to Baltimore City:</text> <level label="i"> <text>$2,800 for each day of live racing or intertrack betting without live racing held, up to a maximum payment for 140 days; and</text> </level> <level label="ii"> <text>$1,400 for each additional day of intertrack betting without live racing held.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>If 140 or more days of live racing in a year are held at Laurel Race Course, the Comptroller shall pay:</text> <level label="i"> <text>for each day of live racing, $2,000 to Anne Arundel County, $500 to Howard County, and $300 to the City of Laurel; and</text> </level> <level label="ii"> <text>for each additional day of intertrack betting without live racing held, $1,000 to Anne Arundel County, $250 to Howard County, and $150 to the City of Laurel.</text> </level> </level> <level label="2"> <text>If fewer than 140 days of live racing in a year are held at Laurel Race Course, the Comptroller shall pay:</text> <level label="i"> <text>for each day of live racing or each day of intertrack betting without live racing held, up to a maximum payment for 140 days, $2,000 to Anne Arundel County, $500 to Howard County, and $300 to the City of Laurel; and</text> </level> <level label="ii"> <text>for each additional day of intertrack betting without live racing held, $1,000 to Anne Arundel County, $250 to Howard County, and $150 to the City of Laurel.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-404.1" title_number="11" title_name="Horse Racing" subtitle_number="4" subtitle_name="Special Fund"> <level label="a"> <text>If in any fiscal year revenues to the Special Fund established under § 11–402 of this subtitle are insufficient to fully fund all grants required under §§ 11–403 and 11–404 of this subtitle, the Comptroller shall proportionally reduce the amount of payments required under §§ 11–403(a)(2) and (4), 11–403(c)(2), and 11–404 of this subtitle.</text> </level> <level label="b"> <text>If in any fiscal year revenues to the Special Fund established under § 11–402 of this subtitle are sufficient to fully fund all grants required under §§ 11–403 and 11–404 of this subtitle, after all required deductions from the Special Fund are made, the Comptroller shall pay from the Special Fund an annual grant of:</text> <level label="1"> <text>$300,000 to be allocated in the following way:</text> <level label="i"> <text>70% to the Maryland–Bred Race Fund; and</text> </level> <level label="ii"> <text>30% to the Maryland Standardbred Race Fund, to be divided equally between the Sire Stakes Program and the Foaled Stakes Program; and</text> </level> </level> <level label="2"> <text>$260,000 to the Maryland Agricultural Education and Rural Development Assistance Fund established under § 2–206 of the State Finance and Procurement Article, with $130,000 to be allocated to support the operations of the Rural Maryland Council.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-405" title_number="11" title_name="Horse Racing" subtitle_number="4" subtitle_name="Special Fund"> <level label="a"> <text>The fiscal officer of each subdivision that is eligible to receive money under § 11-404 of this subtitle shall submit a written certification to the Comptroller and, subject to § 2-1257 of the State Government Article, the Department of Legislative Services on or before November 1 of each year.</text> </level> <level label="b"> <text>The fiscal officer’s certification shall state:</text> <level label="1"> <text>the purposes for which Special Fund money received under § 11-404 of this subtitle was spent or committed during the fiscal year that ends on the June 30 before the report is submitted; and</text> </level> <level label="2"> <text>that the subdivision will hold Special Fund money in a special account and use the money only to help services and facilities within 2 miles of the Pimlico Race Course or 3 miles of the Laurel Race Course.</text> </level> </level> <level label="c"> <level label="1"> <text>The Comptroller may not pay Special Fund money to a subdivision unless the fiscal officer of the subdivision submits a timely certification required under subsection (a) of this section.</text> </level> <level label="2"> <text>The Comptroller shall place Special Fund money withheld under paragraph (1) of this subsection in a special account and add it to the money available for payment to the subdivision in the next fiscal year.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-406" title_number="11" title_name="Horse Racing" subtitle_number="4" subtitle_name="Special Fund"> <text>After all deductions from the Special Fund as required by §§ 11-403, 11-404, and 11-404.1 of this subtitle are made, money that remains in the Special Fund shall be allocated in the following way:</text> <level label="1"> <text>50% to the Maryland Agricultural Education and Rural Development Assistance Fund established under § 2-206 of the State Finance and Procurement Article, with one-third of these funds to be allocated to support the operations of the Rural Maryland Council; and</text> </level> <level label="2"> <text>50% to be allocated in the following way:</text> <level label="i"> <text>70% to the Maryland-Bred Race Fund; and</text> </level> <level label="ii"> <text>30% to the Maryland Standardbred Race Fund, to be divided equally between the Sire Stakes Program and the Foaled Stakes Program.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-501" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <text>This part applies only to mile thoroughbred racing licensees and to special thoroughbred racing licensees.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-502" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <text>Three stewards shall officiate at each race that a licensee holds.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-503" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <level label="1"> <text>Subject to paragraph (2) of this subsection, a licensee shall give preference in stall allocation to a trainer:</text> <level label="i"> <text>who has a permanent residence in the State; and</text> </level> <level label="ii"> <text>whose horse qualifies under the eligibility rules that the Commission or a licensee adopts.</text> </level> </level> <level label="2"> <text>A licensee need not allocate more than 60% of the licensee’s stalls to trainers who have permanent residences in the State.</text> </level> <level label="3"> <text>A trainer who claims a preferential action under this subsection shall give the licensee an affidavit stating the qualifications and condition of each horse for which the trainer requests a stall.</text> </level> </level> <level label="b"> <level label="1"> <text>This subsection applies to trainers who:</text> <level label="i"> <text>are from the northeastern area of the State; and</text> </level> <level label="ii"> <text>were chosen originally by the licensee as eligible for stall space.</text> </level> </level> <level label="2"> <text>The Commission shall seek cooperation among licensees to ensure that, when horses are stabled for a race meeting at a track in the State, consideration is given to assigning a trainer, to the extent practicable and without charge, a stall nearest to the county of residence of the trainer.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-504" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <text>A licensee may not hold live racing at Pimlico Race Course after 10:00 p.m. unless circumstances beyond the control of the licensee cause a delay.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-507" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <text>This part applies only to mile thoroughbred racing licenses and to licensees who have been awarded racing days to hold mile thoroughbred racing.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-508" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>If an applicant qualifies for a license under this title, the Commission shall send the applicant a notice stating:</text> <level label="1"> <text>the fact that the applicant has qualified for a license;</text> </level> <level label="2"> <text>the dates of the race meeting awarded;</text> </level> <level label="3"> <text>the total number of racing days awarded; and</text> </level> <level label="4"> <text>the kind of racing to be held.</text> </level> </level> <level label="b"> <text>Before the Commission may issue a license to an applicant, the applicant shall pay to the Commission a license fee of $25 for each racing day of a race meeting.</text> </level> <level label="c"> <text>A licensee shall pay each year $3,000 to the Maryland Horse Breeders Association, Inc.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-509" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>A licensee shall pay to the Commission within 10 days after each racing day the State tax imposed in this subtitle on the handle for that racing day.</text> </level> <level label="b"> <text>A licensee or an agent of the licensee shall submit with the daily tax payment a statement under oath of the handle for that day.</text> </level> <level label="c"> <text>The Commission shall pay promptly to the Comptroller all taxes collected under this section.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-510" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>Except as provided in subsection (b) of this section, the Commission may not issue a license, or award racing days, for racing at a mile track.</text> </level> <level label="b"> <text>The Commission may issue a license and award racing days only to the Maryland Jockey Club, Inc., or a successor thoroughbred racetrack operator designated by the Maryland Stadium Authority under § 10–646.1 of the Economic Development Article.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-511" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <level label="1"> <text>On or before December 1, the Commission shall award all racing days for the next calendar year.</text> </level> <level label="2"> <text>However, the Commission may meet after December 1 to award racing days that are requested in applications.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, the Commission may award for any calendar year up to the number of racing days requested by an applicant.</text> </level> <level label="2"> <text>The Commission shall award at least 180 live racing days combined between Laurel Park in Anne Arundel County and Pimlico Race Course in Baltimore City in each calendar year unless:</text> <level label="i"> <text>otherwise agreed to by a majority of the racing licensees, the organization that represents the majority of licensed thoroughbred owners and trainers in the State, and a group that represents a majority of the thoroughbred breeders in the State; or</text> </level> <level label="ii"> <text>the racing licensee is prevented by weather, acts of God, or other circumstances beyond the racing licensee’s control.</text> </level> </level> </level> <level label="c"> <text>The decision of the Commission on the award of a racing day is final.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-512" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <text>Subject to the hearing provisions of § 11-513 of this subtitle, the Commission may authorize a licensee to transfer a race meeting from the licensee’s own track to another track:</text> <level label="1"> <text>on receipt of the appropriate license fees; and</text> </level> <level label="2"> <text>with the express consent of the owner or lessee of the track to which the transfer is made.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-513" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>Except as otherwise provided in this section, the Commission shall hold a public hearing before the Commission awards, for racing at a particular track, racing days that:</text> <level label="1"> <text>total at least 3 more than those awarded for racing at that track in the previous calendar year; or</text> </level> <level label="2"> <text>result from the transfer of racing days to that track from another track in the same year.</text> </level> </level> <level label="b"> <text>The Commission shall:</text> <level label="1"> <text>hold the hearing not more than 10 miles from the track where the racing is to be held; and</text> </level> <level label="2"> <text>allow any person to testify.</text> </level> </level> <level label="c"> <text>The Commission:</text> <level label="1"> <text>at least 15 days before the hearing, shall have notice of the hearing published in at least 1 newspaper with a substantial circulation in the county where the track is located; and</text> </level> <level label="2"> <text>shall try to give notice of the hearing to any public unit or private organization that has made a written request for notice.</text> </level> </level> <level label="d"> <level label="1"> <text>If the transfer of racing days from one track to another becomes necessary due to fire, flood, mechanical failure, or any other similar circumstance deemed by the Commission to constitute an emergency:</text> <level label="i"> <text>the racing days may be transferred immediately; and</text> </level> <level label="ii"> <text>as soon as practicable, the Commission shall provide notice of a hearing and conduct a hearing pursuant to subsection (c) of this section.</text> </level> </level> <level label="2"> <text>As soon as the track and the facilities of the licensee from which race days were transferred under paragraph (1) of this subsection are in a condition to continue racing and pari–mutuel betting, any remaining days of the meet that was being conducted when the days were transferred shall be held at the track from which the days were transferred.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-514" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>Except as provided in subsection (b) of this section, a licensee shall deduct from the handle:</text> <level label="1"> <text>all the breakage;</text> </level> <level label="2"> <text>not more than 18% from each regular mutuel pool;</text> </level> <level label="3"> <text>not more than 21% from each multiple mutuel pool on 2 horses; and</text> </level> <level label="4"> <text>not more than 25.75% from each multiple mutuel pool on 3 or more horses.</text> </level> </level> <level label="b"> <level label="1"> <text>For specific wagers authorized under regulations adopted by the Commission, a licensee shall deduct from the handle:</text> <level label="i"> <text>all the breakage; and</text> </level> <level label="ii"> <text>not more than 40% from each multiple mutuel pool on 3 or more horses.</text> </level> </level> <level label="2"> <text>A licensee may offer the wagers described in this subsection only with the consent of:</text> <level label="i"> <text>the Commission;</text> </level> <level label="ii"> <text>the group that represents a majority of the owners and trainers licensed in the State; and</text> </level> <level label="iii"> <text>the group that represents a majority of the breeders in the State.</text> </level> </level> </level> <level label="c"> <text>Money that remains after deductions are made under subsection (a) of this section shall be returned as winnings to successful bettors.</text> </level> <level label="d"> <level label="1"> <text>The amount deducted by the licensee under subsection (a) of this section shall be the sum of the allocations provided in § 11–515 of this subtitle, unless otherwise provided in a written agreement signed by the authorized representatives of:</text> <level label="i"> <text>the licensee;</text> </level> <level label="ii"> <text>the group that represents a majority of the owners and trainers licensed in the State at the time the agreement is signed; and</text> </level> <level label="iii"> <text>the group that represents a majority of the breeders in the State at the time the agreement is signed.</text> </level> </level> <level label="2"> <text>Nothing in this subsection may be construed to permit the licensee to in any way alter the mandatory takeout allocated to the Commission for the State tax.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-515" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>Except as provided in § 11-516 of this subtitle, the takeout that a licensee deducts from the handle of a race shall be allocated in accordance with this section.</text> </level> <level label="b"> <text>A licensee shall:</text> <level label="1"> <text>keep 50% of the breakage;</text> </level> <level label="2"> <text>allocate 45% of the breakage for purses; and</text> </level> <level label="3"> <text>allocate 5% of the breakage to the Maryland-Bred Race Fund.</text> </level> </level> <level label="c"> <text>From the amount that a licensee deducts from each regular mutuel pool, the licensee shall:</text> <level label="1"> <text>keep 7.70% of each regular mutuel pool, from which the licensee shall pay 0.25% of each regular mutuel pool to the Maryland Race Track Employees Pension Fund;</text> </level> <level label="2"> <text>allocate 0.32% of each regular mutuel pool to the Commission for State tax;</text> </level> <level label="3"> <text>allocate 1.10% of each regular mutuel pool to the Maryland-Bred Race Fund;</text> </level> <level label="4"> <text>allocate 7.70% of each regular mutuel pool for purses;</text> </level> <level label="5"> <text>allocate 0.18% of each regular mutuel pool as an additional amount for purses; and</text> </level> <level label="6"> <text>allocate 1% of each regular mutuel pool paid to the Maryland Million, Ltd., for purses of Maryland Million races.</text> </level> </level> <level label="d"> <text>From the amount that a licensee deducts from each multiple mutuel pool on 2 horses, the licensee shall:</text> <level label="1"> <text>keep 8.70% of each multiple mutuel pool, from which the licensee shall pay 0.25% of each multiple mutuel pool to the Maryland Race Track Employees Pension Fund;</text> </level> <level label="2"> <text>allocate 0.32% of each multiple mutuel pool to the Commission for State tax;</text> </level> <level label="3"> <text>allocate 1.10% of each multiple mutuel pool to the Maryland-Bred Race Fund;</text> </level> <level label="4"> <text>allocate 8.70% of each multiple mutuel pool for purses;</text> </level> <level label="5"> <text>allocate 0.18% of each multiple mutuel pool as an additional amount for purses; and</text> </level> <level label="6"> <text>allocate 2% of each multiple mutuel pool paid to the Maryland Million, Ltd., for purses of Maryland Million races.</text> </level> </level> <level label="e"> <text>From the amount that a licensee deducts from each multiple mutuel pool on 3 or more horses, the licensee shall:</text> <level label="1"> <text>keep 11.70% of each multiple mutuel pool, from which the licensee shall pay 0.25% of each multiple mutuel pool to the Maryland Race Track Employees Pension Fund;</text> </level> <level label="2"> <text>allocate 0.32% of each multiple mutuel pool to the Commission for State tax;</text> </level> <level label="3"> <text>allocate 1.10% of each multiple mutuel pool to the Maryland-Bred Race Fund;</text> </level> <level label="4"> <text>allocate 11.70% of each multiple mutuel pool for purses;</text> </level> <level label="5"> <text>allocate 0.18% of each multiple mutuel pool as an additional amount for purses; and</text> </level> <level label="6"> <text>allocate 0.75% of each multiple mutuel pool paid to the Maryland Million, Ltd., for purses of Maryland Million races.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-515.1" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>Notwithstanding § 11-515 of this subtitle, the amount of the takeout relating to purses, the Maryland-Bred Race Fund, and the amount retained by the licensee may be allocated in accordance with the terms of a written agreement signed by the authorized representatives of:</text> <level label="1"> <text>the licensee;</text> </level> <level label="2"> <text>the group that represents a majority of the owners and trainers licensed in the State at the time the agreement is signed; and</text> </level> <level label="3"> <text>the group that represents a majority of the breeders in the State at the time the agreement is signed.</text> </level> </level> <level label="b"> <text>Nothing in this section may be construed to permit the licensee to in any way alter the mandatory takeout allocated to the Commission for the State tax.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-516" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <text>If the Preakness Stakes is transferred otherwise than under § 11-520(b) of this subtitle or if it is sold to a buyer other than the State, the takeout of the mutuel pools on each race held thereafter shall be allocated as follows:</text> <level label="1"> <text>to the Maryland-Bred Race Fund, 1% of each mutuel pool;</text> </level> <level label="2"> <text>to the Commission, for State tax, 4.09% of each mutuel pool;</text> </level> <level label="3"> <text>to purses, 5% of each regular mutuel pool, 8% of each multiple mutuel pool on 2 horses, and 14% of each multiple mutuel pool on 3 or more horses; and</text> </level> <level label="4"> <text>to the licensee, 6.91% of each regular mutuel pool and 5.91% of each multiple mutuel pool, from which the licensee shall pay 0.25% of all pools to the Maryland Race Track Employees Pension Fund.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-518" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>In this section, “open purse” means any purse, except for one offered in a race funded by the Maryland–Bred Race Fund.</text> </level> <level label="b"> <text>The Commission may direct a deduction from open purse money of 0.25% of all mutuel pools to be paid to the Maryland Backstretch Employees Pension Fund.</text> </level> <level label="c"> <text>Subject to the approval of the Commission, the licensees and an organization that represents a majority of the owners and trainers in the State shall agree on a formula for distributing open purse money.</text> </level> <level label="d"> <text>The formula shall distribute approximately 85% of the open purse money to the overnight races of the current year and approximately 15%, but not more than 17%, to the stakes races of the current year.</text> </level> <level label="e"> <text>The organization that represents a majority of the owners and trainers in the State shall set an amount not less than 1% but not more than 3% that shall be deducted from all open purses and paid to the organization.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-519" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>Until the conveyance required under subsection (d) of this section, the owner of the Bowie Race Course Training Center shall operate the Center as a thoroughbred training facility to provide more stall space for a race meeting that a licensee holds.</text> </level> <level label="b"> <text>Until the conveyance required under subsection (d) of this section, the owner of the Bowie Race Course Training Center is responsible for the cost to improve, maintain, and operate the Center.</text> </level> <level label="c"> <text>As long as the Bowie Race Course Training Center is used for the purpose specified in subsection (a) of this section, the Commission shall have general regulatory jurisdiction over the Center to:</text> <level label="1"> <text>provide enough stalls;</text> </level> <level label="2"> <text>maintain safe operating conditions;</text> </level> <level label="3"> <text>require the owner of the Center to submit an annual operating financial statement; and</text> </level> <level label="4"> <text>order reasonable improvements.</text> </level> </level> <level label="d"> <level label="1"> <level label="i"> <text>On or before December 31, 2023, the owner of the Bowie Race Course Training Center shall convey the Bowie Race Course Training Center property to the City of Bowie “as is”, with all defects that may exist, whether known or unknown, and without any express or implied warranty, guarantee by, or recourse against the conveyor of the property.</text> </level> <level label="ii"> <text>Notwithstanding any other provision of law, the conveyor of the Bowie Race Course Training Center property shall be held harmless against any and all claims and risks, now or in the future, arising directly or indirectly from, or in any way related to, the condition of the property or conveyance, with all those claims and risks assumed by the City of Bowie.</text> </level> </level> <level label="2"> <text>The portion of the Bowie Race Course Training Center property transferred to the City of Bowie that is within 100 feet of the top of the Patuxent River bank shall be used for passive recreational activities, including hiking, wildlife viewing, picnicking, and walking.</text> </level> <level label="3"> <text>The portion of the Bowie Race Course Training Center property transferred to the City of Bowie not described under paragraph (2) of this subsection may:</text> <level label="i"> <text>be used only for active recreational activities, including baseball, football, soccer, and cricket; and</text> </level> <level label="ii"> <text>have only one structure that is up to 50,000 square feet constructed on the property.</text> </level> </level> <level label="4"> <text>On or before January 1, 2021, the City of Bowie shall enter into a joint use agreement, including an easement, with Bowie State University for the future use of the property described under paragraph (3) of this subsection.</text> </level> <level label="5"> <text>The City of Bowie and Bowie State University shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the final terms of the joint use agreement entered into under this subsection.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-520" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>The requirements of this section are established in recognition of the significance of the Preakness Stakes to the State.</text> </level> <level label="b"> <text>The Preakness Stakes may be temporarily transferred to another track in the State only:</text> <level label="1"> <text>as a result of a disaster or emergency; or</text> </level> <level label="2"> <text>during the reconstruction of Pimlico Race Course, subject to the approval of the Maryland Stadium Authority.</text> </level> </level> <level label="c"> <text>If the Preakness Stakes is transferred out of the State, the Commission may:</text> <level label="1"> <text>revoke any racing days awarded to the Maryland Jockey Club of Baltimore City, Inc., or its successor; and</text> </level> <level label="2"> <text>award these racing days to another licensee, notwithstanding § 11-511(b) of this subtitle.</text> </level> </level> <level label="d"> <level label="1"> <text>If the Preakness Stakes is offered for sale, the State has the option to buy the Preakness Stakes for the amount of any offer that the licensee wishes to accept.</text> </level> <level label="2"> <text>Within 30 days after receiving an offer that it wishes to accept, the licensee shall give the State notice of the offer.</text> </level> <level label="3"> <text>If the State wishes to exercise the option, it shall so notify the licensee within 60 days after it receives the notice.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-521" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>In addition to the other provisions of this subtitle, in accordance with the sovereign power of the State and the provisions of Article III, §§ 40 and 40A of the Maryland Constitution, and subject to subsections (b) and (c) of this section, the State may acquire by purchase or condemnation for public use with just compensation some or all of the following real, tangible, and intangible private property, including any contractual interests or intellectual property:</text> <level label="1"> <text>Pimlico Race Course, a racetrack located in Baltimore City, including any and all property or property rights associated with it wherever located, whether tangible, intangible, real, personal, or mixed, and any business entity that owns it;</text> </level> <level label="2"> <text>Laurel Park, a racetrack located in Anne Arundel County, including any and all property or property rights associated with it wherever located, whether tangible, intangible, real, personal, or mixed, and any business entity that owns it;</text> </level> <level label="3"> <text>Bowie Race Course Training Center, a training center located in Prince George’s County, including any and all property or property rights associated with it wherever located, whether tangible, intangible, real, personal, or mixed, and any business entity that owns it;</text> </level> <level label="4"> <text>the Preakness Stakes trophy that is known as the Woodlawn Vase, including any and all property or property rights associated with it, whether tangible, intangible, real, personal, or mixed, and any business entity that owns it;</text> </level> <level label="5"> <text>the name, common law and statutory copyrights, service marks, trademarks, trade names, contracts, horse racing events, and other intangible and intellectual property that are associated with the Preakness Stakes and the Woodlawn Vase;</text> </level> <level label="6"> <text>all property of the Maryland Jockey Club of Baltimore City, Inc., or its successors and assigns, including stock and equity interests in it, and including any and all property or property rights associated with it, whether tangible, intangible, real, personal, or mixed; and</text> </level> <level label="7"> <text>all property of the Laurel Racing Assoc., Inc., the Laurel Racing Association Limited Partnership, or their respective successors and assigns, including stock and equity interests, and including any and all property or property rights associated with them, whether tangible, intangible, real, personal, or mixed.</text> </level> </level> <level label="b"> <text>All proceedings for the condemnation for public use of the private property described under subsection (a) of this section shall be in accordance with the provisions of Title 12 of the Real Property Article and Title 12, Chapter 200 of the Maryland Rules.</text> </level> <level label="c"> <text>Pursuant to the provisions of Article III, § 40A of the Maryland Constitution, as applicable, the private property described under subsection (a) of this section may be taken immediately on payment for the property consistent with the procedures of §§ 8–334 through 8–339 of the Transportation Article.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-522" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>In this section, “Arabian breed horse” means a horse that:</text> <level label="1"> <text>is a purebred Arabian breed horse; and</text> </level> <level label="2"> <text>has a valid certificate of registry with the Arabian Jockey Club of America.</text> </level> </level> <level label="b"> <text>A licensee at Pimlico Race Course or Laurel Park may conduct live racing of Arabian breed horses if:</text> <level label="1"> <text>no more than one Arabian breed race is conducted per day;</text> </level> <level label="2"> <text>no more than three Arabian breed races are conducted during a race meet;</text> </level> <level label="3"> <text>an Arabian breed race is conducted in addition to, and not in place of, an existing thoroughbred race;</text> </level> <level label="4"> <text>an Arabian breed race does not reduce the number of thoroughbred races conducted by the licensee per racing day;</text> </level> <level label="5"> <text>the purse for an Arabian breed race is:</text> <level label="i"> <text>not funded by the thoroughbred purse account; and</text> </level> <level label="ii"> <text>funded by the licensee or the sponsor of the Arabian horse race;</text> </level> </level> <level label="6"> <text>the takeout provisions of §§ 11–514 and 11–515 of this subtitle are applied to the race;</text> </level> <level label="7"> <text>the licensee pays all taxes and fees associated with the Arabian breed race that would otherwise be due on a thoroughbred race; and</text> </level> <level label="8"> <text>the Arabian breed race is approved by the State Racing Commission.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-522.1" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <level label="1"> <text>There is a Maryland International thoroughbred race conducted by a licensee at Laurel Park.</text> </level> <level label="2"> <text>The Maryland International is a graded stakes race run on a turf track.</text> </level> </level> <level label="b"> <text>The purse for the Maryland International shall be funded by the Special Fund established under § 11–402 of this title.</text> </level> <level label="c"> <text>The takeout provisions of this subtitle shall apply to the Maryland International.</text> </level> <level label="d"> <text>The licensee shall pay all taxes and fees associated with the Maryland International that would otherwise be imposed for a thoroughbred race.</text> </level> <level label="e"> <text>The Maryland International shall be conducted only with the approval of the Commission.</text> </level> <level label="f"> <text>The licensee may make the Maryland Lottery and Gaming Control Agency a sponsor of the Maryland International under terms agreed on by the licensee and the Agency.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-523" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <text>In this part, “State Fair Society” means the Maryland State Fair and Agricultural Society, Inc.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-524" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <level label="1"> <text>The Commission shall issue a special thoroughbred racing license to the State Fair Society to hold a race meeting.</text> </level> <level label="2"> <text>The race meeting shall:</text> <level label="i"> <text>last not more than 10 days in a calendar year;</text> </level> <level label="ii"> <text>be held with or for the benefit of the State Fair or a county fair or agricultural exhibition; and</text> </level> <level label="iii"> <text>comply with this title.</text> </level> </level> </level> <level label="b"> <text>The State Fair Society shall pay to the county treasurer of the county where the fair or exhibition is held, for the use of the county, a fee of $50 for each racing day of the race meeting.</text> </level> <level label="c"> <text>The Commission may authorize the State Fair Society to transfer a race meeting from the State Fair Society’s own track to the track of a mile thoroughbred racing licensee:</text> <level label="1"> <text>on receipt of the appropriate license fees; and</text> </level> <level label="2"> <text>with the express consent of the owner or lessee of the track to which the transfer is made.</text> </level> </level> <level label="d"> <text>If the State Fair Society ends special thoroughbred racing at the Timonium Race Course, the racing days that were awarded to it may be awarded to a mile thoroughbred licensee on the same terms as the additional racing days under § 11-511 of this subtitle.</text> </level> <level label="e"> <text>If racing is discontinued at the Timonium Race Course:</text> <level label="1"> <text>compensation may not be paid to the State Fair Society to offset revenue loss from the discontinuance of racing; and</text> </level> <level label="2"> <text>payment of the grant to Baltimore County under § 11-403 of this title shall end.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-525" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>On all races the State Fair Society holds each year, the State Fair Society may keep:</text> <level label="1"> <level label="10"> <text>25% of each regular mutuel pool;</text> </level> </level> <level label="2"> <level label="10"> <text>25% of each multiple mutuel pool on 2 horses;</text> </level> </level> <level label="3"> <level label="10"> <text>25% of the money bet in the first race of the day with a multiple mutuel pool on 3 or more horses;</text> </level> </level> <level label="4"> <text>14% of the money bet in every other race with a multiple mutuel pool on 3 or more horses; and</text> </level> <level label="5"> <text>50% of the breakage.</text> </level> </level> <level label="b"> <level label="1"> <text>Within 5 days after the end of a race meeting the State Fair Society each year shall pay to the Commission, from the State Fair Society’s share of the takeout, a 3.5% State tax on the handle for the race meeting.</text> </level> <level label="2"> <text>However, the State Fair Society is exempt from paying the tax on the handle for all racing days held at Timonium Race Course during the State Fair.</text> </level> <level label="3"> <text>The Commission promptly shall pay the tax collected under this subsection to the Comptroller.</text> </level> </level> <level label="c"> <text>For each race that the State Fair Society holds, the State Fair Society shall allocate to purses:</text> <level label="1"> <text>5% of each regular mutuel pool;</text> </level> <level label="2"> <text>7% of each multiple mutuel pool on 2 horses;</text> </level> <level label="3"> <text>13% of the money bet in the first race of the day with a multiple mutuel pool on 3 or more horses;</text> </level> <level label="4"> <level label="9"> <text>25% of the money bet in every other race with a multiple mutuel pool on 3 or more horses; and</text> </level> </level> <level label="5"> <text>45% of the breakage.</text> </level> </level> <level label="d"> <text>The State Fair Society shall allocate to the Maryland-Bred Race Fund:</text> <level label="1"> <text>5% of the breakage; and</text> </level> <level label="2"> <level label="1"> <text>50% of the mutuel pools.</text> </level> </level> </level> <level label="e"> <text>The State Fair Society shall allocate 0.25% of the mutuel pools to the Maryland Race Track Employees Pension Fund.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-526" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>In this section, “Park and Planning Commission” means the Maryland-National Capital Park and Planning Commission.</text> </level> <level label="b"> <text>The State Racing Commission shall issue a special thoroughbred racing license to the Park and Planning Commission to hold racing in 4 one-day race meetings at the Prince George’s Equestrian Center.</text> </level> <level label="c"> <text>The racing days shall be held:</text> <level label="1"> <text>on dates that the Park and Planning Commission chooses and the State Racing Commission approves;</text> </level> <level label="2"> <text>on dates when a mile thoroughbred racing licensee does not hold a race; and</text> </level> <level label="3"> <text>in connection with or for the benefit of a county fair or equestrian exhibition or activity.</text> </level> </level> <level label="d"> <level label="1"> <text>The Park and Planning Commission shall deduct from the handle:</text> <level label="i"> <text>17% of all money bet in each regular mutuel pool;</text> </level> <level label="ii"> <text>19% of all money bet in each multiple mutuel pool on 2 horses; and</text> </level> <level label="iii"> <text>25% of all money bet in each multiple mutuel pool on 3 or more horses.</text> </level> </level> <level label="2"> <text>The Park and Planning Commission shall pay to the Maryland Equestrian Foundation, Inc., a nonprofit organization:</text> <level label="i"> <text>from the amount deducted under paragraph (1) of this subsection, 8% of the total amount bet in all of the mutuel pools; and</text> </level> <level label="ii"> <text>any profit from admission fees or other receipts, less expenses from the operation of racing days.</text> </level> </level> <level label="3"> <text>On races that the Park and Planning Commission holds each year, the Park and Planning Commission shall allocate for purses:</text> <level label="i"> <text>5% of each regular mutuel pool;</text> </level> <level label="ii"> <text>7% of each multiple mutuel pool on 2 horses;</text> </level> <level label="iii"> <text>13% of the money bet in the first race of the day with a multiple mutuel pool on 3 or more horses; and</text> </level> <level label="iv"> <level label="9"> <text>25% of the money bet in every other race with a multiple mutuel pool on 3 or more horses.</text> </level> </level> </level> </level> <level label="e"> <text>Repealed.</text> </level> <level label="f"> <text>An officer of the Park and Planning Commission may not receive a salary or dividends from racing authorized under this section.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-529" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>In this part the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Advisory Committee” means the Maryland-Bred Race Fund Advisory Committee.</text> </level> <level label="c"> <text>“Fund” means the Maryland-Bred Race Fund.</text> </level> <level label="d"> <text>“Fund Race” means a race funded by the Maryland-Bred Race Fund.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-530" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <text>There is a Maryland-Bred Race Fund.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-531" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <text>There is a Maryland-Bred Race Fund Advisory Committee, under the jurisdiction of the Commission, in the Department.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-532" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <level label="1"> <text>The Advisory Committee consists of six members appointed by the Commission with the approval of the Secretary.</text> </level> <level label="2"> <text>Of the six members of the Advisory Committee:</text> <level label="i"> <text>two shall be members of and recommended by the Maryland Horse Breeders Association;</text> </level> <level label="ii"> <text>one shall be recommended by the mile thoroughbred racing licensees;</text> </level> <level label="iii"> <text>one shall be a member of and recommended by the Maryland Thoroughbred Horsemen’s Association, Inc.;</text> </level> <level label="iv"> <text>one shall be recommended by the Maryland State Fair and Agricultural Society, Inc.; and</text> </level> <level label="v"> <text>one shall be a member of and appointed by the Commission.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The term of a member of the Advisory Committee is 1 year and begins on June 1.</text> </level> <level label="2"> <text>If the Maryland Horse Breeders Association, the mile thoroughbred racing licensees, the Maryland Thoroughbred Horsemen’s Association, Inc., or the Maryland State Fair and Agricultural Society, Inc., by June 1 fails to recommend an individual to be a member of the Advisory Committee, the Commission with the approval of the Secretary shall appoint the member.</text> </level> <level label="3"> <text>At the end of a term, a member continues to serve until a successor is appointed.</text> </level> <level label="4"> <text>A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed.</text> </level> </level> <level label="c"> <text>The Governor may remove a member of the Advisory Committee for incompetence or misconduct.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-533" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>The member of the Commission who is on the Advisory Committee is the chairman of the Advisory Committee.</text> </level> <level label="b"> <text>The term of the chairman of the Advisory Committee is 1 year.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-534" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>The Advisory Committee shall determine the times and places of its meetings.</text> </level> <level label="b"> <text>A member of the Advisory Committee:</text> <level label="1"> <text>may not receive compensation; but</text> </level> <level label="2"> <text>is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-535" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>The Commission shall:</text> <level label="1"> <text>administer the Fund and the Maryland-Bred Race Program with the help and advice of the Advisory Committee; and</text> </level> <level label="2"> <text>order each payment that is to be made from the Fund.</text> </level> </level> <level label="b"> <text>The Commission shall:</text> <level label="1"> <text>deposit the money allocated to the Fund by each mile thoroughbred racing licensee and the Maryland State Fair and Agricultural Society, Inc., into at least 1 bank or trust company in the State; and</text> </level> <level label="2"> <text>require the bank or trust company to secure the Fund by collateral.</text> </level> </level> <level label="c"> <text>Within 5 days after a race meeting ends, the licensee shall pay to the Commission, to be held in the Fund, all money that is allocated to the Fund under this title but that was not disbursed during the race meeting.</text> </level> <level label="d"> <text>On recommendation of the Advisory Committee, the Commission may allocate a portion of the Fund to races that are restricted to horses conceived, but not necessarily foaled, in Maryland.</text> </level> <level label="e"> <text>If the Commission uses ordinary care to choose the depository bank or trust company, the members are not personally liable for loss to the Fund because of failure, insolvency, or other fault of the depository bank or trust company.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-536" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>Each mile thoroughbred racing licensee and the Maryland State Fair and Agricultural Society, Inc., shall provide for the running of races known as the Maryland-Bred Fund Races.</text> </level> <level label="b"> <text>The Commission may approve the running of a Maryland-Bred Fund Race at a thoroughbred track outside the State.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-537" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <text>A horse shall be registered with the Maryland Horse Breeders Association, Inc., before the horse may start in a Fund Race.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-538" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <text>A horse may be registered with the Maryland Horse Breeders Association, Inc., only if the horse was foaled in Maryland as shown by a foal certificate from the Jockey Club and:</text> <level label="1"> <text>the breeder of the horse has maintained a place of abode in Maryland for more than 9 months immediately before registration;</text> </level> <level label="2"> <text>the breeder of the horse keeps breeding stock continually in Maryland;</text> </level> <level label="3"> <text>the horse was conceived in Maryland during the previous season;</text> </level> <level label="4"> <text>the horse’s dam was sent to Maryland to foal and after foaling was covered only by a Maryland stallion during the season of the horse’s birth; or</text> </level> <level label="5"> <text>if the horse’s dam dies, is permanently retired, or is certified by a veterinarian as unable to be bred, the horse resided in the State for at least 6 months after the horse was foaled.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-539" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>On recommendation of the Advisory Committee, the Commission shall set:</text> <level label="1"> <text>the number of Fund Races;</text> </level> <level label="2"> <text>the amount of each purse;</text> </level> <level label="3"> <text>the date of each Fund Race;</text> </level> <level label="4"> <text>the location of each Fund Race held outside the State;</text> </level> <level label="5"> <text>the distance of each Fund Race;</text> </level> <level label="6"> <text>each breeder’s award, including awards for races in the State and outside the State; and</text> </level> <level label="7"> <text>any other condition needed to carry out the purpose of the Fund.</text> </level> </level> <level label="b"> <text>The Commission shall set the amount of each purse and the conditions for each Fund Race in time to allow a licensee who provides for a Fund Race to include the purse and conditions in the stake book and condition book of the licensee.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-540" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>A licensee who provides for a Fund Race:</text> <level label="1"> <text>need not contribute an amount greater than the allocation to the Fund set under § 11-515 or § 11-525 of this subtitle; but</text> </level> <level label="2"> <text>may add to any purse in a Fund Race.</text> </level> </level> <level label="b"> <text>A purse, authorized under this part and paid in a Fund Race, is specifically excluded from breeders’ bonuses, purses, or stakes that are paid or offered by licensees in races other than Fund Races as determined by agreement or formula between a licensee and an organization that represents a majority of the owners and trainers.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-541" title_number="11" title_name="Horse Racing" subtitle_number="5" subtitle_name="Thoroughbred Racing"> <level label="a"> <text>If there are fewer than 5 separate qualified entries in a Fund Race, the Commission shall cancel the Fund Race.</text> </level> <level label="b"> <text>If the Commission cancels a Fund Race, the Commission shall give notice to the licensee in time to allow the licensee to schedule a substitute race.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-601" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <text>In this subtitle, “average handle” means the daily average amount bet in a year.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-602" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <text>This subtitle applies only to harness racing licenses and to licensees who have been awarded racing days to hold harness racing.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-603" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <text>A licensee may hold harness racing only with standardbred horses.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-604" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <text>Three harness judges shall officiate at each race that a licensee holds.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-605" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <text>If the Commission approves, harness racing may be held on a Sunday.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-606" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <text>A licensee may not hold live harness racing after 2 a.m. unless circumstances beyond the control of the licensee cause a delay.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-608" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <level label="a"> <text>Subject to § 11-610 of this subtitle, if an applicant qualifies for a license under this title, the Commission shall send the applicant a notice stating:</text> <level label="1"> <text>the fact that the applicant has qualified for a license;</text> </level> <level label="2"> <text>the dates of the race meeting awarded;</text> </level> <level label="3"> <text>the total number of racing days awarded; and</text> </level> <level label="4"> <text>the kind of racing to be held.</text> </level> </level> <level label="b"> <text>Before the Commission may issue a license to a person, the person shall pay to the Commission a license fee of $25 for each racing day of the race meeting.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-609" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <text>The Commission may not issue:</text> <level label="1"> <text>licenses to more than 3 racing associations;</text> </level> <level label="2"> <text>a license for use in Carroll, Dorchester, Frederick, Montgomery, or Wicomico County; or</text> </level> <level label="3"> <text>more than 1 license for use in any 1 county.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-610" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <level label="a"> <text>The Commission may award for any calendar year up to the number of racing days requested by an applicant.</text> </level> <level label="b"> <text>The decision of the Commission on the award of a racing day is final.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-611" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <text>Subject to the hearing provisions of § 11–612 of this part, the Commission may authorize a licensee to transfer a race meeting from the licensee’s own track to another track:</text> <level label="1"> <text>on receipt of the appropriate license fees; and</text> </level> <level label="2"> <text>with the express consent of the owner or lessee of the track to which the transfer is made.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-612" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <level label="a"> <text>Except as otherwise provided in this section, the Commission shall hold a public hearing before the Commission awards, for racing at a particular track, racing days that:</text> <level label="1"> <text>total at least 3 more than those awarded for racing at that track in the previous calendar year; or</text> </level> <level label="2"> <text>result from the transfer of racing days to that track from another track in the same year.</text> </level> </level> <level label="b"> <text>The Commission shall:</text> <level label="1"> <text>hold the hearing not more than 10 miles from the track where the racing is to be held; and</text> </level> <level label="2"> <text>allow any person to testify.</text> </level> </level> <level label="c"> <text>The Commission:</text> <level label="1"> <text>at least 15 days before the hearing, shall have notice of the hearing published in at least 1 newspaper with a substantial circulation in the county where the track is located; and</text> </level> <level label="2"> <text>shall try to give notice of the hearing to any public unit or private organization that has made a written request for notice.</text> </level> </level> <level label="d"> <level label="1"> <text>If the transfer of racing days from one track to another becomes necessary due to fire, flood, mechanical failure, or any other similar circumstance deemed by the Commission to constitute an emergency:</text> <level label="i"> <text>the racing days may be transferred immediately; and</text> </level> <level label="ii"> <text>as soon as practicable, the Commission shall provide notice of a hearing and conduct a hearing pursuant to subsection (c) of this section.</text> </level> </level> <level label="2"> <text>As soon as the track and the facilities of the licensee from which race days were transferred under paragraph (1) of this subsection are in a condition to continue racing and pari–mutuel betting, any remaining days of the meet that was being conducted when the days were transferred shall be held at the track from which the days were transferred.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-613" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <level label="a"> <level label="1"> <text>A licensee whose average handle is $150,000 or less shall keep the breakage.</text> </level> <level label="2"> <text>A licensee whose average handle is over $150,000 shall:</text> <level label="i"> <text>allocate 50% of the breakage to the Sires Stakes Program; and</text> </level> <level label="ii"> <text>keep 50% of the breakage to pay for personnel-related expenses, physical improvements, track maintenance, and indebtedness related to the track, including indebtedness for clubhouse and grandstand construction.</text> </level> </level> </level> <level label="b"> <text>If an average handle is over $600,000, the takeout shall be:</text> <level label="1"> <text>17% from each regular mutuel pool;</text> </level> <level label="2"> <text>19% from each multiple mutuel pool for 2 horses; and</text> </level> <level label="3"> <text>25% from each multiple mutuel pool on 3 or more horses.</text> </level> </level> <level label="c"> <text>If the average handle is $600,000 or less, the takeout shall be:</text> <level label="1"> <text>not more than 18.75% from each regular mutuel pool;</text> </level> <level label="2"> <text>not more than 20.75% from each multiple mutuel pool on 2 horses; and</text> </level> <level label="3"> <text>not more than 26.75% from each multiple mutuel pool on 3 or more horses.</text> </level> </level> <level label="d"> <text>Money that remains after deductions are made under this section shall be returned as winnings to successful bettors.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-614" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <text>A licensee whose average handle is over $600,000 shall:</text> <level label="1"> <text>allocate 0.50% of each mutuel pool to the Commission as State tax;</text> </level> <level label="2"> <text>allocate 0.25% of each mutuel pool to the Maryland Harness Track Employees Pension Fund;</text> </level> <level label="3"> <text>keep 16.25% of each regular mutuel pool;</text> </level> <level label="4"> <text>keep 18.25% of each multiple mutuel pool on 2 horses; and</text> </level> <level label="5"> <text>keep 24.25% of each multiple mutuel pool on 3 or more horses.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-615" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <level label="a"> <text>From a licensee’s share of the takeout on each mutuel pool, the licensee whose average handle is over $600,000 shall allocate equally to the Sires Stakes Program and the Foaled Stakes Program of the Maryland Standardbred Race Fund the following amounts:</text> <level label="1"> <text>on the first $125,000 of the average handle:</text> <level label="i"> <level label="0"> <text>50% of each regular mutuel pool;</text> </level> </level> <level label="ii"> <level label="0"> <text>50% of each multiple mutuel pool on 2 horses; and</text> </level> </level> <level label="iii"> <text>1% of each multiple mutuel pool on 3 or more horses.</text> </level> </level> <level label="2"> <text>on the rest of the average handle:</text> <level label="i"> <text>1% of each regular mutuel pool;</text> </level> <level label="ii"> <text>1% of each multiple mutuel pool on 2 horses; and</text> </level> <level label="iii"> <level label="1"> <text>5% of each multiple mutuel pool on 3 or more horses.</text> </level> </level> </level> </level> <level label="b"> <text>From the licensee’s share of the takeout, the licensee shall allocate 0.50% on the part of an average handle over $150,000 to pay for:</text> <level label="1"> <text>purses;</text> </level> <level label="2"> <text>personnel–related expenses, physical improvements, track maintenance, and indebtedness related to the track, including indebtedness for clubhouse and grandstand construction; and</text> </level> <level label="3"> <text>maintenance of proper living conditions in the backstretch.</text> </level> </level> <level label="c"> <level label="1"> <text>From the licensee’s share of the takeout, the licensee shall allocate 0.25% of each mutuel pool to improve the facilities and services of the track and to increase marketing activity, so as to promote:</text> <level label="i"> <text>increased attendance and pari–mutuel betting; and</text> </level> <level label="ii"> <text>enhanced well–being of the standardbred racing industry.</text> </level> </level> <level label="2"> <text>The General Assembly, by statute, may direct that the Commission not award in the following calendar year part or all of the racing days authorized under § 11–610 of this part to the licensee if the General Assembly finds that:</text> <level label="i"> <text>the proposed use of the allocation under this subsection is inconsistent with the purposes specified in this section; or</text> </level> <level label="ii"> <text>the licensee has not spent the allocation in a way that is consistent with the proposal.</text> </level> </level> </level> <level label="d"> <text>From the licensee’s share of the takeout on each multiple mutuel pool on 2 horses, the licensee shall allocate at least 1% of the mutuel pool as follows:</text> <level label="1"> <text>one–half to purses; and</text> </level> <level label="2"> <text>one–half to personnel–related expenses, physical improvements, track maintenance, and indebtedness related to the track, including indebtedness for clubhouse and grandstand construction.</text> </level> </level> <level label="e"> <text>From the licensee’s share of the takeout on each multiple mutuel pool on 3 or more horses, a licensee shall allocate at least 6.5% of each mutuel pool as follows:</text> <level label="1"> <text>one–half to purses; and</text> </level> <level label="2"> <text>one–half to personnel–related expenses, physical improvements, track maintenance, and indebtedness related to the track, including indebtedness for clubhouse and grandstand construction.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-616" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <text>A licensee whose average handle is $600,000 or less shall:</text> <level label="1"> <text>allocate 0.32% of each mutuel pool to the Commission as State tax;</text> </level> <level label="2"> <text>subject to § 11–618 of this part, allocate 0.25% of each mutuel pool to the Maryland Harness Track Employees Pension Fund;</text> </level> <level label="3"> <text>allocate for purses 0.18% of each mutuel pool, or an amount that is otherwise agreed to by the licensee and the organization representing a majority of the harness owners and trainers in the State, which shall provide revenue in addition to any other funds set aside for purses by private parties;</text> </level> <level label="4"> <text>keep 18.00% of each regular mutuel pool;</text> </level> <level label="5"> <text>keep 20.00% of each multiple mutuel pool on 2 horses; and</text> </level> <level label="6"> <text>keep 26.00% of each multiple mutuel pool on 3 or more horses.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-617" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <level label="a"> <text>From a licensee’s share of the takeout on each mutuel pool, the licensee whose average handle is $600,000 or less shall allocate 1.75% to increased purses.</text> </level> <level label="b"> <text>From the licensee’s share of the takeout on each mutuel pool, a licensee whose average handle is over $150,000 shall allocate equally to the Sires Stakes Program and the Foaled Stakes Program of the Maryland Standardbred Race Fund the following amounts:</text> <level label="1"> <text>on the first $125,000 of the average handle:</text> <level label="i"> <level label="0"> <text>50% of each regular mutuel pool;</text> </level> </level> <level label="ii"> <level label="0"> <text>50% of each multiple mutuel pool on 2 horses; and</text> </level> </level> <level label="iii"> <text>1% of each multiple mutuel pool on 3 or more horses.</text> </level> </level> <level label="2"> <text>on the rest of the average handle:</text> <level label="i"> <text>1% of each regular mutuel pool;</text> </level> <level label="ii"> <text>1% of each multiple mutuel pool on 2 horses; and</text> </level> <level label="iii"> <level label="1"> <text>5% of each multiple mutuel pool on 3 or more horses.</text> </level> </level> </level> </level> <level label="c"> <text>A licensee whose average handle is $150,000 or less shall allocate equally to the Sires Stakes Program and the Foaled Stakes Program of the Maryland Standardbred Race Fund:</text> <level label="1"> <level label="0"> <text>50% of each regular mutuel pool;</text> </level> </level> <level label="2"> <level label="0"> <text>50% of each multiple mutuel pool for 2 horses; and</text> </level> </level> <level label="3"> <text>1% of each multiple mutuel pool for 3 or more horses.</text> </level> </level> <level label="d"> <text>From the licensee’s share of the takeout, the licensee shall allocate 0.50% on the part of an average handle over $150,000 to pay for:</text> <level label="1"> <text>purses;</text> </level> <level label="2"> <text>personnel–related expenses, physical improvements, track maintenance, and indebtedness related to the track, including indebtedness for clubhouse and grandstand construction; and</text> </level> <level label="3"> <text>maintenance of proper living conditions in the backstretch.</text> </level> </level> <level label="e"> <level label="1"> <text>From the licensee’s share of the takeout, the licensee shall allocate 0.25% of each mutuel pool to improve the facilities and services of the track and to increase marketing activity, so as to promote:</text> <level label="i"> <text>increased attendance and pari–mutuel betting; and</text> </level> <level label="ii"> <text>enhanced well–being of the standardbred racing industry.</text> </level> </level> <level label="2"> <text>The General Assembly, by statute, may direct that the Commission not award in the following calendar year part or all of the racing days authorized under § 11–610 of this part to the licensee if the General Assembly finds that:</text> <level label="i"> <text>the proposed use of the allocation under this subsection is inconsistent with the purposes specified in this section; or</text> </level> <level label="ii"> <text>the licensee has not spent the allocation in a way that is consistent with the proposal.</text> </level> </level> </level> <level label="f"> <text>From the licensee’s share of the takeout on each multiple mutuel pool on 2 horses, the licensee shall allocate at least 1% of the mutuel pool as follows:</text> <level label="1"> <text>one–half to purses; and</text> </level> <level label="2"> <text>one–half to personnel–related expenses, physical improvements, track maintenance, and indebtedness related to the track, including indebtedness for clubhouse and grandstand construction.</text> </level> </level> <level label="g"> <text>From the licensee’s share of the takeout on each multiple mutuel pool on 3 or more horses, a licensee shall allocate at least 6.5% of each mutuel pool as follows:</text> <level label="1"> <text>one–half to purses; and</text> </level> <level label="2"> <text>one–half to personnel–related expenses, physical improvements, track maintenance, and indebtedness related to the track, including indebtedness for clubhouse and grandstand construction.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-618" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <text>A licensee whose average handle is $125,000 or less is exempt from paying 0.25% of each mutuel pool to the Maryland Harness Track Employees Pension Fund.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-619" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <text>A licensee shall:</text> <level label="1"> <text>deduct the fee for a driver from the purse of an owner; and</text> </level> <level label="2"> <text>pay the fee to the driver not later than 7 work days after the last day of the month in which the driver earns the fee.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-620" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <level label="a"> <level label="1"> <text>A licensee shall:</text> <level label="i"> <text>estimate daily the State tax on money bet; and</text> </level> <level label="ii"> <text>pay to the Commission the estimated tax, to be credited against the total tax due at the close of the race meeting.</text> </level> </level> <level label="2"> <text>The first payment of estimated tax is due 33 days after the start of the race meeting and covers the estimated tax for the first 30 days of the race meeting.</text> </level> <level label="3"> <text>The estimated daily tax for each later day of the race meeting shall be paid to the Commission not later than 72 hours after the close of racing for that day.</text> </level> <level label="4"> <text>The total tax due for the race meeting shall be paid within 5 days after the close of the race meeting.</text> </level> </level> <level label="b"> <text>If the estimated tax paid by a licensee is less than 75% of the total tax due at the end of a race meeting, the Comptroller may assess a penalty of 25% of any additional tax due at the end of the race meeting.</text> </level> <level label="c"> <text>The Commission promptly shall send to the Comptroller all taxes and estimated taxes it collects.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-623" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <level label="a"> <text>In this part the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Advisory Committee” means the Maryland Standardbred Race Fund Advisory Committee.</text> </level> <level label="c"> <text>“Fund” means the Maryland Standardbred Race Fund.</text> </level> <level label="d"> <text>“Fund Race” means a race funded by the Maryland Standardbred Fund.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-624" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <text>There is a Maryland Standardbred Race Fund consisting of the Foaled Stakes Program and the Sires Stakes Program.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-625" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <text>There is a Maryland Standardbred Race Fund Advisory Committee, under the jurisdiction of the Commission, in the Department.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-626" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <level label="a"> <level label="1"> <text>The Advisory Committee consists of members appointed by the Commission with the approval of the Secretary.</text> </level> <level label="2"> <text>Of the members of the Advisory Committee:</text> <level label="i"> <text>1 shall be nominated by the chairman of the Commission and be another member of the Commission;</text> </level> <level label="ii"> <text>1 shall be nominated by the chairman of the Commission to represent each harness racing licensee;</text> </level> <level label="iii"> <text>2 shall be nominated by a majority vote of the organization that represents a majority of Standardbred Breeders in the State, and 1 of those recommended shall be a commercial breeder as defined by the Commission; and</text> </level> <level label="iv"> <text>1 shall be nominated by a majority vote of the Cloverleaf Standardbred Owners Association, Inc.</text> </level> </level> </level> <level label="b"> <text>A member of the Advisory Committee shall be a resident of the State.</text> </level> <level label="c"> <level label="1"> <text>This subsection does not apply to the chairman of the Advisory Committee.</text> </level> <level label="2"> <text>The term of a member of the Advisory Committee is 4 years and begins on June 1.</text> </level> <level label="3"> <text>A member of the Advisory Committee may serve multiple but not consecutive complete terms.</text> </level> <level label="4"> <text>The terms of members are staggered as required by the terms in effect for members of the Advisory Committee on October 1, 1992.</text> </level> <level label="5"> <text>If a member other than the 2 members nominated by the chairman of the Commission has not been nominated by June 1, the Commission, with the approval of the Secretary, shall nominate the member.</text> </level> <level label="6"> <text>At the end of a term, a member continues to serve until a successor is appointed.</text> </level> <level label="7"> <text>A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed.</text> </level> </level> <level label="d"> <text>The Governor may remove a member of the Advisory Committee for incompetence or misconduct.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-627" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <level label="a"> <text>The member of the Commission who is on the Advisory Committee is the chairman of the Advisory Committee.</text> </level> <level label="b"> <level label="1"> <text>The term of the chairman of the Advisory Committee is 1 year.</text> </level> <level label="2"> <text>At the end of a term, the chairman continues to serve until a successor is appointed.</text> </level> <level label="3"> <text>A chairman who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed.</text> </level> <level label="4"> <text>An individual stops serving as chairman when the individual leaves the Advisory Committee.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-628" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <level label="a"> <text>The Advisory Committee shall set the times and places of its meetings.</text> </level> <level label="b"> <text>A member of the Advisory Committee:</text> <level label="1"> <text>may not receive compensation; but</text> </level> <level label="2"> <text>is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-629" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <level label="a"> <text>The Commission shall:</text> <level label="1"> <text>administer the Fund with the help and advice of the Advisory Committee; and</text> </level> <level label="2"> <text>order each payment that is to be made from the Fund.</text> </level> </level> <level label="b"> <text>The Commission shall:</text> <level label="1"> <text>deposit the money allocated by each licensee to the Fund into a bank or trust company in the State; and</text> </level> <level label="2"> <text>require the bank or trust company to secure the Fund by collateral.</text> </level> </level> <level label="c"> <text>Within 5 days after a race meeting, the licensee shall pay to the Commission to be held in the Fund all money that is allocated to the Fund under this title but was not disbursed during the race meeting.</text> </level> <level label="d"> <text>If the Commission uses ordinary care to choose the depository bank or trust company, members are not personally liable for loss to the Fund because of failure, insolvency, or other fault of the depository.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-631" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <text>Each licensee shall provide for the running of Fund Races.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-632" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <level label="a"> <text>A horse shall be registered with the Advisory Committee before the horse may start in a race of the Foaled Stakes Program.</text> </level> <level label="b"> <text>A horse may be registered with the Advisory Committee only if the horse was foaled in Maryland as shown by a foal certificate from the United States Trotting Association and:</text> <level label="1"> <text>the breeder of the horse has maintained a place of abode in Maryland for more than 9 months immediately before registration;</text> </level> <level label="2"> <text>the breeder of the horse keeps breeding stock continually in Maryland;</text> </level> <level label="3"> <text>the horse was conceived during the previous season by the horse’s dam being covered by a Maryland stallion registered with the Advisory Committee; or</text> </level> <level label="4"> <text>the horse’s dam was sent to Maryland to foal and after foaling was covered by a Maryland stallion during the season of the horse’s birth.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-633" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <text>The offspring of a standardbred sire is eligible for the Sires Stakes Program if:</text> <level label="1"> <text>the sire is registered with the United States Trotting Association and with the Advisory Committee;</text> </level> <level label="2"> <text>the sire was at stud in the State for a full breeding season; and</text> </level> <level label="3"> <text>the offspring was conceived during that breeding season.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-634" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <level label="a"> <text>A Fund Race shall be held in accordance with regulations that the Commission adopts on the recommendation of the Advisory Committee.</text> </level> <level label="b"> <text>On recommendation of the Advisory Committee, the Commission shall set:</text> <level label="1"> <text>the number of Fund Races;</text> </level> <level label="2"> <text>the amount of each purse and bonus;</text> </level> <level label="3"> <text>the date of each Fund Race;</text> </level> <level label="4"> <text>the distance of each Fund Race;</text> </level> <level label="5"> <text>each breeder’s award;</text> </level> <level label="6"> <text>nomination and registration procedures; and</text> </level> <level label="7"> <text>any other condition needed to carry out the purpose of a Fund Race.</text> </level> </level> <level label="c"> <text>The Commission shall set the amount of each purse and the conditions for each Fund Race in time to allow a licensee to include the purse and conditions in the stake book and condition book of the licensee.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-635" title_number="11" title_name="Horse Racing" subtitle_number="6" subtitle_name="Harness Racing"> <level label="a"> <text>A licensee may add to any purse in a Fund Race.</text> </level> <level label="b"> <text>A purse, authorized under this part and paid in a Fund Race, is specifically excluded from breeders’ bonuses, purses, or stakes that are paid or offered by licensees in races other than Fund Races, as determined by agreement or formula between a licensee and an organization that represents a majority of the owners and trainers.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-701" title_number="11" title_name="Horse Racing" subtitle_number="7" subtitle_name="Racing at Fair Hill"> <text>This subtitle applies only to the licensee that is the Cecil County Breeders’ Fair, Inc., or its successor.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-702" title_number="11" title_name="Horse Racing" subtitle_number="7" subtitle_name="Racing at Fair Hill"> <level label="a"> <level label="1"> <text>The Commission shall issue a license to the Cecil County Breeders’ Fair, Inc., or its successor to hold racing on not more than 8 one–day race meetings a year for steeplechase, hurdle, or flat racing at the Fair Hill Natural Resources Management Area.</text> </level> <level label="2"> <text>The racing shall be held on dates that the licensee chooses and the Commission approves.</text> </level> </level> <level label="b"> <text>In conjunction with this racing, an agricultural fair with livestock entered for exhibition may be held under the auspices of the State Fair Board on at least 1 racing day.</text> </level> <level label="c"> <text>An officer of the licensee may not receive a salary or dividends from racing allowed under this subtitle.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-703" title_number="11" title_name="Horse Racing" subtitle_number="7" subtitle_name="Racing at Fair Hill"> <text>The Commission may issue a license to the licensee to hold racing on 2 race meetings a year for quarter horse racing at the Fair Hill Natural Resources Management Area.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-704" title_number="11" title_name="Horse Racing" subtitle_number="7" subtitle_name="Racing at Fair Hill"> <level label="a"> <level label="1"> <text>The licensee shall deduct from the handle:</text> <level label="i"> <text>all the breakage; and</text> </level> <level label="ii"> <text>an amount not to exceed 25%.</text> </level> </level> <level label="2"> <text>Excluding the breakage, of the amount the licensee deducts from the handle, 36% of that amount shall be paid to the Commission, which shall send it to the Comptroller to be credited to the Fair Hill Improvement Fund established in § 5–908 of the Natural Resources Article.</text> </level> </level> <level label="b"> <text>Money that remains after deductions are made under subsection (a) of this section shall be returned as winnings to successful bettors.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-705" title_number="11" title_name="Horse Racing" subtitle_number="7" subtitle_name="Racing at Fair Hill"> <level label="a"> <text>In this section, “Arabian breed horse” means a horse that:</text> <level label="1"> <text>is a purebred Arabian breed horse; and</text> </level> <level label="2"> <text>has a valid certificate of registry with the Arabian Jockey Club of America.</text> </level> </level> <level label="b"> <text>A licensee at the Fair Hill Natural Resources Management Area may conduct live racing of Arabian breed horses if:</text> <level label="1"> <text>the purse for an Arabian breed race is funded by the licensee or the sponsor of the race;</text> </level> <level label="2"> <text>the takeout provisions of § 11–704 of this subtitle apply to the race;</text> </level> <level label="3"> <text>the licensee pays all taxes and fees associated with the Arabian breed race that would otherwise be due on a steeplechase, hurdle, or flat race; and</text> </level> <level label="4"> <text>the Arabian breed race is approved by the Commission.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-801" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <text>The Commission may authorize a licensee to hold racing with pari-mutuel betting.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-802" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>A licensee may not lend or give money to a person for pari-mutuel betting.</text> </level> <level label="b"> <text>The Commission may adopt regulations to enforce this section.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-803" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>If a winning ticket is not redeemed within 1 year, the licensee into whose betting pool the bet was placed shall pay the amount needed to redeem the ticket to the Commission to be credited to the Special Fund under Subtitle 4 of this title.</text> </level> <level label="b"> <text>Every year for the preceding calendar year, each licensee shall:</text> <level label="1"> <text>report to the Commission the amount payable to the Commission under this section; and</text> </level> <level label="2"> <text>pay that amount to the Commission.</text> </level> </level> <level label="c"> <level label="1"> <text>The license of a licensee shall be revoked if the licensee:</text> <level label="i"> <text>fails to report when money under this section is due; or</text> </level> <level label="ii"> <text>knowingly or willfully submits a report that understates the amount due.</text> </level> </level> <level label="2"> <text>A licensee whose license is revoked under this subsection may not hold a license for at least 1 year.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-804" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>The intent of this section is similar to that of the Interstate Horseracing Act of 1978, 15 U.S.C. §§ 3001 through 3007.</text> </level> <level label="b"> <text>If the Commission approves, a licensee may contract to hold pari-mutuel betting on a race that is held at an out-of-state track where betting on racing is lawful.</text> </level> <level label="c"> <text>Pari-mutuel betting under this section may only occur:</text> <level label="1"> <text>on a racing day when the Commission has authorized the licensee to hold racing; and</text> </level> <level label="2"> <level label="i"> <text>at the track of the licensee;</text> </level> <level label="ii"> <text>at any track where pari-mutuel betting on races on the racing program of the licensee for that day is authorized; or</text> </level> <level label="iii"> <text>at a satellite simulcast facility.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The breakage and takeout for pari-mutuel betting under this section shall be computed in the way normally applicable to pari-mutuel betting on racing the licensee holds.</text> </level> <level label="2"> <text>From the takeout the licensee shall deduct:</text> <level label="i"> <text>the State tax on all mutuel pools;</text> </level> <level label="ii"> <text>the amount to be paid under the contract to the out-of-state track; and</text> </level> <level label="iii"> <text>the cost of transmission.</text> </level> </level> <level label="3"> <text>The licensee shall then allocate the rest of the takeout in the way applicable to the racing that the licensee holds.</text> </level> </level> <level label="e"> <text>A contract with an out-of-state track under this section is subject to the approval of the group that represents a majority of the owners and trainers who race horses at that track and the group that represents a majority of the applicable breeders in this State.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-804.1" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>Subject to the Interstate Horseracing Act of 1978, 15 U.S.C. §§ 3001 through 3007, a licensee may simulcast races held in this State to another jurisdiction where betting on racing is lawful.</text> </level> <level label="b"> <text>All payments to the licensee under this section shall be allocated to the licensee, purses, and the applicable bred fund in the way agreed to by:</text> <level label="1"> <text>the licensee;</text> </level> <level label="2"> <text>the group that represents a majority of the applicable owners and trainers licensed in the State; and</text> </level> <level label="3"> <text>the group that represents a majority of the applicable breeders in the State.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-804.2" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <text>Notwithstanding § 11-804(c) of this subtitle, a licensee in Allegany County may conduct pari-mutuel betting under § 11-804 of this subtitle on a day when the Commission has authorized the licensee to hold racing only:</text> <level label="1"> <text>at the track of the licensee;</text> </level> <level label="2"> <text>at a satellite simulcast facility:</text> <level label="i"> <text>in which the licensee has majority ownership interest; and</text> </level> <level label="ii"> <text>which complies with the requirements of § 11-825(a) of this subtitle; and</text> </level> </level> <level label="3"> <text>at a receiving track located more than 35 miles from any of Laurel Park, Pimlico Race Course, and Rosecroft Raceway.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-805" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>Except for racing held by the Maryland-National Capital Park and Planning Commission, the Commission may authorize telephone betting at any track where racing is authorized.</text> </level> <level label="b"> <text>The breakage and takeout on all telephone betting shall be computed in the way normally applicable to pari-mutuel betting on racing the licensee holds.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-808" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>An employee of a receiving track is not considered an employee of the sending track because of this part.</text> </level> <level label="b"> <text>The Commission has jurisdiction over all intertrack betting and other activities at a receiving track to the same extent as when live racing is held at the track.</text> </level> <level label="c"> <text>The Commission shall adopt regulations to carry out this part.</text> </level> <level label="d"> <text>Only a licensee may operate a receiving track or a sending track.</text> </level> <level label="e"> <level label="1"> <text>A receiving track shall transmit directly to the sending track all pari-mutuel information about the money bet at the receiving track.</text> </level> <level label="2"> <text>A sending track shall incorporate this information with information on pari-mutuel betting at the sending track.</text> </level> </level> <level label="f"> <text>Money bet in intertrack betting shall be:</text> <level label="1"> <text>included in the applicable mutuel pools at the sending track; and</text> </level> <level label="2"> <text>considered as if bet at the sending track.</text> </level> </level> <level label="g"> <level label="1"> <text>The breakage, State tax, and takeout on all intertrack betting at a receiving track shall be computed in the way normally applicable to pari-mutuel betting on a race at the sending track.</text> </level> <level label="2"> <text>The takeout shall be allocated in the same proportions that are normally applicable to racing held at the sending track, after deductions for:</text> <level label="i"> <text>the State tax;</text> </level> <level label="ii"> <text>the amount to be kept by the receiving track under the simulcast agreement with the sending track; and</text> </level> <level label="iii"> <text>the cost to the sending track of the transmission.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-809" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>On a race that a licensee holds and simulcasts to an out-of-state facility or on a simulcast of a race that a licensee receives, the licensee may, with the approval of the Commission, combine bets made at the licensee’s track with bets of the same type made at the out-of-state facility where betting is lawful.</text> </level> <level label="b"> <text>This section allows the creation of common mutuel pools for calculating odds and determining payouts.</text> </level> <level label="c"> <text>Bets made at an out-of-state facility may not be considered part of the licensee’s mutuel pools for any purpose other than the purpose stated in subsection (b) of this section.</text> </level> <level label="d"> <text>For races that are held by a licensee in this State and simulcast to an out-of-state facility, the takeout on bets made in this State that are commingled in a common mutuel pool shall be the takeout as prescribed for the licensee by this title.</text> </level> <level label="e"> <text>Notwithstanding any other provision of this title governing the amount of takeout, for a race that is held by an out-of-state facility and simulcast to a licensee in this State, the takeout on bets made in this State that are commingled in a common mutuel pool shall be, subject to the approval of the Commission, as agreed by the licensee and the out-of-state facility.</text> </level> <level label="f"> <text>Notwithstanding any other provision of this title governing the allocation of takeout, for a race that is held by an out-of-state facility and simulcast to a licensee in this State, the allocation of takeout on bets made in this State that are commingled in a common mutuel pool shall be, subject to the approval of the Commission, allocated in the following manner:</text> <level label="1"> <text>to the State for taxes on the handle of the licensee as provided under this title;</text> </level> <level label="2"> <text>to the host racing association where live racing is conducted in an amount determined by the licensee and the out-of-state facility; and</text> </level> <level label="3"> <text>the remainder to the licensee, the applicable pension funds created by this title, purse money, and the applicable bred fund in proportion to their respective shares of the takeout under this title.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-811" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Fair Hill” means the Cecil County Breeders’ Fair, Inc., or its successor.</text> </level> <level label="3"> <text>“State Fair Society” means the Maryland State Fair and Agricultural Society, Inc.</text> </level> </level> <level label="b"> <text>This section applies only to intertrack betting in which:</text> <level label="1"> <text>the sending track is equipped to transmit simulcast races and is:</text> <level label="i"> <text>a mile thoroughbred track;</text> </level> <level label="ii"> <text>a harness track;</text> </level> <level label="iii"> <text>a track where racing is conducted by Fair Hill; or</text> </level> <level label="iv"> <text>a track where racing is conducted by the State Fair Society; and</text> </level> </level> <level label="2"> <text>the receiving track is:</text> <level label="i"> <text>equipped to receive simulcast races and hold intertrack betting on those races; and</text> </level> <level label="ii"> <text>one of the tracks specified in item (1) of this subsection.</text> </level> </level> </level> <level label="c"> <text>The Commission may authorize intertrack betting involving tracks of:</text> <level label="1"> <text>mile thoroughbred racing licensees;</text> </level> <level label="2"> <text>harness racing licensees;</text> </level> <level label="3"> <text>Fair Hill; or</text> </level> <level label="4"> <text>the State Fair Society.</text> </level> </level> <level label="d"> <text>The Commission may authorize licensees, Fair Hill, or the State Fair Society to participate in intertrack betting by operating sending tracks and receiving tracks only if:</text> <level label="1"> <text>the operators of the sending track and the receiving track submit a joint application to the Commission;</text> </level> <level label="2"> <text>the Commission holds a public hearing on the matter;</text> </level> <level label="3"> <text>the operator of the receiving track shows to the satisfaction of the Commission that the operator has held, is holding, or will hold regularly scheduled race meetings at the receiving track in accordance with a license and has complied with the terms of the license; and</text> </level> <level label="4"> <text>the receiving track meets the requirements of subsection (e) of this section, unless the Commission has waived them, and subsection (f) of this section.</text> </level> </level> <level label="e"> <level label="1"> <text>Laurel Race Course, a track where racing is conducted by the State Fair Society or Rosecroft Raceway may be a receiving track only if live racing was held there in the previous calendar year on at least 75% of the racing days available to it.</text> </level> <level label="2"> <text>Ocean Downs may be a receiving track only if at least 40 days of live racing were held there in the previous calendar year.</text> </level> <level label="3"> <text>Pimlico Race Course may be a receiving track only if at least 90 days of live racing were held there in the previous calendar year.</text> </level> <level label="4"> <text>A track where racing is conducted by Fair Hill may be a sending track only on days when Fair Hill is licensed to conduct and actually conducts live racing.</text> </level> <level label="5"> <text>A track in Allegany County may be a sending track:</text> <level label="i"> <text>to any receiving track:</text> <level label="1"> <text>on days when the track is licensed to conduct and actually conducts live racing; and</text> </level> <level label="2"> <text>for live races conducted at the track; and</text> </level> </level> <level label="ii"> <text>to a receiving track located more than 35 miles from any of Laurel Park, Pimlico Race Course, and Rosecroft Raceway:</text> <level label="1"> <text>on any day the Commission has authorized the licensee to hold racing; and</text> </level> <level label="2"> <text>for simulcast races conducted at the track.</text> </level> </level> </level> <level label="6"> <text>Subject to § 11-804.2 of this subtitle, nothing in paragraph (5) of this subsection shall limit the ability of a track in Allegany County to act as a sending track to a satellite simulcast facility.</text> </level> <level label="7"> <text>A track in Allegany County may be a receiving track:</text> <level label="i"> <text>during its opening year if it has scheduled at least 21 days of live racing within 12 months of its opening and the Commission has granted its application to race on those days; and</text> </level> <level label="ii"> <text>in subsequent years if at least 21 days of live racing were held at the track in the previous calendar year.</text> </level> </level> <level label="8"> <text>The Commission may waive a requirement of this subsection if the receiving track could not meet the requirement because of:</text> <level label="i"> <text>an act of God; or</text> </level> <level label="ii"> <text>what the Commission finds to be an emergency.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>Intertrack betting may be held only if the organizations specified in this subsection approve the agreement between the receiving track and the sending track to simulcast races.</text> </level> <level label="2"> <text>If the sending track is a mile thoroughbred track or a track where racing is conducted by the State Fair Society or Fair Hill, approval shall be by an organization representing:</text> <level label="i"> <text>a majority of the owners and trainers at the sending track; and</text> </level> <level label="ii"> <text>a majority of the thoroughbred breeders in the State.</text> </level> </level> <level label="3"> <text>If the sending track is a harness track, approval shall be by an organization representing:</text> <level label="i"> <text>a majority of the owners, trainers, and drivers of standardbred horses at the sending track; and</text> </level> <level label="ii"> <text>a majority of the standardbred breeders in the State.</text> </level> </level> <level label="4"> <text>If the receiving track is a mile thoroughbred track or a track where racing is conducted by the State Fair Society, approval shall be by an organization representing:</text> <level label="i"> <text>a majority of the owners and trainers at the receiving track; and</text> </level> <level label="ii"> <text>a majority of the thoroughbred breeders in the State.</text> </level> </level> <level label="5"> <text>If the receiving track is a harness track, approval shall be by an organization representing:</text> <level label="i"> <text>a majority of the owners, trainers, and drivers of standardbred horses at the harness track; and</text> </level> <level label="ii"> <text>a majority of the standardbred breeders in the State.</text> </level> </level> </level> <level label="g"> <level label="1"> <text>The simulcast signal shall be encoded.</text> </level> <level label="2"> <text>The licensee of the receiving track may not transmit the simulcast signal beyond the premises where pari-mutuel betting is allowed.</text> </level> </level> <level label="h"> <text>Notwithstanding the provisions of subsection (f) of this section, if a track where racing is conducted by the State Fair Society is within the 35-mile radius of a mile thoroughbred track, it shall first obtain the concurrence of that mile thoroughbred track before it may be a receiving track during a period of time when the State Fair Society is not licensed to conduct live racing.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-812" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>A mile thoroughbred racing licensee operating a sending track shall pay to the Commission, within 10 days after each day of intertrack betting on thoroughbred racing at a receiving track, $1,000 of the impact aid to be paid to political subdivisions for intertrack betting for that day under § 11–404(c) and (d) of this title.</text> </level> <level label="b"> <text>The licensee shall deduct from the takeout the payment under subsection (a) of this section and then shall allocate the rest of the takeout in the way normally applicable to racing at the sending track.</text> </level> <level label="c"> <text>The Commission shall pay promptly to the Comptroller all money collected under this section.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-815" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>In this part the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Permit” means a permit granted under this part to hold satellite simulcast betting.</text> </level> <level label="c"> <text>“Satellite simulcast betting” means:</text> <level label="1"> <text>pari-mutuel betting at a satellite simulcast facility in the State on a race that is simulcast from a sending track by a mile thoroughbred racing licensee, a harness racing licensee, or the State Fair Society; and</text> </level> <level label="2"> <text>transmission of the pari-mutuel information regarding bets at the satellite simulcast facility to the sending track.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-816" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>The Commission may approve satellite simulcast facilities that may conduct satellite simulcast betting.</text> </level> <level label="b"> <text>This part does not authorize satellite simulcast betting at or through the direct use of lottery terminals in the State.</text> </level> <level label="c"> <text>The Commission has jurisdiction over all satellite simulcast betting and other activities at a satellite simulcast facility to the same extent as when live racing is held by a licensee.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-817" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>A person must have a permit granted by the Commission whenever the person holds satellite simulcast betting.</text> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, nothing in this Part III of this subtitle may preempt local zoning laws or ordinances.</text> </level> <level label="2"> <text>The use of a facility for satellite simulcast betting is not required to be submitted to or approved by any county or municipal zoning board, authority, or unit if the facility is properly zoned and operating for the following activities:</text> <level label="i"> <text>operation of a video lottery facility;</text> </level> <level label="ii"> <text>operation of a sports wagering facility; or</text> </level> <level label="iii"> <text>operation of electronic bingo or electronic tip jar machines.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-818" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>Any person may apply for a permit.</text> </level> <level label="b"> <text>An applicant for a permit shall submit to the executive director of the Commission an application in the form that the Commission requires.</text> </level> <level label="c"> <text>Except as provided in subsection (e) of this section, the Commission shall conduct a personal and financial background check of an applicant for a permit including:</text> <level label="1"> <text>a review, by a certified public accountant, of the certified financial statements of the applicant, including contingent or pledged liabilities, sufficient to determine the ability of the applicant to purchase or lease, and develop and maintain the satellite simulcast facility for which the permit is sought;</text> </level> <level label="2"> <text>an income statement of the applicant for the most recent year;</text> </level> <level label="3"> <text>a statement of financial and related records of any person in which the applicant has at least a majority interest;</text> </level> <level label="4"> <text>a disclosure of all financial interests in horse racing and any other legalized betting activity;</text> </level> <level label="5"> <text>the disclosure of each person who is a beneficial owner of the applicant;</text> </level> <level label="6"> <text>with the assistance of federal, State, and local law enforcement authorities, a criminal background review; and</text> </level> <level label="7"> <text>a character review.</text> </level> </level> <level label="d"> <text>The Commission shall adopt regulations establishing uniform procedures for conducting the personal and financial background check required by this section.</text> </level> <level label="e"> <text>The Commission may waive all or any portion of the review that it determines to be appropriate for any applicant that is:</text> <level label="1"> <text>a licensee;</text> </level> <level label="2"> <text>a video lottery operation licensee under Title 9, Subtitle 1A of the State Government Article; or</text> </level> <level label="3"> <text>a sports wagering facility licensee under Title 9, Subtitle 1E of the State Government Article.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-819" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>The factors that the Commission shall consider in deciding whether to grant a permit shall include:</text> <level label="1"> <text>the needs and convenience of the public;</text> </level> <level label="2"> <text>whether the satellite simulcast facility:</text> <level label="i"> <text>would be expected to interfere unreasonably with attendance at tracks; and</text> </level> <level label="ii"> <text>meets the requirements of § 11–825(a) of this subtitle;</text> </level> </level> <level label="3"> <text>the desires of the political subdivision where the proposed satellite simulcast facility is to be located;</text> </level> <level label="4"> <text>the interests of the racing industry; and</text> </level> <level label="5"> <text>other matters that the Commission finds appropriate.</text> </level> </level> <level label="b"> <text>Before granting a permit, the Commission shall:</text> <level label="1"> <text>hold a public hearing within 10 miles of the proposed satellite simulcast facility;</text> </level> <level label="2"> <text>advertise the date, time, and location of the public hearing in a local publication at least 30 days before the public hearing;</text> </level> <level label="3"> <text>provide written notice of the date, time, and location of the public hearing to each of the Senators, Delegates, and county–elected officials that represent the jurisdiction within which the proposed satellite simulcast betting facility is to be located;</text> </level> <level label="4"> <text>post notice of the public hearing on the Commission’s Web site at least 30 days before the public hearing;</text> </level> <level label="5"> <text>require the applicant, at least 30 days before the public hearing, to post a sign in a conspicuous location at the facility for which the application for the permit was submitted stating that an application is pending for use of the facility for satellite simulcast betting and specifying the date, time, and location of the public hearing; and</text> </level> <level label="6"> <text>request from the applicant a list of community associations that were notified of the public hearing.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-820" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>The Commission shall grant a permit to each applicant whose application the Commission approves after the applicant pays the permit fee that the Commission requires.</text> </level> <level label="b"> <text>A permit shall state the specific location where the permit applies.</text> </level> <level label="c"> <text>If the Commission approves, an applicant for a permit may change the location for which a satellite simulcast facility is being applied.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-821" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <text>A permit entitles the holder to hold satellite simulcast betting at the satellite simulcast facility specified in the permit, but does not give the permit holder an ownership right to the permit or the simulcast signal.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-822" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>The Commission shall set the term of each permit.</text> </level> <level label="b"> <text>If the Commission approves, a permit may be transferred to another person if:</text> <level label="1"> <text>the satellite simulcasting facility remains at the same location; and</text> </level> <level label="2"> <text>the person complies with all regulations of the Commission established under § 11-316 of this title for the purchase or transfer of an entity licensed to conduct racing.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-823" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <text>A permit holder shall keep records of ownership and submit annual reports of ownership as required under § 11-314 of this title.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-824" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <text>Applicants for and holders of permits are subject to the denial of license and disciplinary provisions of § 11-308 of this title.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-825" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>A satellite simulcast facility:</text> <level label="1"> <text>shall be in premises owned or leased by a permit holder;</text> </level> <level label="2"> <text>may not be within a 35–mile radius of any mile thoroughbred track or harness track unless approved by the track licensee, the group that represents a majority of the applicable owners and trainers licensed in the State and the group that represents a majority of the applicable breeders in the State, considered separately;</text> </level> <level label="3"> <text>unless the track agrees otherwise, may not operate during hours on those days that racing with pari–mutuel betting is permitted at a racetrack located in this State within a 35–mile radius of the satellite simulcast facility; and</text> </level> <level label="4"> <text>shall offer pari–mutuel betting facilities and amenities that the Commission finds are appropriate for the area where the satellite simulcast facility is located.</text> </level> </level> <level label="b"> <level label="1"> <text>A mile thoroughbred racing licensee or a harness racing licensee:</text> <level label="i"> <text>shall own or lease the pari–mutuel betting equipment at a satellite simulcast facility; and</text> </level> <level label="ii"> <text>except as provided in paragraph (2) of this subsection, shall, with its employees, operate the equipment.</text> </level> </level> <level label="2"> <level label="i"> <text>In this paragraph, “sports wagering licensee” has the meaning stated in § 9–1E–01 of the State Government Article.</text> </level> <level label="ii"> <text>Subject to the approval of the Commission and the State Lottery and Gaming Control Commission:</text> <level label="1"> <text>a self–service kiosk at a satellite simulcast facility that is located in a sports wagering facility may accept both satellite simulcast bets and sports wagers, provided that the kiosk separately accounts for the different types of wagers and meets all specifications and requirements established by regulation by the State Lottery and Gaming Control Commission; and</text> </level> <level label="2"> <text>a mile thoroughbred racing licensee or a harness racing licensee may enter into an agreement with a sports wagering licensee authorizing the employees of the sports wagering licensee to operate the pari–mutuel betting equipment and to accept pari–mutuel bets on horse racing in a satellite simulcast facility.</text> </level> </level> </level> </level> <level label="c"> <text>A mile thoroughbred racing licensee or a harness racing licensee shall submit to the Commission all contracts and agreements relating to satellite simulcast betting under this subtitle.</text> </level> <level label="d"> <level label="1"> <text>The Commission shall periodically be assured by permit holders that facilities continue to meet the requirements of this section.</text> </level> <level label="2"> <level label="i"> <text>The Commission shall inspect satellite simulcast facilities at least four times each year to determine if the permit holders are continuing to comply with the provisions of this section.</text> </level> <level label="ii"> <text>The inspections under this subsection shall include evaluations of the financial and physical conditions of each satellite simulcast facility.</text> </level> </level> <level label="3"> <text>If the Commission finds that a permit holder is not complying with the provisions of this section, the Commission may impose a penalty on the permit holder similar to those penalties levied on licensees as provided under § 11–308 of this title.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-826" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>All money bet at a satellite simulcast facility shall be included in the applicable mutuel pools at the sending track.</text> </level> <level label="b"> <text>Except as provided in § 11-827 of this part, the breakage, State tax, and takeout on all satellite simulcast betting shall be computed in the way normally applicable to pari-mutuel betting on a race at the sending track.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-827" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <text>After the respective portions have been retained by each person listed below, those persons may allocate, from the takeout at the satellite simulcast facility, the costs of operating a satellite simulcast facility and holding satellite simulcast betting:</text> <level label="1"> <text>the licensee of the sending track, from the licensee’s share;</text> </level> <level label="2"> <text>the group that represents a majority of the applicable owners and trainers licensed in the State, from the purse share; and</text> </level> <level label="3"> <text>the group that represents a majority of the applicable breeders in the State, from the bred fund share.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-828" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <level label="a"> <text>A satellite simulcast facility shall transmit directly to the sending track all pari-mutuel information about the money bet at the satellite simulcast facility.</text> </level> <level label="b"> <text>A sending track shall incorporate this information with information on pari-mutuel betting at the sending track.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-829" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <text>Except for betting on races of national or international prominence which have been approved by the Commission, satellite simulcast betting may not be conducted:</text> <level label="1"> <text>on any day other than Sunday between 1:30 a.m. and 10:00 a.m.; and</text> </level> <level label="2"> <text>between 1:30 a.m. and 11:00 a.m. on Sunday.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-830" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <text>A permit holder under this subtitle may not lend or give money to a person for pari-mutuel betting.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-831" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <text>The Commission shall include in its annual report to the Legislative Policy Committee of the Maryland General Assembly:</text> <level label="1"> <text>the effect of satellite simulcast betting on the racing industry in the State;</text> </level> <level label="2"> <text>an appraisal of each permit holder, taking into consideration the results of inspections required under this section and any financial information that is submitted to the Commission;</text> </level> <level label="3"> <text>if any additional permit has been granted under this section:</text> <level label="i"> <text>the reasons for granting the permit; and</text> </level> <level label="ii"> <text>the anticipated impact of the new facility on existing permit holders and racing licensees; and</text> </level> </level> <level label="4"> <text>if an application for a permit or permit renewal has been denied:</text> <level label="i"> <text>the reasons for denying the permit or renewal; and</text> </level> <level label="ii"> <text>the impact on racing licensees if the Commission denied a permit renewal application.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-832" title_number="11" title_name="Horse Racing" subtitle_number="8" subtitle_name="Pari-Mutuel Betting"> <text>The Commission shall adopt regulations to:</text> <level label="1"> <text>define the criteria for applicants for a satellite simulcast betting permit, which may include a nonrefundable application fee;</text> </level> <level label="2"> <text>define allowable costs of operations under § 11-827 of this part; and</text> </level> <level label="3"> <text>otherwise carry out this part.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-901" title_number="11" title_name="Horse Racing" subtitle_number="9" subtitle_name="Jockey and Horsemen's Funds"> <text>In this subtitle, “Jockey Fund” means the Maryland Jockey Injury Compensation Fund, Inc.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-902" title_number="11" title_name="Horse Racing" subtitle_number="9" subtitle_name="Jockey and Horsemen's Funds"> <level label="a"> <text>There is a Maryland Jockey Injury Compensation Fund, Inc., established as a nonprofit corporation in the Department.</text> </level> <level label="b"> <text>The membership of the Maryland Jockey Injury Compensation Fund, Inc., shall consist of each licensed owner and trainer who is subject to assessment under this title.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-903" title_number="11" title_name="Horse Racing" subtitle_number="9" subtitle_name="Jockey and Horsemen's Funds"> <text>The Jockey Fund shall get workers’ compensation insurance on a blanket basis for all jockeys who are covered employees under § 9-212 of the Labor and Employment Article.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-904" title_number="11" title_name="Horse Racing" subtitle_number="9" subtitle_name="Jockey and Horsemen's Funds"> <level label="a"> <text>The Jockey Fund shall be managed by a Board of Directors.</text> </level> <level label="b"> <text>The Board of Directors of the Jockey Fund consists of the members of the Commission.</text> </level> <level label="c"> <text>The Board of Directors shall carry out this part.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-905" title_number="11" title_name="Horse Racing" subtitle_number="9" subtitle_name="Jockey and Horsemen's Funds"> <level label="a"> <text>The Jockey Fund shall use the moneys paid to it under this part to:</text> <level label="1"> <text>get workers’ compensation insurance for jockeys; and</text> </level> <level label="2"> <text>administer the workers’ compensation program for jockeys that is required under this subtitle and the Maryland Workers’ Compensation Act.</text> </level> </level> <level label="b"> <text>The liability of the Jockey Fund under the Maryland Workers’ Compensation Act is limited to:</text> <level label="1"> <text>providing workers’ compensation insurance; and</text> </level> <level label="2"> <text>paying any penalty that results from a failure to provide the insurance.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-906" title_number="11" title_name="Horse Racing" subtitle_number="9" subtitle_name="Jockey and Horsemen's Funds"> <level label="a"> <level label="1"> <text>The Commission shall assess each licensed owner and licensed trainer of a thoroughbred horse an amount sufficient to pay the cost of workers’ compensation insurance that the Jockey Fund gets.</text> </level> <level label="2"> <text>The Commission shall pay each assessment that the Commission collects under this subsection to the Jockey Fund.</text> </level> </level> <level label="b"> <level label="1"> <text>The Commission shall suspend or revoke the license of each owner or trainer who fails to pay the assessment under subsection (a)(1) of this section.</text> </level> <level label="2"> <text>The Commission may not reinstate or renew the license of the owner or trainer during the period of default.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-909" title_number="11" title_name="Horse Racing" subtitle_number="9" subtitle_name="Jockey and Horsemen's Funds"> <level label="a"> <text>There is a Maryland Standardbred Horsemen’s Assistance Fund, Inc., and a Maryland Horsemen’s Assistance Fund, Inc.</text> </level> <level label="b"> <text>The clerk of the course at each thoroughbred track and at each harness track shall:</text> <level label="1"> <text>collect each overpayment on a tote machine and each fine and penalty that is not imposed on a licensee; and</text> </level> <level label="2"> <text>pay that money to the Commission within 10 days after the close of each race meeting.</text> </level> </level> <level label="c"> <text>The Commission shall pay the money collected under subsection (b) of this section from each harness track to the Maryland Standardbred Horsemen’s Assistance Fund, Inc., and the money collected from each thoroughbred track to the Maryland Horsemen’s Assistance Fund, Inc., on or before December 31 of each year, if the Commission is satisfied that:</text> <level label="1"> <text>the recipient fund is operated entirely for the charitable purposes consistent with the interests of racing; and</text> </level> <level label="2"> <text>money that the Commission sends to a recipient fund or net earnings of a recipient fund is not used for the benefit of a director, member, or officer of that fund, or for the benefit of any private individual who is not an object of the charitable purposes of that fund.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-1001" title_number="11" title_name="Horse Racing" subtitle_number="10" subtitle_name="Prohibited Act"> <level label="a"> <text>Except in accordance with a license, a person may not hold, or aid or abet in holding, a race meeting at which horses are raced for a purse, reward, or stake.</text> </level> <level label="b"> <text>A person who violates this section is guilty of a misdemeanor and, on conviction, is subject to a fine not exceeding $10,000 for each day of violation or imprisonment not exceeding 2 years or both.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-1002" title_number="11" title_name="Horse Racing" subtitle_number="10" subtitle_name="Prohibited Act"> <level label="a"> <text>In this section, “racehorse” means a horse:</text> <level label="1"> <text>bred or intended for racing, including a weanling, yearling, horse in training, or racehorse breeding stock with a record of having produced or sired offspring intended for racing; or</text> </level> <level label="2"> <text>that has been recorded on the backstretch of a track in the State, has had a recorded workout on a track in the State, or has participated in a race meeting in the State where pari–mutuel betting is allowed.</text> </level> </level> <level label="b"> <text>A person may not:</text> <level label="1"> <text>slaughter or cause the slaughter of a racehorse in the State for any commercial purpose, including for human or animal consumption; or</text> </level> <level label="2"> <text>purchase, sell, transfer, offer for sale, import into the State, or transport a racehorse if the person knows or reasonably should know that the racehorse will be slaughtered for a commercial purpose, including for human or animal consumption.</text> </level> </level> <level label="c"> <level label="1"> <text>An individual who violates this section is guilty of a misdemeanor and on conviction:</text> <level label="i"> <text>for a first offense, is subject to a fine not exceeding $1,000 or imprisonment not exceeding 1 year or both; or</text> </level> <level label="ii"> <text>for a second or subsequent offense, is subject to a fine not exceeding $2,000 or imprisonment not exceeding 1 year or both.</text> </level> </level> <level label="2"> <text>A corporation, partnership, or any other entity that violates this section:</text> <level label="i"> <text>for a first offense, is subject to a fine not exceeding $2,500; or</text> </level> <level label="ii"> <text>for a second or subsequent offense, is subject to a fine not exceeding $5,000.</text> </level> </level> </level> <level label="d"> <text>Fines collected by the Commission as a result of violations under this section shall be distributed to the Special Fund established under § 11–401 of this title.</text> </level> <level label="e"> <text>If the Commission or the State Department of Agriculture finds that a person has violated this section:</text> <level label="1"> <text>the Commission may revoke or suspend any license issued to the person by the Commission; and</text> </level> <level label="2"> <text>the State Department of Agriculture may revoke or suspend any license issued to the person by the State Department of Agriculture.</text> </level> </level> <level label="f"> <text>The Commission, in consultation with the State Department of Agriculture, shall adopt regulations to carry out the provisions of this section.</text> </level> <level label="g"> <text>Nothing in this section shall be construed to prohibit humane euthanasia of a racehorse by a licensed veterinarian for reasons unrelated to commercial purposes, including severe injury, maiming, or injury that results in no quality of life for the racehorse, as determined by a licensed veterinarian.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-1101" title_number="11" title_name="Horse Racing" subtitle_number="11" subtitle_name="Short Title; Termination of Title"> <text>This title is the Maryland Horse Racing Act.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-1102" title_number="11" title_name="Horse Racing" subtitle_number="11" subtitle_name="Short Title; Termination of Title"> <text>Subject to the evaluation and reestablishment provisions of the Maryland Program Evaluation Act, this title and all regulations adopted under this title shall terminate on July 1, 2034. </text> </section> <section article="gbr" article_name="Business Regulation" number="11-1201" title_number="11" title_name="Horse Racing" subtitle_number="12" subtitle_name="Pimlico Community Development Authority"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Authority” means the Pimlico Community Development Authority.</text> </level> <level label="c"> <text>“Park Heights Corridor” means the area designated as an urban renewal district in Baltimore City that is bounded by Northern Parkway on the north, Greenspring Avenue on the east, Druid Park Drive on the south, and the railroad tracks of the Western Maryland Railroad on the west.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-1202" title_number="11" title_name="Horse Racing" subtitle_number="12" subtitle_name="Pimlico Community Development Authority"> <text>There is a Pimlico Community Development Authority.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-1203" title_number="11" title_name="Horse Racing" subtitle_number="12" subtitle_name="Pimlico Community Development Authority"> <level label="a"> <text>The Authority consists of the following 15 members:</text> <level label="1"> <text>the Baltimore City Planning Director;</text> </level> <level label="2"> <text>ten members, five of whom shall be business owners, residents, or service providers of the areas described in § 9–1A–31(a)(3)(ii) of the State Government Article, appointed by the Mayor of Baltimore City, with the advice and consent of the Senate;</text> </level> <level label="3"> <text>the State Senators representing legislative districts 40 and 41; and</text> </level> <level label="4"> <text>one State Delegate representing legislative district 40 and one State Delegate representing legislative district 41, each appointed by the Speaker of the House.</text> </level> </level> <level label="b"> <text>The Mayor of Baltimore City shall appoint the Chair of the Authority, subject to confirmation by the Baltimore City Council.</text> </level> <level label="c"> <level label="1"> <text>The term of a member appointed by the Mayor is 3 years.</text> </level> <level label="2"> <text>The terms of members are staggered as required by the terms provided for members on October 1, 2005.</text> </level> <level label="3"> <text>At the end of a term, a member continues to serve until a successor is appointed and qualifies.</text> </level> <level label="4"> <text>A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.</text> </level> <level label="5"> <text>At the end of a term, resignation, or removal of a member, the Mayor shall appoint a new member to the Authority.</text> </level> </level> <level label="d"> <text>A member may be removed by the Mayor for incompetence, misconduct, or failure to perform the duties of the position.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-1204" title_number="11" title_name="Horse Racing" subtitle_number="12" subtitle_name="Pimlico Community Development Authority"> <text>The Authority shall meet at a regular time and place to be determined by the Authority.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-1205" title_number="11" title_name="Horse Racing" subtitle_number="12" subtitle_name="Pimlico Community Development Authority"> <level label="a"> <text>The Authority shall receive 80% of the money from the Special Fund, established under § 11-401 of this title, that is designated for payment to Baltimore City under § 11-404 of this title.</text> </level> <level label="b"> <level label="1"> <text>Subject to the provisions of paragraph (2) of this subsection, the money received by the Authority shall be used to pay for facilities and services in communities in the Baltimore City limits within 2 miles of the Pimlico Race Course.</text> </level> <level label="2"> <text>In making its determinations on the use of the money provided to the Authority under subsection (a) of this section, the Authority shall give considerable weight to the housing, economic, and community development needs of the Park Heights Corridor, based on statistics including poverty and population statistics.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-1301" title_number="11" title_name="Horse Racing" subtitle_number="13" subtitle_name="National Racing Compact"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Compact committee” means the organization of officials from the party states that is authorized and empowered by this compact to carry out the purposes of this compact.</text> </level> <level label="c"> <text>“Compact license” means a license issued by the compact committee.</text> </level> <level label="d"> <text>“Official” means the duly selected member of a party state racing commission, or its equivalent, who represents that party state as a member of the compact committee.</text> </level> <level label="e"> <text>“Participants in live racing” means participants in live horse racing with pari-mutuel wagering in the party states.</text> </level> <level label="f"> <text>“Party state” means each state that has enacted this compact.</text> </level> <level label="g"> <text>“State” means each of the several states of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and each territory or possession of the United States.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-1302" title_number="11" title_name="Horse Racing" subtitle_number="13" subtitle_name="National Racing Compact"> <text>The purposes of this compact are to:</text> <level label="1"> <text>derive uniform requirements among the party states for the licensure of participants in live horse racing with pari–mutuel wagering;</text> </level> <level label="2"> <text>ensure that all licensees pursuant to this compact meet a uniform minimum standard of honesty and integrity;</text> </level> <level label="3"> <text>facilitate the growth of the horse racing industry by simplifying the process for qualified applicants for a license to participate in live racing;</text> </level> <level label="4"> <text>reduce the cost incurred by each state and applicant from the separate licensing process conducted by each state that conducts live horse racing;</text> </level> <level label="5"> <text>authorize the Commission to participate in this compact;</text> </level> <level label="6"> <text>permit officials from the party states to participate in this compact;</text> </level> <level label="7"> <text>through the compact committee established by this compact, enter into contracts with governmental agencies and other persons to carry out the purposes of this compact; and</text> </level> <level label="8"> <text>establish the compact committee created by this compact as an interstate governmental entity duly authorized to request and receive criminal history record information from:</text> <level label="i"> <text>the Federal Bureau of Investigation;</text> </level> <level label="ii"> <text>state and local authorities; and</text> </level> <level label="iii"> <text>foreign law enforcement agencies.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-1303" title_number="11" title_name="Horse Racing" subtitle_number="13" subtitle_name="National Racing Compact"> <text>This compact shall become effective as to any party state that enacts this compact on the affirmative vote of a majority of the officials on the compact committee.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-1304" title_number="11" title_name="Horse Racing" subtitle_number="13" subtitle_name="National Racing Compact"> <text>Any state that has adopted or authorized horse racing with pari-mutuel wagering shall be eligible to become a party to this compact.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-1305" title_number="11" title_name="Horse Racing" subtitle_number="13" subtitle_name="National Racing Compact"> <level label="a"> <text>Any party state may withdraw from this compact by enacting a statute repealing this compact, but no such withdrawal shall become effective until the head of the executive branch of the withdrawing state has given notice in writing of such withdrawal to the head of the executive branch of all other party states.</text> </level> <level label="b"> <text>If withdrawals reduce participation in this compact to less than three party states, this compact no longer shall be in effect until there are three or more party states again participating in this compact.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-1306" title_number="11" title_name="Horse Racing" subtitle_number="13" subtitle_name="National Racing Compact"> <level label="a"> <text>There is hereby created an interstate governmental entity known as the compact committee, to be comprised of one official from the racing commission, or its equivalent, of each party state, who shall be selected, serve, and be removed in accordance with the laws of the official’s party state.</text> </level> <level label="b"> <text>Each official shall have, in accordance with the laws of that party state, the assistance of that state’s racing commission, or its equivalent, in considering issues related to licensing of participants in live racing and in acting as representative of that state on the compact committee.</text> </level> <level label="c"> <text>Where an official is unable to perform any duty of the compact committee:</text> <level label="1"> <text>an alternate shall serve, until the original can return to duty, as that party state’s official on the compact committee; and</text> </level> <level label="2"> <text>the designation of an alternate shall be communicated by that party state’s racing commission, or its equivalent, to the compact committee, as required by the applicable bylaws.</text> </level> </level> <level label="d"> <text>The Chairman of the Commission shall designate the official, and official’s alternate, to represent the State of Maryland on the compact committee.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-1307" title_number="11" title_name="Horse Racing" subtitle_number="13" subtitle_name="National Racing Compact"> <level label="a"> <text>In order to carry out the purposes of this compact, the compact committee is hereby granted the power and duty to:</text> <level label="1"> <text>determine which categories of participants in live racing shall be issued a compact license;</text> </level> <level label="2"> <text>establish the term, initial requirements, and renewal requirements for each category of compact license;</text> </level> <level label="3"> <text>adopt licensure requirements comparable, in its judgment, to the most restrictive party state’s requirements for such a license;</text> </level> <level label="4"> <text>investigate applicants for a compact license and, as permitted by federal and state law, gather information, including criminal history record information, from:</text> <level label="i"> <text>the Federal Bureau of Investigation;</text> </level> <level label="ii"> <text>state and local authorities; and</text> </level> <level label="iii"> <text>foreign country law enforcement agencies; and</text> </level> </level> <level label="5"> <text>issue or renew compact licenses for participants in live racing who are found by the compact committee to have met its licensure or renewal requirements.</text> </level> </level> <level label="b"> <text>The compact committee may not deny a state license to an applicant.</text> </level> <level label="c"> <text>If the compact committee determines that an applicant is not eligible for a compact license, the compact committee, on giving notice to the applicant, shall stop processing the applicant’s application for a state license or renewal of a state license.</text> </level> <level label="d"> <text>After receiving the notice, an applicant who wishes to appeal the determination may present evidence at a hearing that the compact committee conducts.</text> </level> <level label="e"> <text>The decision of the compact committee after a hearing is final.</text> </level> <level label="f"> <text>The compact committee may:</text> <level label="1"> <text>enter into contracts and agreements with governmental agencies and other persons to provide personal services for its activities and such other services as may be necessary;</text> </level> <level label="2"> <level label="i"> <text>create, appoint, and abolish all those offices, employments, and positions, including an executive director, useful to fulfill its purposes;</text> </level> <level label="ii"> <text>prescribe their powers, duties, and qualifications;</text> </level> <level label="iii"> <text>hire persons; and</text> </level> <level label="iv"> <text>provide for their term, tenure, removal, compensation, fringe and retirement benefits, and other conditions of employment;</text> </level> </level> <level label="3"> <text>borrow, accept, and contract for the services of personnel from any state, federal, or other governmental agency or from any other person or entity;</text> </level> <level label="4"> <text>acquire, hold, and dispose of any real or personal property by gift, purchase, lease, license, and similar means in furtherance of the purposes of this compact;</text> </level> <level label="5"> <text>charge and collect a fee, whether for licensure or renewal, from each license applicant; and</text> </level> <level label="6"> <text>receive additional funds through gifts, grants, and appropriations.</text> </level> </level> <level label="g"> <text>Criminal history record information may be received and reviewed only by the officials on, and employees of, the compact committee which may be used only for the purposes of this compact.</text> </level> <level label="h"> <text>No official or employee of the compact committee may disclose or disseminate criminal history record information to any person or entity other than another official on, or employee of, the compact committee.</text> </level> <level label="i"> <text>The compact committee, its employees, or its designee shall:</text> <level label="1"> <text>take the fingerprints of each license applicant in accordance with the procedures in § 11-312 of this title; and</text> </level> <level label="2"> <text>in accordance with P.L. 92-544 or P.L. 100-413, forward the fingerprints to an identification bureau or to an association of state officials regulating pari-mutuel wagering.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-1308" title_number="11" title_name="Horse Racing" subtitle_number="13" subtitle_name="National Racing Compact"> <text>The compact committee shall have the following voting requirements:</text> <level label="1"> <text>each official shall be entitled to one vote on the compact committee;</text> </level> <level label="2"> <text>a majority vote of the total number of officials on the compact committee shall be required to:</text> <level label="i"> <text>admit another party state;</text> </level> <level label="ii"> <text>issue or renew a racing license; and</text> </level> <level label="iii"> <text>receive or distribute any funds;</text> </level> </level> <level label="3"> <text>a two-thirds majority vote of the total number of officials on the compact committee shall be required to adopt, amend, or rescind the bylaws;</text> </level> <level label="4"> <text>all other actions by the compact committee shall require a majority vote of those officials who are present for the vote; and</text> </level> <level label="5"> <text>no action may be taken by the compact committee unless a quorum of the officials on the compact committee is present for the vote.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-1309" title_number="11" title_name="Horse Racing" subtitle_number="13" subtitle_name="National Racing Compact"> <text>The compact committee shall:</text> <level label="1"> <text>annually elect, from its members:</text> <level label="i"> <text>a chair;</text> </level> <level label="ii"> <text>a vice chair; and</text> </level> <level label="iii"> <text>a secretary/treasurer;</text> </level> </level> <level label="2"> <level label="i"> <text>adopt bylaws for the conduct of its business;</text> </level> <level label="ii"> <text>publish the bylaws in a convenient form; and</text> </level> <level label="iii"> <text>file a copy of the bylaws, including any amendments, with the secretary of state, or its equivalent agency, of each party state; and</text> </level> </level> <level label="3"> <text>delegate day-to-day management and administration of its duties, as needed, to an executive director and support staff, who shall be considered governmental employees.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-1310" title_number="11" title_name="Horse Racing" subtitle_number="13" subtitle_name="National Racing Compact"> <text>No official of a party state or employee of the compact committee shall be held personally liable for any reasonable action taken in good faith that occurs during the performance, and within the scope, of their responsibilities and duties under this compact.</text> </section> <section article="gbr" article_name="Business Regulation" number="11-1311" title_number="11" title_name="Horse Racing" subtitle_number="13" subtitle_name="National Racing Compact"> <text>Each party state in the compact shall:</text> <level label="1"> <text>accept the decisions of the compact committee regarding the issuance or renewal of licenses;</text> </level> <level label="2"> <text>reimburse, or otherwise pay, the expenses of its official on the compact committee;</text> </level> <level label="3"> <text>not treat as a denial a notification to an applicant by the compact committee regarding its inability to process their application;</text> </level> <level label="4"> <text>reserve the right to:</text> <level label="i"> <text>charge a fee for the use of a compact license within that party state;</text> </level> <level label="ii"> <text>apply its own standards to determine whether a compact committee license should be suspended or revoked;</text> </level> <level label="iii"> <text>apply its own standards for licensure or renewal of state applicants who do not meet the licensure requirements of the compact committee, or who are within a category of participants in live racing which the compact committee does not license; and</text> </level> <level label="iv"> <text>apply its own standards for licensure of nonracing employees at horse racetracks and at separate or satellite wagering facilities;</text> </level> </level> <level label="5"> <text>through its racing commission or its equivalent, promptly notify the compact committee of any suspension or revocation that the party state has imposed on a compact committee licensee; and</text> </level> <level label="6"> <text>not be held liable for the debts or other financial obligations incurred by the compact committee.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-1312" title_number="11" title_name="Horse Racing" subtitle_number="13" subtitle_name="National Racing Compact"> <level label="a"> <text>This compact shall be liberally construed so as to effectuate its purposes.</text> </level> <level label="b"> <text>The provisions of this compact shall be severable.</text> </level> <level label="c"> <text>If any phrase, clause, sentence, or provision of this compact is declared to be contrary to the Constitution of the United States, the remainder of this compact shall remain in full force and effect.</text> </level> <level label="d"> <text>If any phrase, clause, sentence, or provision of this compact is declared to be contrary to the constitution or laws of a party state, subject to the provision of § 1305(b), the compact shall remain in full force and effect as to the remaining states.</text> </level> <level label="e"> <text>If the applicability of this compact to any government, agency, person or circumstance is held invalid, the applicability of the compact to other governments, agencies, persons or circumstances shall not be affected thereby.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="11-1401" title_number="11" title_name="Horse Racing" subtitle_number="14" subtitle_name="Interstate Anti-Doping and Drug Testing Standards Compact"> <text>The Interstate Anti–Doping and Drug Testing Standards Compact is enacted into law and entered into with all other states legally joining in it in the form substantially as it appears in this section as follows:</text> <text>ARTICLE I. PURPOSES</text> <text>The purposes of this compact are:</text> <level label="a"> <text>to enable member states to act jointly and cooperatively to create more uniform, effective, and efficient breed specific rules and regulations relating to the permitted and prohibited use of drugs and medications for the health and welfare of the horse and the integrity of racing, and testing for such substances, in or affecting a member state; and</text> </level> <level label="b"> <text>to authorize the Maryland Racing Commission to participate in this compact.</text> <text>ARTICLE II. DEFINITIONS</text> <text>In this compact, the following words have the meanings indicated.</text> </level> <level label="a"> <text>“Compact commission” means the organization of delegates from the member states that is authorized and empowered by this compact to carry out the purposes of this compact.</text> </level> <level label="b"> <text>“Compact rule” means a rule or regulation adopted by a member state regulating the permitted and prohibited use of drugs and medications for the health and welfare of the horse and the integrity of racing, and testing for such substances, in live pari–mutuel horse racing that occurs in or affects such states.</text> </level> <level label="c"> <text>“Delegate” means the chair of the member state racing commission or similar regulatory body in a State, or such person’s designee, who represents the member State as a voting member of the compact commission and anyone who is serving as such person’s alternate.</text> </level> <level label="d"> <text>“Equine drug rule” means a rule or regulation that relates to the administration of drugs, medications, or other substances to a horse that may participate in live horse racing with pari–mutuel wagering including, but not limited to, the regulation of the permissible use of such substances to ensure the integrity of racing and the health, safety and welfare of race horses, appropriate sanctions for rule violations, and quality laboratory testing programs to detect such substances in the bodily system of a race horse.</text> </level> <level label="e"> <text>“Live racing” means live horse racing with pari–mutuel wagering.</text> </level> <level label="f"> <text>“Member state” means each state that has enacted this compact.</text> </level> <level label="g"> <text>“National industry stakeholder” means a non–governmental organization that from a national perspective significantly represents one (1) or more categories of participants in live racing and pari–mutuel wagering.</text> </level> <level label="h"> <text>“Participants in live racing” means all persons who participate in, operate, provide industry services for, or are involved with live racing with pari–mutuel wagering.</text> </level> <level label="i"> <text>“State” means each of the several states of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and each territory or possession of the United States.</text> </level> <level label="j"> <text>“State racing commission” means the state racing commission, or its equivalent, in each member state. Where a member state has more than one, it shall mean all such racing commissions, or their equivalents.</text> <text>ARTICLE III. COMPOSITION AND MEETINGS OF COMPACT COMMISSION</text> <text>The member states shall create and participate in a compact commission as follows:</text> </level> <level label="a"> <text>This compact shall come into force when enacted by any two (2) eligible states, and shall thereafter become effective as to any other member state that enacts this compact. Any state that has adopted or authorized pari–mutuel wagering or live horse racing shall be eligible to become a party to this compact. A compact rule shall not become effective in a new member state based merely upon it entering the compact.</text> </level> <level label="b"> <text>The member states hereby create the Interstate Anti–Doping and Drug Testing Standards Compact commission, a body corporate and an interstate governmental entity of the member states, to coordinate the rule making actions of each member state racing commission through a compact commission.</text> </level> <level label="c"> <text>The compact commission shall consist of one delegate, the chair of the state racing commission or such person’s designee, from each member state. When a delegate is not present to perform any duty in the compact commission, a designated alternate may serve. The person who represents a member state in the compact commission shall serve and perform such duties without compensation or remuneration; provided, that subject to the availability of budgeted funds, each may be reimbursed for ordinary and necessary costs and expenses. The designation of a delegate, including the alternate, shall be effective when written notice has been provided to the compact commission. The delegate, including the alternate, must be a member or employee of the state racing commission.</text> </level> <level label="d"> <text>The compact delegate from each state shall participate as an agent of the state racing commission. Each delegate shall have the assistance of the state racing commission in regard to all decision making and actions of the state in and through the compact commission.</text> </level> <level label="e"> <text>Each member state, by its delegate, shall be entitled to one vote in the compact commission. A super majority affirmative vote of eighty percent (80%) of the total number of delegates shall be required to propose a compact rule, receive and distribute any funds and to adopt, amend, or rescind the by–laws. A compact rule shall take effect in and for each member state when adopted by a super majority affirmative vote of eighty percent (80%) of the total number of member states. Other compact actions shall require a majority vote of the delegates who are meeting.</text> </level> <level label="f"> <text>Meetings and votes of the compact commission may be conducted in person or by telephone or other electronic communication. Meetings may be called by the chair of the compact commission or by any two (2) delegates. Reasonable notice of each meeting shall be provided to all delegates serving in the compact commission.</text> </level> <level label="g"> <text>No action may be taken at a compact commission meeting unless there is a quorum, which is either a majority of the delegates in the compact commission, or where applicable, all the delegates from any member states who propose or are voting affirmatively to adopt a compact rule.</text> </level> <level label="h"> <text>Once effective, the compact shall continue in force and remain binding according to its terms upon each member state; provided that, a member state may withdraw from the compact by repealing the statute that enacted the compact into law. The racing commission of a withdrawing state shall give written notice of such withdrawal to the compact chair, who shall notify the member state racing commissions. A withdrawing state shall remain responsible for any unfulfilled obligations and liabilities. The effective date of withdrawal from the compact shall be the effective date of the repeal.</text> <text>ARTICLE IV. OPERATION OF COMPACT COMMISSION</text> <text>The compact commission is hereby granted, so that it may be an effective means to pursue and achieve the purposes of each member state in this compact, the power and duty:</text> </level> <level label="a"> <text>to adopt, amend, and rescind by–laws to govern its conduct, as may be necessary or appropriate to carry out the purposes of the compact; to publish them in a convenient form; and to file a copy of them with the state racing commission of each member state;</text> </level> <level label="b"> <text>to elect annually from among the delegates (including alternates) a chair, vice–chair, and treasurer with such authority and duties as may be specified in the by–laws;</text> </level> <level label="c"> <text>to establish and appoint committees which it deems necessary for the carrying out of its functions, including advisory committees which shall be comprised of national industry stakeholders and organizations and such other persons as may be designated in accordance with the by–laws, to obtain their timely and meaningful input into the compact rule making processes;</text> </level> <level label="d"> <text>to establish an executive committee, with membership established in the by–laws, which shall oversee the day–to–day activities of compact administration and management by the executive director and staff; hire and fire as may be necessary after consultation with the compact commission; administer and enforce compliance with the provisions, by–laws, and rules of the compact; and perform such other duties as the by–laws may establish;</text> </level> <level label="e"> <text>to create, appoint, and abolish all those offices, employments, and positions, including an executive director, useful to fulfill its purposes;</text> </level> <level label="f"> <text>to delegate day–to–day management and administration of its duties, as needed, to an executive director and support staff; and</text> </level> <level label="g"> <text>to adopt an annual budget sufficient to provide for the payment of the reasonable expenses of its establishment, organization, and ongoing activities; provided, that the budget shall be funded by only voluntary contributions.</text> <text>ARTICLE V. GENERAL POWERS AND DUTIES</text> <text>To allow each member state, as and when it chooses, to achieve the purpose of this compact through joint and cooperative action, the member states are hereby granted the power and duty, by and through the compact commission:</text> </level> <level label="a"> <text>to act jointly and cooperatively to create a more equitable and uniform pari–mutuel racing and wagering interstate regulatory framework by the adoption of standardized rules for the permitted and prohibited use of drugs and medications for the health, and welfare of the horse and the integrity of racing, including rules governing the use of drugs and medications and drug testing;</text> </level> <level label="b"> <text>to collaborate with national industry stakeholders and industry organizations, including the Association of Racing Commissioners International, Inc. and the Racing Medication and Testing Consortium, in the design and implementation of compact rules in a manner that serves the best interests of racing; and</text> </level> <level label="c"> <text>to propose and adopt breed specific compact equine drugs and medications rules for the health, and welfare of the horse, including rules governing the permitted and prohibited use of drugs and medications and drug testing, which shall have the force and effect of state rules or regulations in the member states, to govern live pari–mutuel horse racing.</text> <text>ARTICLE VI. OTHER POWERS AND DUTIES</text> <text>The compact commission may exercise such incidental powers and duties as may be necessary and proper for it to function in a useful manner, including but not limited to the power and duty:</text> </level> <level label="a"> <text>to enter into contracts and agreements with governmental agencies and other persons, including officers and employees of a member state, to provide personal services for its activities and such other services as may be necessary;</text> </level> <level label="b"> <text>to borrow, accept, and contract for the services of personnel from any state, federal, or other governmental agency, or from any other person or entity;</text> </level> <level label="c"> <text>to receive information from and to provide information to each member state racing commission, including its officers and staff, on such terms and conditions as may be established in the by–laws;</text> </level> <level label="d"> <text>to acquire, hold, and dispose of any real or personal property by gift, grant, purchase, lease, license, and similar means and to receive additional funds through gifts, grants, and appropriations;</text> </level> <level label="e"> <text>when authorized by a compact rule, to conduct hearings and render reports and advisory decisions and orders; and</text> </level> <level label="f"> <text>to establish in the by–laws the requirements that shall describe and govern its duties to conduct open or public meetings and to provide public access to compact records and information.</text> <text>ARTICLE VII. COMPACT RULE MAKING</text> <text>In the exercise of its rule making authority, the compact commission shall:</text> </level> <level label="a"> <text>engage in formal rule making pursuant to a process that substantially conforms to the Model State Administrative Procedure Act of 1981 as amended, as may be appropriate to the actions and operations of the compact commission;</text> </level> <level label="b"> <text>gather information and engage in discussions with advisory committees, national industry stakeholders, and others, including an opportunity for industry organizations to submit input to member state racing commissions on the state level, to foster, promote and conduct a collaborative approach in the design and advancement of compact rules in a manner that serves the best interests of racing and as established in the by–laws;</text> </level> <level label="c"> <text>direct the publication in each member state of each equine drug rule proposed by the compact commission, conduct a review of public comments received by each member state racing commission and the compact commission in response to the publication of its rule making proposals, consult with national industry stakeholders and participants in live racing with regard to such process and any revisions to the compact rule proposal, and meet upon the completion of the public comment period to conduct a vote on the adoption of the proposed compact rule as a state rule in the member states. The super majority affirmative vote of eighty percent (80%) of the member delegates for a proposed compact rule shall be necessary and sufficient to adopt, amend, or rescind a compact rule as applicable to the member states; and</text> </level> <level label="d"> <text>have a standing committee that reviews at least quarterly the participation in and value of compact rules and, when it determines that a revision is appropriate or when requested to by any member state, submits a revising proposed compact rule. To the extent a revision would only add or remove a member state or states from where a compact rule has been adopted, the vote required by this article shall be required of only such state or states. The standing committee shall gather information and engage in discussions with national industry stakeholders, who may also directly recommend a compact rule proposal or revision to the compact committee.</text> <text>ARTICLE VIII. STATUS AND RELATIONSHIP TO MEMBER STATES</text> </level> <level label="a"> <text>The compact commission, as an interstate governmental entity, shall be exempt from all taxation in and by the member states.</text> </level> <level label="b"> <text>The compact commission shall not pledge the credit of any member state except by and with the appropriate legal authority of that state.</text> </level> <level label="c"> <text>Each member state shall reimburse or otherwise pay the expenses of its delegate, including any alternate, in the compact commission.</text> </level> <level label="d"> <text>No member state, except as provided in Article XI of this compact, shall be held liable for the debts or other financial obligations incurred by the compact commission.</text> </level> <level label="e"> <text>No member state shall have, while it participates in the compact commission, any claim to or ownership of any property held by or vested in the compact commission or to any compact commission funds held pursuant to this compact except for state license or other fees or moneys collected by the compact commission as its agent.</text> </level> <level label="f"> <text>The compact dissolves upon the date of the withdrawal of the member state that reduces membership in the compact to one (1) state. Upon dissolution, the compact becomes null and void and shall be of no further force or effect, although equine drug rules adopted through this compact shall remain rules in each member state that had adopted them, and the business and affairs of the compact shall be concluded and any surplus funds shall be distributed to the former member states in accordance with the by–laws.</text> <text>ARTICLE IX. RIGHTS AND RESPONSIBILITIES OF MEMBER STATES</text> </level> <level label="a"> <text>Each member state in the compact shall accept the decisions, duly applicable to it, of the compact commission in regard to compact rules and rule making.</text> </level> <level label="b"> <text>This compact shall not be construed to diminish or limit the powers and responsibilities of the member state racing commission or similar regulatory body, or to invalidate any action it has previously taken, except to the extent it has, by its compact delegate, expressed its consent to a specific rule or other action of the compact commission. The compact delegate from each state shall serve as the agent of the state racing commission and shall possess substantial knowledge and experience as a regulator or participant in the horse racing industry.</text> <text>ARTICLE X. ENFORCEMENT OF COMPACT</text> </level> <level label="a"> <text>The compact commission shall have standing to intervene in any legal action that pertains to the subject matter of the compact and might affect its powers, duties, or actions.</text> </level> <level label="b"> <text>The courts and executive in each member state shall enforce the compact and take all actions necessary and appropriate to effectuate its purposes and intent. Compact provisions, by–laws, and rules shall be received by all judges, departments, agencies, bodies, and officers of each member state and its political subdivisions as evidence of them.</text> <text>ARTICLE XI. LEGAL ACTIONS AGAINST COMPACT</text> </level> <level label="a"> <text>Any person may commence a claim, action, or proceeding against the compact commission in state court for damages. The compact commission shall have the benefit of the same limits of liability, defenses, rights to indemnity and defense by the state, and other legal rights and defenses for non–compact matters of the state racing commission in the state. All legal rights and defenses that arise from this compact shall also be available to the compact commission.</text> </level> <level label="b"> <text>A compact delegate, alternate, or other member or employee of a state racing commission who undertakes compact activities or duties does so in the course of business of their state racing commission, and shall have the benefit of the same limits of liability, defenses, rights to indemnity and defense by the state, and other legal rights and defenses for non–compact matters of state employees in their state. The executive director and other employees of the compact commission shall have the benefit of these same legal rights and defenses of state employees in the member state in which they are primarily employed. All legal rights and defenses that arise from this compact shall also be available to them.</text> </level> <level label="c"> <text>Each member state shall be liable for and pay judgments filed against the compact commission to the extent related to its participation in the compact. Where liability arises from action undertaken jointly with other member states, the liability shall be divided equally among the states for whom the applicable action or omission of the executive director or other employees of the compact commission was undertaken; and no member state shall contribute to or pay, or be jointly or severally or otherwise liable for, any part of any judgment beyond its share as determined in accordance with this article.</text> <text>ARTICLE XII. RESTRICTIONS ON AUTHORITY</text> <text>Maryland substantive state laws applicable to pari–mutuel horse racing and wagering shall remain in full force and effect.</text> <text>ARTICLE XIII. CONSTRUCTION, SAVING, AND SEVERABILITY</text> </level> <level label="a"> <text>This compact shall be liberally construed so as to effectuate its purposes. The provisions of this compact shall be severable and if any phrase, clause, sentence, or provision of this compact is declared to be contrary to the Constitution of the United States or of any member state, or the applicability of this compact to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact and its applicability to any government, agency, person, or circumstance shall not be affected. If all or some portion of this compact is held to be contrary to the constitution of any member state, the compact shall remain in full force and effect as to the remaining member states and in full force and effect as to the state affected as to all severable matters.</text> </level> <level label="b"> <text>In the event of any allegation, finding, or ruling against the compact or its procedures or actions, provided that a member state has followed the compact’s stated procedures, any rule it purported to adopt using the procedures of this statute shall constitute a duly adopted and valid state rule.</text> </level> </section>