There is a State Racing Commission in the Department.

The Commission consists of 9 members, appointed by the Governor with the advice and consent of the Senate. At the time of appointment and qualification: each member shall be: at least 25 years old; a resident of the State who has resided in the State for at least the last 5 years; a qualified voter of the State; and an individual who has not been convicted of a crime that involves moral turpitude; at least 3 members of the Commission shall be knowledgeable or experienced in an aspect of thoroughbred racing; and at least 3 other members shall be knowledgeable or experienced in an aspect of harness racing. 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. Not more than 4 members who are appointed after July 1, 1989, may have a financial interest in racing in the State. Not more than 6 members may be of the same political party. Before taking office, each appointee to the Commission shall take the oath required by Article I, § 9 of the Maryland Constitution. The term of a member of the Commission is 4 years and begins on July 1. The terms of members are staggered as required by the terms provided for members of the Commission on October 1, 1992. At the end of a term, a member continues to serve until a successor is appointed and qualifies. 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. 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. 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. 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. 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. Before the Governor removes a member, the Governor shall give the member an opportunity for a public hearing. At least 10 days before the hearing, the Governor shall give the member: a copy of the charges; and notice of the time and place of the hearing. The member may be represented at the hearing by counsel. If the Governor removes a member, the Governor shall submit to the Secretary of State: a statement of all charges made against the member; the findings of the Governor; and a record of the proceedings.

The Governor shall designate a chairman from among the members of the Commission. The term of the chairman is 1 year. The chairman may not serve more than 2 consecutive terms as chairman.

Except as provided in § 11-310 of this title, a majority of the members then serving on the Commission is a quorum. The Commission shall meet in the State, at the times and places that the Commission determines. Each member of the Commission is entitled to: compensation in accordance with the State budget; and reimbursement under the Standard State Travel Regulations for expenses for each Commission meeting attended, as provided in the State budget. 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.

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. The executive director is in the executive service in the State Personnel Management System and serves at the pleasure of the Secretary. The executive director shall: collect the taxes and fees imposed under this title or regulations adopted by the Commission; keep the records and papers of the Commission, including a record of each proceeding; administer the licensing of individuals who work in connection with racing; prepare, issue, and submit reports of the Commission; administer the daily operation of the office of the Commission; and perform any other duty that the Commission directs. 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. The executive director is entitled to: compensation in accordance with the State budget; and reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

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. The Commission may employ 4 stewards and 4 harness judges. The stewards and harness judges shall be recommended by the executive director. 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. The stewards and harness judges are special appointments of the skilled service or the professional service in the State Personnel Management System. Each member of the staff of the Commission, steward, and harness judge is entitled to: compensation in accordance with the State budget; and reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. 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.

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. The licensee who holds the race meeting for which an additional employee is used shall pay: the employer contribution for the employee under the Employees’ Pension System; 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 an amount required under § 23-306.1(b) of the State Personnel and Pensions Article, if any. 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. 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.

Each law enforcement officer shall cooperate with the Commission to enforce this title. 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.

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. The jurisdiction, supervision, powers, and duties of the Commission extend to each person who holds racing for a purse, reward, or stake. 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. The Commission shall establish an Equine Health, Safety, and Welfare Advisory Committee. The Executive Director of the Commission shall appoint a member of the Commission to chair the Advisory Committee. The Advisory Committee consists of the following members: three members of the Commission, appointed by the Executive Director of the Commission; one representative of each racing licensee; one representative of the horsemen, appointed by an organization that represents the horsemen; one representative of the horse breeders, appointed by an organization that represents the horse breeders; the Commission’s Equine Medical Director; a veterinarian licensed in the State; and any other individual with expertise in equine or racing industries that the Executive Director of the Commission appoints. The Executive Director of the Commission shall determine the time and location of Advisory Committee meetings. 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. 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.

Except as provided in subsection (b) of this section, the Commission may: adopt regulations and conditions to govern racing and betting on racing in the State; and approve or disapprove: prices that a licensee may set for admission to a race, a service performed, or an article sold at a track; and the size of the purse, reward, or stake to be offered at a race. The Commission may not adopt regulations that allow: racing a breed of horse not now authorized by law; or holding currently unauthorized: intertrack betting; off-track betting; or telephone betting other than telephone account betting.

The Commission may: 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 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. The Commission may require that an employee or official of the licensee be removed from the job. The Commission may require that a licensee keep financial records in the way that the Commission determines. The Commission may administer oaths. The Commission may issue a subpoena for the attendance of a witness to testify or to produce evidence.

The Commission may maintain a testing laboratory and have tests done elsewhere. Each licensee shall pay a fraction of the yearly costs of the testing laboratory and of the tests done elsewhere. The numerator of the fraction shall be the number of racing days with pari-mutuel betting privileges that the licensee holds during the year. 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.

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. Each report shall include: a statement of receipts and disbursements of the Commission; 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; a 5–year assessment of each track regarding: attendance; purse distributions; live racing days that are allocated and used; betting on live racing that is held at that track broken down by the following categories: betting conducted at the live track; betting conducted at other Maryland tracks; betting conducted at satellite simulcast facilities in the State; and betting conducted through out–of–state satellite simulcasting; betting that is conducted at the live track on races simulcast from other tracks in the State; and betting that is conducted at the live track on races simulcast from out–of–state tracks; 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; information on all simulcast betting that is conducted out of state on races being run live in this State; to the extent available, information on the breeding industry in the State, including: the number of breeders in the State; the number of foals registered in the State; the average sales prices of foals; and any other information pertaining to the regional and national ranking of the State for breeding; all other information that is currently provided by the Commission in its annual report; additional information on satellite simulcast facilities, as required under § 11–831 of this title; 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 any other information that is useful in explaining the financial viability of horse racing in the State and any recommendations to improve the industry.

The Commission exercises its powers and performs its duties subject to the authority of the Secretary.