# Business Regulation (GBR)

## Title 11. Horse Racing

### Subtitle 5. Thoroughbred Racing

#### Section 11-501

This part applies only to mile thoroughbred racing licensees and to special thoroughbred racing licensees.

#### Section 11-502

Three stewards shall officiate at each race that a licensee holds.

#### Section 11-503

(a)

  (1) Subject to paragraph (2) of this subsection, a licensee shall give preference in stall allocation to a trainer:

    (i) who has a permanent residence in the State; and

    (ii) whose horse qualifies under the eligibility rules that the Commission or a licensee adopts.

  (2) A licensee need not allocate more than 60% of the licensee's stalls to trainers who have permanent residences in the State.

  (3) 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.

(b)

  (1) This subsection applies to trainers who:

    (i) are from the northeastern area of the State; and

    (ii) were chosen originally by the licensee as eligible for stall space.

  (2) 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.

#### Section 11-504

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.

#### Section 11-507

This part applies only to mile thoroughbred racing licenses and to licensees who have been awarded racing days to hold mile thoroughbred racing.

#### Section 11-508

(a) If an applicant qualifies for a license under this title, the Commission shall send the applicant a notice stating:

  (1) the fact that the applicant has qualified for a license;

  (2) the dates of the race meeting awarded;

  (3) the total number of racing days awarded; and

  (4) the kind of racing to be held.

(b) 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.

(c) A licensee shall pay each year $3,000 to the Maryland Horse Breeders Association, Inc.

#### Section 11-509

(a) 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.

(b) 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.

(c) The Commission shall pay promptly to the Comptroller all taxes collected under this section.

#### Section 11-510

(a) 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.

(b) 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 Sec. 10-646.1 of the Economic Development Article.

#### Section 11-511

(a)

  (1) On or before December 1, the Commission shall award all racing days for the next calendar year.

  (2) However, the Commission may meet after December 1 to award racing days that are requested in applications.

(b)

  (1) 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.

  (2) 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:

    (i) 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

    (ii) the racing licensee is prevented by weather, acts of God, or other circumstances beyond the racing licensee's control.

(c) The decision of the Commission on the award of a racing day is final.

#### Section 11-512

Subject to the hearing provisions of Sec. 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:

(1) on receipt of the appropriate license fees; and

(2) with the express consent of the owner or lessee of the track to which the transfer is made.

#### Section 11-513

(a) 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:

  (1) total at least 3 more than those awarded for racing at that track in the previous calendar year; or

  (2) result from the transfer of racing days to that track from another track in the same year.

(b) The Commission shall:

  (1) hold the hearing not more than 10 miles from the track where the racing is to be held; and

  (2) allow any person to testify.

(c) The Commission:

  (1) 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

  (2) shall try to give notice of the hearing to any public unit or private organization that has made a written request for notice.

(d)

  (1) 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:

    (i) the racing days may be transferred immediately; and

    (ii) as soon as practicable, the Commission shall provide notice of a hearing and conduct a hearing pursuant to subsection (c) of this section.

  (2) 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.

#### Section 11-514

(a) Except as provided in subsection (b) of this section, a licensee shall deduct from the handle:

  (1) all the breakage;

  (2) not more than 18% from each regular mutuel pool;

  (3) not more than 21% from each multiple mutuel pool on 2 horses; and

  (4) not more than 25.75% from each multiple mutuel pool on 3 or more horses.

(b)

  (1) For specific wagers authorized under regulations adopted by the Commission, a licensee shall deduct from the handle:

    (i) all the breakage; and

    (ii) not more than 40% from each multiple mutuel pool on 3 or more horses.

  (2) A licensee may offer the wagers described in this subsection only with the consent of:

    (i) the Commission;

    (ii) the group that represents a majority of the owners and trainers licensed in the State; and

    (iii) the group that represents a majority of the breeders in the State.

(c) Money that remains after deductions are made under subsection (a) of this section shall be returned as winnings to successful bettors.

(d)

  (1) The amount deducted by the licensee under subsection (a) of this section shall be the sum of the allocations provided in Sec. 11-515 of this subtitle, unless otherwise provided in a written agreement signed by the authorized representatives of:

    (i) the licensee;

    (ii) the group that represents a majority of the owners and trainers licensed in the State at the time the agreement is signed; and

    (iii) the group that represents a majority of the breeders in the State at the time the agreement is signed.

  (2) 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.

#### Section 11-515

(a) Except as provided in Sec. 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.

(b) A licensee shall:

  (1) keep 50% of the breakage;

  (2) allocate 45% of the breakage for purses; and

  (3) allocate 5% of the breakage to the Maryland-Bred Race Fund.

(c) From the amount that a licensee deducts from each regular mutuel pool, the licensee shall:

  (1) 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;

  (2) allocate 0.32% of each regular mutuel pool to the Commission for State tax;

  (3) allocate 1.10% of each regular mutuel pool to the Maryland-Bred Race Fund;

  (4) allocate 7.70% of each regular mutuel pool for purses;

  (5) allocate 0.18% of each regular mutuel pool as an additional amount for purses; and

  (6) allocate 1% of each regular mutuel pool paid to the Maryland Million, Ltd., for purses of Maryland Million races.

(d) From the amount that a licensee deducts from each multiple mutuel pool on 2 horses, the licensee shall:

  (1) 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;

  (2) allocate 0.32% of each multiple mutuel pool to the Commission for State tax;

  (3) allocate 1.10% of each multiple mutuel pool to the Maryland-Bred Race Fund;

  (4) allocate 8.70% of each multiple mutuel pool for purses;

  (5) allocate 0.18% of each multiple mutuel pool as an additional amount for purses; and

  (6) allocate 2% of each multiple mutuel pool paid to the Maryland Million, Ltd., for purses of Maryland Million races.

(e) From the amount that a licensee deducts from each multiple mutuel pool on 3 or more horses, the licensee shall:

  (1) 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;

  (2) allocate 0.32% of each multiple mutuel pool to the Commission for State tax;

  (3) allocate 1.10% of each multiple mutuel pool to the Maryland-Bred Race Fund;

  (4) allocate 11.70% of each multiple mutuel pool for purses;

  (5) allocate 0.18% of each multiple mutuel pool as an additional amount for purses; and

  (6) allocate 0.75% of each multiple mutuel pool paid to the Maryland Million, Ltd., for purses of Maryland Million races.

#### Section 11-515.1

(a) Notwithstanding Sec. 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:

  (1) the licensee;

  (2) the group that represents a majority of the owners and trainers licensed in the State at the time the agreement is signed; and

  (3) the group that represents a majority of the breeders in the State at the time the agreement is signed.

(b) 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.

#### Section 11-516

If the Preakness Stakes is transferred otherwise than under Sec. 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:

(1) to the Maryland-Bred Race Fund, 1% of each mutuel pool;

(2) to the Commission, for State tax, 4.09% of each mutuel pool;

(3) 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

(4) 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.

#### Section 11-518

(a) In this section, "open purse" means any purse, except for one offered in a race funded by the Maryland-Bred Race Fund.

(b) 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.

(c) 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.

(d) 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.

(e) 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.

#### Section 11-519

(a) 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.

(b) 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.

(c) 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:

  (1) provide enough stalls;

  (2) maintain safe operating conditions;

  (3) require the owner of the Center to submit an annual operating financial statement; and

  (4) order reasonable improvements.

(d)

  (1)

    (i) 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.

    (ii) 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.

  (2) 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.

  (3) 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:

    (i) be used only for active recreational activities, including baseball, football, soccer, and cricket; and

    (ii) have only one structure that is up to 50,000 square feet constructed on the property.

  (4) 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.

  (5) The City of Bowie and Bowie State University shall report to the General Assembly, in accordance with Sec. 2-1257 of the State Government Article, on the final terms of the joint use agreement entered into under this subsection.

#### Section 11-520

(a) The requirements of this section are established in recognition of the significance of the Preakness Stakes to the State.

(b) The Preakness Stakes may be temporarily transferred to another track in the State only:

  (1) as a result of a disaster or emergency; or

  (2) during the reconstruction of Pimlico Race Course, subject to the approval of the Maryland Stadium Authority.

(c) If the Preakness Stakes is transferred out of the State, the Commission may:

  (1) revoke any racing days awarded to the Maryland Jockey Club of Baltimore City, Inc., or its successor; and

  (2) award these racing days to another licensee, notwithstanding Sec. 11-511(b) of this subtitle.

(d)

  (1) 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.

  (2) Within 30 days after receiving an offer that it wishes to accept, the licensee shall give the State notice of the offer.

  (3) If the State wishes to exercise the option, it shall so notify the licensee within 60 days after it receives the notice.

#### Section 11-521

(a) In addition to the other provisions of this subtitle, in accordance with the sovereign power of the State and the provisions of Article III, Sec.Sec. 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:

  (1) 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;

  (2) 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;

  (3) 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;

  (4) 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;

  (5) 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;

  (6) 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

  (7) 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.

(b) 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.

(c) Pursuant to the provisions of Article III, Sec. 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 Sec.Sec. 8-334 through 8-339 of the Transportation Article.

#### Section 11-522

(a) In this section, "Arabian breed horse" means a horse that:

  (1) is a purebred Arabian breed horse; and

  (2) has a valid certificate of registry with the Arabian Jockey Club of America.

(b) A licensee at Pimlico Race Course or Laurel Park may conduct live racing of Arabian breed horses if:

  (1) no more than one Arabian breed race is conducted per day;

  (2) no more than three Arabian breed races are conducted during a race meet;

  (3) an Arabian breed race is conducted in addition to, and not in place of, an existing thoroughbred race;

  (4) an Arabian breed race does not reduce the number of thoroughbred races conducted by the licensee per racing day;

  (5) the purse for an Arabian breed race is:

    (i) not funded by the thoroughbred purse account; and

    (ii) funded by the licensee or the sponsor of the Arabian horse race;

  (6) the takeout provisions of Sec.Sec. 11-514 and 11-515 of this subtitle are applied to the race;

  (7) the licensee pays all taxes and fees associated with the Arabian breed race that would otherwise be due on a thoroughbred race; and

  (8) the Arabian breed race is approved by the State Racing Commission.

#### Section 11-522.1

(a)

  (1) There is a Maryland International thoroughbred race conducted by a licensee at Laurel Park.

  (2) The Maryland International is a graded stakes race run on a turf track.

(b) The purse for the Maryland International shall be funded by the Special Fund established under Sec. 11-402 of this title.

(c) The takeout provisions of this subtitle shall apply to the Maryland International.

(d) The licensee shall pay all taxes and fees associated with the Maryland International that would otherwise be imposed for a thoroughbred race.

(e) The Maryland International shall be conducted only with the approval of the Commission.

(f) 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.

#### Section 11-523

In this part, "State Fair Society" means the Maryland State Fair and Agricultural Society, Inc.

#### Section 11-524

(a)

  (1) The Commission shall issue a special thoroughbred racing license to the State Fair Society to hold a race meeting.

  (2) The race meeting shall:

    (i) last not more than 10 days in a calendar year;

    (ii) be held with or for the benefit of the State Fair or a county fair or agricultural exhibition; and

    (iii) comply with this title.

(b) 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.

(c) 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:

  (1) on receipt of the appropriate license fees; and

  (2) with the express consent of the owner or lessee of the track to which the transfer is made.

(d) 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 Sec. 11-511 of this subtitle.

(e) If racing is discontinued at the Timonium Race Course:

  (1) compensation may not be paid to the State Fair Society to offset revenue loss from the discontinuance of racing; and

  (2) payment of the grant to Baltimore County under Sec. 11-403 of this title shall end.

#### Section 11-525

(a) On all races the State Fair Society holds each year, the State Fair Society may keep:

  (1)

    (10) 25% of each regular mutuel pool;

  (2)

    (10) 25% of each multiple mutuel pool on 2 horses;

  (3)

    (10) 25% of the money bet in the first race of the day with a multiple mutuel pool on 3 or more horses;

  (4) 14% of the money bet in every other race with a multiple mutuel pool on 3 or more horses; and

  (5) 50% of the breakage.

(b)

  (1) 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.

  (2) 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.

  (3) The Commission promptly shall pay the tax collected under this subsection to the Comptroller.

(c) For each race that the State Fair Society holds, the State Fair Society shall allocate to purses:

  (1) 5% of each regular mutuel pool;

  (2) 7% of each multiple mutuel pool on 2 horses;

  (3) 13% of the money bet in the first race of the day with a multiple mutuel pool on 3 or more horses;

  (4)

    (9) 25% of the money bet in every other race with a multiple mutuel pool on 3 or more horses; and

  (5) 45% of the breakage.

(d) The State Fair Society shall allocate to the Maryland-Bred Race Fund:

  (1) 5% of the breakage; and

  (2)

    (1) 50% of the mutuel pools.

(e) The State Fair Society shall allocate 0.25% of the mutuel pools to the Maryland Race Track Employees Pension Fund.

#### Section 11-526

(a) In this section, "Park and Planning Commission" means the Maryland-National Capital Park and Planning Commission.

(b) 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.

(c) The racing days shall be held:

  (1) on dates that the Park and Planning Commission chooses and the State Racing Commission approves;

  (2) on dates when a mile thoroughbred racing licensee does not hold a race; and

  (3) in connection with or for the benefit of a county fair or equestrian exhibition or activity.

(d)

  (1) The Park and Planning Commission shall deduct from the handle:

    (i) 17% of all money bet in each regular mutuel pool;

    (ii) 19% of all money bet in each multiple mutuel pool on 2 horses; and

    (iii) 25% of all money bet in each multiple mutuel pool on 3 or more horses.

  (2) The Park and Planning Commission shall pay to the Maryland Equestrian Foundation, Inc., a nonprofit organization:

    (i) from the amount deducted under paragraph (1) of this subsection, 8% of the total amount bet in all of the mutuel pools; and

    (ii) any profit from admission fees or other receipts, less expenses from the operation of racing days.

  (3) On races that the Park and Planning Commission holds each year, the Park and Planning Commission shall allocate for purses:

    (i) 5% of each regular mutuel pool;

    (ii) 7% of each multiple mutuel pool on 2 horses;

    (iii) 13% of the money bet in the first race of the day with a multiple mutuel pool on 3 or more horses; and

    (iv)

      (9) 25% of the money bet in every other race with a multiple mutuel pool on 3 or more horses.

(e) Repealed.

(f) An officer of the Park and Planning Commission may not receive a salary or dividends from racing authorized under this section.

#### Section 11-529

(a) In this part the following words have the meanings indicated.

(b) "Advisory Committee" means the Maryland-Bred Race Fund Advisory Committee.

(c) "Fund" means the Maryland-Bred Race Fund.

(d) "Fund Race" means a race funded by the Maryland-Bred Race Fund.

#### Section 11-530

There is a Maryland-Bred Race Fund.

#### Section 11-531

There is a Maryland-Bred Race Fund Advisory Committee, under the jurisdiction of the Commission, in the Department.

#### Section 11-532

(a)

  (1) The Advisory Committee consists of six members appointed by the Commission with the approval of the Secretary.

  (2) Of the six members of the Advisory Committee:

    (i) two shall be members of and recommended by the Maryland Horse Breeders Association;

    (ii) one shall be recommended by the mile thoroughbred racing licensees;

    (iii) one shall be a member of and recommended by the Maryland Thoroughbred Horsemen's Association, Inc.;

    (iv) one shall be recommended by the Maryland State Fair and Agricultural Society, Inc.; and

    (v) one shall be a member of and appointed by the Commission.

(b)

  (1) The term of a member of the Advisory Committee is 1 year and begins on June 1.

  (2) 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.

  (3) At the end of a term, a member continues to serve until a successor is appointed.

  (4) A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed.

(c) The Governor may remove a member of the Advisory Committee for incompetence or misconduct.

#### Section 11-533

(a) The member of the Commission who is on the Advisory Committee is the chairman of the Advisory Committee.

(b) The term of the chairman of the Advisory Committee is 1 year.

#### Section 11-534

(a) The Advisory Committee shall determine the times and places of its meetings.

(b) A member of the Advisory Committee:

  (1) may not receive compensation; but

  (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

#### Section 11-535

(a) The Commission shall:

  (1) administer the Fund and the Maryland-Bred Race Program with the help and advice of the Advisory Committee; and

  (2) order each payment that is to be made from the Fund.

(b) The Commission shall:

  (1) 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

  (2) require the bank or trust company to secure the Fund by collateral.

(c) 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.

(d) 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.

(e) 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.

#### Section 11-536

(a) 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.

(b) The Commission may approve the running of a Maryland-Bred Fund Race at a thoroughbred track outside the State.

#### Section 11-537

A horse shall be registered with the Maryland Horse Breeders Association, Inc., before the horse may start in a Fund Race.

#### Section 11-538

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:

(1) the breeder of the horse has maintained a place of abode in Maryland for more than 9 months immediately before registration;

(2) the breeder of the horse keeps breeding stock continually in Maryland;

(3) the horse was conceived in Maryland during the previous season;

(4) 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

(5) 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.

#### Section 11-539

(a) On recommendation of the Advisory Committee, the Commission shall set:

  (1) the number of Fund Races;

  (2) the amount of each purse;

  (3) the date of each Fund Race;

  (4) the location of each Fund Race held outside the State;

  (5) the distance of each Fund Race;

  (6) each breeder's award, including awards for races in the State and outside the State; and

  (7) any other condition needed to carry out the purpose of the Fund.

(b) 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.

#### Section 11-540

(a) A licensee who provides for a Fund Race:

  (1) need not contribute an amount greater than the allocation to the Fund set under Sec. 11-515 or Sec. 11-525 of this subtitle; but

  (2) may add to any purse in a Fund Race.

(b) 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.

#### Section 11-541

(a) If there are fewer than 5 separate qualified entries in a Fund Race, the Commission shall cancel the Fund Race.

(b) 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.

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Md. Code Ann., Bus. Reg. (as displayed at mgaleg.maryland.gov, October 16, 2026)