In this subtitle the following words have the meanings indicated.
“Applicant” means a person who applies for any license required under this subtitle.
“Associated equipment” means hardware located on the licensee’s premises that is connected to the video lottery system for the purpose of performing communication, validation, or other functions, but not including the communication facilities of a regulated utility or the video lottery terminals.
“Average payout percentage” means the average percentage of money used by players to play a video lottery terminal that is returned to players of that video lottery terminal.
“Award” means the act, by the Video Lottery Facility Location Commission, of approving the issuance of a video lottery operation license by the State Lottery and Gaming Control Commission to an applicant for the operation of video lottery terminals at a specified location.
“Background investigation” means a security, criminal, and credit investigation of a person who applies for or who is granted a license under this subtitle.
“Career offender” means a person whose behavior is pursued in an occupational manner or context for the purpose of economic gain and who utilizes methods that are deemed by the Commission as criminal violations inimical to the interest of the State.
“Career offender cartel” means a group of persons who operate together as career offenders.
“Central monitor and control system” means a central system provided to and controlled by the Commission to which video lottery terminals communicate for purposes of:
information retrieval;
retrieval of the win and loss determination from video lottery terminals; and
programs to activate and disable video lottery terminals.
“Central Repository” means the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services.
“Commission” means the State Lottery and Gaming Control Commission.
“Control” means the authority to direct the management and policies of an applicant or licensee.
“Costs” means, unless the context otherwise requires, the expenses incurred by the Commission in the administration of this subtitle, including:
the costs of leasing or the capitalized cost of purchasing the video lottery terminals, central monitor and control system, and associated equipment and software;
the costs to repair and maintain the video lottery terminals, central monitor and control system, and associated equipment and software to the extent these costs are not included in the costs of leasing or purchasing the video lottery terminals, central monitor and control system, and associated equipment and software;
the costs of testing and examination of video lottery terminals and the central monitor and control system; and
the costs of performing background investigations and other related activities.
“Family” means spouse, parents, grandparents, children, grandchildren, siblings, uncles, aunts, nephews, nieces, fathers–in–law, mothers–in–law, daughters–in–law, sons–in–law, brothers–in–law, and sisters–in–law, whether by whole blood or half blood, marriage, adoption, or natural relationship.
“Institutional investor” means:
a retirement fund administered by a public agency for the exclusive benefit of federal, state, or local public employees;
an investment company registered under the Investment Company Act of 1940;
a collective investment trust organized by banks under Part 9 of the rules of the Comptroller of the Currency;
a closed end investment trust;
a chartered or licensed life insurance company;
a property and casualty insurance company;
a banking or other chartered or licensed lending institution;
an investment advisor registered under the Investment Advisors Act of 1940; or
any other person registered in any foreign jurisdiction and regulated in accordance with a statute of any foreign jurisdiction that the Commission determines to be substantially similar to that regulated by the Investment Company Act of 1940 or the Investment Advisors Act of 1940.
“License” means, unless the context otherwise requires, a license required under this subtitle.
“Licensee” means an applicant who has been issued a license required under this subtitle.
“Manufacturer” means a person:
that is engaged in the business of designing, building, constructing, assembling, manufacturing, or distributing a central monitor and control system, video lottery terminals, associated equipment or software, or the cabinet in which a video lottery terminal is housed;
that produces a product that is intended for sale, lease, or other assignment to the Commission or a licensee; and
that contracts with the Commission or a licensee for the sale, lease, or other assignment of a product described in item (i) of this item; or
that is engaged in the business of designing, building, constructing, assembling, manufacturing, or distributing table games or table game equipment;
that produces a product related to table games that is intended for sale, lease, or other assignment to a licensee; and
that contracts with a licensee for the sale, lease, or other assignment of a product described in item (i) of this item.
“Own” means having a beneficial or proprietary interest of at least 5% in the property or business of an applicant or licensee.
“Player” means an individual who plays a video lottery terminal at a video lottery facility licensed by the Commission.
“Proceeds” means the part of the amount of money bet through video lottery terminals and table games that is not returned to successful players but is otherwise allocated under this subtitle.
“Proceeds” may be reduced consistent with regulations adopted by the Commission in accordance with subparagraph (ii) of this paragraph.
If a video lottery operation licensee returns to successful players more than the amount of money bet through video lottery terminals or table games on a given day, the video lottery licensee may subtract that amount from the proceeds of up to 7 following days.
Subject to subparagraph (ii) of this paragraph, “proceeds” does not include money given away by a video lottery operation licensee as free promotional play and used by players to bet in a video lottery terminal or at a table game.
After the first fiscal year of operations, the exclusion specified in subparagraph (i) of this paragraph may not exceed a percentage established by the Commission by regulation of the proceeds received from video lottery terminals and table games in the prior fiscal year by the video lottery operation licensee under § 9–1A–27(a)(2), (c)(1)(ii), and (d)(1) of this subtitle.
“Progressive jackpot” means a prize that increases as one or more video lottery terminals are connected to a progressive jackpot system.
“Progressive jackpot system” means a system capable of linking one or more video lottery terminals in one or more licensed facilities and offering one or more common progressive jackpots.
“Racing licensee” means the holder of a license issued by the State Racing Commission to hold a race meeting in the State under Title 11 of the Business Regulation Article.
“Table game equipment” means equipment that is related to the operation of table games and that is owned or leased by the video lottery facility and located on the video lottery facility’s premises.
“Table games” means:
roulette, baccarat, blackjack, craps, big six wheel, minibaccarat, poker, pai gow poker, and sic bo, or any variation and composites of such games; and
gaming tournaments in which players compete against one another in one or more of the games authorized under item (1) of this subsection.
“Video lottery” means gaming or betting conducted using a video lottery terminal.
“Video lottery destination location” means a location that is eligible for or has been awarded in the manner provided by law a video lottery operation license.
“Video lottery employee” means an employee of a person who holds a license.
“Video lottery facility” means:
a facility at which players play video lottery terminals and table games under this subtitle; and
a casino for the purposes of the federal Bank Secrecy Act of 1970 and its related regulations.
“Video lottery operation license” means a license awarded by the Video Lottery Facility Location Commission and issued by the State Lottery and Gaming Control Commission to a person that allows players to play video lottery terminals and table games.
“Video lottery operator” means a person licensed to operate a video lottery facility under this subtitle.
“Video lottery terminal” means any machine or other device that, on insertion of a bill, coin, token, voucher, ticket, coupon, or similar item, or on payment of any consideration:
is available to play or simulate the play of any game of chance in which the results, including the options available to the player, are randomly determined by the machine or other device; and
by the element of chance, may deliver or entitle the player who operates the machine or device to receive cash, premiums, merchandise, tokens, or anything of value, whether the payout is made automatically from the device or in any other manner.
“Video lottery terminal” includes a machine or device:
that does not directly dispense money, tokens, or anything of value to winning players; and
described under paragraph (1) of this subsection that uses an electronic credit system making the deposit of bills, coins, or tokens unnecessary.
“Video lottery terminal” does not include an authorized slot machine operated by an eligible organization under Title 12, Subtitle 3 of the Criminal Law Article.
This subtitle is statewide and exclusive in its effect.
The Commission shall regulate the operation of video lottery terminals in accordance with this subtitle.
The Maryland State Lottery and Gaming Control Agency shall provide assistance to the Commission in the performance of the Commission’s duties under this subtitle.
The Commission shall regulate the operation of table games in accordance with this subtitle.
This subtitle authorizes the operation of video lottery terminals that are connected to a central monitor and control system owned or leased by the State that allows the Commission to monitor a video lottery terminal.
The Commission shall provide and operate a single central monitor and control system into which all licensed video lottery terminals must be connected.
The central monitor and control system shall be capable of:
continuously monitoring, retrieving, and auditing the operations, financial data, and program information of all video lottery terminals;
allowing the Commission to account for all money inserted in and payouts made from any video lottery terminal;
disabling from operation or play any video lottery terminal as the Commission deems necessary to carry out the provisions of this subtitle;
supporting and monitoring a progressive jackpot system capable of operating one or more progressive jackpots; and
providing any other function that the Commission considers necessary.
The central monitor and control system shall employ a widely accepted gaming industry communications protocol to facilitate the ability of video lottery terminal manufacturers to communicate with the statewide system.
Except as provided in subparagraph (ii) of this paragraph, the Commission may not allow a video lottery operation licensee to have access to, or obtain information from, the central monitor and control system.
Only if the access does not in any way affect the integrity or security of the central monitor and control system, may the Commission allow a video lottery operation licensee to have access to the central monitor and control system that allows the licensee to obtain information pertinent to the legitimate operation of a video lottery facility.
Only a person with a video lottery operation license issued under this subtitle may offer a video lottery terminal and table games for public use in the State under this subtitle.
Except as provided in subsection (b) of this section, any additional forms or expansion of commercial gaming other than as expressly provided in this subtitle and Subtitle 1E of this title are prohibited.
This subtitle, including the authority provided to the Commission under this subtitle, does not apply to:
lotteries conducted under Subtitle 1 of this title;
wagering on horse racing conducted under Title 11 of the Business Regulation Article;
the operation of slot machines as provided under Titles 12 and 13 of the Criminal Law Article; or
other gaming conducted under Titles 12 and 13 of the Criminal Law Article.
The Commission shall:
promptly and in reasonable order, make a determination on license applications and causes affecting the granting or renewal of licenses under this subtitle;
issue licenses in accordance with this subtitle;
after a hearing, promptly and in reasonable order, make a determination on the suspension or revocation of licenses under this subtitle;
except as provided in subsection (b)(1)(v) of this section, after a hearing, suspend or revoke as applicable the license of a licensee who has a license suspended or revoked in another state;
conduct hearings concerning civil violations of this subtitle or regulations issued under this subtitle;
collect application, license, and other fees to cover the administrative costs of this subtitle related to licensing;
deposit application, license, and other fees to a bank account that the State Treasurer designates to the credit of the State Lottery Fund to cover the administrative costs of this subtitle related to licensing;
levy and collect civil penalties for civil violations of the provisions of this subtitle or regulations issued under this subtitle;
be present at a video lottery operation through its employees and agents at any time during the operation of any video lottery terminal or table game for the purpose of certifying revenue from the video lottery terminals or table games, receiving complaints from the public, and conducting any other investigation into the operation of the video lottery terminals or table games and the maintenance of the video lottery terminals and associated equipment and software and table games and table game equipment as the Commission may deem necessary and proper;
review and rule on any complaint by a licensee regarding any investigative procedures of the Commission that are unnecessarily disruptive of video lottery and table games operations; and
authorize a holder of a video lottery operation license under this subtitle to offer table games to the public in the State.
The Commission may:
issue subpoenas to compel the attendance of witnesses at any place within the State in the course of any investigation or hearing under this subtitle;
administer oaths and require testimony under oath before the Commission in the course of any investigation or hearing conducted under this subtitle;
serve or cause to be served its process or notices in a manner provided for service of process in civil actions under the Maryland Rules;
propound written interrogatories; and
suspend a license on an emergency basis if it is determined that the suspension is necessary to protect the State’s gaming program against a serious and imminent risk of harm to its integrity, security, or profitability.
If the Commission suspends a license on an emergency basis, the Commission shall schedule promptly a hearing on the suspension and provide the licensee with written notice of the suspension.
The Commission may delegate to the Director its authority under paragraph (1) of this subsection.
Except as otherwise provided in this subtitle, the Commission shall conduct a hearing in the same manner as specified in Title 10, Subtitle 2 of this article.
The Commission shall adopt regulations that include the following specific provisions in accordance with this subtitle:
establishing the methods and forms of application that an applicant for any license required under this subtitle shall follow and complete before consideration of the application by the Commission;
establishing the methods, procedures, and form for delivery of information from an applicant or licensee concerning any person’s family, habits, character, associates, criminal record, business activities, and financial affairs;
establishing the procedures for the fingerprinting of an applicant for any license required under this subtitle or other methods of identification that may be necessary in the judgment of the Commission to accomplish effective enforcement of the provisions of this subtitle;
establishing the manner and procedure of hearings conducted by the Commission;
establishing the manner and method of collection of taxes, fees, and civil penalties;
defining and limiting the areas of operation for video lottery terminals and table games, rules of video lottery terminals and table games, odds for video lottery terminals and table games, the types and values of promotional items that may be given away to encourage play of video lottery terminals and table games, the method of operation of the video lottery terminals and table games, and the number and types of table games;
regulating the practice and procedures for negotiable transactions involving players, including limitations on the circumstances and amounts of negotiable transactions and the establishment of forms and procedures for negotiable instrument transactions, redemptions, and consolidations;
prescribing the grounds and procedures for reprimands of licensees or the revocation or suspension of licenses issued under this subtitle;
governing the manufacture, distribution, sale, and servicing of video lottery terminals and table games;
establishing the procedures, forms, and methods of management controls;
providing for minimum uniform standards of accountancy methods, procedures, and forms as are necessary to ensure consistency, comparability, and effective disclosure of all financial information, including percentages of profit for video lottery terminals and table games;
establishing periodic financial reports and the form of the reports, including an annual audit prepared by a certified public accountant licensed to do business in the State, disclosing whether the accounts, records, and control procedures examined are maintained by the video lottery operation licensee as required by this subtitle and the regulations that shall be issued under this subtitle;
requiring licensees under this subtitle to demonstrate and maintain financial viability;
ensuring that the operation of video lottery terminals, table games, and video lottery facilities is conducted legally;
establishing procedures for the removal of video lottery terminals from a video lottery facility;
determining the suitability of:
the use of any variations or composites of the table games authorized under this subtitle after an appropriate test or experimental period under terms and conditions that the Commission may deem appropriate; and
any other game that is compatible with the public interest and suitable for casino use after an appropriate test or experimental period deemed appropriate by the Commission;
establishing procedures for accounting for all money exchanged at each table game;
establishing the number of video lottery terminals that may be removed from a video lottery facility to accommodate table games;
requiring each video lottery operator under this subtitle to:
establish procedures to offer players the opportunity to donate coins, when receiving cash on payout, to the Maryland Veterans Trust Fund established under § 9–913 of this title; and
attach donation boxes near the exits from a video lottery facility, with the proceeds dedicated to the Maryland Veterans Trust Fund; and
otherwise carrying out the provisions of this subtitle.
The Commission shall by regulation require an applicant or licensee to file a bond for the benefit of the State for the faithful performance of the requirements imposed by this subtitle and any regulations issued under this subtitle.
An applicant or licensee shall obtain and submit satisfactory proof of the bond to the Commission before a license is issued or reissued.
The bonds furnished may be applied by the Commission to the payment of an unpaid liability of the licensee.
The Commission by regulation may exempt categories of video lottery and table game employees who are not directly involved in the video lottery and table game operations from the requirements of this subsection if the Commission determines that the requirement is not necessary in order to protect the public interest or accomplish the policies established under this subtitle.
The Commission shall promptly and thoroughly investigate all applications and enforce this subtitle and regulations that are adopted under this subtitle.
The Commission and its employees and agents shall have the authority, without notice and without warrant, to:
inspect and examine all premises in which video lottery and table game operations under this subtitle are conducted or any authorized table games, table game equipment, video lottery terminals, central monitor and control system, or associated equipment and software designed, built, constructed, assembled, manufactured, sold, distributed, or serviced, or in which records of those activities are prepared or maintained;
inspect any table games, table game equipment, video lottery terminals, central monitor and control system, or associated equipment and software in, about, on, or around those premises;
seize summarily and remove from those premises and impound, or assume physical control of, any table games, table game equipment, video lottery terminals, central monitor and control system, or associated equipment and software for the purposes of examination and inspection;
inspect, examine, and audit books, records, and documents concerning a licensee’s video lottery and table game operations, including the financial records of a parent corporation, subsidiary corporation, or similar business entity; and
seize, impound, or assume physical control of books, records, ledgers, cash boxes and their contents, a counting room or its equipment, or other physical objects relating to video lottery or table game operations.
A licensee shall authorize any other person having financial records relating to the licensee to provide those records to the Commission.
The Commission may not charge a video lottery facility a fee to offer table games.
The Commission may not permit the operation of video lottery terminals in Prince George’s County before the earlier of July 1, 2016, or 30 months after the video lottery facility in Baltimore City is open to the public.
The Video Lottery Facility Location Commission established under § 9–1A–36 of this subtitle may not:
award more than six video lottery operation licenses;
award more than 16,500 video lottery terminals for operation at video lottery facilities in the State;
subject to the requirements of § 9–1A–36(h) and (i) of this subtitle, award more than 4,750 terminals for operation at any video lottery facility; and
for a location in Allegany County:
award a video lottery operation license to an applicant that does not agree to purchase the Rocky Gap Lodge and Resort; and
notwithstanding § 9–1A–36(i)(2) of this subtitle, award more than 1,500 video lottery terminals for operation at a video lottery facility in Allegany County.
An owner or operator of a video lottery destination location described under § 9–1A–01 of this subtitle may submit an application for a video lottery operation license.
A video lottery operation license issued under this subtitle is not valid at a geographic location other than the geographic location authorized in the license awarded by the Video Lottery Facility Location Commission and issued by the State Lottery and Gaming Control Commission.
In this subsection, “owner” includes any type of owner or beneficiary of a business entity, including an officer, director, principal employee, partner, investor, stockholder, or beneficial owner of the business entity and, notwithstanding any other provisions of this subtitle, including a person having any ownership interest regardless of the percentage of ownership interest.
An individual or business entity may not own an interest in more than one video lottery facility.
A member of the Senate of Maryland or the House of Delegates may not be an owner or an employee of any business entity that holds a video lottery operation license.
Notwithstanding paragraphs (1) and (2) of this subsection:
an individual or business entity may enter into a management agreement to operate a facility located in Allegany County that it does not own, subject to the approval of the Video Lottery Facility Location Commission and the State Lottery and Gaming Control Commission; and
a holder of a video lottery operation license may apply to the Video Lottery Facility Location Commission for an additional license provided that the application required under § 9–1A–36 of this subtitle includes a plan for divesting from the video lottery operation license held on the date of the application.
Except as provided in §§ 10–14A–03 and 10–14B–03 of this article, the following persons shall be licensed under this subtitle:
a video lottery operator;
a manufacturer;
a person not licensed under item (1) or (2) of this subsection who manages, operates, supplies, provides security for, or provides service, maintenance, or repairs for video lottery terminals or table games; and
a video lottery employee.
The Commission may by regulation require a person that contracts with a licensee and the person’s employees to obtain a license under this subtitle if the Commission determines that the licensing requirements are necessary in order to protect the public interest and accomplish the policies established by this subtitle.
Except as provided in paragraph (2) of this subsection or §§ 10–14A–03 and 10–14B–03 of this article, unless an individual holds a valid license issued under this subtitle, the individual may not be employed by a licensee as a video lottery employee.
The Commission by regulation may exempt categories of video lottery employees who are not directly involved in the video lottery operations from the requirement under paragraph (1) of this subsection if the Commission determines that the requirement is not necessary in order to protect the public interest or accomplish the policies established under this subtitle.
For a period of 1 year after the individual’s service on the State Lottery and Gaming Control Commission or the Video Lottery Facility Location Commission ends, a licensee may not employ, or enter into a financial relationship with, an individual who has been a member of the State Lottery and Gaming Control Commission or the Video Lottery Facility Location Commission.
Except as provided in § 9–1A–36 of this subtitle, an applicant for a license shall submit to the Commission an application:
in the form that the Commission requires; and
on or before the date set by the Commission.
This subsection does not apply to license fees for a video lottery operation license.
The Commission shall by regulation establish a fee for a license under this subtitle.
An applicant shall submit the fee with the application.
Applicants and licensees shall have the affirmative responsibility to establish by clear and convincing evidence the person’s qualifications.
Applicants and licensees shall provide information required by this subtitle and satisfy requests for information relating to qualifications in the form specified by the Commission or the Video Lottery Facility Location Commission, if applicable.
Applicants and licensees shall consent to inspections, searches, and seizures authorized by this subtitle or regulations issued under this subtitle.
Applicants and licensees shall have the continuing duty to:
provide assistance or information required by the Commission; and
cooperate in an inquiry, investigation, or hearing conducted by the Commission.
On issuance of a formal request to answer or produce information, evidence, or testimony, if an applicant or licensee refuses to comply, the application or license of the person may be denied, suspended, or revoked by the Commission.
If the applicant is an individual, the applicant shall be photographed and fingerprinted for identification and investigation purposes.
If the applicant is not an individual, the Commission by regulation may establish the categories of individuals who shall be photographed and fingerprinted for identification and investigation purposes.
Applicants and licensees shall have a duty to inform the Commission of an act or omission that the person knows or should know constitutes a violation of this subtitle or the regulations issued under this subtitle.
Applicants and licensees may not discriminate against a person who in good faith informs the Commission of an act or omission that the person believes constitutes a violation of this subtitle or the regulations issued under this subtitle.
Applicants and licensees shall produce information, documentation, and assurances to establish the following qualification criteria by clear and convincing evidence:
the financial stability, integrity, and responsibility of the applicant or licensee;
the integrity of any financial backers, investors, mortgagees, bondholders, and holders of other evidences of indebtedness that bear a relation to the application;
the applicant’s or licensee’s good character, honesty, and integrity;
sufficient business ability and experience of the applicant or licensee; and
that:
the applicant or licensee has entered into a labor peace agreement with each labor organization that is actively engaged in representing or attempting to represent video lottery and hospitality industry workers in the State;
the labor peace agreement is valid and enforceable under 29 U.S.C. § 158;
the labor peace agreement protects the State’s revenues by prohibiting the labor organization and its members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the operation of the video lottery facility within the first 5 years of the effective date of the video lottery operation license; and
the labor peace agreement applies to all operations at the video lottery facility that are conducted by a lessee or tenant or under a management agreement.
On the filing of an application for any license required under this subtitle and any supplemental information required by the Commission, the Commission shall:
conduct a background investigation under § 9–1A–20 of this subtitle on the qualifications of the applicant and any person who is required to be qualified under this subtitle as a condition of a license; and
if the applicant is applying for a video lottery operation license, conduct a hearing on the qualifications of the applicant and any person who is required to be qualified under this subtitle as a condition of a license.
The Commission may refer an application for a license to an approved vendor under § 9–1A–20 of this subtitle to conduct the background investigation for the Commission.
Except for a video lottery operation license, after receiving the results of the background investigation, the Commission may either grant a license to an applicant whom the Commission determines to be qualified or deny the license to an applicant whom the Commission determines to be not qualified or disqualified.
If an application for a license is denied, the Commission shall prepare and file an order denying the license with a statement of the reasons for the denial, including the specific findings of fact.
Except for a video lottery operation license as provided in § 9–1A–13 of this subtitle, if satisfied that an applicant is qualified to receive a license, and on tender of all required application, license, and other fees and taxes, and any bond required under § 9–1A–04(e) of this subtitle, the Commission shall issue a license for a term of 5 years.
The Commission may stagger the terms of licenses.
An individual may not knowingly give false information or make a material misstatement in an application required for any license under this subtitle or in any supplemental information required by the Commission.
An individual who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 3 years or a fine not exceeding $5,000 or both.
In addition to other information required by this subtitle, a business entity applying for a video lottery operation license shall provide the following information:
the organization, financial structure, and nature of all businesses operated by the business entity;
the names, personal employment, and, when applicable, criminal histories of the officers, directors, partners, and principal employees of the business entity;
the names of all holding, intermediary, and subsidiary companies or other similar business entities of the business entity;
the organization, financial structure, and nature of all businesses operated by the business entity’s holding, intermediary, and subsidiary companies or other similar business entities;
the rights and privileges acquired by the holders of different classes of authorized securities, partnership interests, or other similar ownership interests of the business entity and its holding, intermediary, and subsidiary companies or other similar business entities;
the terms on which the securities, partnership interests, or other similar ownership interests have been or are to be offered;
the terms and conditions of all outstanding loans, mortgages, trust deeds, pledges, or other indebtedness or security devices utilized by the business entity;
the extent of the equity security holding in the business entity of the officers, directors, partners, and underwriters and their remuneration in the form of salary, wages, fees, or otherwise;
the names of persons other than the directors and officers who occupy positions specified by the Commission or whose compensation exceeds an amount determined by the Commission;
the names of persons who own or control the business entity;
a description of all bonus and profit sharing arrangements;
copies of management and service contracts; and
a listing of stock options.
If a business entity that applies for a video lottery operation license is a subsidiary or if a business entity holding a video lottery operation license is to become a subsidiary, each holding company and each intermediary company with respect to the business entity shall, as a condition of the subsidiary acquiring or retaining a video lottery operation license:
qualify to do business in the State; or
furnish the Commission with the information required under subsection (a) of this section and other information that the Commission or the Video Lottery Facility Location Commission may require.
Except as provided in paragraph (2) of this subsection, an individual applying for a video lottery operation license shall provide, to the extent applicable to an individual, the information required under subsection (a) of this section in the form required by the Commission.
The Commission may waive the requirement to provide the information required under subsection (a) of this section for an institutional investor.
The Commission shall disqualify an applicant for a video lottery operation license on the basis of any of the following criteria:
failure of the applicant to prove by clear and convincing evidence that the applicant and each person who owns or controls the application are qualified under the provisions of this subtitle;
failure of the applicant or any person required to be qualified under this subtitle as a condition of a license to provide information, documentation, and assurances required by this subtitle or requested by the Commission;
failure of the applicant or any person required to be qualified under this subtitle as a condition of a license to reveal any fact material to qualification;
supplying, by the applicant or any person required to be qualified under this subtitle as a condition of a license, information that is untrue or misleading as to a material fact concerning the qualification criteria;
conviction of the applicant or of any person required to be qualified under this subtitle as a condition of a license of an offense under the laws of any jurisdiction that is a criminal offense involving moral turpitude or a gambling offense;
current prosecution of the applicant or a person who is required to be qualified under this subtitle as a condition of a license for an offense described under item (5) of this subsection, provided that, at the request of the applicant, the Commission may defer its decision on the application during the pendency of the charge;
pursuit by the applicant or a person who is required to be qualified under this subtitle as a condition of a license of economic gain in an occupational manner or context that is in violation of the laws of the State, if the pursuit creates a reasonable belief that participation of the applicant in video lottery operations would be inimical to the policies of this subtitle;
identification of the applicant or a person who is required to be qualified under this subtitle as a condition of a license as a career offender or a member of a career offender cartel or an associate of a career offender or career offender cartel in a manner that creates a reasonable belief that the association is of a nature as to be inimical to the policies of this subtitle;
commission of an act within the prior 7 years by the applicant or a person who is required to be qualified under this subtitle as a condition of a license that would constitute an offense described under item (5) of this subsection, even if the act was not prosecuted or may not be prosecuted under the criminal laws of any jurisdiction; and
willful defiance by the applicant or a person who is required to be qualified under this subtitle as a condition of a license of a legislative investigatory body or other official investigatory body of the United States or a jurisdiction within the United States when the body is engaged in the investigation of crimes relating to gambling, official corruption, or organized crime activity.
As a condition of eligibility for funding under § 9–1A–29 of this subtitle, a racing licensee shall:
for Rosecroft Raceway, for any year that funding is provided, conduct a minimum of 60 annual live racing days unless otherwise agreed to by the racing licensee and the organization that represents the majority of licensed standardbred owners and trainers in the State or unless the racing licensee is prevented by weather, acts of God, or other circumstances beyond the racing licensee’s control; and
for Ocean Downs Racetrack, for any year that funding is provided, conduct a minimum of 40 annual live racing days unless otherwise agreed to by the racing licensee and the organization that represents the majority of licensed standardbred owners and trainers in the State or unless the racing licensee is prevented by weather, acts of God, or other circumstances beyond the racing licensee’s control; and
if the racing licensee receives funding without providing and expending a matching fund, conduct live racing days in the State for at least 10 years after the construction plan required under § 9–1A–29(e) of this subtitle is complete;
develop and submit to the State Racing Commission a multiyear plan to improve the quality and marketing of horse racing at racetrack locations owned or operated by the racing licensee in Maryland, which shall include:
goals, indicators, and timelines for specific actions that will be taken by the racing licensee to improve the quality and marketing of the horse racing industry in Maryland; and
a master plan for capital improvements that reflects, at a minimum:
commitments that have been made to the State Racing Commission;
updates to any prior master plan specifically identifying capital improvements and expenditures made on or after January 1, 2018; and
an ongoing investment in capital maintenance and improvements in the horse racing facilities; and
for each year that funding is requested, spend at least the following minimum amounts for capital maintenance and improvements, which may include amounts provided as a matching fund if the racing licensee elects to provide and expend a matching fund under § 9–1A–29(e)(2) of this subtitle:
for Rosecroft Raceway, $300,000; and
for Ocean Downs Racetrack, $300,000.
As part of the capital maintenance and improvement items in the plan submitted under subsection (a)(2) of this section, a racing licensee shall include any improvements necessary to ensure that the condition of any part of the racetrack facility where individuals reside is satisfactory for human habitation and meets minimum housing and sanitation standards in the county where the facility is located.
The plans required under subsection (a) of this section shall also be provided to the Department of General Services and to the Legislative Policy Committee of the General Assembly.
The findings and evidence relied on by the General Assembly for the continuation of the Minority Business Enterprise Program under Title 14, Subtitle 3 of the State Finance and Procurement Article are incorporated in this section.
To the extent practicable and authorized by the United States Constitution, a licensee shall comply with the State’s Minority Business Enterprise Program.
An applicant or a licensee is subject to:
the requirement to put forth a good faith effort to meet the minority business participation goal established for a unit by the Special Secretary for the Office of Small, Minority, and Women Business Affairs under § 14–302(a)(1)(ii) of the State Finance and Procurement Article; and
any other corresponding provisions of law under Title 14, Subtitle 3 of the State Finance and Procurement Article.
The minority business participation goal shall apply to:
construction related to video lottery terminals; and
procurement related to the operation of video lottery terminals, including procurement of equipment and ongoing services.
If the county in which a video lottery facility will be located has higher minority business participation requirements than the State as described in paragraph (1) of this subsection, the applicant shall meet the county’s minority business participation requirements to the extent possible.
A county in which a video lottery facility will be located may impose local business, local minority business participation, and local hiring requirements to the extent authorized by local law and permitted by the United States Constitution.
Any collective bargaining agreement or agreements, including a project labor agreement or a neutrality agreement, entered into by an applicant or licensee may not negate the requirements of this subsection.
If an applicant for employment at a video lottery facility believes that the applicant has been discriminated against in the employment process, the applicant may appeal the employment decision to the local human relations board in the county where the facility is located.
Notwithstanding any collective bargaining agreement or agreements, a licensee shall:
provide health insurance coverage for its employees; and
give a preference to hiring qualified employees from the communities within 10 miles of the video lottery facility.
A licensee shall:
provide retirement benefits for its employees; and
if the licensee is a racetrack licensee, provide retirement benefits to its video lottery operation employees that are equivalent to the level of benefits provided to the racetrack employees who are eligible under the Maryland Racetrack Employees Pension Fund.
Notwithstanding any collective bargaining agreement or agreements, if the licensee is a racetrack location, the licensee shall provide health insurance coverage to all employees of the racetrack, including the employees of the racetrack on the backstretch of the racetrack.
The Commission shall ensure that a video lottery operation licensee complies with the requirements of subsection (b)(1) and (2) of this section as a condition of holding the video lottery operation license.
The Office of Small, Minority, and Women Business Affairs shall monitor a licensee’s compliance with subsection (b)(1) and (2) of this section.
The Office of Small, Minority, and Women Business Affairs shall report to the Commission at least every 6 months on the compliance of licensees with subsection (b)(1) and (2) of this section.
If the Office of Small, Minority, and Women Business Affairs reports that a licensee is not in compliance with subsection (b)(1) and (2) of this section, the Commission may take immediate action to ensure the compliance of the licensee.
On or after July 1, 2031, the provisions of subsections (b)(1) and (2) and (c) of this section and any regulations adopted under subsections (b)(1) and (2) and (c) of this section shall be of no effect and may not be enforced.
Any video lottery operation licenses not issued or awarded for a location authorized under this subtitle shall automatically revert to the State.
Except as provided in paragraphs (2) and (3) of this subsection, a licensee shall commence operation of video lottery terminals in a permanent facility at the location for which the video lottery operation license has been awarded within 18 months after the license is awarded.
On a determination by the Commission that extenuating circumstances exist that are beyond the control of an awardee and have prevented the awardee from complying with the requirements of paragraph (1) of this subsection, the Commission may allow the awardee an extension of 6 months to comply with the requirements.
The Commission may not grant more than two extensions to an awardee under this paragraph.
Notwithstanding paragraphs (1) and (2) of this subsection, the Commission may allow an awardee of a video lottery operation license in Prince George’s County to commence operation in a permanent facility more than 18 months, but not more than 30 months, after the license is awarded.
If a video lottery operation awardee fails to comply with the requirements of this subsection, the license awarded to the awardee shall be revoked and shall automatically revert to the State.
Nothing in this subtitle may be construed to prohibit a video lottery operation licensee that is issued a license from beginning video lottery terminal or table game operations in a temporary facility that meets the minimum requirements established in regulations adopted by the State Lottery and Gaming Control Commission.
Notwithstanding the provisions of paragraph (1) of this subsection, a video lottery operation licensee shall be operational in a permanent facility no later than 30 months after the award of the video lottery operation license.
Notwithstanding paragraph (1) of this subsection, a video lottery facility in Prince George’s County may not begin video lottery terminal or table game operations in a temporary facility or in a structure, including a hotel or conference center, that exists on August 15, 2012.
For a location in Allegany County, if video lottery terminals are permanently located in the Rocky Gap Lodge and Resort, the licensee shall restrict public access to the video lottery facility from the Rocky Gap Lodge and Resort.
Subject to subparagraphs (ii) and (iii) of this paragraph, for a location in Allegany County, if video lottery terminals are permanently located in the Rocky Gap Lodge and Resort and existing meeting space is eliminated as a result of the video lottery terminals, the licensee shall provide for meeting space that is accessible from the Rocky Gap Lodge and Resort within 36 months after issuance of the video lottery operation license, subject to the approval of the Video Lottery Facility Location Commission and the State Lottery and Gaming Control Commission.
The licensee shall restrict public access to the video lottery facility from any meeting space provided under subparagraph (i) of this paragraph.
The licensee may not begin table game operations until the licensee submits evidence satisfactory to the State Lottery and Gaming Control Commission that replacement work has begun to provide meeting space equal to or greater than the eliminated meeting space.
If a video lottery operation licensee contracts with another person other than an employee of the video lottery operation licensee to provide any of the services related to operating a video lottery facility, each person and each other person who owns or controls the person or management and supervisory personnel and other principal employees of the person shall qualify under the standards and provisions set forth in §§ 9–1A–07 and 9–1A–08 of this subtitle for video lottery operation licensees.
The initial term of a video lottery operation license is 15 years from the date on which the video lottery facility is issued the license by the Commission.
During the initial term of a video lottery operation license, the licensee shall provide the Commission with an annual update of the information required under this subtitle for the issuance of a license by the date set by the Commission in regulations and on the form required by the Commission.
At least 2 years but not more than 5 years before the expiration of the initial 15–year license term or a renewal term of a video lottery operation license, the licensee shall file with the Commission a notice of intent to apply for renewal of the license under this subtitle.
This subsection applies to the first renewal of a video lottery operation license following the initial 15–year term and each subsequent renewal of the license.
A renewal of a video lottery operation license is for a term of 15 years.
At least 1 year but not more than 5 years before the end of the initial 15–year license term or a renewal term, a video lottery operation licensee may file an application to renew a video lottery operation license.
On proper application for renewal of a video lottery operation license, the Commission shall renew the license unless the Commission finds that the licensee is no longer qualified under this subtitle to hold a license.
Before denying an application under this subsection, the Commission shall provide the video lottery operation licensee an opportunity for a hearing.
For each 5–year period of the 15–year term, the video lottery operation licensee shall pay a fee equal to 0.75% of the average annual proceeds from the operation of video lottery terminals and table games at the video lottery facility for the preceding 3–year period, to be paid in equal annual installments.
The video lottery operation licensee shall pay each installment:
for the first year of the 15–year term, on the effective date of the renewed license; and
for the remaining 14 years of the 15–year term, if the licensee remains qualified to hold a license under this subtitle, on the date of the anniversary of the effective date of the renewed license.
The Commission shall pay the renewal license fees submitted under this paragraph to the Education Trust Fund established under § 9–1A–30 of this subtitle.
If a licensee has its license revoked or otherwise surrenders the license, the video lottery operation license reverts to the State.
Unless an individual holds a valid video lottery employee license or temporary video lottery employee license issued by the Commission, the individual may not be employed by a video lottery operation licensee as a video lottery employee.
Before issuance of a video lottery employee license, an applicant shall provide sufficient information, documentation, and assurances that the Commission may require.
The Commission shall deny a video lottery employee license to an applicant who is disqualified due to:
the applicant’s failure to prove the applicant’s good character, honesty, and integrity;
the applicant’s lack of expertise or training to be a video lottery employee;
except as provided in paragraphs (2) and (3) of this subsection, the applicant’s conviction, active parole, or probation for any crime involving moral turpitude or gambling under the laws of the United States or any state within the prior 7 years;
except as provided in paragraphs (2) and (3) of this subsection, the applicant’s current prosecution for any crime involving moral turpitude or gambling under the laws of the United States or any state, but, at the request of the applicant, the Commission may defer a decision on the application during the pendency of the charge;
pursuit by the applicant of economic gain in an occupational manner or context that is in violation of the laws of the State, if the pursuit creates a reasonable belief that participation of the applicant in video lottery operations would be inimical to the policies of this subtitle;
identification of the applicant as a career offender or a member of a career offender cartel or an associate of a career offender or career offender cartel in a manner that creates a reasonable belief that the association is of a nature as to be inimical to the policies of this subtitle;
willful defiance by the applicant or a person that is required to be qualified under this subtitle as a condition of a license of a legislative investigatory body or other official investigatory body of the United States or a jurisdiction within the United States when the body is engaged in the investigation of crimes relating to gambling, official corruption, or organized crime activity; and
any other reason established in the regulations of the Commission as a reason for denying a license.
In this paragraph, “problem–solving court” means a problem–solving court under the Office of Problem–Solving Courts, or a comparable program from another state court system, that provides a collaborative, therapeutic, nonadversarial approach to judicial supervision of eligible offenders, including a drug court, DUI court, veterans’ court, mental health court, or reentry court.
An applicant is not disqualified from licensure under paragraph (1)(iii) or (iv) of this subsection if the conviction, active parole, probation, or prosecution involves a nonviolent misdemeanor offense, other than a crime involving gambling, for which the applicant participated in and completed a problem–solving court program.
An applicant is not disqualified from licensure under paragraph (1)(iii) or (iv) of this subsection if:
the conviction, active parole, probation, or prosecution involves a nonviolent misdemeanor offense, other than a crime involving gambling;
the applicant will not be employed by the video lottery operation licensee in the operation of gaming or security; and
the video lottery operation licensee requests that the Commission issue the license notwithstanding the conviction, active parole, probation, or prosecution.
The Commission may issue a temporary video lottery employee license that authorizes an applicant to be employed as a video lottery employee.
The Commission:
may issue a temporary license to an applicant who:
files a completed application for a video lottery employee license; and
acknowledges, in writing, that the State is not financially responsible for any consequences resulting from termination of the temporary license under paragraph (4) of this subsection; and
may not issue a temporary license to an applicant who:
has an immediately known present or prior activity, criminal record, reputation, habit, or association that would disqualify the applicant from holding a video lottery employee license under this subtitle; or
poses a serious imminent risk of harm to the integrity, security, or profitability of the State’s gaming program.
A temporary license issued under this subsection expires 180 days after the date of issue.
The Commission may extend a temporary license for an additional 180 days.
Notwithstanding § 9–1A–04(a)(3) of this subtitle, the Commission may terminate without a hearing the temporary license of an applicant for:
failure to pay a required fee;
failure to submit required information to the Commission;
failure to comply with the Commission’s staff requests;
engaging in conduct that obstructs the Commission from completing the applicant’s background investigation; or
any other reason established in the regulations of the Commission.
If the Commission denies the application for a video lottery employee license of an applicant who has been issued a temporary license, the applicant immediately shall surrender the applicant’s temporary license identification to the Commission and cease working as a video lottery employee.
Unless a manufacturer holds a valid manufacturer’s license issued by the Commission before conducting business with a licensee or the State, the manufacturer may not offer any video lottery terminal, central monitor and control system, associated equipment or software, or goods or services that directly relate to the operation of video lottery terminals under this subtitle.
Unless a manufacturer holds a valid manufacturer’s license issued by the Commission before conducting business with a licensee, the manufacturer may not offer any table games or table game equipment under this subtitle.
Each manufacturer, and each person that owns or controls the manufacturer or management and supervisory personnel and other principal employees of the manufacturer, shall qualify under the standards and provisions set forth in §§ 9–1A–07 and 9–1A–08 of this subtitle for video lottery operation licensees.
Except as provided in § 9–1A–16(a) of this subtitle, the Commission may not grant an exemption or waiver of any licensing requirement to an applicant for or holder of a manufacturer’s license.
A manufacturer of the video lottery terminals, central monitor and control system, and associated equipment and software shall manufacture or distribute the video lottery terminals, central monitor and control system, and associated equipment and software that meet specifications and procedures established by the Commission.
A manufacturer of table games and table game equipment shall manufacture or distribute the table games and table game equipment that meet specifications and procedures established by the Commission.
For all licenses required under this subtitle other than a video lottery operation license, if an applicant or licensee holds a valid license in another state and the Commission determines that the licensing standards of the other state are comprehensive, thorough, and provide similar adequate safeguards to those provided in this subtitle, the Commission may:
waive some or all of the requirements of this subtitle; and
issue a license to a person having a similar license in another state.
Except as provided in subsection (c) of this section, on the request of an applicant, the Commission may grant an exemption or waiver of a licensing requirement or grounds for denial of a license if the Commission determines that the requirement or grounds for denial of a license as applied to the applicant are not necessary in order to protect the public interest or accomplish the policies established by this subtitle.
On granting to an applicant an exemption or waiver of a licensing requirement or grounds for denial of a license, or at any time after a waiver or exemption has been granted, the Commission may:
limit or place restrictions on the exemption or waiver as the Commission considers necessary in the public interest; and
require the person that is granted the exemption or waiver to cooperate with the Commission and to provide the Commission with any additional information required by the Commission as a condition of the waiver or exemption.
The Commission may not waive any of the requirements of this subtitle related to a video lottery operation license.
This section does not apply to the renewal of a video lottery operation license.
Subject to the power of the Commission to deny, revoke, or suspend a license, a license in force may be renewed by the Commission for the next succeeding license period on:
proper application for renewal; and
payment of all required application, license, and other fees and taxes.
Because the public has a vital interest in video lottery and table game operations and has established a limited exception to the policy of the State concerning gambling for private gain, participation in video lottery and table game operations by a licensee under this subtitle shall be deemed a revocable privilege conditioned on the proper and continued qualification of the licensee and on the discharge of the affirmative responsibility of each licensee to provide to the regulatory and investigatory authorities under this subtitle or any other provision of law, any assistance and information necessary to assure that the policies declared by this subtitle are achieved.
Consistent with the policy described in subsection (a) of this section, it is the intent of this section to:
preclude:
the creation of any property right in any license required under this subtitle;
the accrual of any monetary value to the privilege of participation in video lottery operations; and
the transfer of any license issued under this subtitle; and
require that participation in video lottery operations be conditioned solely on the continuing individual qualifications of the person who seeks the privilege.
Except as provided in subsection (b) of this section, a license issued under this subtitle may not be:
transferred or assigned to another person; or
pledged as collateral.
A licensee may not sell or otherwise transfer more than 5% of the legal or beneficial interests of the licensee unless:
the licensee notifies the Commission of the proposed sale or transfer;
the Commission determines that the proposed buyer or transferee meets the requirements of this subtitle; and
the transfer is consistent with the policies and intent of § 9–1A–18 of this subtitle.
Unless the Commission needs a longer time to determine whether the proposed buyer or transferee meets the requirements of this subtitle, if the requirements of paragraph (1) of this subsection are not satisfied, a license issued under this subtitle is automatically revoked 90 days after the sale or transfer.
In this section, “approved vendor” means a person that:
specializes in conducting background investigations;
has experience in the gaming industry; and
obtains the approval of the Commission to conduct background investigations under this section.
The Commission or an approved vendor shall conduct a background investigation in a timely manner of:
an applicant for a video lottery operation license;
a video lottery operator; and
any other applicant the Commission considers necessary.
An applicant shall provide the Commission or an approved vendor with all information the Commission requires in order to conduct a background investigation.
Failure to provide timely or accurate information is grounds for the Commission to deny an application.
The Commission or an approved vendor shall apply to the Central Repository for a State and a national criminal history records check for the applicant, if required by the Commission.
As part of the application for a criminal history records check, the Commission or an approved vendor shall submit to the Central Repository:
two complete sets of the applicant’s legible fingerprints taken on forms approved by the Director of the Central Repository and the Director of the Federal Bureau of Investigation;
the fee authorized under § 10–221(b)(7) of the Criminal Procedure Article for access to Maryland criminal history records;
the mandatory processing fee required by the Federal Bureau of Investigation for a national criminal history records check; and
the mandatory processing fee required by Interpol for an international criminal history records check.
In accordance with §§ 10–201 through 10–234 of the Criminal Procedure Article, the Central Repository shall forward to the applicant and the Commission a printed statement of the applicant’s criminal history record information.
Information obtained from the Central Repository under this section:
shall be confidential;
may not be redisseminated; and
may be used only in connection with the issuance of a license required under this subtitle.
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.
After completion of a background investigation conducted under this section, an approved vendor shall promptly forward the results of the investigation to the Commission.
The Commission shall adopt regulations specifying the factors used to determine whether an applicant for a license must submit to an international criminal history records check.
The central monitor and control system and the associated equipment and software shall be:
owned or leased by the Commission; and
under the control of the Commission.
Except as provided in subparagraphs (ii) and (iii) of this paragraph, each video lottery terminal device and the associated equipment and software shall be owned or leased by the video lottery facility.
Subject to subsubparagraph 2 of this subparagraph, for a video lottery facility located in Allegany County or Worcester County, each video lottery terminal device and the associated equipment and software shall be owned or leased by the video lottery facility after March 31, 2020.
A video lottery facility located in Allegany County or Worcester County may apply to the Commission for permission to assume ownership or the right to lease each video lottery terminal device used by the facility.
For a video lottery facility located in Anne Arundel County or Cecil County, the Commission shall own each video lottery terminal device and the associated equipment and software through March 31, 2015.
The savings that are attributable to requiring video lottery facilities to own or lease the video lottery terminals and associated equipment and software shall be appropriated to the Education Trust Fund established under § 9–1A–30 of this subtitle in the year in which the spending would have otherwise occurred.
Subject to the Commission’s ability to cancel or alter the contract in the event one or more eligible applicants for a video lottery facility fail to obtain a license, the Commission shall contract with one or more licensed manufacturers for the lease or purchase of the video lottery terminals, central monitor and control system, and associated equipment and software authorized under this subtitle.
The Commission shall adopt regulations governing the sale or lease of video lottery terminals by the Commission under this subtitle.
The Commission may adopt regulations to provide incentives to licensed manufacturers based on the performance of the manufacturers’ video lottery terminals.
The Commission shall establish a process enabling a licensee and the Commission to select video lottery terminals from a list approved by the Commission, subject to available funds, for use in the licensee’s video lottery facility.
Except as provided in subsections (b) and (c) of this section, a video lottery terminal shall have an average payout percentage of at least 85%.
The Commission may by regulation establish an average payout percentage of more than 88% but not more than 95% for video lottery operation licensees.
The Commission may approve an average payout percentage of more than 95% for the video lottery terminals at a video lottery facility.
A video lottery facility may operate 24 hours a day.
A video lottery operation licensee shall be responsible for all marketing, advertising, and promotion for its video lottery operation.
Any State lottery games that are offered by or through the Commission may be offered for sale at a video lottery facility in the State.
Except as provided in subsection (b) of this section, the Commission shall ensure that a video lottery operation licensee complies with the requirements of this section as a condition of holding the video lottery operation license.
The county alcoholic beverages licensing authority for the county in which a video lottery facility is located shall ensure that the video lottery operation licensee complies with the requirements of this subsection.
Except as provided in paragraph (4) of this subsection, a video lottery operation licensee may not provide food or alcoholic beverages to individuals at no cost.
Any food or alcoholic beverages offered by a video lottery operation licensee for sale to individuals may be offered only at prices that are determined by the county alcoholic beverages licensing authority to be commensurate with the price of similar types of food and alcoholic beverages at restaurants in the county in which the video lottery facility is located.
A video lottery operation licensee may provide food at no cost to individuals to the same extent allowed under § 6–310 of the Alcoholic Beverages and Cannabis Article for a person engaged in the sale or barter of spirituous, malt, or intoxicating liquors and licensed under the laws of Maryland.
Except as provided in paragraph (2) of this subsection, a video lottery operation licensee shall ensure that intoxicated individuals and individuals under the age of 21 years are not allowed to play video lottery terminals or table games and are not allowed in areas of the video lottery facility where video lottery terminals or table games are located.
A video lottery operation licensee may allow a video lottery employee who is an adult to enter or remain in an area within the video lottery facility that is designated for table game or video lottery terminal activities if the video lottery employee is working.
By regulation, the Commission shall provide for the establishment of a list of individuals who are to be mandatorily excluded or ejected by a video lottery operation licensee from any video lottery operation licensed under this subtitle.
The regulations under this subsection shall define the standards for exclusion or ejection and shall include standards relating to individuals:
who are career offenders as defined by regulations adopted by the Commission;
who have been convicted of a criminal offense under the laws of the United States or any jurisdiction within the United States that is a criminal offense involving moral turpitude or a gambling offense; or
whose presence in the establishment of a licensee would be adverse to the interest of the State, the licensee, or the person.
The Commission may impose sanctions on a licensee in accordance with this subtitle if the licensee knowingly fails to exclude or eject from the premises of the licensee an individual placed by the Commission on the list of individuals to be excluded or ejected.
An order under this subsection is subject to judicial review.
By regulation, the Commission shall adopt measures that are intended to reduce or mitigate the effects of problem gambling.
The regulations shall:
include establishment of a voluntary exclusion list of individuals with gambling problems who have requested to be excluded from any video lottery operation licensed under this subtitle; and
provide a simple mechanism for an individual who is sober and informed to request placement on the voluntary exclusion list for a specified period of time.
A video lottery operation licensee may not permit an individual on the voluntary exclusion list to enter into the video lottery facility or to play a video lottery terminal.
The Commission may impose sanctions on a licensee in accordance with this subtitle if the licensee knowingly fails to exclude from the premises of the licensee an individual on the voluntary exclusion list.
In order to protect the public interest, the regulations shall include provisions that:
limit the number and location of and maximum withdrawal amounts from automated teller machines;
prohibit authorized automated teller machines from accepting electronic benefit cards, debit cards, or similar negotiable instruments issued by the Department of Human Services for the purpose of accessing temporary cash assistance;
require payouts above an amount adopted by the Commission to be made by check;
require conspicuous disclosures related to the payout of video lottery terminals;
limit the dollar amount that video lottery terminals will accept;
prohibit the use of specified negotiable instruments at video lottery facilities and the use of credit cards, debit cards, and similar devices in video lottery terminals;
provide consumers with a record of video lottery terminal spending levels if marketing measures are utilized that track consumer spending at video lottery facilities;
prohibit consumers from cashing paychecks at video lottery facilities; and
prohibit video lottery operation licensees from engaging in or contracting with another to engage in predatory marketing practices.
A video lottery operation licensee may not, directly or indirectly, interfere with, hinder, obstruct, impede, or take any action to delay the implementation or establishment of a video lottery facility by any other licensee or applicant for a video lottery operation license awarded or issued under this subtitle.
The Commission shall adopt regulations, to the fullest extent allowed by the first amendment of the Constitution of the United States, to carry out the provisions of this subsection.
The regulations adopted under this subsection shall include provisions:
that expressly prohibit:
taking any of the actions described in paragraph (1) of this subsection relating to the issuance of required State or local governmental approvals for the establishment of a video lottery facility; or
providing funding or other material support to engage in any of the actions described in paragraph (1) of this subsection;
that prohibit, as unlawful indirect conduct, activity:
by an entity in which the licensee owns a beneficial or proprietary interest; or
by an entity in which an affiliate of the licensee owns a beneficial or proprietary interest; and
that allow the Commission to impose sanctions and penalties in accordance with § 9–1A–25 of this subtitle if a licensee knowingly violates paragraph (1) of this subsection.
The Commission may deny a license to an applicant, reprimand or fine a licensee, or suspend or revoke a license for a violation of:
this subtitle;
a regulation adopted under this subtitle; or
a condition that the Commission sets.
For each violation specified in subsection (a) of this section, the Commission may impose a penalty not exceeding $5,000.
Each day that a person is in violation under this section shall be considered a separate violation.
To determine the amount of the penalty imposed under paragraph (1) of this subsection, the Commission shall consider:
the seriousness of the violation;
the harm caused by the violation; and
the good faith or lack of good faith of the person who committed the violation.
Except as otherwise expressly provided in this subtitle, nothing contained in this subtitle abrogates or limits the criminal laws of the State or limits the authority of the General Assembly to enact statutes establishing criminal offenses and penalties relating to video lottery operations.
Except as provided in paragraphs (2) and (3) of this subsection, all proceeds from the operation of video lottery terminals and table games shall be electronically transferred daily into the State Lottery Fund established under Subtitle 1 of this title and distributed as provided under § 9–1A–27 of this subtitle.
The requirement under paragraph (1) of this subsection does not apply on a day when State government is closed.
The amount from the proceeds of video lottery terminals to be paid to video lottery operation licensees under § 9–1A–27(a)(2), (7), and (8), (b), and (c)(1)(ii) and (2) of this subtitle shall be retained by the licensee.
The Commission shall account to the Comptroller for all of the revenue under this subtitle.
The proceeds from video lottery terminals and table games shall be under the control of the Comptroller and, except as provided in subsection (c) of this section, shall be distributed as provided under § 9–1A–27 of this subtitle.
A jackpot won at a video lottery terminal that is not claimed by the winner within 182 days after the jackpot is won shall:
become the property of the State; and
be distributed as follows:
5% to the Small, Minority, and Women–Owned Businesses Account established under § 5–1501 of the Economic Development Article;
5% in local impact grants, in accordance with § 9–1A–31 of this subtitle;
10% to the Purse Dedication Account established under § 9–1A–28 of this subtitle;
5% to the Racetrack Facility Renewal Account established under § 9–1A–29 of this subtitle; and
the remainder to the Education Trust Fund established under § 9–1A–30 of this subtitle.
The admissions and amusement tax may not be imposed on any proceeds from the operation of video lottery terminals and table games.
The Commission shall adopt regulations that allow a video lottery operation licensee to reduce the amount of proceeds when a video lottery operation licensee returns to successful players more than the amount of money bet through video lottery terminals or table games on a given day that are consistent with § 9–1A–01(u) of this subtitle.
Except as provided in subsections (b) and (c) of this section and § 9–1A–26(a)(3) of this subtitle, on a properly approved transmittal prepared by the Commission, the Comptroller shall pay the following amounts from the proceeds of video lottery terminals at each video lottery facility:
on or before March 31, 2015, 2% to the State Lottery and Gaming Control Agency for costs as defined in § 9–1A–01 of this subtitle; and
beginning April 1, 2015, 1% to the State Lottery and Gaming Control Agency for costs as defined in § 9–1A–01 of this subtitle;
to the video lottery operation licensee, the percentage stated in the accepted application for the location, not to exceed, except as provided in subsection (b) of this section, 33%;
5% in local impact grants, in accordance with § 9–1A–31 of this subtitle;
6% to the Purse Dedication Account established under § 9–1A–28 of this subtitle, not to exceed a total of $100,000,000 to the Account annually;
until the issuance of a video lottery operation license in Baltimore City, 1.75% to the Racetrack Facility Renewal Account established under § 9–1A–29 of this subtitle and distributed in accordance with that section; and
on or after the issuance of a video lottery operation license in Baltimore City, 1% to the Racetrack Facility Renewal Account established under § 9–1A–29 of this subtitle and distributed in accordance with that section, not to exceed a total of $20,000,000 to the Account annually;
5% to be distributed:
$5,000,000 to the Maryland Small Business Development Financing Fund established under § 5–515 of the Economic Development Article; and
the remainder to the Small, Minority, and Women–Owned Businesses Account established under § 5–1501 of the Economic Development Article;
except as provided in items (ii) and (iii) of this item, 6% to the video lottery operation licensee if the video lottery operation licensee owns or leases each video lottery terminal device and the associated equipment and software;
8% to the video lottery operation licensee in Anne Arundel County; and
10% to the video lottery operation licensee in Allegany County or Worcester County if the video lottery operation licensee assumes ownership or the right to lease each video lottery terminal device and the associated equipment and software used by the facility before January 1, 2019;
beginning after the issuance of a video lottery operation license for a video lottery facility in Prince George’s County, 8% to the video lottery operation licensee in Anne Arundel County and 7% to the licensee in Baltimore City for:
marketing, advertising, and promotional costs required under § 9–1A–23 of this subtitle; and
capital improvements at the video lottery facilities;
to each video lottery operation licensee, an amount equal to 20% of the amount paid by the video lottery licensee under § 9–1A–13 of this subtitle, for costs required under § 9–1A–23 of this subtitle for marketing, advertising, and promotions that exclusively target out–of–state audiences; and
the remainder to the Education Trust Fund established under § 9–1A–30 of this subtitle.
Beginning July 1, 2013, for a video lottery facility in Worcester County with less than 1,000 video lottery terminals, the percentage in subsection (a)(2) of this section is equal to 43% provided that each year an amount equivalent to 2.5% of the proceeds from video lottery terminals at the video lottery facility is spent on capital improvements at the video lottery facility.
After the first 10 years of operations at a video lottery facility in Allegany County, the percentage in subsection (a)(2) of this section is equal to 48% provided that each year an amount equivalent to 2.5% of the proceeds from video lottery terminals at the video lottery facility is spent on capital improvements at the video lottery facility.
For a video lottery facility in Prince George’s County, the percentage in subsection (a)(2) of this section stated in the accepted application for the location may not exceed 38%.
Beginning July 1, 2023, for a video lottery facility in Cecil County, the percentage in subsection (a)(2) of this section is equal to 36% provided that each year an amount equivalent to 3% of the proceeds from video lottery terminals at the video lottery facility is spent on:
marketing, advertising, and promotional costs required under § 9–1A–23 of this subtitle; and
capital improvements at the video lottery facility.
Beginning July 1, 2023, for a video lottery facility in Baltimore City, the percentage in subsection (a)(2) of this section is equal to 34% provided that each year an amount equivalent to 1% of the proceeds from video lottery terminals at the video lottery facility is spent on:
marketing, advertising, and promotional costs required under § 9–1A–23 of this subtitle; and
capital improvements at the video lottery facility.
For the first 10 years of operations at a video lottery facility in Allegany County, on a properly approved transmittal prepared by the Commission, the Comptroller shall pay the following amounts from the proceeds of video lottery terminals at a video lottery facility in Allegany County:
1% to the State Lottery and Gaming Control Agency for costs as defined in § 9–1A–01 of this subtitle;
to the video lottery operation licensee, the percentage stated in the accepted application for the location, not to exceed 50%;
75% in local impact grants, in accordance with § 9–1A–31 of this subtitle;
5% to the Purse Dedication Account established under § 9–1A–28 of this subtitle;
except as provided in items 2 and 3 of this item, 0.75% to the Small, Minority, and Women–Owned Businesses Account established under § 5–1501 of the Economic Development Article;
for fiscal year 2018, 0.75% to the General Fund to pay a portion of the costs of the grants provided under Chapters 6 and 607 of the Acts of the General Assembly of 2017; and
for fiscal years 2019 and 2020, 0.75% to the Education Trust Fund established under § 9–1A–30 of this subtitle; and
the remainder to the Education Trust Fund established under § 9–1A–30 of this subtitle.
After the first 10 years of operations at a video lottery facility in Allegany County, the proceeds generated at the facility in Allegany County shall be allocated as provided in subsections (a) and (b) of this section.
Each video lottery operation licensee shall retain 80% of the proceeds of table games at the video lottery facility.
On a properly approved transmittal prepared by the Commission, the Comptroller shall pay the following amounts from the proceeds of table games at each video lottery facility:
5% to the local jurisdiction in which the video lottery facility is located, provided that:
50% of the proceeds paid to Baltimore City shall be used to fund school construction projects; and
50% of the proceeds paid to Baltimore City shall be used to fund the maintenance, operation, and construction of recreational facilities; and
15% to the Education Trust Fund established under § 9–1A–30 of this subtitle.
If the costs of the State Lottery and Gaming Control Agency are less than the proceeds specified in subsection (a)(1) of this section, any amount not distributed to the State Lottery and Gaming Control Agency shall be paid to the Education Trust Fund established under § 9–1A–30 of this subtitle.
The costs of the Commission shall be as provided in the State budget.
On or before December 1, 2019, and every year thereafter, the State Lottery and Gaming Control Commission shall report to the Governor and, in accordance with § 2–1257 of this article, the General Assembly on the distribution of proceeds of video lottery terminals to licensees for the procurement of video lottery terminals; marketing, advertising, and promotional costs; and capital improvements and the distributions of local impact grants to jurisdictions under § 9–1A–31 of this subtitle.
Baltimore City shall report to the Baltimore City Senate and House Delegations by December 31 of each year as to the distribution and use of the funds provided under subsection (d) of this section.
There is a Purse Dedication Account under the authority of the State Racing Commission.
The Account shall receive money as required under § 9–1A–27 of this subtitle.
Money in the Account shall be invested and reinvested by the Treasurer and interest and earnings shall accrue to the Account.
The Comptroller shall:
account for the Account;
for fiscal year 2022 and each fiscal year thereafter, on a properly approved transmittal prepared by the Maryland Stadium Authority, issue a warrant to pay out $5,000,000, from the portion of the proceeds in the Account allocated to thoroughbred purses under subsection (c)(1) of this section, to the State Lottery Fund established under § 9–120 of this title until any bonds, debt, or other financial instruments issued or made available by the Maryland Stadium Authority for a racing facility under Title 10, Subtitle 6 of the Economic Development Article reach final maturity;
for fiscal year 2028 and each fiscal year thereafter, on a properly approved transmittal prepared by the Maryland Economic Development Corporation, issue a warrant to pay out $2,000,000, from the portion of the proceeds in the Account allocated to thoroughbred purses under subsection (c)(1) of this section, to the Corporation established under Title 10, Subtitle 1 of the Economic Development Article until any bonds, debt, or other financial instruments issued or made available by the Corporation for a training facility site and other improvements under Title 10, Subtitle 6 of the Economic Development Article reach final maturity;
beginning with the first full fiscal year of thoroughbred racing operations at the reconstructed Pimlico racing facility, for any fiscal year that the thoroughbred racetrack operator reports an operating loss, inclusive of thoroughbred purse account contributions, in accordance with § 10–646.1 of the Economic Development Article, on a properly approved transmittal prepared by the Maryland Stadium Authority, issue a warrant to pay out the amount of the operating loss, from the portion of the proceeds in the Account allocated to thoroughbred purses under subsection (c)(1) of this section, to the thoroughbred racetrack operator; and
on a properly approved transmittal prepared by the State Racing Commission, issue a warrant to pay out money from the Account in the manner provided under this section.
The Account is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
Except as provided in paragraph (3)(ii) through (iv) of this subsection, expenditures from the Account shall only be made on a properly approved transmittal prepared by the State Racing Commission as provided under subsection (c) of this section.
Subject to subsections (d) and (e) of this section, the State Racing Commission shall allocate funds in the Account as follows:
80% to the thoroughbred industry; and
20% to the standardbred industry.
The amount of funds allocated to thoroughbred purses and the Maryland–bred Race Fund shall be allocated as follows:
89% to thoroughbred purses at the Pimlico Race Course, Laurel Park, the racecourse in Allegany County, and the racecourse at Timonium; and
11% to the Maryland–bred Race Fund.
The amount of funds allocated to standardbred purses and the Standardbred Race Fund shall be allocated as follows:
89% to standardbred purses at Rosecroft Raceway, Ocean Downs Race Course, and the racecourse in Allegany County, allocated based on the number of live racing days at each track location; and
11% to the Standardbred Race Fund.
From the amount provided to thoroughbred purses, the State Racing Commission shall pay an annual grant of $100,000 to Fair Hill, as defined under § 11–811 of the Business Regulation Article.
Of the amount provided from the Purse Dedication Account under subsection (e)(1) of this section:
for Ocean Downs Race Course, an amount equal to but not exceeding $30,000 multiplied by the total number of live racing days held during the calendar year may be used to provide financial assistance for operating losses incurred during that calendar year, in accordance with generally accepted accounting principles, to support a minimum of 40 annual live racing days unless the racing licensee is prevented by weather, acts of God, or other circumstances beyond the racing licensee’s control; and
for Rosecroft Raceway, up to $1,200,000 each year for calendar years 2018, 2019, 2020, 2021, 2022, 2023, and 2024 may be used to provide financial assistance for operating losses, in accordance with generally accepted accounting principles, to support a minimum of 40 annual live racing days unless the racing licensee is prevented by weather, acts of God, or other circumstances beyond the racing licensee’s control.
Funds received by Ocean Downs Race Course or Rosecroft Raceway under paragraph (1) of this subsection may not be used to contribute to a campaign finance entity under Title 13 of the Election Law Article or make an independent expenditure as defined in § 1–101 of the Election Law Article.
To obtain operating assistance under this section:
a racing licensee at Ocean Downs Race Course or Rosecroft Raceway may apply to the Secretary of Labor for the reimbursement of expenditures made by the racing licensee to conduct the annual live racing schedule; and
a racing licensee at Rosecroft Raceway shall:
agree to rehire workers employed at the facility prior to the end of live racing on June 27, 2008; and
recognize collective bargaining agreements that were in place as of June 1, 2008.
On the completion of the review of the application by a certified public accountant, the Secretary may authorize the reimbursement of expenditures by the racing licensee that are necessary to conduct the annual live racing schedule.
Expenditures eligible for reimbursement under subparagraph (i) of this paragraph shall include the ordinary and reasonable costs of conducting the race meetings, pari–mutuel wagering, and stabling activities of the racing licensee, net of ordinary income and receipts.
The reimbursement calculation under subparagraph (ii) of this paragraph may not include:
extraordinary income and expense–related items, including extraordinary litigation expenses;
lobbying fees;
capital investments, including predevelopment costs; or
prior year adjustments and claims.
All costs associated with the racing licensee’s application shall be paid by the racing licensee.
In support of the racing licensee’s application and request for reimbursement submitted under paragraph (1) of this subsection, the racing licensee shall provide to the Secretary:
monthly financial information requested by the Secretary, in a form satisfactory to the Secretary; and
an annual audited financial statement.
A racing licensee may not receive assistance under this section while the racing licensee is a party to a proceeding challenging the issuance or denial of a video lottery operation license.
The provisions of this section may not be construed to apply to the racecourse in Allegany County until horse racing begins at that racecourse.
On or before December 1, 2014, the State Racing Commission shall:
conduct a study to determine the impact of the Purse Dedication Account on the racing industry in the State; and
make recommendations to the General Assembly regarding the continuation of the Purse Dedication Account and the amount of money distributed to the Purse Dedication Account.
In this section, “open purse” means any purse, except for one offered in a race funded by the Maryland Standardbred Race Fund.
The organization that represents a majority of the standardbred owners and trainers in the State may apply to the Secretary of Labor for the reimbursement of expenditures listed in subsection (c) of this section.
From the amount allocated to the Purse Dedication Account under § 9–1A–28(e)(1) of this subtitle, the Secretary may allocate to the organization that represents a majority of the standardbred owners and trainers in the State an amount for the reimbursement of expenditures requested under this subsection.
The amount allocated by the Secretary under paragraph (2) of this subsection, in addition to any amount agreed on under a contractual arrangement with track licensees, may not exceed 2% of all open purses.
Expenditures eligible for reimbursement under subsection (b) of this section include the ordinary and reasonable costs of establishing and maintaining the following programs for standardbred owners and trainers:
counseling programs to address issues such as drug addiction, depression, marital problems, and financial problems;
preventive care programs such as health fairs, mammogram screenings, and flu vaccination clinics;
group health, life, and on–track drivers’ insurance plans; and
retirement programs.
The reimbursement calculation under subsection (c) of this section may not include:
extraordinary income and expense–related items, including extraordinary litigation expenses;
lobbying fees;
capital investments, including predevelopment costs; or
prior year adjustments and claims.
In support of an application and a request for reimbursement submitted under subsection (b) of this section, the organization shall provide to the Secretary of Labor in a form satisfactory to the Secretary:
an itemized statement under oath for the preceding fiscal year of receipts from all sources and of all disbursements, including salaries of all officers, attorney fees, and lobbying expenses; and
a certified audit by a certified public accountant of the financial records of the organization for the preceding fiscal year.
There is a Racetrack Facility Renewal Account under the authority of the State Racing Commission.
The Account shall receive money as required under § 9–1A–27 of this subtitle for the first 16 years of operations at each video lottery facility.
Money in the Account shall be invested and reinvested by the Treasurer and interest and earnings shall accrue to the Account.
The Comptroller shall:
account for the Account; and
on a properly approved transmittal prepared by the State Racing Commission, issue a warrant to pay out money from the Account in the manner provided under this section.
The Account is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
Expenditures from the Account shall only be made on a properly approved transmittal prepared by the State Racing Commission as provided under subsection (c) of this section.
Subject to subparagraph (ii) of this paragraph, the State Racing Commission may use the services of a certified public accountant to review an eligible request for or the expenditures of a grant under this section.
A racing licensee that has requested a grant under this section shall reimburse the State Racing Commission for any expenditures for services under subparagraph (i) of this paragraph.
Except as provided in subsection (d)(1) of this section, funds from the Account shall be used to provide a grant to the racing licensee for racetrack facility capital construction and improvements.
The amount of funds made available from the Racetrack Facility Renewal Account shall be allocated as follows:
for fiscal year 2021, 80% to be deposited in the Racing and Community Development Facilities Fund established under § 10–657.3 of the Economic Development Article; and
for fiscal year 2022 and thereafter, 80% to the State Lottery Fund established under § 9–120 of this title; and
subject to paragraph (2) of this subsection, 20% to Rosecroft Raceway and Ocean Downs Race Course according to a formula established in regulations adopted by the State Racing Commission.
Of the amount available to Rosecroft Raceway from the Racetrack Facility Renewal Account under paragraph (1)(ii) of this subsection:
the unencumbered fund balance, including accrued interest, existing as of June 30, 2020, shall be transferred to the Racing and Community Development Facilities Fund established under § 10–646.3 of the Economic Development Article; and
subject to paragraph (3) of this subsection, for fiscal year 2021 and each fiscal year thereafter, $200,000 shall be transferred annually to Employ Prince George’s, Inc. for workforce development and small, minority, and women–owned business development.
It is the intent of the General Assembly that the funds transferred to Employ Prince George’s, Inc. shall supplement, and not supplant, funds otherwise available for Employ Prince George’s, Inc.
If Employ Prince George’s, Inc. is unable to expend the funds transferred under paragraph (2)(ii) of this subsection during the 12–month period after which Employ Prince George’s, Inc. received the funds, Employ Prince George’s, Inc. shall partner with similar organizations located within Prince George’s County to expend the balance of the funds from that period to encourage workforce development and small, minority, and women–owned business development.
For fiscal year 2026, the Governor shall include in the annual budget bill an appropriation of $4,500,000 to the Racetrack Facility Renewal Account to be made available to Rosecroft Raceway.
In order to obtain a grant, a racing licensee shall submit a capital construction plan to be completed within a specified time frame to the State Racing Commission for approval.
Subject to § 9–1A–09(a)(1)(ii) of this subtitle and the approval of the grant for the capital construction plan by the State Racing Commission, the racing licensee may provide and expend a matching fund.
After a grant has been provided under this section, the State Racing Commission shall:
in consultation with the Department of General Services, monitor the implementation of the approved capital construction plan;
on written request from the grantee, in consultation with the Department of General Services, certify in writing that the grantee has completed the approved capital construction plan; and
make provisions for recapture of grant money if the capital construction plan is not completed within the time frame approved by the State Racing Commission.
If a racing licensee receives a grant for a capital construction plan without expending a matching fund and does not complete the capital construction plan or conduct live racing days in the State for at least 10 years after the construction plan is complete, the State Racing Commission shall:
if the racing licensee does not conduct live racing days in the State for at least 10 years after the construction plan is complete, calculate the amount to be repaid on a pro rata basis and recapture the grant money; or
recapture the grant money.
Any unencumbered funds remaining in the Racetrack Facility Renewal Account after the last video lottery facility to open has been in operation for 16 years shall be paid to the Education Trust Fund established under § 9–1A–30 of this subtitle.
The State Racing Commission shall adopt regulations to implement the provisions of this section, including regulations to:
address minimum criteria for the types of improvements to be made by the racing licensee;
establish a formula to allocate funds under subsection (d)(2) of this section between Rosecroft Raceway and Ocean Downs Race Course; and
establish guidelines for a racing licensee that requests a grant for a capital construction plan without expending a matching fund.
If Rosecroft Raceway is closed and no longer used for live racing, 75% of the unencumbered fund balance, including accrued interest, of the amount available to Rosecroft Raceway from the Racetrack Facility Renewal Account under subsection (d)(1)(ii) of this section shall be made available to Ocean Downs Race Course.
If Ocean Downs Race Course is closed and no longer used for live racing, 75% of the unencumbered fund balance, including accrued interest, of the amount available to Ocean Downs from the Racetrack Facility Renewal Account under subsection (d)(1)(ii) of this section shall be made available to Rosecroft Raceway.
The provisions of this section may not be construed to apply to the racecourse in Allegany County.
In this section, “supplemental funding” means funding to:
ensure access to public education that allows children in the State to compete in the global economy of the future;
provide funding for high–quality early education programs;
provide opportunities for public school students to participate in career and technical education programs that lead to an identified job skill or certificate;
allow students to obtain college credit and degrees while in high school at no cost to the students;
support the advancement and professionalization of educators in public education; and
maintain, renovate, or construct public schools.
There is an Education Trust Fund which is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
There shall be credited to the Education Trust Fund:
all proceeds allocated to the Fund under § 9–1A–27 of this subtitle;
all judgments paid to the Fund under § 11–210 of the Education Article; and
renewal license fees paid to the Fund under § 9–1A–13 of this subtitle.
Money in the Education Trust Fund shall be invested and reinvested by the Treasurer, and interest and earnings shall accrue to the Fund.
Money in the Education Trust Fund shall be used for the following purposes, in the following order of priority:
required deposits under § 10–649(g) of the Economic Development Article into the Supplemental Public School Construction Financing Fund established under § 10–658 of the Economic Development Article;
required funding for public elementary and secondary education, through continuation of the funding and formulas established under the programs commonly known as the Bridge to Excellence in Public Schools Act, first enacted by Chapter 288 of the Acts of the General Assembly of 2002, including the funding for regional differences in the cost of education under § 5–202(f) of the Education Article; and
supplemental funding for education and public schools.
The Governor’s annual budget submission shall include not less than the following amounts as supplemental funding for public education from the Education Trust Fund:
for fiscal year 2020, $125,000,000;
for fiscal year 2021, $250,000,000;
for fiscal year 2022, $375,000,000; and
for fiscal year 2023 and each fiscal year thereafter, 100% of the funds.
The supplemental funding required under paragraph (1) of this subsection shall be in addition to the State funding and formulas provided through the funding formulas established in the Bridge to Excellence in Public Schools Act of 2002 for prekindergarten through grade 12 in public schools.
Beginning in fiscal year 2020 and in each fiscal year thereafter, the Governor shall identify in the annual budget as introduced how the revenue required under this subsection is being used to supplement and not supplant the spending on public education for prekindergarten through grade 12.
Expenditures from the Education Trust Fund shall be made each fiscal year in accordance with the State budget.
Except as provided in paragraph (8) of this subsection, the local impact grants provided under § 9–1A–27 of this subtitle shall be distributed as provided in this subsection.
The following amounts shall be distributed to the following jurisdictions:
Allegany County – $200,000;
Cecil County – $130,000;
Town of Forest Heights – $120,000;
Town of Perryville – $70,000; and
Worcester County – $200,000.
The remaining funds for local impact grants shall be distributed in the following manner:
82% to the local jurisdictions with video lottery facilities, based on each jurisdiction’s percentage of overall gross revenues from video lottery terminals; and
except as provided in paragraph (4) of this subsection, for operations at a video lottery facility starting in fiscal year 2012 and ending in fiscal year 2032, 18% to Baltimore City with the Pimlico Community Development Authority acting as the local development council in accordance with subsection (d) of this section, to be distributed primarily for capital projects benefiting economic and community development in the following manner:
for fiscal years 2012 through 2023, at least 75% in a manner that is consistent with the Park Heights Master Plan; and
for fiscal years 2024 through 2032, 85% in a manner that is consistent with the Park Heights Master Plan; and
the remainder dedicated to the needs of:
any census blockgroup that Baltimore City identifies as being located partly or entirely within 1 mile of Pimlico Race Course but not within the boundaries of the Park Heights Master Plan in a manner that is consistent with adopted neighborhood priorities;
any neighborhood included in the Northwest Community Planning Forum Strategic Neighborhood Action Plan in a manner that is consistent with the adopted Northwest Community Planning Forum Strategic Neighborhood Action Plan priorities; and
beginning after a video lottery operation license is issued to a video lottery facility in Baltimore City, any neighborhood within an area bounded by Liberty Heights Avenue, Northern Parkway, Druid Park Drive, and Wabash Avenue in a manner that is consistent with adopted neighborhood priorities.
Of the amount specified under paragraph (3)(ii) of this subsection:
$1,000,000 shall be provided annually to Prince George’s County to be used for public safety projects in the community within 5 miles surrounding Rosecroft Raceway;
$500,000 shall be provided annually for impact aid to be distributed as provided under § 11–404(d) of the Business Regulation Article to help pay for facilities and services in communities within 3 miles of the Laurel Race Course;
for fiscal years 2022 through 2032, $3,500,000 shall be provided annually to the State Lottery Fund established under § 9–120 of this title; and
for fiscal years 2021 through 2032, the greater of $2,400,000 or 24% of the total amount distributed for the fiscal year under paragraph (3)(ii) of this subsection shall be provided annually to Park Heights Renaissance, Inc.
The Legislative Policy Committee shall report its findings and recommendations concerning the advisability of the continuation of the distribution of funds after fiscal year 2032 to the Comptroller and, in accordance with § 2–1257 of this article, the General Assembly, on or before November 1, 2030.
Anne Arundel County, Howard County, Prince George’s County, and the City of Laurel shall report to the Legislative Policy Committee, in accordance with § 2–1257 of this article, by December 31 of each year as to the distribution of the funds provided under this section.
Baltimore City shall:
except as provided in subsection (b)(3)(i) of this section, establish a schedule for the distribution and expenditure of funds provided under this section; and
provide a quarterly report to the Legislative Policy Committee, in accordance with § 2–1257 of this article, on the distribution of the funds provided under this section.
The distribution under paragraph (3)(i) of this subsection to Anne Arundel County, Baltimore City, and Prince George’s County equals the sum of the amounts to be distributed to Anne Arundel County, Baltimore City, and Prince George’s County divided by three.
Notwithstanding subparagraph (i) of this paragraph, the amount distributed to Anne Arundel County and Baltimore City under paragraph (3)(i) of this subsection may not be less than the amount received in the fiscal year before the video lottery operation license for a video lottery facility in Prince George’s County was issued.
Any amount distributed to Anne Arundel County or Baltimore City as required under subsubparagraph 1 of this subparagraph shall be paid from the State Lottery Fund established under § 9–120(b) of this title.
Beginning after a video lottery operation license is issued to a video lottery facility in Baltimore City, 100% of the local impact grants provided under § 9–1A–27 of this subtitle from the proceeds of the video lottery facilities located in Allegany, Cecil, and Worcester counties shall be distributed to the local jurisdictions in which those video lottery facilities are located.
Except as otherwise provided in paragraphs (2) and (3) of this subsection and subject to paragraph (4) of this subsection, local impact grants provided under subsection (a)(3)(i) of this section shall be used for improvements primarily in the communities in immediate proximity to the video lottery facilities and may be used for the following purposes:
infrastructure improvements;
facilities;
public safety;
sanitation;
economic and community development, including housing; and
other public services and improvements.
Subject to subparagraph (ii) of this paragraph, in Allegany County, local impact grants provided under subsection (a)(3)(i) of this section may be used:
for purposes listed in paragraph (1) of this subsection throughout the county; and
to pay down the debt incurred by the county in the construction and related costs for the golf course, lodge, and other improvements in Rocky Gap State Park.
At least 20% of the local impact grants provided under subsection (a)(3)(i) of this section in Allegany County shall be used for capital projects for municipalities and nonprofit organizations in the county.
In Baltimore City from the local impact grants provided under subsection (a)(3)(i) of this section:
beginning in fiscal year 2018, at least 50% shall be distributed directly to the South Baltimore Gateway Community Impact District Management Authority; and
beginning in fiscal year 2033 and each fiscal year thereafter, $3,500,000 shall be paid annually to the State Lottery Fund established under § 9–120 of this title until any bonds, debt, or other financial instruments issued or made available by the Maryland Stadium Authority for a racing facility under Title 10, Subtitle 6 of the Economic Development Article reach final maturity.
Except as provided in subparagraph (i)2 of this paragraph, local impact grants provided under subsection (a)(3)(i) of this section shall be used for improvements in the communities in immediate proximity to the video lottery facility and may be used for the following purposes:
infrastructure improvements;
facilities;
public safety;
sanitation;
economic and community development, including housing; and
other public services and improvements.
Subject to subsubparagraph 2 of this subparagraph, in Prince George’s County, 40% of local impact grants provided under this section shall be used to address infrastructure needs related to Maryland Route 210 in Prince George’s County.
The amount of local impact grants used as provided in subsubparagraph 1 of this subparagraph may not exceed $15,000,000 in a fiscal year.
Prince George’s County may be reimbursed by the State for any money used as provided in this subparagraph.
In Prince George’s County, $125,000 of the local impact grants provided under this section shall be provided annually to be used in communities within 2.5 miles northeast of the video lottery facility in Prince George’s County.
A local development council shall be established in each geographic area where a video lottery facility is located.
Subject to paragraph (3) of this subsection, a local development council shall consist of the following members appointed by the chief executive of the county in which the local development council is located, in consultation with the Senators and Delegates who represent the communities surrounding the facility and the respective county councils, city councils, or county commissioners:
one Senator who represents the district where the facility is located or the Senator’s designee;
two Delegates who represent the districts where the communities surrounding the facility are located or the Delegates’ designees;
one representative of the video lottery operation licensee;
seven residents of the communities in immediate proximity to the facility; and
four representatives of businesses or institutions located in immediate proximity to the facility.
If the video lottery facility is at a racetrack location at the Ocean Downs Race Course:
the County Commissioners of Worcester County shall appoint the local development council;
the Senator or the Senator’s designee shall serve as a member of the local development council; and
the Delegates or the Delegates’ designees shall serve as members of the local development council.
If the video lottery facility is located in Anne Arundel County, the County Executive shall appoint three Delegates who represent the district where the communities surrounding the facility are located or the Delegates’ designees.
Prior to any expenditure of local impact grant funds provided under § 9–1A–27 of this subtitle, a county or municipality shall develop, in consultation with the local development council, a multiyear plan for the expenditure of the local impact grant funds for services and improvements consistent with subsection (b) of this section.
A county or municipality shall submit the plan to the local development council for review and comment before adopting the plan or expending any grant funds.
The local development council shall advise the county or municipality on the impact of the facility on the communities and the needs and priorities of the communities in immediate proximity to the facility.
A local development council shall have 45 days to review, comment, and make recommendations on the plan required under this subsection.
Except as provided in subparagraph (iii) of this paragraph, on the request of a local development council, the county or municipality shall hold a public hearing on the plan.
Baltimore City shall hold a public hearing on the plan for the expenditure of funds allocated under subsection (a)(3)(ii) of this section.
A county or municipality shall make best efforts to accommodate the recommendations of the local development council and any testimony presented at the hearing before adopting the plan required under this subsection.
A video lottery operation licensee shall provide to the local development council a master plan for the development of the site on which the video lottery facility will be located.
The State may pay for the reasonable transportation costs to:
mitigate the impact on the communities in the immediate proximity to the facility; and
make each video lottery facility accessible to the public.
A comprehensive transportation plan shall be:
developed by each county where a facility is located, in consultation with the local development council created under § 9–1A–31 of this subtitle; and
approved by the Maryland Department of Transportation.
The comprehensive transportation plan shall include provisions on roads and provisions regarding mass transit if mass transit is a substantial manner of transportation in the county where a video lottery facility is located.
The Maryland Department of Transportation shall facilitate negotiations with affected communities to ensure the most practical ingress to and egress from the video lottery facility.
Notwithstanding any other provision of this section, the Department of Transportation may pay for and undertake the improvement and enhancement of MD Route 589 from the intersection of MD Route 50 through MD Route 113 in Worcester County to address the needs related to traffic capacity, public safety, and esthetics in the area where a video lottery facility is located.
The Department may take the necessary steps to ensure that the plans for the improvements and enhancements to MD Route 589 are under development on or before the date on which the video lottery facility at the Worcester County location is operational and open to the public.
The Commission shall:
establish an annual fee of $425, to be paid by each video lottery operation licensee, for each video lottery terminal operated by the licensee during the year, based on the maximum number of terminal positions in use during the year; and
distribute the fees collected under item (i) of this paragraph to the Problem Gambling Fund established in subsection (b) of this section.
The Commission may establish an annual fee of up to $500 for each table game to be paid by each video lottery operation licensee and distributed to the Problem Gambling Fund under subsection (b) of this section in order to ensure sufficient funds are available to provide requested services.
There is a Problem Gambling Fund in the Maryland Department of Health.
The purpose of the Fund is primarily to provide funding for problem gambling treatment and prevention programs, including:
inpatient and residential services;
outpatient services;
intensive outpatient services;
continuing care services;
educational services;
services for victims of domestic violence; and
other preventive or rehabilitative services or treatment.
The Problem Gambling Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
Money in the Problem Gambling Fund shall be invested and reinvested by the Treasurer, and interest and earnings shall accrue to the Fund.
Except as provided in paragraph (5) of this subsection, expenditures from the Problem Gambling Fund shall be made only by the Maryland Department of Health to:
establish a 24–hour hotline for compulsive and problem gamblers and to provide counseling and other support services for compulsive and problem gamblers;
establish an outreach program for compulsive and problem gamblers, including individuals who requested placement on the voluntary exclusion list established by the Commission under § 9–1A–24 of this subtitle, for the purpose of participating in problem gambling treatment and prevention programs;
develop and implement free or reduced cost problem gambling treatment and prevention programs, including the programs established under Title 19, Subtitle 8 of the Health – General Article; and
develop and implement free or reduced cost problem gambling treatment and prevention programs targeted at individuals with problem gambling issues related to sports wagering, participation in fantasy competitions, and other forms of wagering, whether legal or illegal, conducted in the State or through online means.
After satisfying the requirements of paragraph (4) of this subsection, any unspent funds in the Problem Gambling Fund may be expended by the Maryland Department of Health on drug and other addiction treatment services.
Expenditures from the Problem Gambling Fund shall be made in accordance with an appropriation approved by the General Assembly in the annual State budget or by the budget amendment procedure provided for in § 7–209 of the State Finance and Procurement Article.
The Commission shall make an annual report to the Governor and, subject to § 2–1257 of this article, to the General Assembly:
on the operation and finances of the video lottery facilities;
with the assistance of local police departments and the Department of State Police, detailing the crimes that occur within the communities surrounding a video lottery facility; and
on the attainment of minority business participation goals specified for licensees under § 9–1A–10(a)(1) and (2) of this subtitle and the efforts by licensees to maintain those goals.
There is a Video Lottery Facility Location Commission.
The Video Lottery Facility Location Commission consists of seven members.
Three of the members shall be appointed by the Governor.
Two of the members shall be appointed by the President of the Senate but may not be members of the Senate of Maryland.
Two of the members shall be appointed by the Speaker of the House of Delegates but may not be members of the House.
The membership of the Video Lottery Facility Location Commission appointed under this subsection should reflect the race, gender, and geographic diversity of the population of the State.
One of the members appointed by the Governor shall be the chair of the Video Lottery Facility Location Commission.
The Governor, in consultation with the President of the Senate and the Speaker of the House of Delegates, may remove a member of the Video Lottery Facility Location Commission for inefficiency, misconduct in office, or neglect of duty.
A member of the Video Lottery Facility Location Commission:
shall be at least 21 years of age;
shall be a citizen of the United States;
shall be a resident of the State;
shall be knowledgeable and experienced in fiscal matters and shall have at least 10 years substantial experience:
as an executive with fiduciary responsibilities in charge of a large organization or foundation;
in an academic field relating to finance or economics; or
as an economist, financial analyst, or accountant, or as a professional in a similar profession relating to fiscal matters or economics;
may not have been convicted of or granted probation before judgment for a serious crime or a crime that involves gambling or moral turpitude;
may not have an official relationship to a person that holds a license under this subtitle;
may not have any direct or indirect financial interest, ownership, or management, including holding any stocks, bonds, or other similar financial interests in any gaming activities, including horse racing, video lottery terminals, or lottery;
may not receive or share in, directly or indirectly, the receipts or proceeds of any gaming activities, including horse racing or lottery;
may not have a beneficial interest in any contract for the manufacture or sale of gaming devices, the conduct of any gaming activity, or the provision of any independent consulting services in connection with any gaming establishment or gaming activity;
may not be an elected official of State or local government; and
shall file a financial disclosure statement with the State Ethics Commission in accordance with Title 15, Subtitle 6 of this article.
A member of the Video Lottery Facility Location Commission:
may not receive compensation for serving on the Video Lottery Facility Location Commission; but
is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
The State Lottery and Gaming Control Commission shall provide staff to the Video Lottery Facility Location Commission.
The Video Lottery Facility Location Commission may award not more than six video lottery operation licenses to qualified applicants, through a competitive process consistent with the process for competitive sealed proposals under Title 13 of the State Finance and Procurement Article.
The Video Lottery Facility Location Commission may not award more than one video lottery operation license in a single county or Baltimore City.
In order to qualify for a video lottery operation license under this section, a proposed video lottery facility shall be located in one of the following counties:
a location in Anne Arundel County, within 2 miles of MD Route 295;
a location in Cecil County, within 2 miles of Interstate 95;
a location on State property associated with the Rocky Gap State Park in Allegany County;
a location in Worcester County, within 1 mile of the intersection of Route 50 and Route 589;
a location in Baltimore City that is:
located:
in a nonresidential area;
within one–half mile of Interstate 95;
within one–half mile of MD Route 295; and
on property that is owned by Baltimore City on the date on which the application for a video lottery operation license is submitted; and
not adjacent to or within one–quarter mile of property that is:
zoned for residential use; and
used for a residential dwelling on the date the application for a video lottery operation license is submitted; or
a location in Prince George’s County within a 4–mile radius of the intersection of Bock Road and St. Barnabas Road.
Nothing in this subtitle may be construed to preempt the exclusive authority of the Video Lottery Facility Location Commission to award video lottery operation licenses in accordance with this subtitle.
With respect to a video lottery operation license awarded to a location under paragraph (1)(iv) of this subsection, the holder of the video lottery operation license or any other person with a direct or indirect legal or financial interest in the Ocean Downs racetrack or video lottery facility may not build or operate a conference center or convention center, amusement park, amusement rides, arcade, or miniature golf course on or within 10 miles of the property owned by the holder of the license on which a video lottery facility is operated.
The prohibitions under subparagraph (i) of this paragraph apply to any subsequent holder of a video lottery operation license awarded under paragraph (1)(iv) of this subsection.
Except as provided in paragraphs (2) and (3) of this subsection, the Video Lottery Facility Location Commission may not allocate more than the following number of video lottery terminals for:
a location in Anne Arundel County – 4,750 video lottery terminals;
a location in Baltimore City – 3,750 video lottery terminals;
a location in Cecil County – 2,500 video lottery terminals;
a location in Prince George’s County – 3,000 video lottery terminals;
a location in Rocky Gap State Park (Allegany County) –1,500 video lottery terminals; and
a location in Worcester County – 2,500 video lottery terminals.
The Video Lottery Facility Location Commission may allocate video lottery terminals in a manner that is different from the allocation provided in paragraph (1) of this subsection on a determination that the market factors and other factors evaluated under subsection (k) of this section warrant the different allocation, provided that no one location may be allocated more than 4,750 video lottery terminals.
Beginning with the termination date for the Video Lottery Facility Location Commission and every 3 years thereafter, if all of the video lottery terminals authorized under this subtitle are not allocated or have been allocated but are not in regular operation, the State Lottery and Gaming Control Commission may allocate or reallocate video lottery terminals to video lottery operation licensees in a manner that ensures that the highest potential revenues are achieved.
In determining the highest potential revenues to be achieved by additional video lottery terminals at each potential location, the State Lottery and Gaming Control Commission shall consider the market performance of the existing video lottery terminals at each location.
Except as provided in subparagraph (ii) of this paragraph, an application submitted for a video lottery operation license under this section shall include an initial license fee in the application of at least $3,000,000 for each 500 video lottery terminals included in the application.
For an application submitted for a video lottery operation license in Allegany County, the initial license fee for up to 500 video lottery terminals shall be waived.
All initial license fees submitted under this subtitle shall accrue to the Education Trust Fund established under § 9–1A–30 of this subtitle.
An application submitted for a video lottery operation license under this section shall provide for at least $25,000,000 in direct investment by the applicant in construction and related costs for each 500 video lottery terminals contained in the proposed application that shall be prorated based on the exact number of video lottery terminals contained in the application.
For an application submitted for a video lottery operation license in Allegany County, the purchase price for the Rocky Gap Lodge and Resort shall be counted in the calculation of the applicant’s direct investment under this paragraph, as determined by the Video Lottery Facility Location Commission.
In awarding a video lottery operation license, the Video Lottery Facility Location Commission shall evaluate the factors under this subsection in the manner specified.
The decision by the Video Lottery Facility Location Commission to award a license shall be weighted by 70% based on business and market factors including:
the highest potential benefit and highest prospective total revenues to be derived by the State;
the potential revenues from a proposed location based on a market analysis;
the extent to which the proposed location encourages Maryland gaming participants to remain in the State;
the extent to which the proposed location demonstrates that the facility will be a substantial regional and national tourist destination;
the proposed facility capital construction plans and competitiveness of the proposed facility;
the amount of gross revenues to be allocated to the video lottery operator over the term of the license;
the percent of ownership by entities meeting the definition of minority business enterprise under Title 14, Subtitle 3 of the State Finance and Procurement Article;
the extent to which the proposed location will preserve existing Maryland jobs and the number of net new jobs to be created; and
the contents of the licensee’s plan to achieve minority business participation goals in accordance with the requirements described under § 9–1A–10(a)(1) and (2) of this subtitle.
The decision by the Video Lottery Facility Location Commission to award a license shall be weighted by 15% based on economic development factors, including:
the anticipated wages and benefits for new jobs to be created; and
any additional economic development planned in the area of the proposed facility.
The decision by the Video Lottery Facility Location Commission to award a license shall be weighted by 15% based on location siting factors, including:
the existing transportation infrastructure surrounding the proposed facility location;
the negative impact, if any, of a proposed facility location on the surrounding residential community; and
the need for additional public infrastructure expenditures at the proposed facility.
If an applicant is seeking investors in the entity applying for a video lottery operation license, it shall take the following steps before being awarded a license by the Video Lottery Facility Location Commission:
make serious, good–faith efforts to solicit and interview a reasonable number of minority investors; and
as part of the application, submit a statement that lists the names and addresses of all minority investors interviewed and whether or not any of those investors have purchased an equity share in the entity submitting an application.
If an applicant is awarded a license by the Video Lottery Facility Location Commission, the applicant shall sign a memorandum of understanding with the Video Lottery Facility Location Commission that requires the awardee to again make serious, good–faith efforts to interview minority investors in any future attempts to raise venture capital or attract new investors to the entity awarded the license.
The Governor’s Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General, shall provide assistance to all potential applicants and potential minority investors to satisfy the requirements under paragraphs (1)(i) and (2) of this subsection.
The Video Lottery Facility Location Commission may not award a video lottery operation license to a person that is not qualified under this section or this subtitle.
The Video Lottery Facility Location Commission shall refer to the State Lottery and Gaming Control Commission the name and all relevant information concerning a person that makes an application under this section.
On receipt of the information in paragraph (1) of this subsection, the State Lottery and Gaming Control Commission shall evaluate whether an applicant is qualified to hold a video lottery operation license under this subtitle.
On completion of its determination, the State Lottery and Gaming Control Commission shall notify the Video Lottery Facility Location Commission of its evaluation as to whether an applicant is qualified to hold a video lottery operation license under this subtitle.
After an award of a video lottery operation license under this section, the Video Lottery Facility Location Commission shall notify the State Lottery and Gaming Control Commission of the successful applicants.
After an award of a video lottery operation license under this section, the State Lottery and Gaming Control Commission shall:
issue the video lottery operation license; and
be responsible for all matters relating to regulation of the licensee.
An unsuccessful applicant for a video lottery operation license under this section may seek, under Title 15 of the State Finance and Procurement Article, review by the State Board of Contract Appeals of the awarding of the video lottery operation license by the Video Lottery Facility Location Commission.
A proceeding under this subsection shall:
take precedence on the Board’s docket;
be heard at the earliest practicable date; and
be expedited in every way.
Nothing in this subtitle may be construed to require the Video Lottery Facility Location Commission to award all six video lottery operation licenses authorized under this subtitle.
Notwithstanding any of the provisions of this subtitle, the Video Lottery Facility Location Commission may not award a video lottery operation license under this subtitle unless the Video Lottery Facility Location Commission determines and declares that an applicant selected for award of the license is in the public interest and is consistent with the purposes of this subtitle.
The Video Lottery Facility Location Commission may award a video lottery operation license that is revoked or surrendered utilizing the criteria established in this subtitle.
Except as provided in paragraph (2) of this subsection, the Video Lottery Facility Location Commission shall terminate on January 1, 2015.
The Governor may reconstitute the Video Lottery Facility Location Commission, which shall include the appointment of new members based on the criteria established under subsections (b) and (c) of this section:
one year prior to the expiration of a video lottery operation license; or
following the revocation or surrender of a video lottery operation license.
The Commission may consider and make recommendations on proposed changes to this subtitle, Subtitle 1 of this title, and any provisions of the Alcoholic Beverages and Cannabis Article that relate to the regulation of alcoholic beverages at video lottery facilities.
On request of the Governor or the presiding officer of either house of the General Assembly, the Commission shall consider and make recommendations on proposed changes to this subtitle, Subtitle 1 of this title, and any provisions of the Alcoholic Beverages and Cannabis Article that relate to the regulation of alcoholic beverages at video lottery facilities.
A video lottery facility may request that the Commission consider and make recommendations on proposed changes to this subtitle and any provisions of the Alcoholic Beverages and Cannabis Article that relate to the regulation of alcoholic beverages at video lottery facilities.
The Commission may recommend or propose legislation on any matter within or related to the jurisdiction of the Commission.
The Commission shall review and comment on any legislation introduced during a session of the General Assembly that relates to a matter within the jurisdiction of the Commission.
There is a Joint Committee on Gaming Oversight.
The Committee consists of the following eight members:
four members of the Senate, appointed by the President of the Senate; and
four members of the House of Delegates, appointed by the Speaker of the House.
At least one Senator and one Delegate appointed under this subsection shall be a member of the minority party.
The members of the Committee serve at the pleasure of the presiding officer who appointed them.
The President and the Speaker of the House shall appoint a Senator and a Delegate, respectively, to serve as cochairs.
The Committee shall examine:
the status of the State’s gaming program; and
the implementation of new laws relating to gaming.
The Committee shall make recommendations for potential improvements to the State’s gaming program.
The Department of Legislative Services shall provide staffing for the Committee.
A member of the Committee may not receive compensation for serving on the Committee, but is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
On or before December 31 of each year, the Committee shall report its findings and recommendations to the Governor and, in accordance with § 2–1257 of this article, the General Assembly.