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<regulation prefix="Regulation" num=".25" citation="COMAR 09.10.04.25" title_num="09" subtitle_num="10" chapter_num="04" heading="Racetrack Facility Renewal Account.">
  <paragraph num="A.">
    <text>Eligibility. A racetrack licensee may receive a grant from the Racetrack Facility Renewal Account, established under State Government Article, §9-1A-29, Annotated Code of Maryland, for racetrack facility capital construction and racetrack facility improvements if the racetrack licensee is in compliance with the applicable eligibility requirements of State Government Article, §9-1A-09, Annotated Code of Maryland, including:</text>
    <paragraph num="(1)">
      <text>The development and submittal to the Commission of a multiyear plan to improve the quality and marketing of horse racing at racetrack locations owned or operated by the racetrack licensee; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The development with other industry representatives in both the thoroughbred and harness racing industries of a multiyear plan to improve the quality and marketing of the horse racing industry in Maryland.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Qualifications. To qualify for a grant from the Racing Facility Renewal Account, a racetrack licensee shall:</text>
    <paragraph num="(1)">
      <text>Submit to the Commission for approval a capital construction plan and a plan for improvements at the racetrack facility for capital construction and improvements at the racetrack facility that were commenced after October 1, 2010, including specific time frames for implementation; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Except for the owners of the racecourse at Timonium, provide and expend a matching fund equal to the amount of the grant.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>Content. A capital construction plan and a plan for improvements at a racetrack facility for each project shall include:</text>
    <paragraph num="(1)">
      <text>A general description of the capital construction and racetrack facility improvements;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The estimated time frame for completion of each project;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>A complete set of applicable capital construction plans; and</text>
    </paragraph>
    <paragraph num="(4)">
      <text>A listing of all costs associated with each project including materials and labor.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>Monitoring. If a grant is provided to a racetrack licensee for capital construction, the Commission shall:</text>
    <paragraph num="(1)">
      <text>In consultation with the Department of General Services, monitor the implementation of the approved plans for capital construction; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Unless the Commission grants an extension upon a written request of a racetrack licensee, direct the racetrack licensee to refund the applicable grant monies if the capital construction is not completed within the time frame approved by the Commission.</text>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>Types. At a minimum, the types of capital construction and improvements at a racetrack facility shall include:</text>
    <paragraph num="(1)">
      <text>Projects that cause the racetrack facility to be in compliance with all laws, regulations, and ordinances regarding safety, environmental, and public health concerns;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Projects that ensure that the condition of a part of the racetrack where individuals reside, commonly known as the “backstretch”, is satisfactory for human habitation and meets minimum housing and sanitation standards for the jurisdiction in which the racetrack facility is located; and</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Projects that affect:</text>
      <paragraph num="(a)">
        <text>Racetrack surfaces;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Stabling facilities;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Pari-mutuel operations or equipment;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Food and beverage amenities or equipment;</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Spectator seating and other patron-oriented improvements;</text>
      </paragraph>
      <paragraph num="(f)">
        <text>Security systems; and</text>
      </paragraph>
      <paragraph num="(g)">
        <text>Racing-related equipment.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>Allocation of Funds.</text>
    <paragraph num="(1)">
      <text>Except as provided in §F(2) of this regulation, if two or more racetrack licensees that conduct live racing of the same breed submit plans for capital construction and improvements at a racetrack facility that are approved by the Commission, the funds shall be distributed to the competing racetrack licensees based upon the number of live racing days at each racetrack facility.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>For calendar year 2011, the monies accrued in the Racetrack Facility Renewal Account for Rosecroft Raceway and Ocean Downs, from the inception of the Racetrack Facility Renewal Account to the date a racetrack license is issued for the operation of Rosecroft Raceway, shall be available only to the racetrack licensee at Ocean Downs, provided the racetrack license at Ocean Downs is otherwise eligible for these funds.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Upon the approval by the Commission of a plan for capital construction and improvements at a racetrack facility, a racetrack licensee may expend its matching funds prior to the receipt of grant monies from the Racetrack Facility Renewal Account.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Each competing racetrack licensee shall agree in writing to return any funds allocated to the racetrack licensee in a particular calendar year to the Racetrack Facility Renewal Account in the event the racetrack licensee does not run the scheduled number of live racing days for any reason other than weather, acts of God, or other circumstances beyond the control of the racetrack licensee.</text>
    </paragraph>
  </paragraph>
</regulation>