# COMAR Title 09 — Maryland Department of Labor

## Subtitle 10 — Racing Commission

### Chapter 04 — General

**Authority:** Business Regulation Article, §§11-207, 11-210, 11-303, 11-305, 11-308, 11-310, 11-316—11-319, 11-508, 11-518, 11-519, 11-608, 11-626, 11-804,11-804.1, 11-811, 11-825, and 11-827; State Government Article, §9-1A-29; Annotated Code of Maryland

**Administrative History:** Effective date: April 10, 1995 (22:7 Md. R. 535)

**Administrative History:** Regulation .03 amended effective March 22, 1999 (26:6 Md. R. 484)

**Administrative History:** Regulation .08 amended effective March 22, 1999 (26:6 Md. R. 484); May 29, 2000 (27:10 Md. R. 965); September 30, 2002 (29:19 Md. R. 1523)

**Administrative History:** Regulation .08A amended effective July 29, 2019 (46:15 Md. R. 654)

**Administrative History:** Regulation .08E amended effective April 24, 2017 (44:8 Md. R. 401)

**Administrative History:** Regulation .15A amended effective April 28, 2003 (30:8 Md. R. 539)

**Administrative History:** Regulation .15A amended effective August 15, 2005 (32:16 Md. R. 1392)

**Administrative History:** Regulation .17E adopted effective October 30, 2000 (27:21 Md. R. 1975)

**Administrative History:** Regulation .17 E amended effective September 30, 2002 (29:19 Md. R. 1523)

**Administrative History:** Regulation .21 adopted effective July 1, 1998 (25:11 Md. R. 820)

**Administrative History:** Regulation .22 adopted effective March 22, 1999 (26:6 Md. R. 484)

**Administrative History:** Regulation .22B amended effective October 30, 2000 (27:21 Md. R. 1975)

**Administrative History:** Regulation .23 adopted effective March 22, 1999 (26:6 Md. R. 484)

**Administrative History:** Regulation .24 adopted as an emergency provision effective September 1, 2000 (27:19 Md. R. 1720); adopted permanently effective January 8, 2001 (27:26 Md. R. 2357)

**Administrative History:** Regulation .24 amended effective December 9, 2004 (31:24 Md. R. 1726)

**Administrative History:** Regulation .25 adopted as an emergency provision effective December 2, 2011 (38:27 Md. R. 1762); adopted permanently effective February 20, 2012 (39:3 Md. R. 258)

#### Regulation .01 Definitions.

*COMAR 09.10.04.01*

A. In this subtitle, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “A day” means the 24-hour period starting at 12 midnight.

  (2) “A year” means a calendar year.

#### Regulation .02 Order of Precedence.

*COMAR 09.10.04.02*

A. The laws of this State and the regulations of the Commission supersede the conditions of a race and the rules of the association.

B. The orders of the Commission, as well as the orders and rulings of the judges and stewards in matters pertaining to racing, supersede the orders of the officials of the association.

#### Regulation .03 Commission.

*COMAR 09.10.04.03*

A. Granting a License to Hold a Race Meeting.

  (1) An association may file a brief with the Commission, setting forth reasons for desiring the dates contained in the association's application.

  (2) The allotment of racing dates by the Commission pursuant to an application by an association for racing dates does not commit the Commission to the granting of a license to conduct a race meeting upon the dates so allotted.

  (3) The Commission may grant a license to hold a race meeting to an association in accordance with the provisions of Business Regulation Article, Title 11, Annotated Code of Maryland, subject to an application for racing dates having been filed with the Executive Director of the Commission, over the signature of an executive officer of the association desiring to hold racing.

  (4) The application to hold a race meeting shall include the:

    (a) Days on which live racing is to be held;

    (b) Days on which simulcasting is to be held;

    (c) Location at which racing is to take place; and

    (d) Breed of horse to be raced.

B. The Commission may suspend or revoke the license of an association if it disapproves of a change in the ownership of the association.

C. Personal and Financial Background Investigation.

  (1) The Commission shall conduct a personal and financial background investigation of any interested party negotiating for the purchase of:

    (a) An entity which conducts racing in Maryland under the jurisdiction of the Maryland Racing Commission or operates a thoroughbred training facility under Business Regulation Article, §11-519, Annotated Code of Maryland;

    (b) A majority controlling interest in the entity described under §C(1)(a) of this regulation; or

    (c) Those assets without which the entity described under §C(1)(a) of this regulation would not be able to continue racing or stabling.

  (2) If the interested party is an entity other than a real person, the personal and financial background investigation shall be conducted as to the negotiating entity and each real person with a controlling interest in the entity.

  (3) An entity or real person who is the subject of the personal and financial background investigation shall fully cooperate with the Commission and provide any information requested by the Commission to conduct its investigation.

  (4) The personal and financial background investigation shall include, but is not limited to, all of the following:

    (a) A review by a certified public accountant of the certified financial statements of the negotiating party, including a review of any contingent liabilities and pledged assets, which review shall be sufficient to determine the financial ability of the negotiating party to purchase and maintain the racetrack being negotiated;

    (b) Income statements, for at least a 2-year period preceding the proposed purchase, of the interested party negotiating for the purchase;

    (c) A statement of financial condition and the related records of any corporation, association, partnership, proprietorship, or limited partnership in which the interested party negotiating for the purchase has at least a majority interest;

    (d) The disclosure of all financial interests in horse racing;

    (e) The disclosure of all persons, including corporations, trusts, estates, and partnerships, who are to be the new beneficial owners of the entity;

    (f) A criminal background review; and

    (g) A character review.

  (5) The personal and financial background investigation required under §C(4) of this regulation shall be completed at least 30 days before the settlement date for the purchase and at least 30 days before any transfer of racing dates that may result directly from the purchase.

  (6) Upon the completion of the personal and financial background investigation under §C(4) of this regulation, the Commission shall notify the Legislative Policy Committee of the proposed purchase, and, if applicable, the proposed transfer of racing dates, at least 15 days before the consideration of final approval by the Commission of the purchase or transfer.

  (7) The cost of the personal and financial background investigation shall be borne by the owners of the entity to be sold.

D. Denials of Licenses and Sanctions.

  (1) The Commission may refuse to issue or renew a license, or may suspend or revoke a license issued by it, if it finds that the applicant or licensee:

    (a) Has engaged in unethical or criminal conduct;

    (b) Is associating or consorting with an individual who has been convicted of a crime in any jurisdiction;

    (c) Is consorting or associating with, or has consorted with, a bookmaker, tout, or individual of similar pursuits;

    (d) Is, or has been, operating as a bookmaker, tout, or a similar pursuit;

    (e) Is not financially responsible;

    (f) Has been engaged in, or attempted to engage in, any fraud or misrepresentation in connection with the racing or breeding of a horse;

    (g) Assaults, or threatens to do bodily injury to, a member of the Commission or any of its employees or representatives or a member or employee of an association;

    (h) Has engaged in conduct detrimental to racing; or

    (i) Has violated, or attempted to violate:

      (i) A law or regulation in any jurisdiction, including this State, or

      (ii) A condition imposed by the Commission.

  (2) Instead of, or in addition to, suspending a license, the Commission may impose a fine not exceeding $5,000.

  (3) In determining the penalty to be imposed, the Commission shall consider the:

    (a) Seriousness of the violation;

    (b) Harm caused by the violation;

    (c) Good faith or lack of good faith of the licensee; and

    (d) Licensing history of the licensee.

E. The Commission may require an association to submit periodic reports, reviewed by a certified public accountant, as to the:

  (1) Amount bet at each location in Maryland;

  (2) Takeout calculation, and the allocation of the takeout, on the amount bet under §E(1) of this regulation;

  (3) Amount bet on Maryland races in other jurisdictions; and

  (4) Amount, and the allocation of the amount, received from the bets on Maryland races in other jurisdictions.

#### Regulation .04 Appeals of Stewards' or Judges' Decisions.

*COMAR 09.10.04.04*

A. An appeal from a decision of the stewards or judges may be made to the Commission by submitting a written statement setting forth the relevant facts of the appeal to an authorized representative of the Commission or to one of the Commission offices.

B. An appeal may be made by:

  (1) An owner, trainer, driver, or jockey participating in a race from a decision of the stewards or judges involving an incident in that race not later than 48 hours after the decision has been rendered;

  (2) A licensee affected by a decision of the stewards or judges involving the claim of a horse not later than 48 hours after the decision has been rendered; and

  (3) A licensee affected by a decision of the stewards or judges in regard to a matter not covered by §B(1) or (2) of this regulation not later than 7 days after the decision has been rendered.

C. The Commission, in its discretion, may:

  (1) Modify any sanction appealed;

  (2) Assess all costs of the appeal to the appellant; and

  (3) Impose additional sanctions in regard to an appellant who fails to:

    (a) Pursue an appeal, or

    (b) Appear at the hearing on the appeal after proper notice and without good cause.

D. An appellant who appeals to the Commission from a decision of the stewards or judges for the sole purpose of obtaining a stay of the penalty imposed, or for any other reason that is considered to be frivolous, may be:

  (1) Fined and suspended; and

  (2) Assessed the costs of the appeal.

#### Regulation .05 Fines and Suspensions.

*COMAR 09.10.04.05*

A. All fines shall be paid to the Commission within 48 hours after imposition unless:

  (1) An appeal to the Commission has been noted; and

  (2) The Commission has granted a stay.

B. If a licensee fails to pay the fine in a timely manner in violation of §A of this regulation, upon proper notification, the licensee shall be immediately suspended, and the suspension shall remain in effect until the fine is paid in full.

#### Regulation .06 Adjudicatory Hearings.

*COMAR 09.10.04.06*

A. Not less than 7 days before conducting an adjudicatory hearing, the Commission, through its Executive Director, shall send a written notice to the individual who is the subject of the hearing which shall contain:

  (1) The date, time, place, and nature of the hearing;

  (2) The authority of the Commission to hold the hearing;

  (3) The pertinent hearing and regulatory sections under which the Commission is taking its action;

  (4) A concise and simple statement of the facts that are asserted;

  (5) The potential penalty;

  (6) An advisement regarding the individual's right to:

    (a) Be represented by an attorney who is admitted, or specially admitted, to practice law in this State,

    (b) Call witnesses and submit evidence,

    (c) Request subpoenas for witnesses and documents, and

    (d) Request a copy of the hearing procedures; and

  (7) A statement that the failure to appear for a scheduled hearing may result in an adverse action against the individual.

B. The Commission may, in its discretion:

  (1) Grant a stay of an order of the stewards or judges pending a hearing before the Commission; or

  (2) Suspend the license of an individual who is charged pending a hearing on the charges.

C. A hearing on the charges shall be held as promptly as possible, with due regard to the rights of the licensee charged, if the Commission:

  (1) Declines to grant a stay of the suspension, as provided in §B(1) of this regulation; or

  (2) Suspends the license of an individual charged pending a hearing on the charges, as provided in §B(2) of this regulation.

D. The Commission shall provide for the making of an official record of the hearing, which shall include testimony and exhibits, but, unless required for purposes of rehearing or court review, a transcription of the testimony may not be required.

E. At the hearing, an applicant or a licensee who may be affected by a decision of the Commission shall be given the opportunity to:

  (1) Be represented by counsel;

  (2) Be confronted with the evidence on which a charge is based;

  (3) Cross-examine witnesses;

  (4) Testify; and

  (5) Produce testimony and evidence relevant to the issues involved.

F. A licensee may be subject to the suspension or revocation of a license held if:

  (1) While under oath in a hearing, the licensee gives false or misleading statements of a relevant nature; or

  (2) Except in the proper exercise of a legal privilege, the licensee fails to testify after proper notice.

G. When an adjudicatory hearing is conducted by a hearing committee under Business Regulation Article, §11-310, Annotated Code of Maryland, and the decision of the hearing committee is:

  (1) Unanimous, the decision of the hearing committee is final and shall bind the entire Commission;

  (2) Not unanimous, a de novo hearing on the matter shall be conducted by a quorum of the Commission.

#### Regulation .07 Reciprocity.

*COMAR 09.10.04.07*

A. An individual whose license is suspended or revoked in another state or country is suspended or revoked in this State.

B. Denial of a license by the racing commission of another state may be considered as grounds for the denial of a license by the Commission.

#### Regulation .08 Associations.

*COMAR 09.10.04.08*

A. An association holding racing or operating a training center under the jurisdiction of the Commission shall:

  (1) Provide within its grounds adequate office space and equipment for the use of, and at the disposal of, the Commission and the Commission's representatives;

  (2) Ensure free access of the grounds to the Commission and the Commission's representatives while they are engaged in their assigned tasks;

  (3) Provide and maintain at least one human ambulance and one horse ambulance on a day that the racing strip is open for racing or exercising horses;

  (4) Staff the ambulances required under §A(3) of this regulation with competent, trained personnel, have them ready for service, and placed where they may enter the racing strip with as little time lost as possible in responding to emergencies;

  (5) Adopt, have posted, and implement a protocol for education, evaluation, diagnosis, and management of concussion of jockeys which shall be approved by the regulatory authority;

  (6) Have available a medical professional trained in evaluating and administering the most current Sport Concussion Assessment Tool (SCAT);

  (7) Establish a return-to-ride guideline in order to clear a jockey who has been concussed, or is believed to have been concussed, once the jockey is declared fit-to-ride by a medical professional authorized to do so;

  (8) Require each jockey to acknowledge in writing that they have been made aware of the concussion protocols in place for the facility at which they are riding;

  (9) Police the nonpublic area of its grounds so as to preclude the admission of an individual to this area who is not:

    (a) Licensed by the Commission; or

    (b) Authorized and properly supervised by the association;

  (10) Provide proper receptacles for disposal of manure and other debris which shall be serviced on a daily basis excluding Sunday;

  (11) Make adequate provision for fire prevention, protection against fire, and fire suppression within the confines of the facility;

  (12) At a thoroughbred race track and training center, provide the following distance poles and color designations:

    (a) 1/4 poles — red and white;

    (b) 1/8 poles — green and white

    (c) 1/16 poles — black and white; and

  (13) Inform the Commission immediately of any change in the beneficial ownership of the association, including any change in the makeup of the stockholders of the association or in the holdings of a stockholder, if the change involves an entity that had or, as a result of the change has, a 2 percent or more beneficial ownership.

B. An association licensed by the Commission to hold racing shall submit to the Commission:

  (1) Not later than the Commission meeting preceding the association's first race meeting of the year:

    (a) A list of the administrative personnel of the association, and

    (b) A report on the steps taken by the association to comply with the recommendations, if any, of the State Fire Marshal;

  (2) Not later than the Commission meeting preceding each race meeting of the association, a list of the officials and others to be employed, in so far as the list can be prepared, containing the:

    (a) Name and address of each employee; and

    (b) Position to be filled or the duties to be performed by each employee; and

  (3) Promptly, all additions to, or changes in, the association list of employees.

C. Subject to Commission approval, an association licensed by the Commission shall furnish and maintain at the facility where racing is being held, and at such other facilities under the control of the association as the Commission may direct:

  (1) A first-aid area:

    (a) Equipped with adequate beds and supplies; and

    (b) Staffed by a licensed medical doctor during racing hours;

  (2) Two photo finish cameras positioned at the finish line, one of which shall be held in reserve, to photograph the finish of the races;

  (3) A communication system between the judges or stewards stand, the pari-mutuel office, and the starter;

  (4) A system, activated by the judges or stewards at the start of a race, which sounds a bell and simultaneously closes the betting pools on the race;

  (5) Cameras and other equipment necessary to properly record the running of the races from the start through the finish with the recordings resulting from the use of this equipment not being disposed of without the permission of the judges or stewards;

  (6) Sanitary restroom facilities and drinking water;

  (7) Two starting gates, both in good working order, one of which shall be kept in reserve; and

  (8) Stands for judges, timers, and stewards in positions commanding an uninterrupted view of the entire racing strip.

D. An association licensed by the Commission to conduct racing shall:

  (1) Exclude from the paddock, in the interest of public safety, all persons who have no immediate business with the horses entered, except the members of the Commission, the Commission's staff and special representatives, and those having special permission from the association, judges, or stewards;

  (2) Request and obtain the approval of the Commission before televising, simulcasting, or broadcasting any race, or before permitting any other person, association, or corporation to do so;

  (3) If a licensee bets with or through a handbook:

    (a) Eject the licensee from its grounds;

    (b) Refuse the licensee admission to its grounds;

    (c) Refuse the entry of the licensee's horse; and

    (d) Immediately notify the Commission;

  (4) Observe and enforce the laws, regulations, and conditions of the Commission;

  (5) Employ a sufficient number of security persons to maintain order on its grounds; and

  (6) List the following on its daily racing program:

    (a) The name of the Governor;

    (b) The name of the Maryland Secretary of Labor;

    (c) The names of the Commissioners and the Commission's specified employees, with their titles, if any; and

    (d) The address of the Commission's office.

E. An association licensed by the Commission to conduct racing may not:

  (1) Permit bets to be made on the grounds of the association, or other grounds on which it controls a pari-mutuel operation, except as permitted under the provisions of Business Regulation Article, Title 11, Annotated Code of Maryland;

  (2) Permit illegal or gambling of any kind on the grounds of the association or other grounds on which the association controls a pari-mutuel operation;

  (3) Provide, or permit to be provided, any aid, conveniences, or facilities to bookmakers, betting commissioners, their agents, or their employees;

  (4) Advance credit for betting purposes; or

  (5) Permit an individual younger than 16 years old to be employed on the grounds of the association unless the individual is 14 years old or older and works for the:

    (a) Individual's parent or legal guardian in the stable area; or

    (b) Association in a nonsecured area of the racetrack and has a valid work permit.

F. Allocation of Takeout.

  (1) Except as provided in §F(3) of this regulation, if the Commission awards racing dates to an association to conduct both live harness racing and live thoroughbred racing at a facility, the association shall allocate the takeout from all bets on races, both live and simulcast made under the authority of the license issued to that association, in accordance with the provisions of Business Regulation Article, Title 11, Annotated Code of Maryland, that are applicable to the breed of horse upon which the bets were made.

  (2) It is the intent of this regulation that the amounts allocated to purses and bred funds from bets made on races for a certain breed of horse be allocated to the purses and bred funds, respectively, that are for the same breed of horse as the races upon which the bets were made.

  (3) If the bets were made on a type of racing for which the provisions of Business Regulation Article, Title 11, Annotated Code of Maryland, do not specify an allocation of the takeout, the allocation of the takeout shall be:

    (a) In accordance with the provisions of Business Regulation Article, Title 11, Subtitle 5, Part II, Annotated Code of Maryland, if the services of a jockey were used in the running of the race upon which the bets were made; and

    (b) In accordance with the provisions of Business Regulation Article, Title 11, Subtitle 6, Annotated Code of Maryland, if the services of a driver were used in the running of the race upon which the bets were made.

#### Regulation .09 Number of Races.

*COMAR 09.10.04.09*

On a day on which an association is licensed to conduct racing, the following are subject to Commission approval:

A. The number of live races conducted; and

B. The conduct of pari-mutuel betting on races simulcast from other tracks.

#### Regulation .10 Postponement and Cancellation of Races.

*COMAR 09.10.04.10*

A. If a racing program, or a portion of a racing program, is abandoned, any purse race involved shall be canceled.

B. If a racing program, or a portion of a racing program, is abandoned, any stake race involved may be postponed or canceled.

C. Public notice shall be given at the earliest practicable time if a published race is canceled.

D. A race which closed with sufficient entries may not be canceled except by the stewards or presiding judge.

#### Regulation .11 License Badges.

*COMAR 09.10.04.11*

A. A licensed individual who enters a stable area which is under the jurisdiction of the Maryland Racing Commission shall wear upon the individual's outside apparel, in a prominent position, the license badge issued to the individual by the Commission, which contains the individual's picture identification.

B. The license badge is supplied by the Commission for purposes of identification only, and an association may refuse to accept it as a pass for admission to the grandstand and clubhouse enclosures.

C. Failure to comply with this regulation shall subject the licensee to:

  (1) A $5 fine for the first offense;

  (2) A $10 fine for a second offense within 1 year's time of the first offense;

  (3) A $25 fine for a third offense within 1 year's time of the first offense; and

  (4) Suspension and referral to the Commission at the discretion of the stewards or judges for the fourth offense within 1 year's time of the first offense.

#### Regulation .12 Barred Horses.

*COMAR 09.10.04.12*

A. If a trainer has in the trainer's charge a horse whose name appears on a veterinarian's, starter's, stewards', or judges' list or any other list of horses ineligible to start, commonly known as a “Barred List”, at a race track outside this State, the trainer shall report the name of the horse and the fact that the horse has been barred to the Racing Secretary, as well as to the stewards or judges, at the meeting within this State at which the trainer proposes to enter the horse to race.

B. A horse shall be barred from racing at a track under the jurisdiction of the Commission if the horse is:

  (1) Afflicted by the disease known as periodic ophthalmia, moon blindness, or a similar disease affecting the vision of the horse;

  (2) High nerved, that is, the horse has been denerved at the ankle or the horse has been subjected to a cryosurgical procedure at the ankle or above; or

  (3) Tubed.

#### Regulation .13 Denerved Horses or Horses Subjected to a Cryosurgical Procedure.

*COMAR 09.10.04.13*

A. A denerved horse or a horse subjected to a cryosurgical procedure shall be registered with the chief veterinarian on a form provided by the Commission for that purpose.

B. A horse, denerved or subjected to a cryosurgical procedure below the ankle, may be entered and shall be permitted to race if:

  (1) The horse is registered as such with the chief veterinarian not later than 2 hours before post time of the race for which it is entered;

  (2) The fact that a horse has been denerved or subjected to a cryosurgical procedure is so stated on the foal certificate of the horse and certified by the practicing veterinarian who performed the procedure; and

  (3) The horse is placed on a list of horses denerved or subjected to a cryosurgical procedure which is posted on the bulletin board in the Racing Secretary's office.

C. A horse may not be registered as denerved or subjected to a cryosurgical procedure if, in fact, the horse has not been denerved or subjected to cryosurgical procedure.

#### Regulation .14 Equine Infectious Anemia.

*COMAR 09.10.04.14*

A. Coggin's Test.

  (1) Except as provided in this regulation, a certificate of a negative Coggin's test or other proof of a negative Coggin's test on a horse shall be presented to an association before the horse is stabled on the grounds of the association and before the horse is eligible to start in a race.

  (2) The certificate shall:

    (a) Identify the horse by tattoo number;

    (b) Indicate that the horse was tested within 1 year before the date that the certificate is presented to the association; and

    (c) Indicate that the test was conducted by a laboratory approved by the United States Department of Agriculture.

  (3) The receipt and transfer of a certificate of a negative Coggin's test when a horse is claimed, sold, or transferred is the responsibility of the trainer of the horse.

  (4) Proof of a negative Coggin's test shall be on a sticker attached to the foal certificate showing the following:

    (a) Horse's name;

    (b) Date of the test;

    (c) Laboratory name and test number; and

    (d) Name of the veterinarian who took the blood sample.

B. A Coggin's certificate indicating a horse is negative for equine infectious anemia is valid for 1 year from the date of the certificate's issuance.

C. Absent a valid Coggin's certificate, the stewards or judges may allow a horse to race if they have received a signed statement from an approved veterinarian licensed by the Commission indicating:

  (1) When and where blood was taken from the horse; and

  (2) To what laboratory the blood was sent.

D. The stewards or judges may contact the laboratory specified under §C(2) of this regulation to obtain verbal confirmation that the blood was negative for equine infectious anemia.

E. Veterinarians.

  (1) Veterinarians shall file individual remittance certificates with individual blood samples for each horse when testing for equine infectious anemia.

  (2) Upon receipt of the certificate from a laboratory approved for conducting the test for equine infectious anemia, the veterinarian shall deliver the certificate to the trainer of the horse.

  (3) Veterinarians shall notify the State veterinarian immediately upon receipt of a positive report.

#### Regulation .15 Disputes, Protests.

*COMAR 09.10.04.15*

A. Penalties.

  (1) Except as provided in §A(2) of this regulation, if a race is in dispute, both the horse or horses affected by the dispute, and the horse or horses against which the dispute is lodged, are subject to all penalties attaching to the highest position to which they may be entitled until the dispute is settled by the Commission.

  (2) A horse against which a dispute is lodged is not subject to the penalties attaching to the highest position to which the horse may be entitled if:

    (a) The horse is a registered thoroughbred;

    (b) The dispute is the direct result of a positive finding of a prohibited drug in the urine or blood specimen of a horse, and:

      (i) The positive finding is not challenged; or

      (ii) A confirmatory test of the blood or urine specimen substantially confirms the positive finding; and

    (c) The race is not a stake race.

B. Proof of the qualifications of a horse against which a protest has been lodged may be demanded by the stewards or judges.

C. If the owner or trainer of a horse against which a protest has been lodged fails to provide proof of those qualifications as demanded by the stewards or judges, the horse may be disqualified.

#### Regulation .16 Corporate or Stable Names.

*COMAR 09.10.04.16*

A. Registration of Corporate or Stable Names.

  (1) A licensed owner or owners wishing to race under a corporate or stable name may do so by furnishing the federal ID number of the corporate or stable name and registering the name with the Commission annually.

  (2) The registration of a corporate or stable name is effective only for the calendar year for which the registration is made.

  (3) A corporate or stable name is subject to the approval of the Commission.

  (4) A corporate or stable name may be abandoned at any time upon written notice to the Commission and publication of the abandonment.

B. A licensed owner may not register more than one corporate or stable name, or race under the owner's real name, so long as the owner is racing under a registered corporate or stable name.

C. A licensed owner, together with different owners in each instance, may be involved in other corporate or stable names.

D. A corporate or stable name may be changed at any time by registering a new corporate or stable name and by paying the fee.

E. A person may not register a corporate or stable name which has already been registered by any other person, or one which is the real name of an owner of race horses.

F. The Commission may demand the abandonment of a corporate or stable name at any time.

G. A trainer of race horses may not function as a trainer under a corporate or stable name.

#### Regulation .17 Authorized Agent.

*COMAR 09.10.04.17*

A. In order to act as an authorized agent for an owner, an individual shall register with the Commission.

B. A separate application for registration shall be filed for each owner represented by an individual.

C. In order to be registered as an authorized agent, an individual shall first be licensed by the Commission in some other capacity.

D. An authorized agent may appoint a subagent only when authorized to do so, and, to be effective, notice of the appointment shall be given in writing to the Commission.

E. The registration required under §A of this regulation shall:

  (1) Specify the functions which the authorized agent may perform on behalf of the owner; and

  (2) If the authorized agent is allowed to act for the owner in matters involving the receipt or withdrawal of funds, be accompanied by a notarized document to that effect signed by the owner to be represented by the authorized agent.

#### Regulation .18 Smoking.

*COMAR 09.10.04.18*

An individual may not smoke, or carry an instrument or object which may be likely to cause a fire, in a stall or feed room, under a shed row, or in any other place in which smoking is prohibited by the Commission or the association.

#### Regulation .19 Workers' Compensation.

*COMAR 09.10.04.19*

A. A person applying for a license who employs one or more individuals in a racing-related activity shall have Workers' Compensation insurance as required by Maryland law unless the applicant's sole employee is a spouse.

B. An applicant for a license under §A of this regulation shall list the following on the license application:

  (1) Name of the insurance company;

  (2) Name of the agent;

  (3) Policy number; and

  (4) Policy expiration date.

C. A licensee shall notify the Commission in writing, not less than 5 days before the effective date, of:

  (1) A change to the information furnished under §B of this regulation;

  (2) The cancellation of the policy; or

  (3) The nonrenewal of the policy.

D. A licensee, not employing one or more individuals in a racing-related activity when the licensee applied for a license, but who subsequently becomes the employer of one or more of these individuals, shall immediately:

  (1) Obtain the required insurance coverage; and

  (2) Furnish the Commission licensing office with the information required under §B of this regulation.

#### Regulation .20 Calculation of Time.

*COMAR 09.10.04.20*

A. Except as provided in §B of this regulation, when the last day for performing an act falls on a scheduled dark day, the act may be done on the following scheduled racing day.

B. When the last day for performing an act relating to a particular race falls on a scheduled dark day, and the next scheduled racing day is the day of the race, the act shall be done on or before the previous scheduled racing day.

#### Regulation .21 Procedures for Challenging the Commission's Recognition of Certain Organizations.

*COMAR 09.10.04.21*

A. Purpose. The purpose of this regulation is to set forth the procedures for resolving a challenge to the recognition of an organization by the Commission as the representative of a certain segment of the racing industry in the State, considering that certain sections of Business Regulation Article, Title 11, Annotated Code of Maryland, require the:

  (1) Consent of certain organizations; and

  (2) Distribution of funds to a certain organization.

B. Petition.

  (1) An organization may petition the Commission for recognition as the organization representing a majority of the:

    (a) Harness owners and trainers licensed in the State;

    (b) Thoroughbred owners and trainers licensed in the State;

    (c) Harness breeders in the State; or

    (d) Thoroughbred breeders in the State.

  (2) In order for the Commission to act on any petition submitted under §B(1) of this regulation, an organization shall submit evidence demonstrating that at least 15 percent of the individuals in the applicable segment of the racing industry support the petition.

  (3) The evidence submitted under §B(2) of this regulation, for each individual supporting the petition, shall consist of the individual's:

    (a) Printed name;

    (b) Signature; and

    (c) License number issued by the Commission for the current year, if applicable.

C. Action by the Commission.

  (1) Upon receipt of the petition, the Commission shall:

    (a) Provide notice that a petition has been received by the Commission to:

      (i) The petitioner,

      (ii) The organization currently recognized as representing a majority of that segment of the racing industry, and

      (iii) Other interested parties, if any; and

    (b) Verify the status of the individuals who have signed in support of the petition.

  (2) If the Commission determines that the petition contains the required number of valid signatures, it shall announce at a public meeting:

    (a) That the Commission will conduct an election to determine which organization is to be recognized by the Commission as representing a majority of that segment of the racing industry; and

    (b) The dates that the Commission sets regarding the mailing, return, and counting of the ballots.

  (3) The dates set by the Commission under §C(2)(b) of this regulation may be changed by the Commission, and the organizations involved shall be promptly informed of the new dates and the reasons for the change.

D. If an election is announced, funds accruing to the organization currently recognized as representing that segment of the racing industry, either by law or by contract, may be held in escrow from the date the election is announced until the date the result of the election is determined.

E. Ballots.

  (1) Ballots shall be printed and mailed by the Commission.

  (2) The ballots shall:

    (a) Be sequentially numbered;

    (b) Contain:

      (i) The name of the individual eligible to vote,

      (ii) The names of the competing organizations in alphabetical order and a selection block next to the name of each organization, and

      (iii) A signature line;

    (c) Set forth the date by which the ballot must be returned;

    (d) Inform the individual eligible to vote that a ballot is not counted if the:

      (i) Individual is not currently licensed,

      (ii) Individual's application for renewal, accompanied by the appropriate fees, is received by the Commission after the deadline set by the Commission for the return of a ballot,

      (iii) Ballot is not signed by the individual, or

      (iv) Indication of the selected organization is not clear; and

    (e) Request any other information the Commission may consider appropriate.

  (3) If the election is in regard to an owners' and trainers' organization for a certain breed of horse, a ballot shall be sent to the following for the breed of horse involved:

    (a) Each owner and trainer licensed in the State during the current year, up to and including the day the election is announced; and

    (b) If the election is announced before June 30th of the current year, each owner and trainer licensed in the State on December 31st of the previous year who is not yet licensed for the current year.

  (4) If the election is in regard to a breeders' organization, §E(2)(d)(i) and (ii) of this regulation does not apply, and:

    (a) If the election is for a standardbred breeders' organization, a ballot shall be sent to each individual recognized by the administrator of the breeding program as the owner or lessee of a:

      (i) Dam at the time of breeding that had any of its produce registered with that program in the last 2 calendar years,

      (ii) Stallion that has been registered with the Advisory Committee as a Maryland stallion and stood in Maryland during the latest breeding season, or

      (iii) Dam that was bred in Maryland within the last 2 calendar years to a stallion registered with the Advisory Committee as a Maryland stallion; or

    (b) If the election is for a thoroughbred breeders' organization, a ballot shall be sent to each individual who registered a horse in the Maryland Bred Registry at least once in the last 3 calendar years.

  (5) The mailing date of the ballots may not be later than 30 days after the public meeting of the Commission at which an election is announced.

  (6) The deadline for the return of the ballots may not be less than 15 days after the mailing date.

  (7) When a ballot is returned to the Commission, it shall be verified against the mailing list of eligible voters and the corresponding ballot number.

F. A ballot sent to an individual qualified to receive a ballot under the provisions of §E(3)(b) of this regulation may not be counted unless the individual becomes licensed before the date the ballots are to be returned as set by the Commission under §C(2)(b) of this regulation.

G. Ballot Count.

  (1) Following the close of business on the date set by the Commission for the return of the ballots, the staff of the Commission shall promptly count the ballots.

  (2) The Commission shall provide adequate notice to each competing organization of:

    (a) The date, time, and place the ballots will be counted; and

    (b) The ability of a representative from each of the competing organizations to be present for the counting of the ballots.

  (3) The organization receiving a majority of the votes properly cast shall be designated as the organization representing a majority of that segment of the racing industry.

H. Confidentiality.

  (1) Except as provided in this regulation, the vote of an individual shall be kept confidential.

  (2) The Commission shall make available for inspection a:

    (a) List of those individuals to whom the ballots were mailed; and

    (b) Current list of those individuals who voted.

I. Challenges.

  (1) An individual wishing to challenge any aspect of the election procedure shall file a written statement to that effect with the Commission within 5 business days of the occurrence about which the individual objects.

  (2) A statement filed in accordance with §I(1) of this regulation shall:

    (a) Contain the specifics of the challenge; and

    (b) Establish, in the discretion of the Commission, a prima facie showing that this regulation has been violated.

  (3) If the Commission determines that:

    (a) There is a prima facie showing that this regulation has been violated, the Commission shall schedule a hearing and give notice to all interested parties; or

    (b) There is not a prima facie showing that this regulation has been violated, the Commission shall deny the challenge.

  (4) At a hearing convened under §I(3)(a) of this regulation, the validity of the challenge shall be determined by the Commission.

  (5) The Commission may, in its discretion, stay the operation of the election until the challenge is finally decided.

J. Funds.

  (1) If a timely challenge has been received, the Commission may order that the escrow of funds, as provided under §D of this regulation, continue, pending a final decision on the challenge.

  (2) Any funds held in escrow shall be released to the winning organization after the counting of the ballots if:

    (a) A timely challenge has not been received by the Commission; or

    (b) The Commission has denied all challenges.

K. The Commission's recognition of an organization as representing a majority of a certain segment of the racing industry may not be challenged within 365 days of the time recognition becomes final.

#### Regulation .22 Leases of Horses.

*COMAR 09.10.04.22*

A. A leased horse may not participate in racing unless the lease agreement is:

  (1) Attached to the horse's registration papers;

  (2) Submitted to the horsemen's bookkeeper; and

  (3) Approved by the stewards or judges.

B. A lease agreement for a horse may not be approved by the stewards or judges unless the:

  (1) Lessee is licensed as an owner;

  (2) Signatures of the lessor and lessee are verified by the stewards or judges;

  (3) Term of the lease, which may contain provisions for earlier termination due to the claim or retirement of the horse, is not less than 365 days; and

  (4) Agreement completely divests the lessor of further control or direction of the horse during the term of the lease.

C. A leased horse may not be entered into a claiming race unless the terms of the lease indicate:

  (1) The minimum claiming price for which the horse may be entered; and

  (2) Who shall receive the claiming monies if the horse is successfully claimed.

#### Regulation .23 Timing of Races.

*COMAR 09.10.04.23*

A. A racing association shall have, and maintain, an electronic timing device for the purpose of accurately recording the fractional times of all races.

B. The time recorded by the electronic timing device is the official time of the race unless there is a power failure, mechanical malfunction, or other extenuating circumstance.

C. If the stewards or judges determine that one of the exceptions under §B of this regulation occurred, the official time of the race is the time:

  (1) Recorded by the official timer as provided under:

    (a) COMAR 09.10.01.36 for a thoroughbred race, or

    (b) COMAR 09.10.02.24 for a standardbred race; or

  (2) Provided by a method considered reliable and accurate by the Commission.

D. The time of each race shall be announced and displayed.

#### Regulation .24 Telephone Account Betting.

*COMAR 09.10.04.24*

A. Definitions. In this regulation, the following terms have the meanings indicated:

  (1) “Net betting revenue” means the gross amount of all bets placed through a TABS less:

    (a) Return to bettors;

    (b) State tax and all other amounts required by law to be paid to anyone other than a track licensee, horsemen, and breeders;

    (c) Fees paid to the racetracks that hosted the live races in this State and out-of-State;

    (d) Fees paid to a third-party operator of the TABS; and

    (e) Costs of the racing association as agreed to between the:

      (i) Racing association,

      (ii) Organization representing a majority of the horsemen racing at the track where the TABS is operated, and

      (iii) Organization representing a majority of the breeders of the breed of horses racing at the track where the TABS is operated.

  (2) “Source market area” means the prescribed radius surrounding a racetrack within which the postal ZIP code for the principal residence of a telephone betting account holder is located.

  (3) “Telephone account betting system (TABS)” means a system, established by a licensed racing association and approved by the Commission, by which an individual may open an account in order to bet on horse races by telephonic, electronic, or other means of communication.

B. General.

  (1) Subject to the receipt of an application by a licensed racing association, the Commission may permit the racing association to establish and operate a TABS on days when the racing association is authorized to conduct racing.

  (2) All bets placed through a TABS are:

    (a) Considered to have been made in this State; and

    (b) Subject to the laws of this State and the regulations of the Commission.

  (3) A racing association operating a TABS may conduct betting on races through the TABS only on those races which the racing association is authorized to conduct.

C. Establishing and Maintaining Accounts.

  (1) A telephone betting account may be established and maintained for an individual by a racing association authorized by the Commission to operate a TABS.

  (2) A telephone betting account may be established for an individual whose principal residence is outside this State if the racing association complies with all applicable provisions of federal and state law.

  (3) For the purposes of determining if a bet was made from within a source market area as provided under §Q of this regulation, the principal residential address of the individual account holder, as maintained by the TABS, is considered the location from which that bet originated.

D. A racing association shall obtain from each individual who applies for a telephone betting account the individual's:

  (1) Name;

  (2) Principal residential address including postal ZIP code;

  (3) Social Security number;

  (4) Proof of age and identity; and

  (5) An initial deposit which is not:

    (a) Less than the minimum amount established by the association, and

    (b) More than $500, if the deposit is made by the use of a credit or debit card.

E. A racing association shall maintain the following information regarding each individual for whom it maintains a telephone betting account:

  (1) Name;

  (2) Principal residential address including postal ZIP code;

  (3) Telephone number;

  (4) Social Security number;

  (5) Amount bet;

  (6) Tracks on whose races bets were placed; and

  (7) Such other information as the Commission may reasonably request.

F. A racing association shall furnish to each individual for whom it establishes an account:

  (1) A personal identification number of not less than four alphanumeric characters;

  (2) The identifying number assigned to the individual's account by the racing association;

  (3) Instructions on how to operate the telephone betting account;

  (4) Regulations of the Commission in regard to this type of betting; and

  (5) Conditions imposed by the racing association on this type of betting.

G. A racing association may not establish an account for an individual who is younger than 18 years old.

H. Based on its business judgment, a racing association may:

  (1) Refuse to establish an account for an individual; or

  (2) Close the account of an individual.

I. A racing association may not accept a bet through a TABS if:

  (1) The account holder does not submit the correct personal identification number; or

  (2) The amount of the bet is greater than the available balance in the account.

J. Other than for bets and deposits, the only charges and credits that may be made to an account are the:

  (1) Proceeds from a successful bet;

  (2) Refunds;

  (3) Withdrawals ordered by the account holder;

  (4) Payments to an account holder upon the closing of the account;

  (5) Fees, as established by a racing association and agreed upon by an account holder, for the maintenance of an account and related services; and

  (6) Promotional considerations provided by the racing association.

K. Time.

  (1) A racing association may delay the use of a deposit to an account, made with an instrument other than cash, until the time allowed by the banking industry for the dishonor of that instrument has passed.

  (2) The proceeds from a successful bet, or the amount due from a refund, shall be credited to an individual's account as soon as reasonably practicable after the race or races upon which the bet was placed becomes official.

  (3) A valid withdrawal order by the holder of an account shall be honored within 5 business days of its receipt.

  (4) A racing association shall pay the account holder the balance in the account within 5 business days after the account is closed.

L. A racing association operating a TABS shall:

  (1) Make an account activity report available to an account holder quarterly;

  (2) Close an account which has not had any betting activity for a 12-month period; and

  (3) Notify a Commission representative within 24 hours of the event, if for any reason a bet placed by an account holder in accordance with the established telephone account betting procedures is not accepted.

M. Exception to an Account Activity Report.

  (1) If an account holder takes exception to an account activity report issued by a racing association as required by §L(1) of this regulation, the account holder shall submit the exception in writing to the racing association within 30 days of the issuance of the account activity report.

  (2) If the exception is not resolved by the racing association within 15 days of its receipt, the racing association shall promptly notify, in writing, the:

    (a) Commission of the exception; and

    (b) Account holder of the right to request a hearing before the Commission to resolve the exception.

  (3) Upon receipt of a request from an account holder to conduct a hearing to resolve the exception, the Commission shall schedule and conduct a hearing.

N. Accounts.

  (1) Before being granted the right to operate a TABS, and every 6 months thereafter, a racing association shall furnish the Commission with proof that the account holders will be guaranteed the full value of their accounts regardless of the acts of the association or any other entity.

  (2) If the proof offered under §N(1) of this regulation is not acceptable to the Commission, the Commission may require the racing association to purchase a bond or other form of insurance guaranteeing that the account holders receive the full value of their accounts.

O. An account holder shall notify the racing association maintaining that individual's account, in writing, of any change of the account holder's principal residential address.

P. Confidentiality.

  (1) Except as otherwise provided, all information regarding an account shall be maintained in confidence by a racing association including:

    (a) The account number;

    (b) The personal identification number;

    (c) Personal information regarding the account holder; and

    (d) Transactions.

  (2) Information regarding an account may be disclosed;

    (a) To the account holder,

    (b) To the Commission; and

    (c) As otherwise required by State law, federal law, or the regulations of the Commission.

Q. Source Market Areas.

  (1) There shall be a source market area for each racing association that is authorized to operate a TABS.

  (2) The source market area of a racing association consists of all postal addresses located within a 35-mile radius of the racing association, subject to the following:

    (a) Address locations shall be determined by postal ZIP codes;

    (b) If a portion of a postal ZIP code is within a source market area established by this subsection, the entire postal ZIP code shall be included within that source market area; and

    (c) The source market area for a racing association that is not a mile thoroughbred track licensee or a harness track licensee is applicable only during the period of time it holds live racing.

  (3) Unless otherwise agreed between the applicable racing associations, an individual residing within a source market area may only establish a telephone betting account with a racing association in whose source market area the customer resides.

  (4) An individual residing outside of any source market area may establish a telephone betting account with any racing association in the State that is authorized to operate a TABS.

R. Net Betting Revenue.

  (1) The net betting revenue derived from bets originating from the source market area of a racing association shall be retained by the racing association.

  (2) The net betting revenue derived from bets originating from the source market area of one racing association, which overlaps the source market area of another racing association, shall be divided among the racing associations:

    (a) As set forth in a written agreement; or

    (b) As provided in §V of this regulation if a written agreement is not then in effect.

  (3) During the period live racing is conducted at the Timonium racetrack:

    (a) The net betting revenue from the source market areas of Laurel Park, Pimlico Race Course, and Timonium shall be divided among the racing associations operating these racetracks in accordance with a written agreement; or

    (b) Absent an agreement, the net betting revenue from the source market areas of Laurel Park, Pimlico Race Course, and Timonium shall be retained by the racing association licensed to operate Timonium.

  (4) A racing association operating a TABS shall retain the net betting revenue derived from a bet made through its TABS by an individual residing outside the source market areas established under this regulation.

S. Allocation of Net Betting Revenue. All net betting revenue retained or received by a racing association shall be allocated:

  (1) In accordance with an agreement between the racing association, the organization representing a majority of the horsemen racing at the track operated by the racing association, and the organization representing a majority of the breeders of the breed of horses racing at the track operated by the racing association; or

  (2) Absent an agreement as referenced under §S(1) of this regulation, in accordance with the relevant provisions of Business Regulation Article, Title 11, Annotated Code of Maryland.

T. Reports to the Commission. Not later than 75 days after the end of the calendar year, a racing association shall file with the Commission a report, certified by an independent certified public accountant, of all of the costs and expenses deducted in any calendar year by the racing association in calculating net betting revenue.

U. Contracting for Use of TABS.

  (1) A racing association may contract with one or more entities to conduct betting through the TABS established by the racing association.

  (2) The racing association contracting with an entity to conduct betting through the TABS established by the racing association shall:

    (a) Prohibit that entity from accepting bets from residents within the source market area of another racing association unless that racing association agrees;

    (b) If racing association referenced in §U(2)(a) of this regulation agrees, collect and remit to that racing association the net betting revenue from bets made within the source market area of that racing association; and

    (c) Collect and keep the net betting revenue for bets made within the State but outside of the source market area of any racing association.

  (3) Revenues and expenses of the contracted entity referenced in §U(1) of this regulation derived from betting conducted through the TABS established by a racing association, other than as provided in §U(2) of this regulation, may not be included in net betting revenue.

  (4) After payment to the contracted entity referenced in §U(1) of this regulation for services performed, the revenue retained by the racing association from bets facilitated by that entity, other than the amounts referenced in §U(2) of this regulation, shall be allocated:

    (a) In accordance with an agreement between:

      (i) The racing association,

      (ii) The organization representing a majority of the horsemen racing at the track operated by the racing association, and

      (iii) The organization representing a majority of the breeders of the breed of horses racing at the track operated by the racing association; or

    (b) Absent an agreement as referenced under §U(4)(a) of this regulation, in accordance with the relevant provisions of Business Regulation Article, Title 11, Annotated Code of Maryland.

V. Allocation of Net Betting Revenue from Overlapping Source Market Areas. If there is no written agreement in effect among the racing associations licensed to operate Laurel Park, Pimlico Race Course, and Rosecroft Raceway as to the allocation among them of net betting revenue from the source market areas of Laurel Park or Pimlico Race Course that overlap with the source market area of Rosecroft Raceway, then the allocation shall be determined by a formula that gives equal weight to each of the following three factors, each factor to be calculated as the arithmetical mean average of the factor during 1999 and the last calendar year immediately preceding the period for which the calculation is to be made.

  (1) Factor 1: Handle bet in Maryland, other than through a TABS, by breed, with the racing associations licensed to operate Laurel Park and Pimlico Race Course credited with all thoroughbred handle, and the racing association licensed to operate Rosecroft Raceway credited with all standardbred handle;

  (2) Factor 2: Handle bet in Maryland, other than through a TABS, by the time of day, with the racing associations licensed to operate Laurel Park and Pimlico Race Course credited with all handle on racing programs that begin at 6 p.m. Eastern Time or earlier on any day, and the racing association licensed to operate Rosecroft Raceway credited with all handle on racing programs that begin after 6 p.m. Eastern Time on any day; and

  (3) Factor 3: Handle bet in Maryland, other than through a TABS, by location, with the:

    (a) Racing associations licensed to operate Laurel Park and Pimlico Race Course credited with all handle bet at Laurel Park, Pimlico Race Course, and any satellite simulcast betting facility established after January 1, 2000, located exclusively within their respective source market areas and not overlapping with the source market area of the racing association licensed to operate Rosecroft Raceway,

    (b) Racing association licensed to operate Rosecroft Raceway credited with all handle bet at Rosecroft Raceway and any satellite simulcast betting facility established after January 1, 2000, located exclusively within its source market area and not overlapping with the source market area of the racing associations licensed to operate Laurel Park or Pimlico Race Course, and

    (c) Racing associations licensed to operate Laurel Park and Pimlico Race Course and the racing association licensed to operate Rosecroft Raceway credited with 80 percent and 20 percent respectively, of the handle bet at all other satellite simulcast betting facilities.

#### Regulation .25 Racetrack Facility Renewal Account.

*COMAR 09.10.04.25*

A. 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:

  (1) 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

  (2) 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.

B. Qualifications. To qualify for a grant from the Racing Facility Renewal Account, a racetrack licensee shall:

  (1) 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

  (2) Except for the owners of the racecourse at Timonium, provide and expend a matching fund equal to the amount of the grant.

C. Content. A capital construction plan and a plan for improvements at a racetrack facility for each project shall include:

  (1) A general description of the capital construction and racetrack facility improvements;

  (2) The estimated time frame for completion of each project;

  (3) A complete set of applicable capital construction plans; and

  (4) A listing of all costs associated with each project including materials and labor.

D. Monitoring. If a grant is provided to a racetrack licensee for capital construction, the Commission shall:

  (1) In consultation with the Department of General Services, monitor the implementation of the approved plans for capital construction; and

  (2) 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.

E. Types. At a minimum, the types of capital construction and improvements at a racetrack facility shall include:

  (1) Projects that cause the racetrack facility to be in compliance with all laws, regulations, and ordinances regarding safety, environmental, and public health concerns;

  (2) 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

  (3) Projects that affect:

    (a) Racetrack surfaces;

    (b) Stabling facilities;

    (c) Pari-mutuel operations or equipment;

    (d) Food and beverage amenities or equipment;

    (e) Spectator seating and other patron-oriented improvements;

    (f) Security systems; and

    (g) Racing-related equipment.

F. Allocation of Funds.

  (1) 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.

  (2) 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.

  (3) 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.

  (4) 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.