Purpose. The purpose of these regulations is to implement the provisions of Business Regulation Article, §§11-815—11-832, Annotated Code of Maryland (Satellite Simulcast Betting), in a nondiscriminatory manner, by specifying the procedures to be used in the application for, and the granting and renewal of, a satellite simulcast betting permit, as well as the terms and conditions of a satellite simulcast betting permit. Intent Concerning Minority Participation. The Commission shall carry out the provisions of this chapter in a manner that complies with the intent of the General Assembly in enacting the Maryland Horse Racing Act of 1992 (Chapter 473, Acts of 1992), including the intent regarding minority participation, specifically to: Provide equal opportunity for the inclusion of minority applicants; Be nondiscriminatory in the selection of permit holders to operate satellite simulcast betting; and Ensure that all satellite simulcast betting facility permit holders not discriminate in the employment of services for the development, construction, operation, and maintenance of these facilities. An application for a satellite simulcast betting permit shall be submitted on a form provided by the Commission. With the application, the applicant shall submit: A nonrefundable application fee in the amount of $500 by means of a certified or cashier's check; An affidavit to the effect that the applicant will pay, in advance, directly to the provider, any costs incurred for those professional services used by the Commission in the processing of the application; A contract with the applicable track licensee assuring the applicant the: Right to the simulcast signal if the permit is granted, and Operation of the pari-mutuel function at the applicant's facility by the track licensee if the permit is granted; Contracts, if any, with the persons denoted by Business Regulation Article, §11-827, Annotated Code of Maryland, which contain the duration and amount of the takeout to be allocated to the permittee for the costs of operating the satellite simulcast betting facility for which the permittee may be reimbursed, such as: Salaries; Utilities; Repairs and maintenance; and Other expenses agreed upon between the permittee and a person denoted by Business Regulation Article, §11-827, Annotated Code of Maryland; The location, capacity, and availability of parking for the facility to be used for satellite simulcast betting; The address and proof of ownership of the premises where satellite simulcast betting is to be conducted, or a lease agreement for the use of the premises as a satellite simulcast betting facility; Proof that the use of the facility for satellite simulcast betting complies with: Local zoning laws or ordinances; and Ordinances including, but not limited to, those dealing with health and the sale of alcoholic beverages; Financial feasibility studies for the operation of satellite simulcast betting at the location designated; Architectural and interior design plans of the facility for which satellite simulcast betting is being requested; Details relating to food and beverage service at the proposed facility, including: Approximate number of personnel, by category, to be employed in this service; Concept of food service; Type of menu items to be offered; Seating plan; and Other information the applicant considers appropriate; If the proposed facility is within a 35-mile radius of a mile thoroughbred or harness track in Maryland, the written consent of: Each mile thoroughbred and harness track in Maryland within whose 35-mile radius the facility will be located; The groups that represent a majority of the applicable: Owners and trainers licensed in the State, and Breeders in the State; and Other information requested by the Commission. For the purpose of this regulation, “financial interest” means 5 percent or more of an ownership or profit interest in an applicant for a satellite simulcast betting permit. The Commission shall: Conduct a personal and financial background investigation on the officers of the applicant, if any, and each person with a financial interest in the applicant; Obtain from the applicant not less than three personal references regarding each person specified by §B(1) of this regulation; Solicit responses from references furnished by the applicant and evaluate them; Request federal, State, and local law enforcement authorities, with the cooperation of the persons specified in §B(1) of this regulation and at the expense of the applicant, to conduct a criminal background review of persons specified by §B(1) of this regulation; Direct the applicant to pay financial advisors engaged by the Commission to review and advise the Commission on all pertinent financial matters for the applicant and for persons having a financial interest in the applicant in order to determine the applicant's financial ability to purchase or lease, develop, and maintain the satellite simulcast betting facility including: Certified financial statements, Income statements for the most recent year preceding the submission of the application, and Financial statements and related records of any corporation, association, partnership, proprietorship, limited partnership, or any other business entity in which a person with a financial interest in the applicant has at least a majority interest; Obtain from the applicant the: Disclosure of all financial interests in horse racing and other legalized betting activities by those persons specified in §B(1) of this regulation, and Identity and the percentage of interest of all persons with less than a 5 percent financial or beneficial interest in the applicant, as well as the permission of these persons to have an investigation conducted on their background by the Commission. If the applicant is a track licensee, the Commission may waive those portions of the personal and financial background check that it considers appropriate. A satellite simulcast betting facility shall have amenities similar to a sports palace facility, including: Comfortable seating; High quality dining; Large screen video display of the racing action; Betting stations within easy access; Visual and computer-assisted handicapping aids; Adequate security; and A design which is commensurate to the setting in which it is located. Before considering the issuance of a permit, the Commission shall: Advertise the date, time, and location of a public hearing on the application in a local publication at least 30 days before the hearing being conducted; Provide written notice to the executive and legislative branches of the county and local governments for the jurisdiction within which the proposed satellite simulcast betting facility is to be located of the date, time, and location of the public meeting; Post the notice of the public hearing on the Commission website at least 30 days before the public hearing; Require the applicant, at least 30 days before the public hearing, to post a sign in a conspicuous location at the facility for which the application for the permit was submitted stating that an application is pending for use of the facility for satellite simulcast betting and specifying the date, time, and location of the public hearing; Request from the applicant a list of community associations that were notified of the public hearing; Conduct the public hearing within 10 miles of the requested satellite simulcast betting facility and, at this hearing, the Commission shall consider comments, if any, from: The public; The officials from the jurisdiction where the satellite simulcast betting facility is to be located; The applicable track licensee; The applicable group that represents a majority of the owners and trainers licensed in the State; The applicable group that represents a majority of the breeders in the State; and Other interested parties in the racing industry; and Among other things, consider the extent to which the satellite simulcast betting facility may interfere with attendance at the mile thoroughbred and harness tracks in Maryland. The Commission may deny a permit to an applicant for a satellite simulcast betting permit, or may suspend or revoke a satellite simulcast betting permit, if: An applicant or permit holder: Has violated an applicable provision of law, Has violated a regulation of the Commission, or Has not complied with a condition imposed by the Commission; The Commission determines that the: Information it obtains pursuant to Regulations .02—.05 of this chapter does not justify the granting or renewal of a permit, or Permit holder has not maintained the satellite simulcast betting facility or its operation in a manner consistent with the information the Commission relied upon in granting the permit. Instead of, or in addition to, suspending a permit, the Commission may impose a fine not exceeding $5,000 for each day a violation occurs. In determining the penalty to be imposed, the Commission shall consider the: Seriousness of the violation; Harm caused by the violation; Good faith or lack of good faith of the permittee; and Operational history of the permittee. Unless suspended or revoked, the term of a satellite simulcast betting permit is for the remainder of the: Calendar year if the starting date on the permit is before July 1 of the calendar year; or Calendar year and the next calendar year if the starting date on the permit is after July 1 of the calendar year. A satellite simulcast betting permit may not be issued for a period which extends beyond the expiration date of a contract required by Regulation .02 of this chapter. A satellite simulcast betting permit shall contain the: Name of the permittee; Location for which the permit is issued; and Term of the permit. An application for the renewal of a satellite simulcast betting permit shall be: Delivered to the Commission offices not less than 60 days before the end of the term of the permit; Accompanied by an affidavit from the permittee stating that the facility in which satellite simulcast betting takes place continues to meet the requirements of the law, regulations, and conditions, if any, of the Commission; and Granted, unless the Commission determines that the permit holder: Should be denied under the provisions of Regulation .06 of this chapter; or No longer has viable contracts, leases, and agreements required under Regulation .02 of this chapter. The permit fee is $500. The renewal fee is $500. Fees shall be paid before the issuance of a satellite simulcast betting permit or the renewal of the permit. If there is a problem in the transmission of data or the signal between the host track and the satellite simulcast betting facility, it is within the discretion of the stewards/judges to: Order the race to be run on schedule; Delay the race until the matter is resolved, if this is possible; or After having delayed the race, if the problem is not resolved and a further delay is not possible, order the race to be run. If a race is run before the resolution of a problem in the transmission of data or signal between the host track and the satellite simulcast betting facility, the stewards/judges shall cause an announcement to be made that any pari-mutuel ticket issued before the running of the race is a valid ticket irrespective of the nontransmission of data or the signal. A permittee shall: Comply with the law, the regulations of the Racing Commission, and the conditions, if any, of the Racing Commission; Report, in conjunction with the applicable groups representing a majority of the horsemen and breeders in the State, to the Commission not later than December 31 of each year for the period through December 15 of that year, on the: Effectiveness of satellite simulcast betting, and Effect of satellite simulcast betting on the racing industry in the State; Reimburse the Commission for the cost of personnel employed by the Commission to inspect, investigate, or perform a licensing function at the satellite simulcast betting facility; and Periodically, at the discretion of the Commission but not later than the date set for renewal of a permit, assure the Commission that the facilities continue to meet the requirements of the laws, regulations of the Racing Commission, and the conditions, if any, of the Racing Commission. A permittee or a purchaser of an interest in the permittee shall notify the Commission of a change in the ownership, or a change in the composition of the ownership, of the permittee within 24 hours of the change. After reviewing the change, the Commission shall make a determination to continue or revoke the permit based on the criteria used in issuing a permit. Business Regulation Article, §11-210, Annotated Code of Maryland Effective date: Regulations .01—.12 adopted as an emergency provision effective August 5, 1992 (19:17 Md. R. 1602) Regulations .01—.13 adopted effective January 18, 1993 (20:1 Md. R. 26) Regulation .05 amended effective December 19, 2016 (43:25 Md. R. 1384) Regulation .06A amended effective October 11, 1993 (20:20 Md. R. 1569)