2013 Maryland Code
STATE GOVERNMENT
§ 9-1A-29 - Racetrack Facility Renewal Account [Amendment subject to abrogation]

(a) Established. -- There is a Racetrack Facility Renewal Account under the authority of the State Racing Commission.

(b) Status and management of account. --

(1) 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.

(2) Money in the Account shall be invested and reinvested by the Treasurer and interest and earnings shall accrue to the Account.

(3) The Comptroller shall:

(i) account for the Account; and

(ii) 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.

(4) The Account is a special, nonlapsing fund that is not subject to § 7-302 of the State Finance and Procurement Article.

(5) 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.

(6) (i) 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 a grant under this section.

(ii) The holder of a license to hold a race meeting in the State 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.

(c) Use of funds. -- Funds from the Account shall be used to provide a grant to the holder of a license to hold a race meeting in the State:

(1) for racetrack facility capital construction and improvements; and

(2) for Laurel Park and Pimlico Race Course, up to $ 6,000,000 per year for operating assistance to support a minimum of 146 annual live racing days in calendar years 2012 and 2013, unless the racing licensee is prevented by weather, acts of God, or other circumstances beyond the racing licensee's control.

(d) Allocation of funds in general. -- Except as provided in subsection (e) of this section, the amount of funds made available from the Racetrack Facility Renewal Account shall be allocated as follows:

(1) 80% to the Pimlico Race Course, Laurel Park, and the racecourse at Timonium; and

(2) 20% to Rosecroft Raceway and Ocean Downs Race Course.

(e) Allocation of funds in fiscal 2012. -- For fiscal year 2012, the amount of funds made available from the Racetrack Facility Renewal Account shall be allocated as follows:

(1) 80% to the Pimlico Race Course, Laurel Park, and the racecourse at Timonium:

(i) minus 20% of the amount credited to the Account in fiscal year 2011; and

(ii) minus the amount necessary to repay funds to the Maryland Economic Development Corporation in accordance with Section 16 of Chapter 397 (S.B. 87/H.B. 72) of the Acts of the General Assembly of the Session of 2011 (the Budget Reconciliation and Financing Act of 2011); and

(2) 20% to Rosecroft Raceway and Ocean Downs Race Course, plus 20% of the amount credited to the Account in fiscal year 2011.

(f) Qualification for grant. -- In order to obtain a capital grant, a holder of a license to hold a race meeting in the State shall:

(1) submit a capital construction plan to be implemented within a specified time frame to the State Racing Commission for approval; and

(2) except as provided in subsection (g) of this section, provide and expend a matching fund.

(g) Allocation to racecourse at Timonium. --

(1) Of the amount provided from the Racetrack Facility Renewal Account under subsection (d)(1) of this section, the racecourse at Timonium shall be provided the following amounts for racetrack facility capital construction and improvements:

(i) for fiscal year 2012, $ 1,125,000;

(ii) for fiscal year 2013, $ 1,250,000;

(iii) for fiscal year 2014, $ 1,125,000;

(iv) for fiscal year 2015, $ 1,000,000; and

(v) for fiscal year 2016, $ 1,000,000.

(2) A matching fund is not required for the amount provided for the racecourse at Timonium under paragraph (1) of this subsection.

(3) (i) From the amounts provided in paragraph (1) of this subsection, the holder of a racing license to race at the racecourse at Timonium may use up to $ 350,000 per year to support a minimum of 7 live racing days.

(ii) Use of funds authorized under subparagraph (i) of this paragraph must be approved by the Secretary of Labor, Licensing, and Regulation under terms and a process consistent with the provisions of subsection (j) of this section.

(h) Grant for establishment of horse racing museum at Pimlico Race Course. -- Of the amount provided from the Racetrack Facility Renewal Account under subsection (d)(1) of this section, the State Racing Commission may provide direct grant funding for the establishment of a horse racing museum as part of the Pimlico Race Course.

(i) Monitoring of implementation of approved capital construction plan. -- After a capital grant has been provided under this section, the State Racing Commission shall:

(1) in consultation with the Department of General Services, monitor the implementation of the approved capital construction plan; and

(2) make provisions for recapture of grant moneys if the capital construction plan is not implemented within the time frame approved by the State Racing Commission.

(j) Obtaining operating assistance -- Requirements. --

(1) To obtain operating assistance under subsection (c)(2) of this section, a holder of a racing license to race at Pimlico Race Course or Laurel Park may apply to the Secretary of Labor, Licensing, and Regulation for the reimbursement of expenditures made by the racing licensee to conduct the annual live racing schedule.

(2) Subject to paragraph (5) of this subsection, the racing licensee's application shall include:

(i) a 12-month business plan, subject to review by a certified public accountant, that sets forth the income- and expense-related items that are necessary to conduct a live racing schedule of at least the number of live racing days that was stated in the application; and

(ii) a 5-year business plan that describes the challenges impacting the economics of operating the racing facilities and strategies for addressing those challenges.

(3) (i) 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.

(ii) 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.

(iii) The reimbursement calculation under subparagraph (ii) of this paragraph may not include:

1. extraordinary income and expense-related items, including extraordinary litigation costs;

2. lobbying fees;

3. capital investments, including predevelopment costs; or

4. prior year adjustments and claims.

(4) All costs associated with the racing licensee's application shall be paid by the racing licensee.

(5) 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:

(i) monthly financial information requested by the Secretary, in a form satisfactory to the Secretary; and

(ii) an annual audited financial statement.

(6) 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.

(k) Payment of unencumbered funds to Education Trust Fund. -- Any unencumbered funds remaining in the Racetrack Facility Renewal Account after a video lottery facility has been in operation for 16 years shall be paid to the Education Trust Fund established under § 9-1A-30 of this subtitle.

(l) Regulations. -- The State Racing Commission shall adopt regulations to implement the provisions of this subsection, including regulations to address minimum criteria for the types of improvements to be made by the holder of a license.

(m) Section inapplicable to racecourse in Allegany County. -- The provisions of this section may not be construed to apply to the racecourse in Allegany County.

§ 9-1A-29 - Racetrack Facility Renewal Account (Amendment subject to abrogation effective December 31, 2013; amendment effective on December 31, 2013.)

(a) Established. -- There is a Racetrack Facility Renewal Account under the authority of the State Racing Commission.

(b) Status and management of account. --

(1) 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.

(2) Money in the Account shall be invested and reinvested by the Treasurer and interest and earnings shall accrue to the Account.

(3) The Comptroller shall:

(i) account for the Account; and

(ii) 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.

(4) The Account is a special, nonlapsing fund that is not subject to § 7-302 of the State Finance and Procurement Article.

(5) 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.

(6) (i) 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 a grant under this section.

(ii) The holder of a license to hold a race meeting in the State 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.

(c) Use of funds. -- Funds from the Account shall be used to provide a grant to the holder of a license to hold a race meeting in the State for racetrack facility capital construction and improvements.

(d) Allocation of funds in general. -- The amount of funds made available from the Racetrack Facility Renewal Account shall be allocated as follows:

(1) 80% to the Pimlico Race Course, Laurel Park, and the racecourse at Timonium; and

(2) 20% to Rosecroft Raceway and Ocean Downs Race Course.

(e) Qualification for grant. -- In order to obtain a grant, a holder of a license to hold a race meeting in the State shall:

(1) submit a capital construction plan to be implemented within a specified time frame to the State Racing Commission for approval; and

(2) except as provided in subsection (f) of this section, provide and expend a matching fund.

(f) Allocation to racecourse at Timonium. --

(1) Of the amount provided from the Racetrack Facility Renewal Account under subsection (d)(1) of this section, the racecourse at Timonium shall be provided the following amounts for racetrack facility capital construction and improvements:

(i) for fiscal year 2012, $ 1,125,000;

(ii) for fiscal year 2013, $ 1,250,000;

(iii) for fiscal year 2014, $ 1,125,000;

(iv) for fiscal year 2015, $ 1,000,000; and

(v) for fiscal year 2016, $ 1,000,000.

(2) A matching fund is not required for the amount provided for the racecourse at Timonium under paragraph (1) of this subsection.

(3) (i) From the amounts provided in paragraph (1) of this subsection, the holder of a racing license to race at the racecourse at Timonium may use up to $ 350,000 per year to support a minimum of 7 live racing days.

(ii) Use of funds authorized under subparagraph (i) of this paragraph must be approved by the Secretary of Labor, Licensing, and Regulation under terms and a process consistent with the provisions of subsection (j) of this section.

(g) Grant for establishment of horse racing museum at Pimlico Race Course. -- Of the amount provided from the Racetrack Facility Renewal Account under subsection (d)(1) of this section, the State Racing Commission may provide direct grant funding for the establishment of a horse racing museum as part of the Pimlico Race Course.

(h) Monitoring of implementation of approved capital construction plan. -- After a grant has been provided under this section, the State Racing Commission shall:

(1) in consultation with the Department of General Services, monitor the implementation of the approved capital construction plan; and

(2) make provisions for recapture of grant moneys if the capital construction plan is not implemented within the time frame approved by the State Racing Commission.

(i) Payment of unencumbered funds to Education Trust Fund. -- Any unencumbered funds remaining in the Racetrack Facility Renewal Account after a video lottery facility has been in operation for 16 years shall be paid to the Education Trust Fund established under § 9-1A-30 of this subtitle.

(j) Regulations. -- The State Racing Commission shall adopt regulations to implement the provisions of this subsection, including regulations to address minimum criteria for the types of improvements to be made by the holder of a license.

(k) Section inapplicable to racecourse in Allegany County. -- The provisions of this section may not be construed to apply to the racecourse in Allegany County.