EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*hb1524*
HOUSE BILL 1524
C6, C7, Q7 4lr3037
CF 4lr4617
By: Chair, Ways and Means Committee (By Request – Maryland Thoroughbred
Racetrack Operating Authority)
Rules suspended
Introduced and read first time: March 3, 2024
Assigned to: Rules and Executive Nominations
A BILL ENTITLED
AN ACT concerning 1
Horse Racing – Racing Facility Ownership and Construction – Racing 2
Operations 3
FOR the purpose of altering the location, type, and ownership of horse racing facilities that 4
the Maryland Stadium Authority is authorized to finance; authorizing the Maryland 5
Stadium Authority, subject to certain requirements, to finance the planning, design, 6
and construction of certain racing facilities on behalf of the Maryland Thoroughbred 7
Racetrack Operating Authority; authorizing the State Racing Commission to issue a 8
license to hold a race meeting and award racing days to a certain nonprofit 9
organization; altering the date by which the owner of the Bowie Race Course 10
Training Center must convey the Center to the City of Bowie; authorizing the 11
Preakness Stakes to be transferred to another track in the State during the 12
reconstruction of Pimlico Race Course; increasing the amount of debt that the 13
Maryland Stadium Authority may issue for certain purposes in connection with 14
certain racing facilities; altering the requirements of certain agreements required 15
before the issuance of certain bonds; altering the amount of money from the State 16
Lottery Fund that the Comptroller is required to deposit into the Racing and 17
Community Development Financing Fund; altering certain requirements that must 18
be satisfied before the Maryland Thoroughbred Racetrack Operating Authority is 19
authorized to manage and oversee certain racing activities; altering the distribution 20
and authorized uses of the Racetrack Facility Renewal Account; exempting a certain 21
horse racing licensee from the requirement to pay an application fee for a certain 22
sports wagering facility license; requiring the Comptroller to distribute the sales and 23
use tax revenue attributable to the purchase of certain racehorses to a certain fund; 24
altering certain income tax subtraction modifications, sales and use tax exemptions, 25
property tax exemptions, transfer tax exemptions, and recordation tax exemptions 26
related to horse racing; extending the termination date of certain provisions of law 27
related to the Maryland Thoroughbred Racetrack Operating Authority; and 28
generally relating to horse racing in the State. 29 2 HOUSE BILL 1524
BY repealing 1
Article – Economic Development 2
Section 10–601(cc) and (dd) 3
Annotated Code of Maryland 4
(2018 Replacement Volume and 2023 Supplement) 5
BY renumbering 6
Article – Economic Development 7
Section 10–601(ee) through (iii) 8
to be Section 10–601(cc) through (ggg), respectively 9
Annotated Code of Maryland 10
(2018 Replacement Volume and 2023 Supplement) 11
BY repealing and reenacting, with amendments, 12
Article – Business Regulation 13
Section 11–510(b), 11–519(d)(1)(i), and 11–520(b) 14
Annotated Code of Maryland 15
(2015 Replacement Volume and 2023 Supplement) 16
BY repealing and reenacting, without amendments, 17
Article – Economic Development 18
Section 10–601(a), (b), and (d) 19
Annotated Code of Maryland 20
(2018 Replacement Volume and 2023 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – Economic Development 23
Section 10–601(s), 10–628(c)(1)(vii), 10–646.1, and 10–1003 24
Annotated Code of Maryland 25
(2018 Replacement Volume and 2023 Supplement) 26
BY repealing and reenacting, without amendments, 27
Article – Economic Development 28
Section 10–601(cc), (kk), (ll), (tt), (uu), and (ww) 29
Annotated Code of Maryland 30
(2018 Replacement Volume and 2023 Supplement) 31
(As enacted by Section 2 of this Act) 32
BY repealing and reenacting, with amendments, 33
Article – Economic Development 34
Section 10–601(oo), (vv), and (xx) 35
Annotated Code of Maryland 36
(2018 Replacement Volume and 2023 Supplement) 37
(As enacted by Section 2 of this Act) 38
BY adding to 39 HOUSE BILL 1524 3
Article – Economic Development 1
Section 10–601(hhh) 2
Annotated Code of Maryland 3
(2018 Replacement Volume and 2023 Supplement) 4
BY repealing and reenacting, with amendments, 5
Article – State Government 6
Section 9–120(b)(1)(iv), 9–1A–29(d) and (h), and 9–1E–06(b) and (d) 7
Annotated Code of Maryland 8
(2021 Replacement Volume and 2023 Supplement) 9
BY repealing and reenacting, without amendments, 10
Article – State Government 11
Section 9–1A–29(a) 12
Annotated Code of Maryland 13
(2021 Replacement Volume and 2023 Supplement) 14
BY adding to 15
Article – Tax – General 16
Section 2–1302.3 17
Annotated Code of Maryland 18
(2022 Replacement Volume and 2023 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – Tax – General 21
Section 2–1303, 10–207(ii), 10–307(g), and 11–236 22
Annotated Code of Maryland 23
(2022 Replacement Volume and 2023 Supplement) 24
BY repealing and reenacting, without amendments, 25
Article – Tax – General 26
Section 10–207(a) and 10–307(a) 27
Annotated Code of Maryland 28
(2022 Replacement Volume and 2023 Supplement) 29
BY repealing and reenacting, with amendments, 30
Article – Tax – Property 31
Section 7–246, 12–108(hh), 13–207(a)(26), and 13–410 32
Annotated Code of Maryland 33
(2019 Replacement Volume and 2023 Supplement) 34
BY repealing and reenacting, with amendments, 35
Chapter 590 of the Acts of the General Assembly of 2020 36
Section 9 37
BY repealing and reenacting, with amendments, 38
Chapter 111 of the Acts of the General Assembly of 2023 39 4 HOUSE BILL 1524
Section 6 1
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 2
That Section(s) 10–601(cc) and (dd) of Article – Economic Development of the Annotated 3
Code of Maryland be repealed. 4
SECTION 2. AND BE IT FURTHER ENACTED , That Section(s) 10–601(ee) through 5
(iii) of Article – Economic Development of the Annotated Code of Maryland be renumbered 6
to be Section(s) 10–601(cc) through (ggg), respectively. 7
SECTION 3. AND BE IT FURTHER ENACTED , That the Laws of Maryland read 8
as follows: 9
Article – Business Regulation 10
11–510. 11
(b) The Commission may issue a license and award racing days only to: 12
(1) the Maryland Jockey Club of Baltimore City, Inc.; 13
(2) the Laurel Racing Assoc., Inc.; and 14
(3) subject to § 10–1003(b) of the Economic Development Article[,]: 15
(I) the Maryland Thoroughbred Racetrack Operating Authority; OR 16
(II) A NONPROFIT ORGANIZA TION THAT LEASES A R ACING 17
FACILITY OWNED BY TH E MARYLAND THOROUGHBRED RACETRACK OPERATING 18
AUTHORITY. 19
11–519. 20
(d) (1) (i) On or before December 31, [2024] 2025, the owner of the Bowie 21
Race Course Training Center shall convey the Bowie Race Course Training Center property 22
to the City of Bowie “as is”, with all defects that may exist, whether known or unknown, 23
and without any express or implied warranty, guarantee by, or recourse against the 24
conveyor of the property. 25
11–520. 26
(b) The Preakness Stakes may be transferred to another track in the State only: 27
(1) as a result of a disaster or emergency; OR 28
(2) DURING THE RECONSTRUCTION O F PIMLICO RACE COURSE, 29 HOUSE BILL 1524 5
SUBJECT TO THE APPRO VAL OF THE MARYLAND THOROUGHBRED RACETRACK 1
OPERATING AUTHORITY. 2
Article – Economic Development 3
10–601. 4
(a) In this subtitle the following words have the meanings indicated. 5
(b) “Authority” means the Maryland Stadium Authority. 6
(d) “Baltimore City” means, as the context requires: 7
(1) the geographic area of the City of Baltimore; or 8
(2) the Mayor and City Council of Baltimore. 9
(s) “Facility” means: 10
(1) a structure or other improvement developed at Camden Yards; 11
(2) a convention facility; 12
(3) the Hippodrome Performing Arts facility; 13
(4) a sports facility; 14
(5) a Baltimore City public school facility; 15
(6) a racing facility; 16
(7) A TRAINING FACILITY FOR THOROUGHBRED HORSES; 17
[(7)] (8) a public school facility; 18
[(8)] (9) the Hagerstown Multi–Use Sports and Events Facility; 19
[(9)] (10) a sports entertainment facility; or 20
[(10)] (11) a Prince George’s County Blue Line Corridor facility. 21
(cc) (1) “MJC Entities” means the Maryland Jockey Club of Baltimore City, 22
Inc., Laurel Racing Association Limited Partnership, Laurel Racing Association, Inc., and 23
TSG Developments Investments, Inc. 24
(2) “MJC Entities” includes an affiliate, an assignee, a designee, a 25 6 HOUSE BILL 1524
successor, or a transferee of an MJC Entity. 1
(kk) (1) “Pimlico racing facility site” means the portion of the Pimlico site 2
containing the racing facilities. 3
(2) “Pimlico racing facility site” includes the portion of the site designated 4
to contain: 5
(i) the clubhouse and events center; 6
(ii) the dirt, turf, or synthetic racetracks; 7
(iii) the infield and immediately adjacent area surrounding the 8
perimeter of the racetracks that is contained on the site; 9
(iv) the stables, barns, and training facilities; 10
(v) the trackside aprons; and 11
(vi) associated roadways, walkways, parking areas, green space, 12
fencing, and related structures and areas as designated in the plans approved by the 13
Authority. 14
(ll) “Pimlico site” means the site in Baltimore City generally bounded by Northern 15
Parkway, Park Heights Avenue, Belvedere Avenue, and Pimlico Road. 16
(oo) “Project entities” means each entity or entities or a joint venture entity or 17
entities, that exists or is formed by any combination of MJC Entities, an entity owned by 18
the City of Baltimore (the Baltimore City Entity), or [an entity owned by Anne Arundel 19
County (the Anne Arundel County Entity) ] THE MARYLAND THOROUGHBRED 20
RACETRACK OPERATING AUTHORITY for: 21
(1) the MJC Entities’ conveyance of the Pimlico site [and the Laurel Park 22
racing facility site]; 23
(2) the operation of the Pimlico racing facility site and [the Laurel Park 24
racing] TRAINING facility site; and 25
(3) the construction, development, ownership, management, and operation 26
of the racing and community development projects. 27
(tt) “Racing and Community Development Facilities Fund” means the Fund 28
established under § 10–657.3 of this subtitle. 29
(uu) “Racing and Community Development Financing Fund” means the Fund 30
established under § 10–657.2 of this subtitle. 31 HOUSE BILL 1524 7
(vv) (1) “Racing and community development projects” means improvements to 1
the Pimlico racing facility site, Pimlico site, [Laurel Park racing facility site, and Laurel 2
Park site] AND TRAINING FACILITY SITE. 3
(2) “Racing and community development projects” includes: 4
(i) predesign and design work; 5
(ii) architectural and engineering services; 6
(iii) project consulting services; 7
(iv) demolition, clean–up, site work, and grading and site drainage; 8
(v) landscaping; 9
(vi) signage; 10
(vii) parking, roadways, fencing, walkways, sidewalks, and green 11
space; 12
(viii) security systems; 13
(ix) lighting, sound, video, and communication systems; 14
(x) pari–mutuel and tote systems; 15
(xi) plumbing, electric, fiber, cable, utilities, and other 16
infrastructure; 17
(xii) water, sewer, and storm water management systems; 18
(xiii) construction and equipping of barns, clubhouses, dormitories or 19
other housing, an equine diagnostic and health facility, a Pimlico thoroughbred racing 20
museum, stables, tracks, training facilities, and other racing and community facilities; 21
(xiv) design and project contingencies, project allowances, and cost 22
escalators and other specifications for the projects; and 23
(xv) temporary or permanent improvements and facilities, including 24
at on– or off–site locations, used to maintain year–round racing and training. 25
(ww) (1) “Racing and community development project costs” means costs and 26
expenses associated with or that relate to the racing and community development projects. 27
(2) “Racing and community development project costs” includes transition 28 8 HOUSE BILL 1524
costs and reimbursements and the recycling of project cost savings for the benefit of the 1
racing and community development projects. 2
(xx) “Racing facility” means the Pimlico site and the [Laurel Park racing facility 3
site] TRAINING FACILITY SITE and any facilities or other improvements on the Pimlico 4
site or the [Laurel Park racing facility site] TRAINING FACILITY SITE. 5
(HHH) “TRAINING FACILITY SIT E” MEANS A TRAINING FACILITY FO R 6
THOROUGHBRED RACEHOR SES SELECTED BY THE MARYLAND THOROUGHBRED 7
RACETRACK OPERATING AUTHORITY. 8
10–628. 9
(c) (1) Unless authorized by the General Assembly, the Board of Public Works 10
may not approve an issuance by the Authority of bonds, whether taxable or tax exempt, 11
that constitute tax supported debt or nontax supported debt if, after issuance, there would 12
be outstanding and unpaid more than the following face amounts of the bonds for the 13
purpose of financing acquisition, construction, renovation, and related expenses for 14
construction management, professional fees, and contingencies in connection with: 15
(vii) racing facilities – [$375,000,000] $400,000,000; 16
10–646.1. 17
(a) Except as allowed by § 10–639 of this subtitle, to finance the planning, design, 18
and construction of any segment of a racing facility ON BEHALF OF THE MARYLAND 19
THOROUGHBRED RACETRACK OPERATING AUTHORITY, the Authority shall comply 20
with this section. 21
(b) At least 45 days before seeking approval of the Board of Public Works for each 22
bond issue or other borrowing, the Authority shall provide, in accordance with § 2–1257 of 23
the State Government Article, to the fiscal committees of the General Assembly[: 24
(1)] a comprehensive financing plan for the relevant racing facility that 25
includes: 26
[(i)] (1) the aggregate amount of funds needed for the racing 27
facility to be financed with the proposed bonds; 28
[(ii)] (2) a description of the racing facility to be constructed or 29
renovated; 30
[(iii)] (3) the anticipated total debt service for the proposed bond 31
issue; 32
[(iv)] (4) the anticipated total debt service when combined with the 33 HOUSE BILL 1524 9
debt service for all prior outstanding bond issues for racing facilities; [and] 1
[(v)] (5) anticipated project costs, AS DETERMINED BY THE 2
MARYLAND THOROUGHBRED RACETRACK OPERATING AUTHORITY, of at least 3
[$180,000,000] $250,000,000 for the Pimlico racing facility [or $155,000,000 for the 4
Laurel Park racing facility] AND $110,000,000 FOR THE TRAINING FACILITY SITE; and 5
(6) A JOINT PLAN BETWEEN THE MARYLAND THOROUGHBRED 6
RACETRACK OPERATING AUTHORITY AND THE DEPARTMENT OF HOUSING AND 7
COMMUNITY DEVELOPMENT THAT INCLUDES INVESTMENT IN WORKFO RCE 8
HOUSING IN AND AROUN D THE PIMLICO RACING FACILI TY SITE. 9
[(2) for any planned expenditures at the Laurel Park racing facility site, a 10
plan for the improvements necessary to ensure that the condition of any part of the site 11
where individuals reside is satisfactory for human habitation and meets the minimum 12
housing and sanitation standards in Anne Arundel County.] 13
(c) (1) A bond issued to finance planning, design, and construction or 14
renovations of or improvements to a racing facility: 15
(i) is a limited obligation of the Authority payable solely from money 16
pledged by the Authority to the payment of the principal of and the premium and interest 17
on the bond or money made available to the Authority for that purpose; 18
(ii) is not a debt, liability, or a pledge of the faith and credit or the 19
taxing power of the State, the Authority, or any other governmental unit; and 20
(iii) may not give rise to any pecuniary liability of the State, the 21
Authority, or any other governmental unit. 22
(2) The issuance of a bond to finance the planning, design, and construction 23
or renovations of or improvements to a racing facility is not directly, indirectly, or 24
contingently a moral or other obligation of the State, the Authority, or any other 25
governmental unit to levy or pledge any tax or make any appropriation to pay the bond. 26
(3) Each bond shall state on its face the provisions of paragraphs (1) and 27
(2) of this subsection. 28
(d) (1) In this subsection, “long–term agreement” includes a lease, operating, 29
joint venture, or management agreement with a minimum term that coincides with or 30
exceeds the initial term of the bonds issued for a racing facility. 31
(2) Before issuing any bonds for any segment of a racing facility, the 32
Authority shall ensure that the following agreements have been executed: 33
(i) subject to paragraph (3) of this subsection, a long–term 34 10 HOUSE BILL 1524
agreement regarding management and operations at the Pimlico racing facility site; AND 1
(ii) [subject to paragraph (4) of this subsection, a long–term 2
agreement regarding management and operations at the Laurel Park racing facility site; 3
and 4
(iii)] agreements between the Authority and project entities for the 5
planning, design, and construction of a racing facility. 6
(3) (i) Subject to subparagraph (ii) of this paragraph, the long–term 7
agreement required under paragraph (2)(i) of this subsection shall: 8
1. ensure the continuity of the Preakness Stakes at the 9
Pimlico racing facility site; 10
2. [ensure the MJC Entities’ sole, exclusive, and 11
unconditional rights to: 12
A. manage and operate the Pimlico racing facility site subject 13
to the exclusions and conditions in the long–term agreement; 14
B. conduct at the Pimlico racing facility site thoroughbred 15
training and racing, satellite simulcast wagering, advanced deposit wagering, and any 16
other lawful activities; 17
C. designate annually exclusive use periods for the conduct 18
of live thoroughbred training and racing; 19
D. maintain the track surfaces; 20
E. operate satellite simulcast wagering, advanced deposit 21
wagering, and any other lawful activities; and 22
F. an option to reacquire the Pimlico racing facility site at the 23
termination or expiration of the long–term agreement on mutually agreeable terms and 24
conditions, subject to the approval of the Board of Public Works; 25
3.] require the conveyance or conveyances in fee simple of the 26
Pimlico site, in whole or in part, to THE MARYLAND THOROUGHBRED RACETRACK 27
OPERATING AUTHORITY, Baltimore City, the Baltimore Development Corporation or its 28
successor or assigns, or any designated project entity, at the time and on the conditions 29
established in the long–term agreement and subject to the Authority securing all the 30
necessary development approvals and funding for the racing and community development 31
project costs; AND 32
[4. establish the MJC Entities’ rights to: 33 HOUSE BILL 1524 11
A. designate annually exclusive use periods for the conduct 1
of live thoroughbred training and racing; 2
B. maintain the track surfaces; and 3
C. operate satellite simulcast wagering, advanced deposit 4
wagering, and any other lawful activities; 5
5. preserve the MJC Entities’ tangible, intangible, 6
management, performance, distribution, intellectual property, advertising, concession, 7
merchandising, sponsorship, media, streaming, naming, licensing, and commercial 8
development rights, and any other rights identified by the MJC Entities; 9
6. subject to the operating agreements of the project entities, 10
preserve the MJC Entities’ right to retain or designate revenues and profits associated with 11
the MJC Entities’ rights and lawful activities; and 12
7.] 3. [subject to subparagraph (iii) of this paragraph,] 13
establish: 14
A. the right of the Authority or an entity designated by the 15
Authority to manage and operate the Pimlico Clubhouse and Events Facility, grounds, and 16
any facility [not designated for the MJC Entities’ year–round use]; 17
B. the obligation of the Authority or an entity designated by 18
the Authority to operate, maintain as a first–class facility, in good condition, repair, and 19
secure the Pimlico racing facility site during periods identified in the long–term agreement; 20
and 21
C. the obligation of the Authority or an entity designated by 22
the Authority to cooperate with respect to the provision of adequate parking and efficient 23
transportation plans around the Pimlico racing facility site. 24
(ii) 1. Unless thoroughbred racing is no longer a lawful activity, 25
or is otherwise rendered not commercially viable as a result of a change in law or regulation, 26
the long–term agreement under paragraph (2)(i) of this subsection may not expire while 27
any bond, debt, or other financial instrument issued by the Authority for the improvement 28
of a racing facility remains unpaid. 29
2. If thoroughbred racing is no longer a lawful activity, or is 30
otherwise rendered not commercially viable as a result of a change in law or regulation, the 31
parties to the long–term agreement shall notify the Board of Public Works at least 180 days 32
before the expiration or termination of the long–term agreement. 33
3. The notice required under subsubparagraph 2 of this 34
subparagraph shall contain a wind–down plan. 35 12 HOUSE BILL 1524
4. The long–term agreement required under paragraph (2)(i) 1
of this subsection shall contain dispute resolution provisions, including expedited review, 2
in the event that there is a dispute among the parties regarding the existence of the 3
conditions described in subsubparagraph 1 of this subparagraph or the contents of the 4
wind–down plan. 5
[(iii) The MJC Entities shall have: 6
1. priority of use over the Pimlico Clubhouse and Events 7
Facility and grounds for MJC Entities’ purposes related to racing, wagering, or other 8
agreed–on uses; and 9
2. the right to access and egress from the Pimlico racing 10
facility site during periods identified in the agreement.] 11
(4) (i) Subject to subparagraph (ii) of this paragraph, the [long–term 12
agreement] AGREEMENTS required under paragraph (2)(ii) of this subsection shall: 13
1. [ensure that the Maryland Million is run annually at 14
Laurel Park except: 15
A. during periods of construction; 16
B. if prevented from doing so by weather, acts of God, or other 17
circumstances beyond the control of the racing licensee; or 18
C. if the racing licensee and the Maryland Million, LLC agree 19
to another location that is approved by the State Racing Commission; 20
2. ensure the MJC Entities’ sole, exclusive, and 21
unconditional rights to: 22
A. manage and operate the Laurel Park racing facility site; 23
and 24
B. conduct at the Laurel Park racing facility site year–round 25
thoroughbred training and racing, satellite simulcast wagering, advanced deposit 26
wagering, and any other lawful activities; 27
3. provide for the MJC Entities: 28
A. grant of an interest in the Laurel Park racing facility site, 29
in whole or in part, to Anne Arundel County or an entity or entities designated by Anne 30
Arundel County, including any designated project entity, for a specified term, including 31
renewals, and on the conditions established in the long–term agreement and subject to the 32
Authority securing all necessary development approvals and funding for the racing and 33 HOUSE BILL 1524 13
community development project costs; 1
B. access to the Laurel Park racing facility site for parking 2
and roadways; 3
C. rights to the Laurel Park racing facility site at the 4
expiration or termination of the long–term agreements on mutually agreeable terms and 5
conditions; 6
D. payment to Anne Arundel County, or an entity designated 7
by Anne Arundel County, of an amount at least equal to the prorated amount of real 8
property taxes paid in fiscal year 2020 for the Laurel Park racing facility site and any 9
improvements on the site, unless otherwise agreed to by the MJC Entities and Anne 10
Arundel County; and 11
E. an obligation to maintain as a first–class facility, in good 12
condition, repair, and secure the Laurel Park racing facility site during the periods 13
identified in the long–term agreement; 14
4.] preserve the MJC Entities’ tangible, intangible, 15
management, performance, distribution, intellectual property, advertising, concession, 16
merchandising, sponsorship, media, streaming, naming, licensing, commercial 17
development, and any other rights identified by the MJC Entities; and 18
[5.] 2. subject to the operating agreements of the project entities, 19
preserve the MJC Entities’ right to retain or designate revenues and profits associated with 20
the MJC Entities’ rights and lawful activities. 21
(ii) 1. Unless thoroughbred racing is no longer a lawful activity, 22
or is otherwise rendered not commercially viable as a result of a change in law or regulation, 23
the [long–term agreement] AGREEMENTS under paragraph (2)(ii) of this subsection may 24
not expire while any bond, debt, or other financial instrument issued by the Authority for 25
the improvement of a racing facility remains unpaid. 26
2. If thoroughbred racing is no longer a lawful activity, or is 27
otherwise rendered not commercially viable as a result of a change in law or regulation, the 28
parties to the [long–term agreement] AGREEMENTS shall notify the Board of Public Works 29
at least 180 days before the expiration or termination of the [long–term agreement] 30
AGREEMENTS . 31
3. The notice required under subsubparagraph 2 of this 32
subparagraph shall contain a wind–down plan. 33
4. The [long–term agreement] AGREEMENTS required 34
under paragraph (2)(ii) of this subsection shall contain dispute resolution provisions, 35
including expedited review, in the event that there is a dispute among the parties regarding 36 14 HOUSE BILL 1524
the existence of the conditions described in subsubparagraph 1 of this subparagraph or the 1
contents of the wind–down plan. 2
(e) [The] ON BEHALF OF THE MARYLAND THOROUGHBRED RACETRACK 3
OPERATING AUTHORITY, THE Authority shall enter into agreements with project entities 4
or local entities for planning, design, and construction of the racing and community 5
development projects at a racing facility site. 6
(f) For fiscal year 2022 and each fiscal year thereafter, until the bonds that have 7
been issued to finance racing facilities are no longer outstanding and unpaid, the 8
Comptroller shall deposit into the Racing and Community Development Financing Fund 9
AT LEAST $17,000,000 from the State Lottery Fund under § 9–120(b)(1)(iv) of the State 10
Government Article. 11
(g) If the money deposited in the Racing and Community Development Financing 12
Fund in accordance with subsection (f) of this section is not needed for debt service or debt 13
service reserves, the Authority may transfer those funds to the Racing and Community 14
Development Facilities Fund. 15
(h) If funds are needed for debt service or debt service reserves, the Authority 16
may transfer money in the Racing and Community Development Facilities Fund to the 17
Racing and Community Development Financing Fund. 18
10–1003. 19
(a) The purpose of the Authority is to maintain the State as a best–in–class 20
thoroughbred horse racing venue. 21
(b) The Authority may: 22
(1) study and make any recommendations that the Authority finds are in 23
the best interests of thoroughbred racing in the State; 24
(2) in coordination with other State entities, develop new and existing 25
horse racing and training facilities in the State; 26
(3) [subject to subsection (c) of this section and in accordance with an 27
executive order or a determination of the State Racing Commission that a thoroughbred 28
racing licensee under Title 11, Subtitle 5 of the Business Regulation Article, for any reason 29
other than weather, an act of God, or other circumstances beyond the control of the licensee, 30
is unable to support the minimum number of live racing days: 31
(i)] SUBJECT TO THE APPRO VAL OF AN AGREEMENT BY THE 32
BOARD OF PUBLIC WORKS, manage and oversee, in compliance with Title 11, Subtitle 5 33
of the Business Regulation Article: 34
HOUSE BILL 1524 15
[1.] (I) day–to–day thoroughbred horse racing operations; 1
[2.] (II) live racing days; and 2
[3.] (III) assets in the State; [and] 3
[(ii)] (4) in coordination with the Maryland Economic Development 4
Corporation, acquire property or contractual interests consistent with § 11–521 of the 5
Business Regulation Article and the procedures set forth in §§ 8–334 through 8–339 of the 6
Transportation Article; 7
[(4)] (5) enter into any agreements, leases, partnerships, or contracts 8
necessary to: 9
(i) support and sustain Maryland thoroughbred racing and 10
pari–mutuel wagering activity; and 11
(ii) ensure compliance with State Racing Commission rules and 12
regulations; 13
[(5)] (6) authorize or create a separate body, entity, or holding company 14
to carry out any provisions of this subtitle; 15
[(6)] (7) adopt regulations to carry out the provisions of this subtitle; and 16
[(7)] (8) make any other recommendations the Authority deems 17
necessary. 18
[(c) Before the Authority may exercise the powers authorized under subsection 19
(b)(3) of this section, the Legislative Policy Committee shall review and comment on the 20
executive order or determination of the State Racing Commission described under 21
subsection (b)(3) of this section.] 22
Article – State Government 23
9–120. 24
(b) (1) By the end of the month following collection, the Comptroller shall 25
deposit, cause to be deposited, or pay: 26
(iv) after June 30, 2021, into the Racing and Community 27
Development Financing Fund established under § 10–657.2 of the Economic Development 28
Article from the money that remains in the State Lottery Fund, after the distribution under 29
subsection (a) of this section, an amount equal to AT LEAST $17,000,000 in each fiscal year 30
until the bonds issued for a racing facility have matured; 31
16 HOUSE BILL 1524
9–1A–29. 1
(a) There is a Racetrack Facility Renewal Account under the authority of the 2
State Racing Commission. 3
(d) (1) The amount of funds made available from the Racetrack Facility 4
Renewal Account shall be allocated as follows: 5
(i) [1.] for fiscal year [2021] 2025 AND EACH FISCAL YEAR 6
THEREAFTER , [80%] 10% to be deposited in the Racing and Community Development 7
Facilities Fund established under § 10–657.3 of the Economic Development Article; [and] 8
(II) [2.] for fiscal year 2022 and thereafter, 80% to the State 9
Lottery Fund established under § 9–120 of this title; and 10
[(ii)] (III) [subject to paragraph (2) of this subsection, 20% to 11
Rosecroft Raceway and] FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THEREAFTER , 12
10% TO Ocean Downs Race Course [according to a formula established in regulations 13
adopted by the State Racing Commission]. 14
(2) [Of the amount available to Rosecroft Raceway from the Racetrack 15
Facility Renewal Account under paragraph (1)(ii) of this subsection: 16
(i) the unencumbered fund balance, including accrued interest, 17
existing as of June 30, 2020, shall be transferred to the Racing and Community 18
Development Facilities Fund established under § 10–646.3 of the Economic Development 19
Article; and 20
(ii) subject] SUBJECT to paragraph (3) of this subsection, FROM 21
THE AMOUNT TRANSFERR ED TO THE STATE LOTTERY FUND IN ACCORDANCE WITH 22
PARAGRAPH (1)(II) OF THIS SUBSECTION , for fiscal year [2021] 2025 and each fiscal 23
year thereafter, $200,000 shall be transferred annually to Employ Prince George’s, Inc. for 24
workforce development and small, minority, and women–owned business development. 25
(3) (i) It is the intent of the General Assembly that the funds 26
transferred to Employ Prince George’s, Inc. shall supplement, and not supplant, funds 27
otherwise available for Employ Prince George’s, Inc. 28
(ii) If Employ Prince George’s, Inc. is unable to expend the funds 29
transferred under paragraph [(2)(ii)] (2) of this subsection during the 12–month period 30
after which Employ Prince George’s, Inc. received the funds, Employ Prince George’s, Inc. 31
shall partner with similar organizations located within Prince George’s County to expend 32
the balance of the funds from that period to encourage workforce development and small, 33
minority, and women–owned business development. 34
(h) The State Racing Commission shall adopt regulations to implement the 35 HOUSE BILL 1524 17
provisions of this section, including regulations to[: 1
(1)] address minimum criteria for the types of improvements to be made by 2
the holder of a license[; and 3
(2) establish a formula to allocate funds under subsection (d)(2) of this 4
section between Rosecroft Raceway and Ocean Downs Race Course]. 5
9–1E–06. 6
(b) (1) [An] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 7
SUBSECTION, AN applicant for a sports wagering license shall pay to the Commission an 8
application fee of: 9
[(1)] (I) $2,000,000 for a Class A–1 sports wagering facility license; 10
[(2)] (II) $1,000,000 for a Class A–2 sports wagering facility license; 11
[(3)] (III) $250,000 for a Class B–1 sports wagering facility license; 12
[(4)] (IV) $50,000 for a Class B–2 sports wagering facility license; and 13
[(5)] (V) $500,000 for a mobile sports wagering license. 14
(2) THE REQUIREMENT TO PA Y AN APPLICATION FEE TO THE 15
COMMISSION UNDER PARA GRAPH (1) OF THIS SUBSECTION D OES NOT APPLY TO AN 16
APPLICANT FOR A CLASS A–2 SPORTS WAGERING FACI LITY LICENSE THAT IS A 17
HORSE RACING LICENSE E DESCRIBED UNDER § 11–510(B)(3) OF THE BUSINESS 18
REGULATION ARTICLE. 19
(d) (1) A sports wagering licensee may not begin accepting wagers on sporting 20
events until the application fee under subsection [(b)] (B)(1) of this section is paid in full 21
and the applicant reimburses the Commission for expenses re lated to performing 22
background investigations. 23
(2) The application fee under subsection [(b)] (B)(1) of this section is 24
nonrefundable. 25
Article – Tax – General 26
2–1302.3. 27
AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER §§ 2–1301 THROUGH 28
2–1302.2 OF THIS SUBTITLE , THE COMPTROLLER SHALL DIS TRIBUTE THE SALES 29
AND USE TAX REVENUE THAT IS ATTRIBUTABLE TO THE PURCHASE OF A RACEHORSE 30 18 HOUSE BILL 1524
FOLLOWING A CLAIMING RACE TO THE RACING AND COMMUNITY DEVELOPMENT 1
FACILITIES FUND ESTABLISHED UNDE R § 10–657.3 OF THE ECONOMIC 2
DEVELOPMENT ARTICLE. 3
2–1303. 4
After making the distributions required under §§ 2–1301 through [2–1302.2] 5
2–1302.3 of this subtitle, the Comptroller shall pay: 6
(1) revenues from the hotel surcharge into the Dorchester County 7
Economic Development Fund established under § 10–130 of the Economic Development 8
Article; 9
(2) to the Blueprint for Maryland’s Future Fund established under § 5–206 10
of the Education Article, the following percentage of the remaining sales and use tax 11
revenues: 12
(i) for fiscal year 2023, 9.2%; 13
(ii) for fiscal year 2024, 11.0%; 14
(iii) for fiscal year 2025, 11.3%; 15
(iv) for fiscal year 2026, 11.7%; and 16
(v) for fiscal year 2027 and each fiscal year thereafter, 12.1%; and 17
(3) the remaining sales and use tax revenue into the General Fund of the 18
State. 19
10–207. 20
(a) To the extent included in federal adjusted gross income, the amounts under 21
this section are subtracted from the federal adjusted gross income of a resident to determine 22
Maryland adjusted gross income. 23
(ii) (1) In this subsection, [“Laurel Park site” and “Pimlico site” have the 24
meanings] “PIMLICO SITE” HAS THE MEANING stated in § 10–601 of the Economic 25
Development Article. 26
(2) The subtraction under subsection (a) of this section includes: 27
(i) the amount of gain recognized as a result of the direct or indirect 28
transfer or conveyance of[: 29
1.] any property located, or used, at or within the [Laurel 30 HOUSE BILL 1524 19
Park site or] Pimlico site; and 1
[2. any portion of the Bowie Race Course Training Center 2
property; and] 3
(ii) the amount of income recognized as a result of any expenditure 4
of funds directly or indirectly by the State[,] OR Baltimore City[, or Anne Arundel County] 5
with respect to the [Laurel Park site or] Pimlico site. 6
10–307. 7
(a) To the extent included in federal taxable income, the amounts under this 8
section are subtracted from the federal taxable income of a corporation to determine 9
Maryland modified income. 10
(g) The subtraction under subsection (a) of this section includes the amounts 11
allowed to be subtracted for an individual under: 12
(1) § 10–207(i) of this title (Profits on sale or exchange of State or local 13
bonds); 14
(2) § 10–207(k) of this title (Relocation and assistance payments); 15
(3) § 10–207(m) of this title (State or local income tax refunds); 16
(4) § 10–207(c–1) of this title (State tax–exempt interest from mutual 17
funds); 18
(5) [§ 10–207(hh)] § 10–207(II) of this title (Gain on the transfer of 19
property within the [Laurel Park site or] Pimlico site [or Bowie Race Course Training 20
Center property] and income recognized as result of governmental expenditures); or 21
(6) § 10–207(jj) of this title (Coronavirus relief payments). 22
11–236. 23
(a) (1) In this section the following words have the meanings indicated. 24
(2) (i) “Construction material” means an item of tangible personal 25
property that is used to construct or renovate a building, a structure, or an improvement 26
on land and that typically loses its separate identity as personal property once incorporated 27
into the real property. 28
(ii) “Construction material” includes building materials, building 29
systems equipment, landscaping materials, and supplies. 30
20 HOUSE BILL 1524
(3) [“Laurel Park racing facility site” has the meaning stated in § 10–601 1
of the Economic Development Article. 2
(4)] “Pimlico site” [has the meaning] AND “TRAINING FACILITY SI TE” 3
HAVE THE MEANINGS stated in § 10–601 of the Economic Development Article. 4
(b) The sales and use tax does not apply to a sale of construction material, if: 5
(1) the construction material is purchased by a person solely for use in 6
furtherance of the provisions of Title 10, Subtitle 6 of the Economic Development Article 7
for the construction or redevelopment at the [Laurel Park racing facility site or] Pimlico 8
site OR TRAINING FACILITY SITE; 9
(2) the sale is made before January 1, [2026] 2029; and 10
(3) the buyer provides the vendor with eligibility of the exemption issued 11
by the Comptroller. 12
(c) The Comptroller shall adopt regulations to implement this section. 13
Article – Tax – Property 14
7–246. 15
(a) In this section, [“Laurel Park racing facility site” and] “Pimlico racing facility 16
site” AND “TRAINING FACILITY SI TE” have the meanings stated in § 10–601 of the 17
Economic Development Article. 18
(b) An interest of a person in an improvement at the [Laurel Park racing facility 19
site or] Pimlico racing facility site OR TRAINING FACILITY SITE or an interest of a person 20
in the real property of the [Laurel Park racing facility site or] Pimlico racing facility site 21
OR TRAINING FACILITY SITE is not subject to property tax for the duration of: 22
(1) with respect to the Pimlico racing facility site, the long–term agreement 23
described under [§ 10–646.1(d)(2)(i)] § 10–646.1(D) of the Economic Development Article; 24
or 25
(2) with respect to the [Laurel Park racing facility site] TRAINING 26
FACILITY SITE, the long–term agreement described under [§ 10–646.1(d)(2)(ii)] § 27
10–646.1(D) of the Economic Development Article. 28
12–108. 29
(hh) (1) In this subsection, [“Laurel Park racing facility site”,] “MJC Entities”, 30
“Pimlico racing facility site”, “Pimlico site”, [and] “project entities”, AND “TRAINING 31 HOUSE BILL 1524 21
FACILITY SITE” have the meanings stated in § 10–601 of the Economic Development 1
Article. 2
(2) An instrument of writing is not subject to recordation tax if the 3
instrument of writing transfers or grants a security interest in property that is[: 4
(i)] located at or within the [Laurel Park racing facility site,] Pimlico 5
racing facility site, [or] Pimlico site, OR TRAINING FACILITY SITE and the transfer or 6
grant is by any combination of project entities, MJC Entities, Baltimore City, OR an entity 7
designated by Baltimore City[, Anne Arundel County, or an entity designated by Anne 8
Arundel County; or 9
(ii) the property identified as the Bowie Race Course Training 10
Center under § 11–519 of the Business Regulation Article that is transferred by the owner 11
of the property to a government entity]. 12
13–207. 13
(a) An instrument of writing is not subject to transfer tax to the same extent that 14
it is not subject to recordation tax under: 15
(26) § 12–108(hh) of this article (Transfer of real property within the [Laurel 16
Park racing facility site,] Pimlico racing facility site, Pimlico site, or [Bowie Race Course 17
Training Center property)] TRAINING FACILITY SI TE). 18
13–410. 19
An instrument of writing is not subject to the county transfer tax to the same extent 20
that it is not subject to the recordation tax under: 21
(1) § 12–108(cc) of this article (Certain transfers to land trusts); or 22
(2) § 12–108(hh) of this article (Transfer of real property within the [Laurel 23
Park racing facility site,] Pimlico racing facility site, Pimlico site, or [Bowie Race Course 24
Training Center property)] TRAINING FACILITY SI TE). 25
Chapter 590 of the Acts of 2020 26
SECTION 9. AND BE IT FURTHER ENACTED, That: 27
(a) In addition to the funds otherwise available for racing and community 28
development project costs under this Act and notwithstanding the limitations under § 29
10–657.3 of the Economic Development Article, as enacted by Section 1 of this Act, 30
$2,000,000 of the funds transferred to the Racing and Community Development Facilities 31
Fund established under § 10–657.3 of the Economic Development Article in accordance with 32
§ 9–1A–29(d)(2) of the State Government Article, as enacted by Section 1 of this Act, may 33 22 HOUSE BILL 1524
be used: 1
(1) BEFORE JUNE 1, 2024, only to reimburse the racing licensees’ costs 2
attributable to maintaining ongoing year–round racing operations, ensuring the continued 3
running of the Preakness Stakes at the Pimlico site during construction, and expenses 4
related to the Bowie Race Course Training Center before the conveyance of the property in 5
accordance with § 11–519 of the Business Regulation Article, as enacted by Section 1 of this 6
Act; AND 7
(2) ON OR AFTER JUNE 1, 2024, BY THE MARYLAND THOROUGHBRED 8
RACETRACK OPERATING AUTHORITY FOR TRANSIT IONAL, OPERATIONAL , AND 9
CAPITAL COSTS AT LAUREL PARK AND OTHER USES D EEMED NECESSARY BY T HE 10
AUTHORITY. 11
(b) The Maryland Stadium Authority shall cooperate with the racing licensee to 12
identify the costs described under subsection [(a)] (A)(1) of this section and establish an 13
approval process before any reimbursement is provided in accordance with subsection [(a)] 14
(A)(1) of this section. 15
Chapter 111 of the Acts of 2023 16
SECTION 6. AND BE IT FURTHER ENACTED, That, except as provided in Section 17
5 of this Act, this Act shall take effect June 1, 2023. Section 2 of this Act shall remain 18
effective for a period of [4] 6 years and 1 month and, at the end of June 30, [2027] 2029, 19
Section 2 of this Act, with no further action required by the General Assembly, shall be 20
abrogated and of no further force and effect. 21
SECTION 4. AND BE IT FURTHER ENACTED, That it is the intent of the General 22
Assembly that: 23
(1) the Maryland Jockey Club transfer, in accordance with the Pimlico 24
Transfer Agreement, ownership of the Pimlico racing facility site to the Maryland 25
Thoroughbred Racetrack Operating Authority; 26
(2) on or before January 1, 2025: 27
(i) the Maryland Jockey Club make Laurel Park available to the 28
Maryland Thoroughbred Racetrack Operating Authority for use as a transition facility 29
while new racing facilities are constructed at the Pimlico racing facility site and a new 30
training facility is constructed; and 31
(ii) the Maryland Jockey Club and Laurel Racing Association 32
Limited Partnership transfer the right to conduct all thoroughbred horse racing in the 33
State to the Maryland Thoroughbred Racetrack Operating Authority or its designees except 34
that the Maryland Jockey Club or an affiliate may conduct the Preakness Stakes, the 35
Black–Eyed Susan Stakes, and related undercard races in 2025 at the Pimlico racing 36 HOUSE BILL 1524 23
facility site and Laurel Park in 2026; 1
(3) on or before July 1, 2026, the Maryland Jockey Club and Maryland 2
Thoroughbred Racetrack Operating Authority enter into a licensing agreement for the 3
intellectual property related to the Preakness Stakes and the Black–Eyed Susan Stakes; 4
(4) on or before January 1, 2027, the Maryland Jockey Club and the Laurel 5
Racing Association Limited Partnership enter into a long–term loan agreement with the 6
Maryland Thoroughbred Racetrack Operating Authority granting the Authority the right 7
to display the Woodlawn Vase at any location of the Authority’s choosing; 8
(5) the ownership of the Maryland Jockey Club and Pimlico names and 9
trademarks be transferred to the Maryland Thoroughbred Racetrack Operating Authority; 10
and 11
(6) the Maryland Jockey Club and Laurel Racing Association Limited 12
Partnership transfer to the Maryland Thoroughbred Racetrack Operating Authority: 13
(i) all personal property and equipment at the Pimlico racing facility 14
site necessary to operate year–round racing and to use the personal property and 15
equipment at Laurel Park during the period that the Pimlico racing facility site is under 16
construction; 17
(ii) the Maryland Thoroughbred Purse Account; and 18
(iii) material contracts, permits, and licenses applicable to the 19
Pimlico Racetrack. 20
SECTION 5. AND BE IT FURTHER ENACTED, That : 21
(a) On or before June 30, 2024, the unencumbered fund balance, including 22
accrued interest, that is allocated to the Rosecroft Raceway under the Racetrack Facility 23
Renewal Account shall be transferred to the Racing and Community Development 24
Facilities Fund established under § 10–657.3 of the Economic Development Article. 25
(b) The funds described under subsection (a) of this section may be used by the 26
Maryland Thoroughbred Racetrack Operating Authority for transitional, operational, and 27
capital costs at Laurel Park and other uses deemed necessary by the Authority. 28
SECTION 6. AND BE IT FURTHER ENACTED, That it is the intent of the General 29
Assembly that this Act is consistent with the terms set forth in the executed Pimlico 30
Redevelopment Community Compact. 31
SECTION 7. AND BE IT FURTHER ENACTED, That this Act shall take effect June 32
1, 2024. 33