EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Re–referred to: Ways and Means and Appropriations, March 5, 2024
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 16, 2024
CHAPTER ______
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 2 HOUSE BILL 1524
sports wagering facility license; requiring the Comptroller to distribute the sales and 1
use tax revenue attributable to the purchase of certain racehorses to a certain fund; 2
altering certain income tax subtraction modifications, sales and use tax exemptions, 3
property tax exemptions, transfer tax exemptions, and recordation tax exemptions 4
related to horse racing; extending the termination date of certain provisions of law 5
related to the Maryland Thoroughbred Racetrack Operating Authority; and 6
generally relating to horse racing in the State. 7
BY repealing 8
Article – Economic Development 9
Section 10–601(cc) and (dd) 10
Annotated Code of Maryland 11
(2018 Replacement Volume and 2023 Supplement) 12
BY renumbering 13
Article – Economic Development 14
Section 10–601(ee) through (iii) 15
to be Section 10–601(cc) through (ggg), respectively 16
Annotated Code of Maryland 17
(2018 Replacement Volume and 2023 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – Business Regulation 20
Section 11–510(b), 11–519(d)(1)(i), and 11–520(b) 21
Annotated Code of Maryland 22
(2015 Replacement Volume and 2023 Supplement) 23
BY repealing and reenacting, without amendments, 24
Article – Economic Development 25
Section 10–601(a), (b), and (d) 26
Annotated Code of Maryland 27
(2018 Replacement Volume and 2023 Supplement) 28
BY repealing and reenacting, with amendments, 29
Article – Economic Development 30
Section 10–601(s), 10–628(c)(1)(vii), 10–646.1, and 10–1003 31
Annotated Code of Maryland 32
(2018 Replacement Volume and 2023 Supplement) 33
BY repealing and reenacting, without amendments, 34
Article – Economic Development 35
Section 10–601(cc), (kk), (ll), (tt), (uu), and (ww) 36
Annotated Code of Maryland 37
(2018 Replacement Volume and 2023 Supplement) 38
(As enacted by Section 2 of this Act) 39
BY repealing and reenacting, with amendments, 40 HOUSE BILL 1524 3
Article – Economic Development 1
Section 10–601(oo), (vv), and (xx) 2
Annotated Code of Maryland 3
(2018 Replacement Volume and 2023 Supplement) 4
(As enacted by Section 2 of this Act) 5
BY adding to 6
Article – Economic Development 7
Section 10–601(hhh) 8
Annotated Code of Maryland 9
(2018 Replacement Volume and 2023 Supplement) 10
BY repealing and reenacting, with amendments, 11
Article – State Government 12
Section 9–120(b)(1)(iv), 9–1A–29(d) and (h), 9–1E–01(d), and 9–1E–06(b) and (d) 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2023 Supplement) 15
BY repealing and reenacting, without amendments, 16
Article – State Government 17
Section 9–1A–29(a) and 9–1E–01(a) 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2023 Supplement) 20
BY adding to 21
Article – Tax – General 22
Section 2–1302.3 23
Annotated Code of Maryland 24
(2022 Replacement Volume and 2023 Supplement) 25
BY repealing and reenacting, with amendments, 26
Article – Tax – General 27
Section 2–1303, 10–207(ii), 10–307(g), and 11–236 28
Annotated Code of Maryland 29
(2022 Replacement Volume and 2023 Supplement) 30
BY repealing and reenacting, without amendments, 31
Article – Tax – General 32
Section 10–207(a) and 10–307(a) 33
Annotated Code of Maryland 34
(2022 Replacement Volume and 2023 Supplement) 35
BY repealing and reenacting, with amendments, 36
Article – Tax – Property 37
Section 7–246, 12–108(hh), 13–207(a)(26), and 13–410 38
Annotated Code of Maryland 39
(2019 Replacement Volume and 2023 Supplement) 40 4 HOUSE BILL 1524
BY repealing and reenacting, with amendments, 1
Chapter 590 of the Acts of the General Assembly of 2020 2
Section 9 3
BY repealing and reenacting, with amendments, 4
Chapter 111 of the Acts of the General Assembly of 2023 5
Section 6 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That Section(s) 10–601(cc) and (dd) of Article – Economic Development of the Annotated 8
Code of Maryland be repealed. 9
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 10–601(ee) through 10
(iii) of Article – Economic Development of the Annotated Code of Maryland be renumbered 11
to be Section(s) 10–601(cc) through (ggg), respectively. 12
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of M aryland read 13
as follows: 14
Article – Business Regulation 15
11–510. 16
(b) The Commission may issue a license and award racing days only to: 17
(1) the Maryland Jockey Club of Baltimore City, Inc.; 18
(2) the Laurel Racing Assoc., Inc.; and 19
(3) subject to § 10–1003(b) of the Economic Development Article[,]: 20
(I) the Maryland Thoroughbred Racetrack Operating Authority; OR 21
(II) A NONPROFIT ORGANIZA TION THAT LEASES OR SUBLEASES 22
A RACING FACILITY OWNED BY FROM THE MARYLAND THOROUGHBRED 23
RACETRACK OPERATING AUTHORITY. 24
11–519. 25
(d) (1) (i) On or before December 31, [2024] 2025, the owner of the Bowie 26
Race Course Training Center shall convey the Bowie Race Course Training Center property 27
to the City of Bowie “as is”, with all defects that may exist, whether known or unknown, 28
and without any express or implied warranty, guarantee by, or recourse against the 29
conveyor of the property. 30
HOUSE BILL 1524 5
11–520. 1
(b) The Preakness Stakes may be transferred to another track in the State only: 2
(1) as a result of a disaster or emergency; OR 3
(2) DURING THE RECONSTRU CTION OF PIMLICO RACE COURSE, 4
SUBJECT TO THE APPRO VAL OF THE MARYLAND THOROUGHBRED RACETRACK 5
OPERATING AUTHORITY. 6
Article – Economic Development 7
10–601. 8
(a) In this subtitle the following words have the meanings indicated. 9
(b) “Authority” means the Maryland Stadium Authority. 10
(d) “Baltimore City” means, as the context requires: 11
(1) the geographic area of the City of Baltimore; or 12
(2) the Mayor and City Council of Baltimore. 13
(s) “Facility” means: 14
(1) a structure or other improvement developed at Camden Yards; 15
(2) a convention facility; 16
(3) the Hippodrome Performing Arts facility; 17
(4) a sports facility; 18
(5) a Baltimore City public school facility; 19
(6) a racing facility; 20
(7) A TRAINING FACILITY FOR THOROUG HBRED HORSES ; 21
[(7)] (8) a public school facility; 22
[(8)] (9) the Hagerstown Multi–Use Sports and Events Facility; 23
[(9)] (10) a sports entertainment facility; or 24
6 HOUSE BILL 1524
[(10)] (11) a Prince George’s County Blue Line Corridor facility. 1
(cc) (1) “MJC Entities” means the Maryland Jockey Club of Baltimore City, 2
Inc., Laurel Racing Association Limited Partnership, Laurel Racing Association, Inc., and 3
TSG Developments Investments, Inc. 4
(2) “MJC Entities” includes an affiliate, an assignee, a designee, a 5
successor, or a transferee of an MJC Entity. 6
(kk) (1) “Pimlico racing facility site” means the portion of the Pimlico site 7
containing the racing facilities. 8
(2) “Pimlico racing facility site” includes the portion of the site designated 9
to contain: 10
(i) the clubhouse and events center; 11
(ii) the dirt, turf, or synthetic racetracks; 12
(iii) the infield and immediately adjacent area surrounding the 13
perimeter of the racetracks that is contained on the site; 14
(iv) the stables, barns, and training facilities; 15
(v) the trackside aprons; and 16
(vi) associated roadways, walkways, parking areas, green space, 17
fencing, and related structures and areas as designated in the plans approved by the 18
Authority. 19
(ll) “Pimlico site” means the site in Baltimore City generally bounded by Northern 20
Parkway, Park Heights Avenue, Belvedere Avenue, and Pimlico Road. 21
(oo) “Project entities” means each entity or entities or a joint venture entity or 22
entities, that exists or is formed by any combination of MJC Entities, an entity owned by 23
the City of Baltimore (the Baltimore City Entity), or [an entity owned by Anne Arundel 24
County (the Anne Arundel County Entity) ] THE MARYLAND THOROUGHBRED 25
RACETRACK OPERATING AUTHORITY for: 26
(1) the MJC Entities’ conveyance of the Pimlico site [and the Laurel Park 27
racing facility site]; 28
(2) the operation of the Pimlico racing facility site and [the Laurel Park 29
racing] TRAINING facility site; and 30
HOUSE BILL 1524 7
(3) the construction, development, ownership, management, and operation 1
of the racing and community development projects. 2
(tt) “Racing and Community Development Facilities Fund” means the Fund 3
established under § 10–657.3 of this subtitle. 4
(uu) “Racing and Community Development Financing Fund” means the Fund 5
established under § 10–657.2 of this subtitle. 6
(vv) (1) “Racing and community development projects” means improvements to 7
the Pimlico racing facility site, Pimlico site, [Laurel Park racing facility site, and Laurel 8
Park site] AND TRAINING FACILIT Y SITE. 9
(2) “Racing and community development projects” includes: 10
(i) predesign and design work; 11
(ii) architectural and engineering services; 12
(iii) project consulting services; 13
(iv) demolition, clean–up, site work, and grading and site drainage; 14
(v) landscaping; 15
(vi) signage; 16
(vii) parking, roadways, fencing, walkways, sidewalks, and green 17
space; 18
(viii) security systems; 19
(ix) lighting, sound, video, and communication systems; 20
(x) pari–mutuel and tote systems; 21
(xi) plumbing, electric, fiber, cable, utilities, and other 22
infrastructure; 23
(xii) water, sewer, and storm water management systems; 24
(xiii) construction and equipping of barns, clubhouses, dormitories or 25
other housing, an equine diagnostic and health facility, a Pimlico thoroughbred racing 26
museum, stables, tracks, training facilities, and other racing and community facilities; 27
(xiv) design and project contingencies, project allowances, and cost 28
escalators and other specifications for the projects; and 29 8 HOUSE BILL 1524
(xv) temporary or permanent improvements and facilities, including 1
at on– or off–site locations, used to maintain year–round racing and training. 2
(ww) (1) “Racing and community development project costs” means costs and 3
expenses associated with or that relate to the racing and community development projects. 4
(2) “Racing and community development project costs” includes transition 5
costs and reimbursements and the recycling of project cost savings for the benefit of the 6
racing and community development projects. 7
(xx) “Racing facility” means the Pimlico site and the [Laurel Park racing facility 8
site] TRAINING FACILITY SI TE and any facilities or other improvements on the Pimlico 9
site or the [Laurel Park racing facility site] TRAINING FACILITY SI TE. 10
(HHH) “TRAINING FACILITY SIT E” MEANS A SITE FOR TRAINING 11
FACILITY FOR THOROUGHBRED RACEHOR SES SELECTED OR ACQUIRED BY THE 12
MARYLAND THOROUGHBRED RACETRACK OPERATING AUTHORITY. 13
10–628. 14
(c) (1) Unless authorized by the General Assembly, the Board of Public Works 15
may not approve an issuance by the Authority of bonds, whether taxable or tax exempt, 16
that constitute tax supported debt or nontax supported debt if, after issuance, there would 17
be outstanding and unpaid more than the following face amounts of the bonds for the 18
purpose of financing acquisition, construction, renovation, and related expenses for 19
construction management, professional fees, and contingencies in connection with: 20
(vii) racing facilities – [$375,000,000] $400,000,000; 21
10–646.1. 22
(a) Except as allowed by § 10–639 of this subtitle, to finance the planning, design, 23
and construction of any segment of a racing facility ON BEHALF OF THE MARYLAND 24
THOROUGHBRED RACETRACK OPERATING AUTHORITY, the Authority shall comply 25
with this section. 26
(b) At least 45 days before seeking approval of the Board of Public Works for each 27
bond issue or other borrowing, the Authority shall provide, in accordance with § 2–1257 of 28
the State Government Article, to the fiscal committees of the General Assembly[: 29
(1)] a comprehensive financing plan for the relevant racing facility that 30
includes: 31
[(i)] (1) the aggregate amount of funds needed for the racing 32
facility to be financed with the proposed bonds; 33 HOUSE BILL 1524 9
[(ii)] (2) a description of the racing facility to be constructed or 1
renovated; 2
[(iii)] (3) the anticipated total debt service for the proposed bond 3
issue; 4
[(iv)] (4) the anticipated total debt service when combined with the 5
debt service for all prior outstanding bond issues for racing facilities; [and] 6
[(v)] (5) anticipated project costs, AS DETERMINED BY THE 7
MARYLAND THOROUGHBRED RACETRACK OPERATING AUTHORITY, of at least 8
[$180,000,000] $250,000,000 for the Pimlico racing facility [or $155,000,000 for the 9
Laurel Park racing facility] AND $110,000,000 FOR THE TRAINING FAC ILITY SITE; and 10
(6) A JOINT PLAN BETWEEN THE MARYLAND THOROUGHBRED 11
RACETRACK OPERATING AUTHORITY AND TH E DEPARTMENT OF HOUSING AND 12
COMMUNITY DEVELOPMENT THAT INCL UDES THE FOLLOWING INVEST MENTS 13
INVESTMENT IN WORKFO RCE HOUSING IN AND AROUND THE PIMLICO RACING 14
FACILITY SITE: 15
(I) RACETRACK WORKFORCE HOUSING; 16
(II) COMMUNITY COMMERCIAL REVITALIZATION ; 17
(III) COMMUNITY SAFETY ; 18
(IV) COMMUNITY WORKFORCE DEVELOPMENT AND JOB 19
TRAINING; 20
(V) AFFORDABLE HOUSING ; 21
(VI) HOMEOWNERSHIP AND HO ME PRESERVATION ; 22
(VII) REDEVELOPMENT OF VAC ANT AND BLIGHTED HOU SING; 23
AND 24
(VIII) COMMUNITY BEAUTIFICA TION. 25
[(2) for any planned expenditures at the Laurel Park racing facility site, a 26
plan for the improvements necessary to ensure that the condition of any part of the site 27
where individuals reside is satisfactory for human habitation and meets the minimum 28
housing and sanitation standards in Anne Arundel County.] 29
10 HOUSE BILL 1524
(c) (1) A bond issued to finance planning, design, and construction or 1
renovations of or improvements to a racing facility: 2
(i) is a limited obligation of the Authority payable solely from money 3
pledged by the Authority to the payment of the principal of and the premium and interest 4
on the bond or money made available to the Authority for that purpose; 5
(ii) is not a debt, liability, or a pledge of the faith and credit or the 6
taxing power of the State, the Authority, or any other governmental unit; and 7
(iii) may not give rise to any pecuniary liability of the State, the 8
Authority, or any other governmental unit. 9
(2) The issuance of a bond to finance the planning, design, and construction 10
or renovations of or improvements to a racing facility is not directly, indirectly, or 11
contingently a moral or other obligation of the State, the Authority, or any other 12
governmental unit to levy or pledge any tax or make any appropriation to pay the bond. 13
(3) Each bond shall state on its face the provisions of paragraphs (1) and 14
(2) of this subsection. 15
(d) (1) In this subsection, “long–term agreement” includes a lease, operating, 16
joint venture, or management agreement with a minimum term that coincides with or 17
exceeds the initial term of the bonds issued for a racing facility. 18
(2) Before issuing any bonds for any segment of a racing facility, the 19
Authority shall ensure that the following agreements have been executed: 20
(i) subject to paragraph (3) of this subsection, a long–term 21
agreement regarding management and operations at the Pimlico racing facility site; AND 22
(ii) [subject to paragraph (4) of this subsection, a long–term 23
agreement regarding management and operations at the Laurel Park racing facility site; 24
and 25
(iii)] agreements between the Authority and project entities for the 26
planning, design, and construction of a racing facility. 27
(3) (i) Subject to subparagraph (ii) of this paragraph, the long–term 28
agreement required under paragraph (2)(i) of this subsection shall: 29
1. ensure the continuity of the Preakness Stakes at the 30
Pimlico racing facility site; 31
2. [ensure the MJC Entities’ sole, exclusive, and 32
unconditional rights to: 33
HOUSE BILL 1524 11
A. manage and operate the Pimlico racing facility site subject 1
to the exclusions and conditions in the long–term agreement; 2
B. conduct at the Pimlico racing facility site thoroughbred 3
training and racing, satellite simulcast wagering, advanced deposit wagering, and any 4
other lawful activities; 5
C. designate annually exclusive use periods for the conduct 6
of live thoroughbred training and racing; 7
D. maintain the track surfaces; 8
E. operate satellite simulcast wagering, advanced deposit 9
wagering, and any other lawful activities; and 10
F. an option to reacquire the Pimlico racing facility site at the 11
termination or expiration of the long–term agreement on mutually agreeable terms and 12
conditions, subject to the approval of the Board of Public Works; 13
3.] require BE CONTINGENT ON the conveyance or 14
conveyances in fee simple of the Pimlico site, in whole or in part, to THE MARYLAND 15
THOROUGHBRED RACETRACK OPERATING AUTHORITY, Baltimore City, the 16
Baltimore Development Corporation or its successor or assigns, or any designated project 17
entity, at the time and on the conditions established in the long–term agreement and 18
subject to the Authority securing all the necessary development approvals and funding for 19
the racing and community development project costs; AND 20
[4. establish the MJC Entities’ rights to: 21
A. designate annually exclusive use periods for the conduct 22
of live thoroughbred training and racing; 23
B. maintain the track surfaces; and 24
C. operate satellite simulcast wagering, advanced deposit 25
wagering, and any other lawful activities; 26
5. preserve the MJC Entities’ tangible, intangible, 27
management, performance, distribution, intellectual property, advertising, concession, 28
merchandising, sponsorship, media, streaming, naming, licensing, and commercial 29
development rights, and any other rights identified by the MJC Entities; 30
6. subject to the operating agreements of the project entities, 31
preserve the MJC Entities’ right to retain or designate revenues and profits associated with 32
the MJC Entities’ rights and lawful activities; and 33
12 HOUSE BILL 1524
7.] 3. [subject to subparagraph (iii) of this paragraph,] 1
establish: 2
A. the right of the Authority or an entity designated by the 3
Authority to manage and operate the Pimlico Clubhouse and Events Facility, grounds, and 4
any facility [not designated for the MJC Entities’ year–round use]; 5
B. the obligation of the Authority or an entity designated by 6
the Authority to operate, maintain as a first–class facility, in good condition, repair, and 7
secure the Pimlico racing facility site during periods identified in the long–term agreement; 8
and 9
C. the obligation of the Authority or an entity designated by 10
the Authority to cooperate with respect to the provision of adequate parking and efficient 11
transportation plans around the Pimlico racing facility site. 12
(ii) 1. Unless thoroughbred racing is no longer a lawful activity, 13
or is otherwise rendered not commercially viable as a result of a change in law or regulation, 14
the long–term agreement under paragraph (2)(i) of this subsection may not expire while 15
any bond, debt, or other financial instrument issued by the Authority for the improvement 16
of a racing facility remains unpaid. 17
2. If thoroughbred racing is no longer a lawful activity, or is 18
otherwise rendered not commercially viable as a result of a change in law or regulation, the 19
parties to the long–term agreement shall notify the Board of Public Works at least 180 days 20
before the expiration or termination of the long–term agreement. 21
3. The notice required under subsubparagraph 2 of this 22
subparagraph shall contain a wind–down plan. 23
4. The long–term agreement required under paragraph (2)(i) 24
of this subsection shall contain dispute resolution provisions, including expedited review, 25
in the event that there is a dispute among the parties regarding the existence of the 26
conditions described in subsubparagraph 1 of this subparagraph or the contents of the 27
wind–down plan. 28
[(iii) The MJC Entities shall have: 29
1. priority of use over the Pimlico Clubhouse and Events 30
Facility and grounds for MJC Entities’ purposes related to racing, wagering, or other 31
agreed–on uses; and 32
2. the right to access and egress from the Pimlico racing 33
facility site during periods identified in the agreement.] 34
HOUSE BILL 1524 13
(4) (i) Subject to subparagraph (ii) of this paragraph, the [long–term 1
agreement] AGREEMENTS required under paragraph (2)(ii) of this subsection shall: 2
1. [ensure that the Maryland Million is run annually at 3
Laurel Park except: 4
A. during periods of construction; 5
B. if prevented from doing so by weather, acts of God, or other 6
circumstances beyond the control of the racing licensee; or 7
C. if the racing licensee and the Maryland Million, LLC agree 8
to another location that is approved by the State Racing Commission; 9
2. ensure the MJC Entities’ sole, exclusive, and 10
unconditional rights to: 11
A. manage and operate the Laurel Park racing facility site; 12
and 13
B. conduct at the Laurel Park racing facility site year–round 14
thoroughbred training and racing, satellite simulcast wagering, advanced deposit 15
wagering, and any other lawful activities; 16
3. provide for the MJC Entities: 17
A. grant of an interest in the Laurel Park racing facility site, 18
in whole or in part, to Anne Arundel County or an entity or entities designated by Anne 19
Arundel County, including any designated project entity, for a specified term, including 20
renewals, and on the conditions established in the long–term agreement and subject to the 21
Authority securing all necessary development approvals and funding for the racing and 22
community development project costs; 23
B. access to the Laurel Park racing facility site for parking 24
and roadways; 25
C. rights to the Laurel Park racing facility site at the 26
expiration or termination of the long–term agreements on mutually agreeable terms and 27
conditions; 28
D. payment to Anne Arundel County, or an entity designated 29
by Anne Arundel County, of an amount at least equal to the prorated amount of real 30
property taxes paid in fiscal year 2020 for the Laurel Park racing facility site and any 31
improvements on the site, unless otherwise agreed to by the MJC Entities and Anne 32
Arundel County; and 33
14 HOUSE BILL 1524
E. an obligation to maintain as a first–class facility, in good 1
condition, repair, and secure the Laurel Park racing facility site during the periods 2
identified in the long–term agreement; 3
4.] preserve the MJC Entities’ tangible, intangible, 4
management, performance, distribution, intellectual property, advertising, concession, 5
merchandising, sponsorship, media, streaming, naming, licensing, commercial 6
development, and any other rights identified by the MJC Entities; and 7
[5.] 2. subject to the operating agreements of the project entities, 8
preserve the MJC Entities’ right to retain or designate revenues and profits associated with 9
the MJC Entities’ rights and lawful activities. 10
(ii) 1. Unless thoroughbred racing is no longer a lawful activity, 11
or is otherwise rendered not commercially viable as a result of a change in law or regulation, 12
the [long–term agreement] AGREEMENTS under paragraph (2)(ii) of this subsection may 13
not expire while any bond, debt, or other financial instrument issued by the Authority for 14
the improvement of a racing facility remains unpaid. 15
2. If thoroughbred racing is no longer a lawful activity, or is 16
otherwise rendered not commercially viable as a result of a change in law or regulation, the 17
parties to the [long–term agreement] AGREEMENTS shall notify the Board of Public Works 18
at least 180 days before the expiration or termination of the [long–term agreement] 19
AGREEMENTS . 20
3. The notice required under subsubparagraph 2 of this 21
subparagraph shall contain a wind–down plan. 22
4. The [long–term agreement] AGREEMENTS required 23
under paragraph (2)(ii) of this subsection shall contain dispute resolution provisions, 24
including expedited review, in the event that there is a dispute among the parties regarding 25
the existence of the conditions described in subsubparagraph 1 of this subparagraph or the 26
contents of the wind–down plan. 27
(e) [The] ON BEHALF OF THE MARYLAND THOROUGHBRED RACETRACK 28
OPERATING AUTHORITY, THE Authority shall enter into agreements with project entities 29
or local entities for planning, design, and construction of the racing and community 30
development projects at a racing facility site. 31
(f) For fiscal year 2022 and each fiscal year thereafter, until the bonds that have 32
been issued to finance racing facilities are no longer outstanding and unpaid, the 33
Comptroller shall deposit into the Racing and Community Development Financing Fund 34
AT LEAST $17,000,000 from the State Lottery Fund under § 9–120(b)(1)(iv) of the State 35
Government Article. 36
HOUSE BILL 1524 15
(g) If the money deposited in the Racing and Community Development Financing 1
Fund in accordance with subsection (f) of this section is not needed for debt service or debt 2
service reserves, the Authority may transfer those funds to the Racing and Community 3
Development Facilities Fund. 4
(h) If funds are needed for debt service or debt service reserves, the Authority 5
may transfer money in the Racing and Community Development Facilities Fund to the 6
Racing and Community Development Financing Fund. 7
10–1003. 8
(a) The purpose of the Authority is to maintain the State as a best–in–class 9
thoroughbred horse racing venue. 10
(b) The Authority may: 11
(1) study and make any recommendations that the Authority finds are in 12
the best interests of thoroughbred racing in the State; 13
(2) in coordination with other State entities, develop new and existing 14
horse racing and training facilities in the State; 15
(3) [subject to subsection (c) of this section and in accordance with an 16
executive order or a determination of the State Racing Commission that a thoroughbred 17
racing licensee under Title 11, Subtitle 5 of the Business Regulation Article, for any reason 18
other than weather, an act of God, or other circumstances beyond the control of the licensee, 19
is unable to support the minimum number of live racing days: 20
(i)] SUBJECT TO THE APPRO VAL OF AN AGREEMENT BY THE 21
BOARD OF PUBLIC WORKS, manage and oversee, in compliance with Title 11, Subtitle 5 22
of the Business Regulation Article: 23
[1.] (I) day–to–day thoroughbred horse racing operations; 24
[2.] (II) live racing days; and 25
[3.] (III) assets in the State; [and] 26
[(ii)] (4) in coordination with the Maryland Economic Development 27
Corporation, acquire property or contractual interests consistent with § 11–521 of the 28
Business Regulation Article and the procedures set forth in §§ 8–334 through 8–339 of the 29
Transportation Article; 30
[(4)] (5) enter into any agreements, leases, partnerships, or contracts 31
necessary to: 32
16 HOUSE BILL 1524
(i) support and sustain Maryland thoroughbred racing and 1
pari–mutuel wagering activity; and 2
(ii) ensure compliance with State Racing Commission rules and 3
regulations; 4
[(5)] (6) authorize or create a separate body, entity, or holding company 5
to carry out any provisions of this subtitle; 6
[(6)] (7) adopt regulations to carry out the provisions of this subtitle; and 7
[(7)] (8) make any other recommendations the Authority deems 8
necessary. 9
[(c) Before the Authority may exercise the powers authorized under subsection 10
(b)(3) of this section, the Legislative Policy Committee shall review and comment on the 11
executive order or determination of the State Racing Commission described under 12
subsection (b)(3) of this section.] 13
Article – State Government 14
9–120. 15
(b) (1) By the end of the month following collection, the Comptroller shall 16
deposit, cause to be deposited, or pay: 17
(iv) after June 30, 2021, into the Racing and Community 18
Development Financing Fund established under § 10–657.2 of the Economic Development 19
Article from the money that remains in the State Lottery Fund, after the distribution under 20
subsection (a) of this section, an amount equal to AT LEAST $17,000,000 in each fiscal year 21
until the bonds issued for a racing facility have matured; 22
9–1A–29. 23
(a) There is a Racetrack Facility Renewal Account under the authority of the 24
State Racing Commission. 25
(d) (1) The amount of funds made available from the Racetrack Facility 26
Renewal Account shall be allocated as follows: 27
(i) [1.] for fiscal year [2021] 2025 AND EACH FISCAL YEAR 28
THEREAFTER , [80%] 10% to be deposited in the Racing and Community Development 29
Facilities Fund established under § 10–657.3 of the Economic Development Article; [and] 30
(II) [2.] for fiscal year 2022 and thereafter, 80% to the State 31
Lottery Fund established under § 9–120 of this title; and 32 HOUSE BILL 1524 17
[(ii)] (III) [subject to paragraph (2) of this subsection, 20% to 1
Rosecroft Raceway and] FOR FISCAL YEAR 2025 AND EACH FISC AL YEAR THEREAFTER , 2
10% TO Ocean Downs Race Course [according to a formula established in regulations 3
adopted by the State Racing Commission]. 4
(2) [Of the amount available to Rosecroft Raceway from the Racetrack 5
Facility Renewal Account under paragraph (1)(ii) of this subsection: 6
(i) the unencumbered fund balance, including accrued interest, 7
existing as of June 30, 2020, shall be transferred to the Racing and Community 8
Development Facilities Fund established under § 10–646.3 of the Economic Development 9
Article; and 10
(ii) subject] SUBJECT to paragraph (3) of this subsection, FROM 11
THE AMOUNT TRANSFERR ED TO THE STATE LOTTERY FUND RACING AND 12
COMMUNITY DEVELOPMENT FACILITIES FUND IN ACCORDANCE WITH P ARAGRAPH 13
(1)(II) (1)(I) OF THIS SUBSECTION , for fiscal year [2021] 2025 and each fiscal year 14
thereafter, $200,000 shall be transferred annually to Employ Prince George’s, Inc. for 15
workforce development and small, minority, and women–owned business development. 16
(3) (i) It is the intent of the General Assembly that the funds 17
transferred to Employ Prince George’s, Inc. shall supplement, and not supplant, funds 18
otherwise available for Employ Prince George’s, Inc. 19
(ii) If Employ Prince George’s, Inc. is unable to expend the funds 20
transferred under paragraph [(2)(ii)] (2) of this subsection during the 12–month period 21
after which Employ Prince George’s, Inc. received the funds, Employ Prince George’s, Inc. 22
shall partner with similar organizations located within Prince George’s County to expend 23
the balance of the funds from that period to encourage workforce development and small, 24
minority, and women–owned business development. 25
(h) The State Racing Commission shall adopt regulations to implement the 26
provisions of this section, including regulations to[: 27
(1)] address minimum criteria for the types of improvements to be made by 28
the holder of a license[; and 29
(2) establish a formula to allocate funds under subsection (d)(2) of this 30
section between Rosecroft Raceway and Ocean Downs Race Course]. 31
9–1E–01. 32
(a) In this subtitle the following words have the meanings indicated. 33
18 HOUSE BILL 1524
(d) “Horse racing licensee” means the holder of a license issued by the State 1
Racing Commission under [Title 11, Subtitle 5] § 11–510 of the Business Regulation 2
Article [to hold racing in Anne Arundel County]. 3
9–1E–06. 4
(b) (1) [An] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 5
SUBSECTION, AN applicant for a sports wagering license shall pay to the Commission an 6
application fee of: 7
[(1)] (I) $2,000,000 for a Class A–1 sports wagering facility license; 8
[(2)] (II) $1,000,000 for a Class A–2 sports wagering facility license; 9
[(3)] (III) $250,000 for a Class B–1 sports wagering facility license; 10
[(4)] (IV) $50,000 for a Class B–2 sports wagering facility license; and 11
[(5)] (V) $500,000 for a mobile sports wagering license. 12
(2) THE REQUIREMENT TO PA Y AN APPLICATION FEE TO THE 13
COMMISSION UNDER PARA GRAPH (1) OF THIS SUBSECTION D OES NOT APPLY TO AN 14
APPLICANT FOR A CLASS A–2 SPORTS WAGERING FACI LITY LICENSE THAT IS A 15
HORSE RACING LICENSEE DESCRIBED U NDER § 11–510(B)(3) OF THE BUSINESS 16
REGULATION ARTICLE. 17
(d) (1) A sports wagering licensee may not begin accepting wagers on sporting 18
events until the application fee under subsection [(b)] (B)(1) of this section is paid in full 19
and the applicant reimburses the Commission for expenses related to performing 20
background investigations. 21
(2) The application fee under subsection [(b)] (B)(1) of this section is 22
nonrefundable. 23
Article – Tax – General 24
2–1302.3. 25
AFTER MAKING THE DISTRIBUTIONS REQUIR ED UNDER §§ 2–1301 THROUGH 26
2–1302.2 OF THIS SUBTITLE , THE COMPTROLLER SHALL DIS TRIBUTE THE SALES 27
AND USE TAX REVENUE THAT IS ATTRIBUTABLE TO THE PURCHASE OF A RACEHORSE 28
FOLLOWING A CLAIMING RACE TO THE RACING AND COMMUNITY DEVELOPMENT 29
FACILITIES FUND ESTABLISHED UNDE R § 10–657.3 OF THE ECONOMIC 30
DEVELOPMENT ARTICLE. 31
HOUSE BILL 1524 19
2–1303. 1
After making the distributions required under §§ 2–1301 through [2–1302.2] 2
2–1302.3 of this subtitle, the Comptroller shall pay: 3
(1) revenues from the hotel surcharge into the Dorchester County 4
Economic Development Fund established under § 10–130 of the Economic Development 5
Article; 6
(2) to the Blueprint for Maryland’s Future Fund established under § 5–206 7
of the Education Article, the following percentage of the remaining sales and use tax 8
revenues: 9
(i) for fiscal year 2023, 9.2%; 10
(ii) for fiscal year 2024, 11.0%; 11
(iii) for fiscal year 2025, 11.3%; 12
(iv) for fiscal year 2026, 11.7%; and 13
(v) for fiscal year 2027 and each fiscal year thereafter, 12.1%; and 14
(3) the remaining sales and use tax revenue into the General Fund of the 15
State. 16
10–207. 17
(a) To the extent included in federal adjusted gross income, the amounts under 18
this section are subtracted from the federal adjusted gross income of a resident to determine 19
Maryland adjusted gross income. 20
(ii) (1) In this subsection, [“Laurel Park site” and “Pimlico site” have the 21
meanings] “PIMLICO SITE” HAS THE MEANING stated in § 10–601 of the Economic 22
Development Article. 23
(2) The subtraction under subsection (a) of this section includes: 24
(i) the amount of gain recognized as a result of the direct or indirect 25
transfer or conveyance of[: 26
1.] any property located, or used, at or within the [Laurel 27
Park site or] Pimlico site; and 28
[2. any portion of the Bowie Race Course Training Center 29
property; and] 30 20 HOUSE BILL 1524
(ii) the amount of income recognized as a result of any expenditure 1
of funds directly or indirectly by the State[,] OR Baltimore City[, or Anne Arundel County] 2
with respect to the [Laurel Park site or] Pimlico site. 3
10–307. 4
(a) To the extent included in federal taxable income, the amounts under this 5
section are subtracted from the federal taxable income of a corporation to determine 6
Maryland modified income. 7
(g) The subtraction under subsection (a) of this section includes the amounts 8
allowed to be subtracted for an individual under: 9
(1) § 10–207(i) of this title (Profits on sale or exchange of State or local 10
bonds); 11
(2) § 10–207(k) of this title (Relocation and assistance payments); 12
(3) § 10–207(m) of this title (State or local income tax refunds); 13
(4) § 10–207(c–1) of this title (State tax–exempt interest from mutual 14
funds); 15
(5) [§ 10–207(hh)] § 10–207(II) of this title (Gain on the transfer of 16
property within the [Laurel Park site or] Pimlico site [or Bowie Race Course Training 17
Center property] and income recognized as result of governmental expenditures); or 18
(6) § 10–207(jj) of this title (Coronavirus relief payments). 19
11–236. 20
(a) (1) In this section the following words have the meanings indicated. 21
(2) (i) “Construction material” means an item of tangible personal 22
property that is used to construct or renovate a building, a structure, or an improvement 23
on land and that typically loses its separate identity as personal property once incorporated 24
into the real property. 25
(ii) “Construction material” includes building materials, building 26
systems equipment, landscaping materials, and supplies. 27
(3) [“Laurel Park racing facility site” has the meaning stated in § 10–601 28
of the Economic Development Article. 29
HOUSE BILL 1524 21
(4)] “Pimlico site” [has the meaning] AND “TRAINING FACILITY SI TE” 1
HAVE THE MEANINGS stated in § 10–601 of the Economic Development Article. 2
(b) The sales and use tax does not apply to a sale of construction material, if: 3
(1) the construction material is purchased by a person solely for use in 4
furtherance of the provisions of Title 10, Subtitle 6 of the Economic Development Article 5
for the construction or redevelopment at the [Laurel Park racing facility site or] Pimlico 6
site OR TRAINING FACILITY SITE; 7
(2) the sale is made before January 1, [2026] 2029; and 8
(3) the buyer provides the vendor with eligibility of the exemption issued 9
by the Comptroller. 10
(c) The Comptroller shall adopt regulations to implement this section. 11
Article – Tax – Property 12
7–246. 13
(a) In this section, [“Laurel Park racing facility site” and] “Pimlico racing facility 14
site” AND “TRAINING FACILITY SI TE” have the meanings stated in § 10–601 of the 15
Economic Development Article. 16
(b) An interest of a person in an improvement at the [Laurel Park racing facility 17
site or] Pimlico racing facility site OR TRAINING FACILITY SITE or an interest of a person 18
in the real property of the [Laurel Park racing facility site or] Pimlico racing facility site 19
OR TRAINING FACILITY SITE is not subject to property tax for the duration of: 20
(1) with respect to the Pimlico racing facility site, the long–term agreement 21
described under [§ 10–646.1(d)(2)(i)] § 10–646.1(D) of the Economic Development Article; 22
or 23
(2) with respect to the [Laurel Park racing facility site] TRAINING 24
FACILITY SITE, the long–term agreement described under [§ 10–646.1(d)(2)(ii)] § 25
10–646.1(D) of the Economic Development Article. 26
12–108. 27
(hh) (1) In this subsection, [“Laurel Park racing facility site”,] “MJC Entities”, 28
“Pimlico racing facility site”, “Pimlico site”, [and] “project entities”, AND “TRAINING 29
FACILITY SITE” have the meanings stated in § 10–601 of the Economic Development 30
Article. 31
22 HOUSE BILL 1524
(2) An instrument of writing is not subject to recordation tax if the 1
instrument of writing transfers or grants a security interest in property that is[: 2
(i)] located at or within the [Laurel Park racing facility site,] Pimlico 3
racing facility site, [or] Pimlico site, OR TRAINING FACILITY SITE and the transfer or 4
grant is by any combination of project entities, MJC Entities, Baltimore City, OR an entity 5
designated by Baltimore City[, Anne Arundel County, or an entity designated by Anne 6
Arundel County; or 7
(ii) the property identified as the Bowie Race Course Training 8
Center under § 11–519 of the Business Regulation Article that is transferred by the owner 9
of the property to a government entity]. 10
13–207. 11
(a) An instrument of writing is not subject to transfer tax to the same extent that 12
it is not subject to recordation tax under: 13
(26) § 12–108(hh) of this article (Transfer of real property within the [Laurel 14
Park racing facility site,] Pimlico racing facility site, Pimlico site, or [Bowie Race Course 15
Training Center property)], OR TRAINING FACILITY SI TE). 16
13–410. 17
An instrument of writing is not subject to the county transfer tax to the same extent 18
that it is not subject to the recordation tax under: 19
(1) § 12–108(cc) of this article (Certain transfers to land trusts); or 20
(2) § 12–108(hh) of this article (Transfer of real property within the [Laurel 21
Park racing facility site,] Pimlico racing facility site, Pimlico site, or [Bowie Race Course 22
Training Center property)], OR TRAINING FACILITY SI TE). 23
Chapter 590 of the Acts of 2020 24
SECTION 9. AND BE IT FURTHER ENACTED, That: 25
(a) In addition to the funds otherwise available for racing and community 26
development project costs under this Act and notwithstanding the limitations under § 27
10–657.3 of the Economic Development Article, as enacted by Section 1 of this Act, 28
$2,000,000 of the funds transferred to the Racing and Community Development Facilities 29
Fund established under § 10–657.3 of the Economic Development Article in accordance with 30
§ 9–1A–29(d)(2) of the State Government Article, as enacted by Section 1 of this Act, may 31
be used: 32
HOUSE BILL 1524 23
(1) BEFORE JUNE 1, 2024, only to reimburse the racing licensees’ costs 1
attributable to maintaining ongoing year–round racing operations, ensuring the continued 2
running of the Preakness Stakes at the Pimlico site during construction, and expenses 3
related to the Bowie Race Course Training Center before the conveyance of the property in 4
accordance with § 11–519 of the Business Regulation Article, as enacted by Section 1 of this 5
Act; AND 6
(2) ON OR AFTER JUNE 1, 2024, BY THE MARYLAND THOROUGHBRED 7
RACETRACK OPERATING AUTHORITY FOR TRANSIT IONAL, OPERATIONAL , AND 8
CAPITAL COSTS AT LAUREL PARK AND OTHER USES DEEMED NECESSAR Y BY THE 9
AUTHORITY. 10
(b) The Maryland Stadium Authority shall cooperate with the racing licensee to 11
identify the costs described under subsection [(a)] (A)(1) of this section and establish an 12
approval process before any reimbursement is provided in accordance with subsection [(a)] 13
(A)(1) of this section. 14
Chapter 111 of the Acts of 2023 15
SECTION 6. AND BE IT FURTHER ENACTED, That, except as provided in Section 16
5 of this Act, this Act shall take effect June 1, 2023. Section 2 of this Act shall remain 17
effective for a period of [4] 6 years and 1 month and, at the end of June 30, [2027] 2029, 18
Section 2 of this Act, with no further action required by the General Assembly, shall be 19
abrogated and of no further force and effect. 20
SECTION 4. AND BE IT FURTHER ENACTED, That it is the intent of the General 21
Assembly that: 22
(1) the Maryland Jockey Club transfer, in accordance with the Pimlico 23
Transfer Agreement, ownership of the Pimlico racing facility site to the Maryland 24
Thoroughbred Racetrack Operating Authority; 25
(2) on or before January 1, 2025: 26
(i) the Maryland Jockey Club or an affiliate make Laurel Park 27
available to the Maryland Thoroughbred Racetrack Operating Authority for use as a 28
transition facility while new racing facilities are constructed at the Pimlico racing facility 29
site and a new training facility is constructed; and 30
(ii) the Maryland Jockey Club or an affiliate and Laurel Racing 31
Association Limited Partnership transfer the right to conduct all thoroughbred horse racing 32
in the State to the Maryland Thoroughbred Racetrack Operating Authority or its designees 33
except that the Maryland Jockey Club or an affiliate may conduct the Preakness Stakes, 34
the Black–Eyed Susan Stakes, and related undercard races in 2025 at the Pimlico racing 35
facility site and Laurel Park in 2026; 36
24 HOUSE BILL 1524
(3) (iii) on or before July 1, 2026, the Maryland Jockey Club or an 1
affiliate and Maryland Thoroughbred Racetrack Operating Authority enter into a licensing 2
agreement for the intellectual property related to the Preakness Stakes and the 3
Black–Eyed Susan Stakes; and 4
(4) (iv) on or before January 1, 2027, the Maryland Jockey Club or an 5
affiliate and the Laurel Racing Association Limited Partnership enter into a long–term 6
loan agreement with the Maryland Thoroughbred Racetrack Operating Authority granting 7
the Authority the right to display the Woodlawn Vase at any location of the Authority’s 8
choosing; 9
(5) (3) the ownership of the Maryland Jockey Club and Pimlico names 10
and trademarks be transferred to the Maryland Thoroughbred Racetrack Operating 11
Authority; and 12
(6) (4) the Maryland Jockey Club and Laurel Racing Association 13
Limited Partnership transfer to the Maryland Thoroughbred Racetrack Operating 14
Authority: 15
(i) all personal property and equipment at the Pimlico racing facility 16
site necessary to operate year–round racing and to use the personal property and 17
equipment at Laurel Park during the period that the Pimlico racing facility site is under 18
construction; 19
(ii) the Maryland Thoroughbred Purse Account; and 20
(iii) on the agreement of the parties, material contracts, permits, and 21
licenses applicable to the Pimlico Racetrack. 22
SECTION 5. AND BE IT FURTHER ENACTED, That: 23
(a) On or before June 30, 2024, the unencumbered fund balance, including 24
accrued interest, that is allocated to the Rosecroft Raceway under the Racetrack Facility 25
Renewal Account shall be transferred to the Racing and Community Development 26
Facilities Fund established under § 10–657.3 of the Economic Development Article. 27
(b) The funds described under subsection (a) of this section may be used by the 28
Maryland Thoroughbred Racetrack Operating Authority for transitional, operational, and 29
capital costs at Laurel Park and other uses deemed necessary by the Authority. 30
SECTION 6. AND BE IT FURTHER ENACTED, That the Governor may transfer by 31
budget amendment for fiscal year 2025 an amount not exceeding $10,000,000 from the 32
Racing and Community Development Financing Fund to the Maryland Racing Operations 33
Fund established under § 10–1008 of the Economic Development Article to be used by the 34
Maryland Thoroughbred Racetrack Operating Authority, or a nonprofit organization 35
designated by the Authority, as working capital. 36
HOUSE BILL 1524 25
SECTION 6. 7. AND BE IT FURTHER ENACTED, That it is the intent of the 1
General Assembly that this Act is consistent with the terms set forth in the executed 2
Pimlico Redevelopment Community Compact. 3
SECTION 8. AND BE IT FURTHER ENACTED, That, prior to the expiration of the 4
sunset provision under Chapter 111 of the Acts of 2023, as amended by Section 3 of this 5
Act, the Maryland Thoroughbred Racetrack Operating Authority shall transfer or assign 6
all obligations in accordance with the transaction agreements described under Section 4 of 7
this Act. 8
SECTION 7. 9. AND BE IT FURTHER ENACTED, That this Act shall take effect 9
June 1, 2024. 10
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.