Subtitle 10 RACING COMMISSION › Chapter 06 New Racetrack License

.01 Purpose. The purpose of this chapter is to set forth the procedures to be followed in the application for, and the issuance of, a new racetrack license.

.02 Application Fee. A. An applicant for a new racetrack license shall pay an application fee of $30,000 upon the filing of the application. B. Except as provided in Regulation .05F(2) of this chapter, the application fee is nonrefundable.

.03 Application Period. A. When the Commission intends to consider the issuance of a license for a new racetrack, the Commission shall advertise in the Maryland Register an application period, not to exceed 60 days, during which the Commission shall accept application documents. …

.04 Document Submission. Documents required to be submitted to the Commission under this chapter shall consist of an original and ten copies.

.05 Application Procedure. A. The application procedure consists of the following two phases: (1) Phase I, which requires the submittal of the items specified in Regulation .06 of this chapter; and (2) Phase II, which requires the submittal of all of the other information require…

.06 Phase I Documents and Information. The following documents and information, sworn before a notary public as to the truth and validity by the applicant or, if the applicant is not an individual, by the chief executive officer of the applicant, shall be submitted to the Commiss…

.07 Format. A. The application documents shall be in printed or typewritten form on 81/2 by 11 inch paper. B. Architectural drawings shall be submitted on 11 by 17 inch paper, folded to 81/2 by 11 inches. C. The regulation and section of the regulation that requires the submissio…

.08 Review of Application for Completeness. A. Not later than the 30th day after the last day of an application period, the Executive Director of the Commission shall review each application submitted to determine whether the application contains all the information required unde…

.09 Changes in Application. A. If information submitted by an applicant as part of a racetrack application changes or becomes inaccurate before the Commission acts on the application, the applicant shall immediately notify the Executive Director in writing of the change or inaccu…

.10 Personal and Background Information. A. Except as otherwise provided by this regulation, the application documents shall include the information under §B of this regulation, for an individual who is: (1) The applicant; (2) A director, officer, or key management individual wit…

.11 Information for Background Investigation. A. An individual required to provide information under Regulation .10 of this chapter shall also submit a set of the individual's fingerprints and complete a background form supplied by the Commission which includes a statement disclo…

.12 Consent for Investigation. An individual required to provide personal and background information under Regulation .10 of this chapter shall provide a statement that irrevocably gives consent to the Commission and persons authorized by the Commission to: A. Verify all informat…

.13 Organizational Documents. A. If the applicant is a corporation, the application documents shall include a: (1) Statement of when the corporation was organized; (2) Copy of the articles of incorporation and bylaws of the corporation; (3) Statement and documentation of whether …

.14 Owners. A. If the applicant is an unincorporated business association, the application documents shall identify: (1) Each person who exercises voting rights in the applicant; and (2) Each person who directly or indirectly owns 2 percent or more of the business association. B.…

.15 Directors, Officers, and Partners. A. If the applicant is not an individual, the application documents shall include a list of the individuals who are serving, or who are designated to serve, during the first year after the date the application documents are submitted to the …

.16 Controlling Entity. The application documents shall: A. State whether another entity has a beneficial ownership in the applicant, as defined in Business Regulation Article, §11-301, Annotated Code of Maryland; B. Describe the: (1) Nature of the beneficial ownership, and (2) E…

.17 Lease of Racetrack by Applicant. A. If an applicant for a license to operate a new racetrack intends to lease the racetrack facility from another person, the application documents shall include the information required by Regulation .10 of this chapter as it pertains to the l…

.18 Outside Interests. A. The application documents shall state whether the applicant, a director, officer, or partner of the applicant, or an owner of an interest in the applicant of 2 percent or more: (1) Has ever held an ownership interest in a licensee of the Commission; or (…

.19 Location of Racetrack. The application documents shall include: A. The name of the county and, if applicable, the municipality in which the racetrack is to be located; B. The legal description of the racetrack site; C. The name and address of each person who has held title to…

.20 Zoning and Government Improvements. A. The application documents shall: (1) Describe the applicable zoning designation for the racetrack site; (2) List any local zoning or special use permits, including liquor sales permits, that the applicant must obtain for the racetrack si…

.21 Defects. The application documents shall state whether the racetrack site: A. Has any geological or structural defects and include a description of the engineering, design, and construction plans to remedy the defect; and B. Is located in a floodplain and include a descriptio…

.22 Access and Transportation. A. The application documents shall include a traffic flow study prepared by a traffic engineer containing a: (1) Statement, in miles, of the distance of the racetrack site from the center of the nearest population center; (2) Description and map of …

.23 Architect's Plan. A. The application documents shall include: (1) Layout drawings of the proposed: (a) Racing strip, (b) Facilities and equipment, (c) Facilities for horses and personnel, and (d) Customer facilities; and (2) A description of the experience of the architect wh…

.24 Racetrack Dimensions. A. The application documents shall state the dimensions and specifications of each racetrack to be provided on association grounds, including the: (1) Total length; (2) Width; (3) Banking, with a description of the method of transition into and out of tu…

.25 Public Areas. A. The application documents shall state the specifications for areas of the racetrack facility to which the public will have access and include a description of the configuration and location of the: (1) Grandstand; (2) Total number of seats, designating the in…

.26 Parking Facilities. The application documents shall state the specifications for parking facilities for the racetrack, including a description of the: A. Access to the parking facilities from each roadway adjacent to the racetrack site; B. Location and number of spaces for ea…

.27 Facilities for Horses and Personnel. A. The application documents shall describe the: (1) Facilities for stabling horses; (2) Facilities for obtaining specimens for testing horses and humans for drugs; (3) Prerace holding area and paddock; (4) Facilities for owners, trainers,…

.28 Utilities and Easements. A. The application documents shall describe the location of utilities throughout the racetrack site, including: (1) Whether electrical service is overhead or underground; (2) The location, depth, and size of water and sewer lines; and (3) Availability…

.29 Fiscal Information. A. The application documents shall include audited financial statements of the applicant for each of the 3 fiscal years preceding the date the application documents are submitted, including a: (1) Balance sheet; and (2) Profit and loss statement. B. If the…

.30 Loans. A. The application documents shall state each loan made by the applicant in an amount that exceeds 1 percent of the applicant's net income for the year in which the loan was made. B. The disclosure for each loan listed under §A of this regulation shall include: (1) The…

.31 Debt. A. The application documents shall describe any lien that encumbers 1 percent or more of the applicant's assets or 1 percent or more of the assets of a person with an ownership interest in the applicant of 25 percent or more. B. The disclosure for each lien listed under…

.32 Budgets. A. The application documents shall describe the costs of construction or improvement of the racetrack facilities. B. The disclosure required under §A of this regulation shall state whether each item is a fixed cost or a projection, and shall include the costs of: (1)…

.33 Funding. A. The application documents shall state the source of funds for the construction or operation of the racetrack. B. If a source of funds listed under §A of this regulation is an equity contribution, the applicant shall disclose the: (1) Amount of contribution; (2) Te…

.34 Financial Forecasts. A. Based upon the experiences of one or more operating racetracks, the application documents shall include a financial forecast regarding the operation of the proposed racetrack and pari-mutuel wagering for each of the first 5 years after a license is gra…

.35 Race Meetings. A. The application documents shall describe the type of race meetings the applicant plans to conduct each year, including the number of: (1) Live race meetings and the number of live race days per week; and (2) Simulcast race meetings and the number of simulcas…

.36 Management. A. The application documents shall include a list of the individuals who will be responsible for the operation of the racetrack. B. For each individual listed under §A of this regulation, the documents shall: (1) Include a set of the individual's fingerprints; (2)…

.37 Concessions. A. The application documents shall describe the applicant's plan for concessions, including food, beverages, and promotional products. B. If the applicant intends to contract with a person or a concessions company to provide the concessions, the application docum…

.38 Pari-Mutuel Operations. The application documents shall describe the applicant's pari-mutuel facilities and operations, including a description of the totalisator equipment proposed to be used.

.39 Operations Contracts. A. If an association submits a written contract under Regulation .36, .37 or .38 of this chapter, the application documents shall include, for each party to the contract: (1) Audited financial statements and an auditor's report; or (2) Unaudited financia…

.40 Out-of-State Distributions. The application documents shall state the amount of money that will be paid by the association, during each of the first 5 years of operation, to entities located outside Maryland as: A. Payments of profit or other distributions to investors residi…

.41 Racing Equipment. The application documents shall describe the equipment to be used in conducting races, including the starting gate, the timing of the races, photo finish, and videotape equipment.

.42 Purse Structure. The application documents shall state the percentage of the takeout from the handle that will be allocated to purses.

.43 First Aid and Safety Monitoring. The application documents shall: A. Describe the first-aid facilities and personnel to be available at the racetrack, including the level of training of the personnel; B. State the travel time to the hospital nearest the racetrack and the aver…

.44 Security Documents. The application documents shall include plans that provide for the safety and security of the patrons, the racing animals, and the racetrack personnel. Cross References 09.10.06.45 09.10.06.46

.45 Local Emergency Services. The safety and security plans under Regulation .44 of this chapter shall describe the: A. Local emergency services available to the racetrack, including fire fighting, law enforcement, and medical emergency services; B. Security equipment for the rac…

.46 Security Personnel. The safety and security plans under Regulation .44 of this chapter shall: A. Describe the security personnel at the racetrack; B. State whether the personnel will be employed by the association or by an independent contractor; C. Describe the organization …

.47 Fire Safety and Emergency Procedures. The safety and security plans shall describe: A. The fire safety and emergency procedures for the racetrack, including procedures for: (1) Protecting or evacuating the patrons and controlling traffic in an emergency, such as a natural dis…

.48 Minority Participation. Any contract between the applicant and another party shall contain a provision for minority participation.

.49 Reasonable Diligence Required. A. If the Commission determines that an association is failing to exercise reasonable diligence in preparing a new racetrack to begin racing on the date approved by the Commission, the Commission may revoke its approval of the applicant and reop…

.50 Hearing. A. Before approving or denying a license, the Commission shall conduct a hearing on the application in accordance with State Government Article, Title 10, Annotated Code of Maryland. B. The burden of proof shall be on the applicant to show that the applicant complies…