HB 1598

WES MOORE, Governor  Ch. 382
Chapter 382
  (House Bill 1598)
AN ACT concerning
    Horse Racing – Racetrack Facility Renewal Account Grants – Alterations
FOR the purpose of authorizing, rather than requiring, a certain racing licensee to receive
     a grant for a capital construction plan from the Racetrack Facility Renewal Account
     without providing and expending a matching fund; requiring the racing licensee that
     receives the grant without providing and expending a matching fund to conduct live
     racing in the State for a certain number of years; requiring the State Racing
     Commission to recapture certain grant funds under certain circumstances and in a
     certain manner; altering the amount of the balance in the Racetrack Facility
     Renewal Account that is required to be made available to certain racing licensees if
     certain racetracks are closed and no longer used for live racing; and generally
     relating to grants from the Racetrack Facility Renewal Account.
BY renumbering
      Article – State Government
      Section 9–1A–01(w–1) and (w–2)
      to be Section 9–1A–01(w–2) and (w–3), respectively
      Annotated Code of Maryland
      (2021 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, without amendments,
      Article – State Government
      Section 9–1A–01(a) and 9–1A–29(a)
      Annotated Code of Maryland
      (2021 Replacement Volume and 2025 Supplement)
BY adding to
     Article – State Government
     Section 9–1A–01(w–1)
     Annotated Code of Maryland
     (2021 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
      Article – State Government
      Section 9–1A–09, 9–1A–28(h)(1), and 9–1A–29(b)(6), (c), (e), (f), and (h)
      Annotated Code of Maryland
      (2021 Replacement Volume and 2025 Supplement)
      SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That Section(s) 9–1A–01(w–1) and (w–2) of Article – State Government of the Annotated
Code of Maryland be renumbered to be Section(s) 9–1A–01(w–2) and (w–3), respectively.
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 Ch. 382  2026 LAWS OF MARYLAND
       SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
  Article – State Government
9–1A–01.
      (a)    In this subtitle the following words have the meanings indicated.
     (W–1) “RACING LICENSEE” MEANS THE HOLDER OF A LICENSE ISSUED BY THE
STATE RACING COMMISSION TO HOLD A RACE MEETING IN THE STATE UNDER
TITLE 11 OF THE BUSINESS REGULATION ARTICLE.
9–1A–09.
      [(a)  In this section, “racing licensee” means the holder of a license issued by the
State Racing Commission to hold a race meeting in the State under Title 11 of the Business
Regulation Article.]
       [(b)] (A)    As a condition of eligibility for funding under § 9–1A–29 of this subtitle,
a racing licensee shall:
  (1)    (i)   1.     for Rosecroft Raceway, FOR ANY YEAR THAT FUNDING IS
PROVIDED, conduct a minimum of 60 annual live racing days unless otherwise agreed to
by the racing licensee and the organization that represents the majority of licensed
standardbred owners and trainers in the State or unless the racing licensee is prevented
by weather, acts of God, or other circumstances beyond the racing licensee’s control; and
  [(ii)] 2.    for Ocean Downs Racetrack, FOR ANY YEAR THAT
FUNDING IS PROVIDED, conduct a minimum of 40 annual live racing days unless
otherwise agreed to by the racing licensee and the organization that represents the majority
of licensed standardbred owners and trainers in the State or unless the racing licensee is
prevented by weather, acts of God, or other circumstances beyond the racing licensee’s
control; AND
  (II)
  IF THE RACING LICENSEE RECEIVES FUNDING WITHOUT
PROVIDING AND EXPENDING A MATCHING FUND, AGREE TO CONDUCT LIVE RACING
DAYS IN THE STATE FOR AT LEAST 10 YEARS AFTER THE CONSTRUCTION PLAN
REQUIRED UNDER 9–1A–29(E) OF THIS SUBTITLE IS COMPLETE;
  (2)   develop and submit to the State Racing Commission a multiyear plan
to improve the quality and marketing of horse racing at racetrack locations owned or
operated by the racing licensee in Maryland, which shall include:
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  WES MOORE, Governor  Ch. 382
  (i)    goals, indicators, and timelines for specific actions that will be
taken by the racing licensee to improve the quality and marketing of the horse racing
industry in Maryland; and
  (ii)   a master plan for capital improvements that reflects, at a
minimum:
  1.    commitments that have been made to the State Racing
Commission;
  2.    updates to any prior master plan specifically identifying
capital improvements and expenditures made on or after January 1, 2018; and
  3.     an ongoing investment in capital maintenance and
improvements in the horse racing facilities; AND
  (3)   for each year that funding is requested, spend at least the following
minimum amounts for capital maintenance and improvements, which may include
amounts provided as a matching fund [as required] IF THE RACING LICENSEE ELECTS
TO PROVIDE AND EXPEND A MATCHING FUND under § 9–1A–29(e)(2) of this subtitle:
  (i)    for Rosecroft Raceway, $300,000; and
  (ii)   for Ocean Downs Racetrack, $300,000.
      [(c)] (B)     As part of the capital maintenance and improvement items in the plan
submitted under subsection [(b)(2)] (A)(2) of this section, a racing licensee shall include
any improvements necessary to ensure that the condition of any part of the racetrack
facility where individuals reside is satisfactory for human habitation and meets minimum
housing and sanitation standards in the county where the facility is located.
      [(d)] (C)     The plans required under subsection [(b)] (A) of this section shall also
be provided to the Department of General Services and to the Legislative Policy Committee
of the General Assembly.
9–1A–28.
      (h)     (1)   To obtain operating assistance under this section:
  (i) a [holder of a racing license to race] RACING LICENSEE at Ocean
Downs Race Course or Rosecroft Raceway may apply to the Secretary of Labor for the
reimbursement of expenditures made by the racing licensee to conduct the annual live
racing schedule; and
  (ii)   a [holder of a racing license to race] RACING LICENSEE at
Rosecroft Raceway shall:
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Ch. 382  2026 LAWS OF MARYLAND
  1.    agree to rehire workers employed at the facility prior to
the end of live racing on June 27, 2008; and
  2.     recognize collective bargaining agreements that were in
place as of June 1, 2008.
9–1A–29.
      (a)   There is a Racetrack Facility Renewal Account under the authority of the
State Racing Commission.
      (b)    (6)  (i)  Subject to subparagraph (ii) of this paragraph, the State Racing
Commission may use the services of a certified public accountant to review an eligible
request for OR THE EXPENDITURES OF a grant under this section.
  (ii)  [The holder of a license to hold a race meeting in the State] A
RACING LICENSEE that has requested a grant under this section shall reimburse the State
Racing Commission for any expenditures for services under subparagraph (i) of this
paragraph.
       (c)   Except as provided in subsection (d)(1) of this section, funds from the Account
shall be used to provide a grant to the [holder of a license to hold a race meeting in the
State] RACING LICENSEE for racetrack facility capital construction and improvements.
       (e)   (1) In order to obtain a grant, a [holder of a license to hold a race meeting
in the State] RACING LICENSEE shall[:
  (1)] submit a capital construction plan to be implemented COMPLETED
within a specified time frame to the State Racing Commission for approval[; and].
  SUBJECT TO § 9–1A–09(A)(1)(II) OF THIS SUBTITLE AND THE
  (2)
APPROVAL OF THE GRANT FOR THE CAPITAL CONSTRUCTION PLAN BY THE STATE
RACING COMMISSION, THE RACING LICENSEE MAY provide and expend a matching
fund.
    (f)    (1) After a grant has been provided under this section, the State Racing
Commission shall:
  [(1)] (I)  in consultation with the Department of General Services,
monitor the implementation of the approved capital construction plan; and
  (II) ON WRITTEN REQUEST FROM THE GRANTEE, IN
CONSULTATION WITH THE DEPARTMENT OF GENERAL SERVICES, CERTIFY IN
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  WES MOORE, Governor  Ch. 382
WRITING THAT THE GRANTEE  HAS    COMPLETED       THE    APPROVED       CAPITAL
CONSTRUCTION PLAN; AND
  [(2)] (II) (III)   make provisions for recapture of grant money if the capital
construction plan is not implemented COMPLETED within the time frame approved by the
State Racing Commission.
  (2)    IF A RACING LICENSEE RECEIVES A GRANT FOR A CAPITAL
CONSTRUCTION PLAN WITHOUT EXPENDING A MATCHING FUND AND DOES NOT
COMPLETE THE CAPITAL CONSTRUCTION PLAN OR CONDUCT LIVE RACING DAYS IN
THE STATE FOR AT LEAST 10 YEARS AFTER THE CONSTRUCTION PLAN IS COMPLETE,
THE STATE RACING COMMISSION SHALL:
  (I)
  IF THE RACING LICENSEE DOES NOT CONDUCT LIVE RACING
DAYS IN THE STATE FOR AT LEAST 10 YEARS AFTER THE CONSTRUCTION PLAN IS
COMPLETE, CALCULATE THE AMOUNT TO BE REPAID ON A PRO RATA BASIS; AND
BASIS AND RECAPTURE THE GRANT MONEY; OR
  (II)
  RECAPTURE THE GRANT MONEY IN THE AMOUNT AS
CALCULATED UNDER ITEM (I) OF THIS PARAGRAPH.
       (h)    (1)    The State Racing Commission shall adopt regulations to implement the
provisions of this section, including regulations to:
  (i)     address minimum criteria for the types of improvements to be
made by the [holder of a license] RACING LICENSEE; [and]
  (ii)  establish a formula to allocate funds under subsection (d)(2) of
this section between Rosecroft Raceway and Ocean Downs Race Course; AND
  (III) ESTABLISH GUIDELINES FOR A RACING LICENSEE THAT
REQUESTS A GRANT FOR A CAPITAL CONSTRUCTION PLAN WITHOUT EXPENDING A
MATCHING FUND.
  (2)     (I)     If Rosecroft Raceway is closed and no longer used for live racing,
75% OF the unencumbered fund balance, including accrued interest, of the amount
available to Rosecroft Raceway from the Racetrack Facility Renewal Account under
subsection (d)(1)(ii) of this section shall be made available to Ocean Downs Race Course.
  (II)IF OCEAN DOWNS RACE COURSE IS CLOSED AND NO
LONGER USED FOR LIVE RACING, 75% OF THE UNENCUMBERED FUND BALANCE,
INCLUDING ACCRUED INTEREST, OF THE AMOUNT AVAILABLE TO OCEAN DOWNS
FROM THE RACETRACK FACILITY RENEWAL ACCOUNT UNDER SUBSECTION
(D)(1)(II) OF THIS SECTION SHALL BE MADE AVAILABLE TO ROSECROFT RACEWAY.
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Ch. 382  2026 LAWS OF MARYLAND
      SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2026.
Approved by the Governor, May 12, 2026.
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