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09.10.01.64 - Maryland Racing Commission - Emergency Regulations

 

EMERGENCY ACTION ON REGULATIONS
MARYLAND REGISTER, VOLUME 40, ISSUE 20,
FRIDAY, OCTOBER 4, 2013

Title 09
DEPARTMENT OF LABOR, LICENSING, AND REGULATION

Subtitle 10 RACING COMMISSION

09.10.01 Thoroughbred Rules

Authority: Business Regulation Article, §11-210, Annotated Code of Maryland

Notice of Emergency Action
[13-310-E]

The Joint Committee on Administrative, Executive, and Legislative Review has granted an extension of emergency status to amendments to Regulation .64 under COMAR 09.10.01 Thoroughbred Rules.

Emergency status began: September 19, 2013.

Emergency status ends: December 31, 2013.

Comparison to Federal Standards

There is no corresponding federal standard to this emergency action.

Estimate of Economic Impact

I. Summary of Economic Impact. The proposed amendments provide for: (1) the payment of owner awards from the Maryland-Bred Race Fund to the owners of Maryland-bred horses which win a maiden race, an allowance race, or a claiming race with a claiming price of $20,000 or more; (2) the payment of breeder awards to the breeder of a Maryland-bred horse which finishes in first, second, or third position in any race in the State; and (3) the distribution of stallion owner awards to the owner of a sire of a Maryland-bred horse which finishes in first, second, or third position in any race in the State – all of which is to encourage the breeding of horses that qualify as Maryland-bred horses, and to incentivize the purchase of the offspring which result from such breeding.

 
Revenue (R+/R-)
 
II. Types of Economic
Impact.
Expenditure
(E+/E-)
Magnitude

A. On issuing agency: NONE  
 
B. On other State agencies: NONE
 
C. On local governments: NONE
 
Benefit (+)
Cost (-)
Magnitude
D. On regulated industries or trade groups: NONE

E. On other industries or trade groups:
Owner, Breeder, and Stallion Owners
(+) Unable to estimate
 
F. Direct and indirect effects on public: NONE
 

III. Assumptions. (Identified by Impact Letter and Number from Section II.)

E. It is impossible to estimate the number Maryland-bred horses that would be foaled; that would be purchased; and that would participate in races in which owner, breeder, and stallion owner awards would be earned.

Economic Impact on Small Businesses

The emergency action has a meaningful economic impact on small business. An analysis of this economic impact follows.

It is anticipated that increasing the awards for owners, breeders and stallion owners will encourage individuals and small businesses to invest in the Maryland horse breeding industry.

.49 Rewards to Breeders — Maryland-Bred Rules.

A.—F. (text unchanged)
G. With the exception of the monies allocated to this Fund which were generated by the handle on Maryland Million Day, subject to the approval of the Commission, a portion of all the remaining money allocated to this Fund [from each race meeting that generates revenue for the Fund], and all earnings on these monies, shall be distributed in the form of purse money and owner awards [on a semi-annual basis] as follows:
  (1) (text unchanged)
  (2) A percentage to owner’s awards, to be paid to the owner of a winning horse[, including the winner of a maiden claiming race,] which has been registered with the Maryland Horse Breeders Association as being a Maryland-bred horse[, unless the horse was the winner of a] only for the following:
    (a) [Stakes] Maiden race;
    (b) [Starter] Allowance race; and
   
(c) Claiming race when the winner competes for a claiming price of [less than] $20,000 or more[; or
    (d) Race restricted to Maryland-breds].
H. After the application of §G of this regulation, the remaining portion of the monies allocated to this Fund, and all earnings on these monies, shall be distributed in the form of breeder and stallion owner awards as follows:
  (1) To a breeder of a registered Maryland-bred horse which won a race, or finished second, or third[, or fourth in a stakes race]; and
  (2) To the owner of a stallion, as defined by §A(4) of this regulation, if a registered Maryland-bred sired by the stallion won a race, or finished second, or third[, or fourth in a stakes race].
I. On a semiannual basis, the Commission, with the advice of the Maryland-Bred Race Fund Advisory Committee, shall determine the amount to be distributed in the form of purses and owner, breeder, and stallion owner awards using the following formulas:
  [(1) Under §G(2) of this regulation, an owner award percentage is to be based on a relationship between the total amount of the purses on which these awards are to be paid and the total amount of money available to be distributed for owner awards;]
  [(2)] (1) (text unchanged)
  [(3)] (2) The owner, breeder, and stallion owner award percentages established under §I(1) [and (2)] of this regulation shall apply to all Maryland-Bred Fund races except the races conducted on Maryland Million Day; and
  [(4)] (3) (text unchanged)

J.—N. (text unchanged)

J. MICHAEL HOPKINS
Executive Director
Maryland Racing Commission