Economic Development - Horse Racing Facilities, Prince George's County Blue Line Corridor Facilities, and Bus Rapid Transit - Alterations

EXPLANATION: CAPITALS INDICATE MATTER 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.
Italics indicate opposite chamber/conference committee amendments.
*hb1581*

HOUSE BILL 1581
C6, C7, C8 (6lr0348)
ENROLLED BILL
— Appropriations/Budget and Taxation —
Introduced by Chair, Appropriations Committee (By Request – Departmental –
Stadium Authority) and Delegates Beauchamp, Harrison, Ivey, D. Jones,
Ruff, Shetty, and Toles

Read and Examined by Proofreaders:

_______________________________________________
Proofreader.
_______________________________________________
Proofreader.

Sealed with the Great Seal and presented to the Governor, for his approval this

_______ day of _______________ at ________________________ o’clock, ________M.

______________________________________________
Speaker.

CHAPTER ______

AN ACT concerning 1

Horse Racing – Facility Ownership, Development, Licensing, and Operations – 2
Economic Development – Horse Racing Facilities, Prince George’s County Blue 3
Line Corridor Facilities, and Bus Rapid Transit – Alterations 4

FOR the purpose of altering the entities to which the State Racing Commission may issue 5
a license and award racing days for racing at mile tracks; altering the circumstances 6
under which the Preakness Stakes may be transferred to another track in the State; 7
altering the definitions of “Prince George’s County Blue Line Corridor” and “Prince 8
George’s County Blue Line Corridor facility” for the purposes of expanding the 9
location of the corridor and types of facilities that may be located in the corridor; 10
altering certain requirements for the thoroughbred racetrack operator of and certain 11
long–term agreements related to the Pimlico racing facility site; providing that the 12
Maryland Stadium Authority is the successor of the Maryland Thoroughbred 13
2 HOUSE BILL 1581

Racetrack Operating Authority for the operation of a certain racing and community 1
development project; requiring the thoroughbred racetrack operator to prepare 2
certain financial statements and provide those statements to the Maryland Stadium 3
Authority in a certain manner; re quiring certain income of the thoroughbred 4
racetrack operator to be distributed in a certain manner; increasing the amount of 5
bonds that the Maryland Stadium Authority may issue for the Prince George’s 6
County Blue Line Corridor; increasing the amount that the Comptroller is required 7
to distribute from the State Lottery Fund to certain funds; requiring the Governor 8
to include in the annual budget bill an appropriation to a certain fund for backstretch 9
housing facilities at Laurel Park; altering certain distr ibutions from the Purse 10
Dedication Account; altering a grant program for certain bus rapid transit systems 11
to require that Montgomery County and Howard County, instead of other counties 12
or municipal corporations, be the grantee grantees under the program; providing for 13
the duration of a grant agreement under a certain bus rapid transit grant program; 14
increasing the amount of an appropriation that the Governor is required to include 15
in the annual budget bill each year for the Bus Rapid Transit Fund; and generally 16
relating to horse racing economic development and transportation projects in the 17
State. 18

BY repealing and reenacting, without amendments, 19
Article – Business Regulation 20
Section 11–510(a) and 11–520(a) 21
Annotated Code of Maryland 22
(2024 Replacement Volume and 2025 Supplement) 23

BY repealing and reenacting, with amendments, 24
Article – Business Regulation 25
Section 11–510(b) and 11–520(b) 26
Annotated Code of Maryland 27
(2024 Replacement Volume and 2025 Supplement) 28

BY repealing and reenacting, without amendments, 29
Article – Economic Development 30
Section 10–601(b) 10–601(a) and (b), (vv)(1), and (xx), 10–611(a), and 10–657.3(a) 31
Annotated Code of Maryland 32
(2024 Replacement Volume and 2025 Supplement) 33

BY adding to 34
Article – Economic Development 35
Section 10–601(hhh) and 10–646.1(j) 36
Annotated Code of Maryland 37
(2024 Replacement Volume and 2025 Supplement) 38

BY repealing and reenacting, with amendments, 39
Article – Economic Development 40
Section 10–601(hhh) and 10 –646.1(d) and (i) 10–601(mm), (nn), and (hhh), 41
10–628(c)(1)(xi), 10–646.1(d) and (i), 10–646.4(f), and 10–657.3(c) 42
HOUSE BILL 1581 3

Annotated Code of Maryland 1
(2024 Replacement Volume and 2025 Supplement) 2

BY repealing and reenacting, without amendments, 3
Article – State Government 4
Section 9–1A–28(a) 5
Annotated Code of Maryland 6
(2021 Replacement Volume and 2025 Supplement) 7

BY adding to 8
Article – Economic Development 9
Section 10–601(hhh), 10–646.1(j), and 10–657.3(g) 10
Annotated Code of Maryland 11
(2024 Replacement Volume and 2025 Supplement) 12

BY repealing and reenacting, with amendments, 13
Article – State Government 14
Section 9–120(b)(1)(iv) 9–120(a) and (b)(1)(iv) and (xii) and 9–1A–28(b) 15
Annotated Code of Maryland 16
(2021 Replacement Volume and 2025 Supplement) 17

BY repealing and reenacting, without amendments, 18
Article – State Government 19
Section 9–120(b)(1)(xi) and (xv) and 9–1A–28(a) 20
Annotated Code of Maryland 21
(2021 Replacement Volume and 2025 Supplement) 22

BY repealing and reenacting, with amendments, 23
Article – Transportation 24
Section 2–802, 2–802.1(c), and 7–205.1 25
Annotated Code of Maryland 26
(2020 Replacement Volume and 2025 Supplement) 27

BY repealing and reenacting, without amendments, 28
Article – Transportation 29
Section 2–802.1(a) and (b) 30
Annotated Code of Maryland 31
(2020 Replacement Volume and 2025 Supplement) 32

BY repealing and reenacting, with amendments, 33
Chapter 604 of the Acts of the General Assembly of 2025 34
Section 25 35

BY repealing 36
Article – Economic Development 37
Section 10–611(e) and 10–612 38
Annotated Code of Maryland 39
4 HOUSE BILL 1581

(2024 Replacement Volume and 2025 Supplement) 1

BY renumbering 2
Article – Economic Development 3
Section 10–612.1 and 10–612.2 4
to be Section 10–612 and 10–612.1, respectively 5
Annotated Code of Maryland 6
(2024 Replacement Volume and 2025 Supplement) 7

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That the Laws of Maryland read as follows: 9

Article – Business Regulation 10

11–510. 11

(a) Except as provided in subsection (b) of this section, the Commission may not 12
issue a license, or award racing days, for racing at a mile track. 13

(b) The Commission may issue a license and award racing days only to[: 14

(1)] the Maryland Jockey Club [of Baltimore City], Inc.[; and 15

(2) the Laurel Racing Assoc., Inc. ], OR A SUCCESSOR THORO UGHBRED 16
RACETRACK OPERATOR D ESIGNATED BY THE MARYLAND STADIUM AUTHORITY 17
UNDER § 10–646.1 OF THE ECONOMIC DEVELOPMENT ARTICLE. 18

11–520. 19

(a) The requirements of this section are established in recognition of the 20
significance of the Preakness Stakes to the State. 21

(b) The Preakness Stakes may be TEMPORARILY transferred to another track in 22
the State only: 23

(1) as a result of a disaster or emergency; or 24

(2) during the reconstruction of Pimlico Race Course, subject to the 25
approval of the [Maryland Thoroughbred Racetrack Operating Authority ] MARYLAND 26
STADIUM AUTHORITY. 27

Article – Economic Development 28

10–601. 29

(a) In this subtitle the following words have the meanings indicated. 30
HOUSE BILL 1581 5

(b) “Authority” means the Maryland Stadium Authority. 1

(mm) “Prince George’s County Blue Line Corridor” means an area[,]: 2

(1) the specific boundaries of which are designated by public local law, in 3
central Prince George’s County in the intersections of Maryland Route 704, Maryland 4
Route 214, and Maryland Route 202; OR 5

(2) THAT IS DESIGNATED A S AN ENTERPRISE ZONE IN PRINCE 6
GEORGE’S COUNTY UNDER § 5–704 OF THIS ARTICLE. 7

(nn) [(1)] “Prince George’s County Blue Line Corridor facility” means a facility 8
located within the Prince George’s County Blue Line Corridor that is: 9

[(i)] (1) a convention center; 10

[(ii)] (2) an arts and entertainment amphitheater; [and] 11

(3) A MARKET HALL; 12

(4) A SPORTS –RELATED FACILITY , INCLUDING A SPORTS 13
STADIUM, PRACTICE FIELD, OR TEAM HEADQUARTERS; 14

(5) A MIXED–USE DEVELOPMENT; 15

(6) A TECHNOLOGY INNOVATION CENTER; 16

(7) RELATED TO COMMERCIAL DEV ELOPMENT AND 17
REVITALIZATION; AND 18

[(iii)] (8) any other functionally related structures, 19
improvements, infrastructure, furnishings, or equipment of the facility, including parking 20
garages. 21

[(2) “Prince George’s County Blue Line Corridor facility” does not include a 22
sports facility.] 23

(vv) (1) “Racing and community development projects” means improvements to 24
the Pimlico racing facility site, Pimlico site, and training facility site. 25

(xx) “Racing facility” means the Pimlico site and the training facility site and any 26
facilities or other improvements on the Pimlico site or the training facility site. 27

6 HOUSE BILL 1581

(HHH) “THOROUGHBRED RACETRAC K OPERATOR ” MEANS THE 1
MARYLAND JOCKEY CLUB, INC., OR A SUCCESSOR BUSIN ESS ENTITY DESIGNATED 2
BY THE AUTHORITY IN ACCORDANCE WITH § 10–646.1 OF THIS SUBTITLE. 3

[(hhh)] (III) “Training facility site” means a site for training thoroughbred 4
racehorses selected or acquired by the [Maryland Thoroughbred Racetrack Operating ] 5
Authority. 6

10–628. 7

(c) (1) Unless authorized by the General Assembly, the Board of Public Works 8
may not approve an issuance by the Authority of bonds, whether taxable or tax exempt, 9
that constitute tax supported debt or nontax supported debt if, after issuance, there would 10
be outstanding a nd unpaid more than the following face amounts of the bonds for the 11
purpose of financing acquisition, construction, renovation, and related expenses for 12
construction management, professional fees, and contingencies in connection with: 13

(xi) Prince Georg e’s County Blue Line Corridor facilities – 14
[$400,000,000] $450,000,000 $425,000,000. 15

10–646.1. 16

(d) (1) In this subsection, “long –term agreement” includes a lease, operating, 17
joint venture, or management agreement with a minimum term established by the 18
Authority. 19

(2) The Authority shall ensure that the following agreements are executed: 20

(i) subject to paragraph (3) of this subsection, a long –term 21
agreement regarding management and operations [at] OF the Pimlico racing facility site; 22
and 23

(ii) agreements between the Authority and project entities for the 24
planning, design, and construction of a racing facility. 25

(3) (i) Subject to subparagraph (ii) of this paragraph, the long –term 26
agreement required under paragraph (2)(i) of this subsection shall: 27

1. ensure the continuity of the Preakness Stakes at the 28
Pimlico racing facility site AFTER RECONSTRUCTION BY THE AUTHORITY; AND 29

2. [be contingent on the conveyance or conveyances in fee 30
simple of the Pimlico site, in whole or in part, to t he Maryland Thoroughbred Racetrack 31
Operating Authority, Baltimore City, the Baltimore Development Corporation or its 32
successor or assigns, or any designated project entity; and 33

HOUSE BILL 1581 7

3.] establish: 1

A. the right of the [Authority or an entity designated by the 2
Authority] THOROUGHBRED RACETRACK OPERATOR to manage and operate the Pimlico 3
[Clubhouse and Events Facility, grounds, and any] RACING facility SITE; 4

B. the obligation of the [Authority or an entity designated by 5
the Authority ] THOROUGHBRED RAC ETRACK OPERATOR to operate, maintain as a 6
first–class facility, in good condition, repair, and secure the Pimlico racing facility site 7
during periods identified in the long–term agreement; and 8

C. the obligation of the [Authority or an entity designated by 9
the Authority] THOROUGHBRED RACETRACK OPERATOR to cooperate with respect to 10
the provision of adequate parking and efficient transportation plans around the Pimlico 11
racing facility site. 12

(ii) 1. If thoroughbred racing is no longer a lawful activit y, or is 13
otherwise rendered not commercially viable as a result of a change in law or regulation, the 14
parties to the long–term agreement shall notify the Board of Public Works at least 180 days 15
before the expiration or termination of the long–term agreement. 16

2. The notice required under subsubparagraph 1 of this 17
subparagraph shall contain a [wind–down] plan FOR ALTERNATIVE USES FOR THE 18
PIMLICO RACING FACILI TY SITE THAT PROVIDE A NECESSARY OR BENEF ICIAL 19
PUBLIC PURPOSE AND A PROCESS FOR COMMUNITY INPUT THAT IS FACILITATED BY 20
THE PIMLICO COMMUNITY ADVISORY BOARD. 21

3. The long–term agreement required under paragraph (2)(i) 22
of this subsection shall [contain dispute resolution provisions, including expedited review, 23
in the event that ] PROVIDE THAT IF there is a dispute among the parties regarding the 24
existence of the conditions described in subsubparagraph 1 of this subparagraph or the 25
contents of the [wind–down] plan FOR ALTERNATIVE USES , THE AUTHORITY IS 26
AUTHORIZED TO ADJUDI CATE THE DISPUTE AS A CONTESTED CASE UNDER TITLE 27
10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE, INCLUDING 28
AUTHORIZATION TO DELEGATE ALL OR A PORTI ON OF THE ADJUDICATI ON TO THE 29
OFFICE OF ADMINISTRATIVE HEARINGS AS DETERMINED IN THE SOLE DISCRETION 30
OF THE AUTHORITY. 31

(i) (1) For the purpose of the planning, design, construction, and ownership of 32
a racing and community development project under this subtitle, the Authority is the 33
successor entity to the Maryland Thoroughbred Racetrack Operating Authority. 34

(2) For the purpose of the op eration of a racing and community 35
development project under this subtitle, the [Maryland Economic Development 36
8 HOUSE BILL 1581

Corporation] AUTHORITY is the successor entity to the Maryland Thoroughbred Racetrack 1
Operating Authority. 2

(3) The Authority [and the Maryland Economic Development Corporation] 3
may enter into any agreements necessary to carry out the provisions of this section. 4

(4) [A nonprofit operator of a racing and community development project ] 5
THE THOROUGHBRED RACETRACK OPERATOR: 6

(i) SHALL BE A NONSTOCK CORPORATION FORMED UNDER THE 7
LAWS OF THE STATE AND NOT OPERATED FOR PROFIT; 8

(II) may not be construed to be an agency or instrumentality of the 9
State or a unit of the Executive Branch for any purpose; 10

[(ii)] (III) may be replaced with anot her business entity [with the 11
concurrent approval of ] DESIGNATED BY the Authority [and the Maryland Economic 12
Development Corporation ] IN ACCORDANCE WITH T HE TERMS OF THE 13
LONG–TERM AGREEMENT; and 14

[(iii)] (IV) shall reimburse the Authority for the cost of a full –time 15
auditor responsible for overseeing the financial transactions and records relating to racing 16
and community project costs and ongoing operations. 17

(J) (1) THE THOROUGHBRED RACE TRACK OPERATOR SHALL PREPARE 18
ACCRUAL BASIS FINANCIAL STATEMENTS AT THE CLOSE OF EACH FISCAL YEAR AND 19
PROVIDE A COPY OF TH OSE FINANCIAL STATEM ENTS TO THE AUTHORITY 20
ANNUALLY. 21

(2) THE ACCRUAL BASIS FINANCIAL STATEMENTS REQUIRED UNDER 22
PARAGRAPH (1) OF THIS SUBSECTION S HALL DESCRIBE THE CU RRENT FINANCIAL 23
CONDITIONS OF THE THOROUGHBRED RACETRA CK OPERATOR AND INCL UDE A 24
STATEMENT OF OPERATING PROFIT OR LOSS. 25

(3) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , 26
BEGINNING WITH THE F IRST FULL FISCAL YEA R OF THOROUGHBRED RA CING 27
OPERATIONS AT THE RE CONSTRUCTED PIMLICO RACING FACILITY, 10% OF THE 28
ANNUAL NET INCOME OF THE THOROUGHBRED RAC ETRACK OPERATOR SHAL L BE 29
DISTRIBUTED EACH YEAR IN THE MANNER DESCRI BED UNDER § 9–1A–31(A)(3)(II) 30
OF THE STATE GOVERNMENT ARTICLE AS LOCAL IMPACT GRANTS TO THE PIMLICO 31
COMMUNITY DEVELOPMENT AUTHORITY TO BE DISTR IBUTED TO DESIGNATED 32
COMMUNITY DEVELOPMEN T ORGANIZATIONS ASSI GNED TO THE IMPACTED 33
COMMUNITIES FOR COMM UNITY DEVELOPMENT AC TIVITIES OUTLINED IN THE 34
ADOPTED PIMLICO AREA JOINT PLAN. 35
HOUSE BILL 1581 9

(II) BEFORE CALCULATING TH E AMOUNT TO BE DISTR IBUTED 1
UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE ANNUAL NET INCOME OF THE 2
THOROUGHBRED RACETRA CK OPERATOR SHALL BE REDUCED BY ALL STATE 3
GRANTS, CONTRIBUTIONS FROM A NY THOROUGHBRED PURSE ACCOUNT, AND THE 4
CUMULATIVE OPERATING LOSSES CARRIED FORWA RD, IF ANY , FROM THE PRIOR 5
YEARS OF OPERATION. 6

10–646.4. 7

(f) For fiscal year [2024] 2027 and each fiscal year thereafter, until the bonds 8
that have been issued to finance Prince George’s County Blue Line Corridor facilities are 9
no longer outstanding and unpaid, the Comptroller shall deposit into the Prince George’s 10
County Blue Line Corridor Facility Fund an amount not to exceed [$27,000,000] 11
$31,000,000 $29,000,000 from the State Lottery Fund under § 9 –120(b)(1)(xi) of the 12
State Government Article. 13

10–657.3. 14

(a) There is a Racing and Community Development Facilities Fund. 15

(c) Subject to [subsection (f)] SUBSECTIONS (F) AND (G) of this section and to 16
the extent considered appropriate by the Authority, the money in the Racing and 17
Community Development Facilities Fund shall be used to pay the following costs relating 18
to racing facilities projects: 19

(1) debt service on Authority bonds; 20

(2) design and construction costs relating to racing facilities projects; 21

(3) to the extent authorized by federal tax law, transition costs and 22
reimbursements, costs of start–up, administration, overhead, and operations related to the 23
management of improvements to racing facilities projects authorized under this subtitle 24
and undertaken by the Authority; and 25

(4) all reasonab le charges and expenses related to the Authority’s 26
administration of the Racing and Community Development Financing Fund and the Racing 27
and Community Development Facilities Fund and the management of the Authority’s 28
obligations. 29

(G) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , FOR FISCAL 30
YEAR 2028, THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN 31
APPROPRIATION OF $5,000,000 TO THE RACING AND COMMUNITY DEVELOPMENT 32
FACILITIES FUND. 33

10 HOUSE BILL 1581

(2) THE AUTHORITY SHALL USE T HE FUNDS INCLUDED IN THE 1
ANNUAL BUDGET BILL UND ER PARAGRAPH (1) OF THIS SUBSECTION F OR THE 2
ACQUISITION, PLANNING, DESIGN, CONSTRUCTION, REPAIR, RENOVATION, 3
RECONSTRUCTION, SITE IMPROVEMENT , AND CAPITAL EQUIPPIN G OF 4
BACKSTRETCH HOUSING FACILITIES AT LAUREL PARK. 5

Article – State Government 6

9–120. 7

(a) The Comptroller shall: 8

(1) distribute, or cause to be distributed, the State Lottery Fund to pay: 9

[(1)] (I) on a pro rata basis for the daily and nondaily State lottery games, 10
the expenses of administering and operating the State lottery, as authorized under this 11
subtitle and the State budget; and 12

[(2)] (II) then, except as provided in § 10–113.1 of the Family Law Article, 13
§ 11 –618 of the Criminal Procedure Article, and § 3 –307 of the State Finance and 14
Procurement Article, the holder of each winning ticket or share; AND 15

(2) CAUSE TO BE DISTRIBUTED TO THE STATE LOTTERY FUND: 16

(I) BEGINNING IN FISCAL YEAR 2027 AND EACH FISCAL YEAR 17
THEREAFTER, $5,000,000 FROM THE PURSE DEDICATION ACCOUNT, IN 18
ACCORDANCE WITH § 9–1A–28(B)(3)(II) OF THIS TITLE; 19

(II) BEGINNING IN FISCAL YEAR 2027 AND EACH FISCAL YEAR 20
THEREAFTER, $3,500,000 FROM THE FUNDS FOR L OCAL IMPACT GRANTS , IN 21
ACCORDANCE WITH § 9–1A–31(A)(4)(I)3 AND (B)(3)(I)2 OF THIS TITLE; AND 22

(III) BEGINNING IN FISCAL YEAR 2027 AND EACH FISCAL YEAR 23
THEREAFTER, 80% OF THE AMOUNT OF FUN DS FROM THE RACETRACK FACILITY 24
RENEWAL ACCOUNT ALLOCATED TO THOROUGHBRED TRACK L ICENSEES, IN 25
ACCORDANCE WITH § 9–1A–29(D)(1)(I)2 OF THIS TITLE. 26

(b) (1) By the end of the month foll owing collection, the Comptroller shall 27
deposit, cause to be deposited, or pay: 28

(iv) after June 30, [2021] 2026, into the Racing and Community 29
Development Financing Fund established under § 10–657.2 of the Economic Development 30
Article from the money that remains in the State Lottery Fund, after the distribution under 31
subsection (a) of this section, an amount equal to [at least $17,000,000 ] $27,000,000 32
$29,000,000 in each fiscal year until the bonds issued for a racing facility have matured; 33
HOUSE BILL 1581 11

(xi) after June 30, 2024, into the Bus Rapid Transit Fund established 1
under § 2 –802.1 of the Transportation Article for bus rapid transit system grants in 2
accordance with § 2–802 of the Transportation Article from the money that remains in the 3
State Lottery Fun d from the proceeds of all lotteries after the distributions under 4
subsection (a) of this section and items (i) through (x) of this paragraph: 5

1. for fiscal year 2025, an amount equal to $27,000,000 in 6
each fiscal year; and 7

2. for each fiscal yea r thereafter, an amount equal to 8
$17,000,000 in each fiscal year; 9

(xii) after June 30, [2024] 2026, into the Prince George’s County Blue 10
Line Corridor Facility Fund established under § 10 –657.6 of the Economic Development 11
Article from the money that re mains in the State Lottery Fund from the proceeds of all 12
lotteries after the distributions under subsection (a) of this section and items (i) through 13
(xi) of this paragraph, [$27,000,000] $31,000,000 $29,000,000; 14

(xv) into the General Fund of the State the money that remains in the 15
State Lottery Fund from the proceeds of all lotteries after the distributions under 16
subsection (a) of this section and items (i) through (xiv) of this paragraph. 17

9–1A–28. 18

(a) There is a Purse Dedication Account under the authority of the State Racing 19
Commission. 20

(b) (1) The Account shall receive money as required under § 9 –1A–27 of this 21
subtitle. 22

(2) Money in the Account shall be invested and reinvested by the Treasurer 23
and interest and earnings shall accrue to the Account. 24

(3) The Comptroller shall: 25

(i) account for the Account; 26

(ii) [for fiscal year 2021, transfer $5,000,000, from the portion of the 27
proceeds in the Account allocated to thoroughbred purses under subsection (c)(1) of this 28
section, to the Racing and Community Development Facilities Fund established under § 29
10–657.3 of the Economic Development Article; 30

(iii)] for fiscal year 2022 and each fiscal year thereafter, on a properly 31
approved transmittal prepared by the Maryland Stadium Authority, issue a warrant to pay 32
out $5,000,000, from the portion of the proceeds in the Account allocated to thoroughbred 33
12 HOUSE BILL 1581

purses under subsection (c)(1) of this section, to the State Lottery Fund established under 1
§ 9–120 of this title until any bonds, debt, or other financial instruments issued or made 2
available by the Maryland Stadium Authority for a racing facility under Title 10, Subtitle 3
6 of the Economic Development Article reach final maturity; 4

(III) FOR FISCAL YEAR 2028 AND EACH FISCAL YEAR 5
THEREAFTER, ON A PROPERLY APPROV ED TRANSMITTAL PREPA RED BY THE 6
MARYLAND ECONOMIC DEVELOPMENT CORPORATION, ISSUE A WARRANT TO P AY 7
OUT $2,000,000, FROM THE PORTION OF THE PROCEEDS IN THE ACCOUNT 8
ALLOCATED TO THOROUG HBRED PURSES UNDER S UBSECTION (C)(1) OF THIS 9
SECTION, TO THE CORPORATION ESTABLISHED UNDER TITLE 10, SUBTITLE 1 OF 10
THE ECONOMIC DEVELOPMENT ARTICLE UNTIL ANY BON DS, DEBT, OR OTHER 11
FINANCIAL INSTRUMENTS ISSUED OR MADE AVAILABLE BY THE CORPORATION FOR 12
A TRAINING FACILITY SITE AND OTHER IMPROVEMENTS UNDER TITLE 10, SUBTITLE 13
6 OF THE ECONOMIC DEVELOPMENT ARTICLE REACH FINAL MATURITY; 14

[(iv)] (III) beginning with the first full FISCAL year of thoroughbred 15
racing operations at the [newly constructed] RECONSTRUCTED Pimlico racing facility, for 16
any fiscal year that the [Maryland Thoroughbred Racetrack Operating Authority ] 17
THOROUGHBRED RACETRACK OPERATOR reports an operating loss [under § 10–1003(c) 18
of the Economic Development Article ], INCLUSIVE OF ALL STATE GRANTS A ND 19
THOROUGHBRED PURSE A CCOUNT CONTRIBUTIONS , IN ACCORDANCE WITH § 20
10–646.1 OF THE ECONOMIC DEVELOPMENT ARTICLE, on a properly approved 21
transmittal prepared by the MARYLAND STADIUM Authority, issue a warrant to pay out 22
the amount of the operating loss, from the portion of the proceeds in the Account allocated 23
to thoroughbred purses under subsection (c)(1) of this section, to the [Authority] 24
THOROUGHBRED RACETRACK OPERATOR; and 25

[(v)] (IV) on a properly approved transmittal prepared by the State 26
Racing Commission, issue a warrant to pay out money from the Account in the manner 27
provided under this section. 28

(4) The Account is a special, nonlapsing fund that is not subject to § 7–302 29
of the State Finance and Procurement Article. 30

(5) Except as provided in paragraph (3)(ii) [through (iv)] AND (III) of this 31
subsection, expenditures from the Account shall only be made on a properly approved 32
transmittal prepared by the State Racing Commission as provided under subsection (c) of 33
this section. 34

Article – Transportation 35

2–802. 36

(a) [(1)] In this section [the following words have the meanings indicated. 37
HOUSE BILL 1581 13

(2) “Bus], “BUS rapid transit system” means a bus line that operates on at 1
least some portion of roadway dedicated to buses and offers off –board fare collection or 2
another form of high efficiency fare collection if a fare is charged. 3

[(3) “Eligible grantee” means a county or municipal corporation that has: 4

(i) A bus rapid transit system that operates in the county or 5
municipal corporation; and 6

(ii) No ongoing or completed facility, as that term is defined in § 7
10–601(s)(1), (4), (9), (10), or (11) of the Economic Development Article.] 8

(b) (1) [Subject to paragraph (2) of this subsection, when] WHEN a deposit or 9
payment is made in accordance with § 9–120(b)(1)(xi) of the State Government Article into 10
the Bus Rapid Transit Fund established under § 2–802.1 of this subtitle, [and there is only 11
one eligible grantee, then ]BEGINNING IN FISCAL Y EAR 2027 AND EACH FISCAL YEAR 12
THEREAFTER, the Department shall award a grant to: 13

(I) [the eligible grantee ] MONTGOMERY COUNTY equal to 14
$27,000,000; AND [the]: 15

(I) THE amount distributed to the Department under § 16
9–120(b)(1)(xi) of the State Government Article; AND 17

(II) THE AMOUNT APPROPRIAT ED UNDER § 7–205.1 OF THIS 18
ARTICLE 19

(II) HOWARD COUNTY EQUAL TO $2,000,000. 20

(2) [(i) If there are two eligible grantees, and one eligible grantee is 21
Montgomery County, the Department shall distribute $25,000,000 to Montgomery County 22
and the remaining amount of the deposit or payment under § 9 –120(b)(1)(xi) of the State 23
Government Article to the remaining eligible grantee. 24

(ii) If more than three counties or municipal corporations are eligible 25
grantees, and one e ligible grantee is Montgomery County, then the Department shall 26
distribute: 27

1. Not less than $20,000,000 to Montgomery County if 28
Montgomery County remains an eligible county; and 29

2. The total remaining amount of the deposit or payment 30
under § 9–120(b)(1)(xi) of the State Government Article to the remaining eligible grantees 31
based on each eligible grantee’s pro rata share of the statewide population. 32
14 HOUSE BILL 1581

(iii) If Montgomery County is not an eligible grantee, and more than 1
one county or municipal co rporation are eligible grantees, then the Department shall 2
distribute the total amount of the deposit payment under § 9 –120(b)(1)(xi) of the State 3
Government Article to the eligible grantees based on each eligible grantee’s pro rata share 4
of the statewide population. 5

(3)] (i) [Eligible grantees receiving funds in accordance with this 6
subsection and § 2 –802.1 of this subtitle ] MONTGOMERY COUNTY AND HOWARD 7
COUNTY may use the grant funds for the: 8

1. Financing and refinancing of the costs related to the 9
DESIGN, construction, acquisition, improvement, equipping, rehabilitation, and expansion 10
of bus rapid transit system projects AND OTHER NECESSARY FACILITIES, EQUIPMENT, 11
AND INFRASTRUCTURE FOR BUS RAPID TRANSIT SYSTEM PROJECTS; 12

2. Payment of debt service on bonds issued to finance bus 13
rapid transit system projects; 14

3. Payment of all reasonable expenses and charges related to 15
bond issuance and borrowing; and 16

4. Payment of costs relating to t he management and 17
operation of bus rapid transit system projects. 18

(ii) If [an eligible grantee] MONTGOMERY COUNTY OR HOWARD 19
COUNTY uses funds under this section for the payment of debt service on bonds issued to 20
finance bus rapid transit system projects, [the eligible grantee] MONTGOMERY COUNTY 21
OR HOWARD COUNTY shall issue bonds in accordance with an ordinance or resolution 22
which may specify all matters relating to the advertisement, sale, issuance, delivery, and 23
payment of the bonds, including: 24

1. The forms, dates, and denominations of the bonds; 25

2. The principal maturities; 26

3. The methods to be used in determining interest payable 27
on the bonds; and 28

4. Any provisions for registration, redemption before stated 29
maturity, or the use of facsimile signatures or seals. 30

(c) The Department: 31

(1) Shall [distribute grants]: 32

HOUSE BILL 1581 15

(I) DEVELOP AND IMPLEMENT A MULTI –YEAR GRANT 1
AGREEMENT TO ADMINIS TER THE GRANT UNDER THIS SECTION WHICH S HALL 2
REMAIN IN EFFECT UNTIL THE PRINCIPAL OF AND INTEREST ON ANY BONDS ISSUED 3
BY MONTGOMERY COUNTY OR HOWARD COUNTY UNDER THIS SECTION ARE PAID IN 4
FULL; AND 5

(II) DISTRIBUTE THE GRANT under this section to [eligible 6
grantees] MONTGOMERY COUNTY OR HOWARD COUNTY in a timely manner; and 7

(2) May not impose any additional conditions on [an eligible grantee ] 8
MONTGOMERY COUNTY OR HOWARD COUNTY on receipt of a grant under this section. 9

2–802.1. 10

(a) In this section, “Fund” means the Bus Rapid Transit Fund. 11

(b) There is a Bus Rapid Transit Fund. 12

(c) The purpose of the Fund is to: 13

(1) Provide grants to [eligible grantees, as defined under § 2–802 of this 14
subtitle] MONTGOMERY COUNTY OR HOWARD COUNTY; and 15

(2) Make funding commitments for the issuance of bus rapid transit bonds. 16

7–205.1. 17

[For fiscal year 2026 and each fiscal year thereafter, the ] THE Governor shall 18
include in the State budget an appropriation [of $10,000,000 ] from the Transportation 19
Trust Fund to the Bus Rapid Transit Fund established under § 2 –802.1 of this article for 20
bus rapid transit system grants in accordance with § 2 –802 of thi s article IN THE 21
FOLLOWING AMOUNTS: 22

(1) FOR FISCAL YEAR 2026, $10,000,000; AND 23

(2) FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR THEREAFTER, 24
$12,000,000. 25

Chapter 604 of the Acts of 2025 26

SECTION 25. AND BE IT FURTHER ENACTED, That, except as otherwise 27
provided by law, all existing laws, regulations, proposed regulations, standards and 28
guidelines, policies, orders and other directives, forms, plans, memberships, contracts, 29
property, investigations, administrative and judicial responsibilities, rights to sue and be 30
sued, and all other duties and responsibilities associated with the functions of Maryland 31
16 HOUSE BILL 1581

Thoroughbred Racetrack Operating Authority prior to the taking effect of the termination 1
provision of Section 6 of Chapter 111 of 2023, as amended by Section 6 of this Act, shall 2
continue in effect and, as appropriate, are legal and binding on the [Maryland Economic 3
Development Corporation ] MARYLAND STADIUM AUTHORITY until completed, 4
withdrawn, canceled, modified, or otherwise changed under the law. 5

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 6
as follows: 7

Article – Economic Development 8

10–611. 9

(a) There is an office known as Maryland Sports in the Authority. 10

[(e) Maryland Sports is encouraged to promote private fund –raising by 11
maintaining relationships with each affiliated foundation established under § 10 –612 of 12
this subtitle.] 13

[10–612. 14

(a) The Authority may establish one or more affiliated foundations to work with 15
Maryland Sports, established under § 10–611 of this subtitle. 16

(b) The purposes of an affiliated foundation are to: 17

(1) support the State in: 18

(i) sports bid development; 19

(ii) sporting event recruitment and retention; 20

(iii) economic analysis and research relating to sporting events; 21

(iv) sponsorship of sporting events; and 22

(v) development of partnerships with public and private entities 23
designed to sponsor sporting events; 24

(2) promote regional, national, and international sporting events to be held, 25
in whole or in part, in the State; and 26

(3) recruit, market, promote, work to retain, and manage sporting events 27
that have a positive economic or cultural impact, or otherwise enhance the quality of life of 28
the State’s citizens. 29

HOUSE BILL 1581 17

(c) (1) The Authority shall develop policies for the operation of each affiliated 1
foundation the Authority establishes. 2

(2) The Attorney General shall review the policies the Authority develops 3
under paragraph (1) of this subsection for form and le gal sufficiency and, if appropriate, 4
approve them to govern the affiliated foundation. 5

(3) The State Ethics Commission shall review the policies the Authority 6
develops under paragraph (1) of this subsection that pertain to conflicts of interest and, if 7
appropriate, approve them to govern an official or employee of the Authority also serving as 8
a director or official of an affiliated foundation. 9

(d) An affiliated foundation may solicit and receive contributions from businesses, 10
governmental entities, nonprofit organizations, and individuals interested in the promotion 11
of sports in the State. 12

(e) (1) An affiliated foundation established under this section may not be 13
considered an agency or instrumentality of the State or a unit of the Executive Branch for 14
any purpose. 15

(2) A financial obligation or liability of an affiliated foundation established 16
and operated under this section may not be considered a debt or an obligation of the State, 17
the Authority, or Maryland Sports. 18

(f) (1) Sections 5–501 through 5–504 of the General Provisions Article do not 19
prohibit an official or employee of the Authority from also becoming a director or an official 20
of an affiliated foundation organized under this section. 21

(2) An official or employee of the Authority who serves as a director or 22
official of an affiliated foundation organized under this section: 23

(i) may not be compensated, directly or indirectly, by the affiliated 24
foundation; and 25

(ii) may be reimbursed for bona fide expenses incurred in the 26
performance of activities undertaken on behalf of the affiliated foundation as authorized by 27
the board of directors of that affiliated foundation and by the Authority. 28

(3) (i) The Authority shall notify the State Ethics Commission in writing 29
whenever the Authority permits an official or employee of the Authority to serve as a director 30
or official of an affiliated foundation. 31

(ii) Within 30 days after receipt of the notice under subparagraph (i) 32
of this paragraph, the State Ethics Commission shall not ify the Authority of any objections 33
or concerns pertaining to the joint service identified in the notice. 34

18 HOUSE BILL 1581

(iii) On receipt of a notice from the State Ethics Commission under 1
subparagraph (ii) of this paragraph, the Authority shall reexamine the matter. 2

(4) The Authority shall report annually to the Governor, the Legislative 3
Policy Committee of the General Assembly, in accordance with § 2 –1257 of the State 4
Government Article, and the State Ethics Commission: 5

(i) the names of the officials and empl oyees serving as a director or 6
official of an affiliated foundation; and 7

(ii) how the policies and procedures adopted under subsection (c) of 8
this section have been implemented in the preceding year. 9

(g) An independent certified public accountant hir ed and paid by the Authority 10
shall audit an affiliated foundation established under this section each year. 11

(h) In any fiscal year, after providing the budget committees of the General 12
Assembly an opportunity for review and comment, the Authority may grant up to $500,000 13
of the Authority’s available nonbudgeted money to affiliated foundations established under 14
this section.] 15

SECTION 3. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That Section(s) 10–612.1 and 10–612.2 of Article – Economic Development of the Annotated 17
Code of Maryland be renumbered to be Section(s) 10–612 and 10–612.1, respectively. 18

SECTION 2. 4. AND BE IT FURTHER ENACTED, That, within 45 days after the 19
effective date of this Act, all of the functions, powers, duties, books and records (including 20
electronic records), personal property, equipment, fixtures, assets, liabilities, obligations, 21
credits, rights, agreements, and privileges previously held by the Maryland Thoroughbred 22
Racetrack Operating Authority, including those related to the Maryland Jockey Club, Inc., 23
and transferred to the Maryland Economic Development Corporation under Section 23 of 24
Chapter 604 of the Acts of the General Assembly of 2025, shall be transferred to the 25
Maryland Stadium Authority. 26

SECTION 5. AND BE IT FURTHER ENACTED, That Sections 2 and 3 of this Act 27
shall take effect July 1, 2027. 28

SECTION 3. 6. AND BE IT FURTHER ENACTED, That , except as provided in 29
Section 5 of this Act, this Act shall take effect June July 1, 2026. 30