Marvin Mandel, Governor                          1861

days after the audit statement is filed with the Racing Commission

pursuant to Section 13 of this article. In the computation of net profit,

all receipts directly attributable to a charity day, shall be deemed

to be income, and all expenses attributable to that day shall be

deemed to costs, except those items of expense which would have

been incurred had the racing on the charity day not been conducted.

Such items of expense shall include but shall not be limited to

depreciation, charitable contributions, bad debts, and such other
similar expenses as the Racing Commission may by rule prescribe.

(c) The Commission shall have the power to reject any applica-

tion for a license for any cause which it may deem sufficient and

the action of the Commission shall be final. [No one person, cor-

poration or association shall be given a license to conduct racing

for more than seventy-eight (78) days in one year; nor shall more

than an aggregate of one hundred and four (104) days of racing

be held in any one year on any one track within the State of

Maryland.]

11(b) [Each licensee, licensed under Section 7 of this Article, may-
deduct and retain for its own account one half (½) of the breakage
computed to the 10¢ and 7½% of the mutuel pool on all races con-
ducted by it during the year, exclusive of the 5% State tax imposed
by Section 14 of this Article and exclusive of the special tax imposed
by Section 12 of this article as a source of funds for grants toward
capital improvements of those licensed under Section 7 of this article.
Each licensee, licensed under Section 7 of this Article, shall allocate a
sum equal to 4% of the mutuel pool on all races conducted by it
during the year for purse money. The formula for distribution of
the purse money shall be determined by an agreement between an
organization representing the horsemen and the tracks, said agree-
ment subject to the approval of the Commission. It is the intention
that the allocation shall be made in the approximate amount of
eighty per centum (80%) to the current year's overnight races and
twenty per centum (20%) to the current year's stake races. In
addition each licensee shall allocate a portion of the total mutuel
pool on all races conducted by it during the year to the Maryland-
Bred Race Fund as provided by Section 18A herein.]

Except for the provisions of Section 7(b-2) of this Article relating
to charity days, Each mile thoroughbred licensee licensed under
Section 7 of this article shall deduct the breakage computed to the
ten cents (10¢) and fourteen percent (14%) SIXTEEN PERCENT
(16%) FIFTEEN PERCENT (15%) of the mutuel pool on all races
conducted by it and shall apply the amounts deducted as follows:

(1)    One-half of the breakage shall be paid to the Maryland
Racing Commission for the use of the State as provided by Section
14 of this article.

(2)    one-half of the breakage may be retained by the licensee.

(3)    Five percent (5%) 5.50% 5.34% of the mutuel pool shall be
paid to the Maryland Racing Commission for the use of the State as
provided by Section 14 of this article.

7.