WILLIAM DONALD SCHAEFER, Governor Ch. 6 51

11.

(b) Each mile thoroughbred licensee licensed under § 7 of
this article shall deduct the breakage computed to the 10 cents
and the following amounts on all races conducted by it: 17
percent of the regular mutuel pool, 19 percent of the multiple
mutuel pool involving two horses, and 25 percent of the multiple
mutuel pool involving three or more horses. Regular mutuel pool
means a separate wagering pool in which an interest is
represented by a single ticket evidencing a single wager on one
horse. Multiple mutuel pool means a separate wagering pool in
which an interest is represented by a single wager on two or more
horses. Each licensee shall apply the amounts deducted as
follows:

(5) (i) 7.70 percent of the regular mutuel pools,
8.70 percent of the multiple mutuel pools involving 2 horses, and
11.70 percent of the multiple mutuel pools involving 3 or more
horses shall be retained by the licensee. The licensee shall pay
from its share 0.25 percent of all mutuel pools to the Maryland
Race Track Employees Pension Fund, to be administered by
representatives of the licensee and the employees.

(ii) The increased funds allocated to licensees
commencing July 1, 1985 pursuant to subsection (b)(5) of this
section are provided so that each licensee shall improve the
facilities and services of its track and increase its promotional
and marketing activities, in order that attendance and wagering
may be increased and the well-being of the thoroughbred racing
industry enhanced. THESE INCREASED FUNDS MAY NOT BE USED TO PAY
ANY INCOME TAX CONSEQUENCES RESULTING FROM THE INCREASED FUNDS.
Exclusive of the increased funds allocated to licensees
commencing on July 1, 1985 pursuant to subsection (b)(5) of this
section, in no year shall the licensee's expenditure for capital
improvements, marketing, public relations, promotions and
maintenance be less than the average expenditure of the licensee
for the three fiscal years preceding the enactment of this
legislation for each of the above listed areas. IN CALCULATING
THE MINIMUM REQUIRED EXPENDITURE A LICENSEE MAY NOT INCLUDE IN
THE CALCULATION ANY ALLOWANCE FOR INCOME TAX CONSEQUENCES
RESULTING FROM THE INCREASED FUNDS. Each licensee shall submit
to the Commission and the General Assembly:

1.  By August 1, 1985 a report on the
proposed use of the increased funds for the licensees' current
fiscal year;

2.  By August 1, 1986 and each year
thereafter a report, reviewed by the independent public
accountants approved by the Commission to audit such licensee,
specifying the manner in which the increased funds were expended
or committed in the prior fiscal year of the licensee and an
unaudited report on the proposed use of the funds for the current
fiscal year of the licensee; and

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