Ch. 236                                           LAWS OF MARYLAND

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 oh two or more
horses. Each licensee shall apply the amounts deducted as
follows:

(2) Except as provided in paragraph (3) of this
subsection:

(iv) 2. The increased funds allocated to
licensees commencing July 1, 1985 pursuant to paragraph (2) of
this subsection 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 paragraph (2) of
this subsection, 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:

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

B.  By August 1, 1986 and each year
thereafter a report, reviewed by the independent CERTIFIED 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

C.  Any additional information the General
Assembly deems appropriate.

Article 83A - Department of Economic and
Employment Development

5-112.

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