WILLIAM DONALD SCHAEFER, Governor Ch. 773

(b-4) (1) The increased funds retained by a licensee under
subsection (b-2) of this section are provided so that the
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 standardbred racing industry enhanced.

(2)  A licensee who retains additional funds under
subsection (b-2) of this section, by October 1, 1988 and [October
1, 1989] OCTOBER 1 OF EACH YEAR THEREAFTER shall submit to the
Commission and the fiscal committees of the General Assembly a
written report, based on audited financial statements, on the use
of the increased funds retained by the licensee beginning July 1,
1985 under subsection (b-2) of this section.

(3)  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 3 fiscal years preceding the enactment of this
regulation 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.

(4) The report submitted to the Commission and to the
fiscal committees under paragraph (2) of this subsection shall be
submitted under penalty of perjury.

SECTION 4. AND BE IT FURTHER ENACTED, That the terms of the
members of the Commission as provided in this Act shall be as
follows:

(1) 1 for a term of 3 years from the beginning of the
member's term and until a successor shall qualify; and

(2) 1 for a term of 4 years from the beginning of the
member's term and until a successor shall qualify.

SECTION 5. AND BE IT FURTHER ENACTED, That a licensee under
Article 78B, § 7 of the Code that conducts races of Arabian breed
horses as authorized under Section 2 of this Act, the Maryland
Thoroughbred Horsemen's Association, Inc., and the Maryland Horse
Breeders' Association, Inc. shall on or before January 1, 1990
submit a written report to the Senate Finance Committee and the
House Ways and Means Committee on the impact on attendance,
wagering, and purses and any other economic impact that is
attributable to the passage of Section 2 of this Act and a
recommendation on whether Section 2 of this Act should be
continued.

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