The bill that would establish the Maryland Purebred Circuit Authority, an entity that would be involved in the development of racing and training facilities in the state, was passed by the state Senate by a 47-0 vote on April 6 and the House of Representatives by a vote of 132 -2 April 10, the last day of the General Assembly session in 2023.
If signed into law by Governor Wes Moore—he is expected to do so—the legislation will go into effect on June 1, a month before the end of the lengthy negotiation period for a racing agreement. between the Maryland Jockey Club, the Maryland Thoroughbred Horse Association, and the Maryland Horse Breeders Association. The 10-year racing agreement expires on December 31, 2022, and negotiations are extended until June 30.
This law was also introduced in the context of the redevelopment of the Laurel Park And Racecourse Pimlico as mandated by the Racing and Community Development Act of 2020. The new MTROA will lead on that alongside the Maryland Stadium Authority.
The House Ways and Means Committee on April 7 held a brief hearing on Senate Bill 720 and sent it to the full House with a favorable vote. MSA member Bill Cole, who has been involved in the track’s redevelopment plan since 2019, informed the committee of the bill.
Cole said the MTROA would be similar to MSA as a state agency and would, if necessary, “advocate a new ownership group for racing and training” if The Stronach Group (1/ST Racing), company that owns MJC, chooses to exit the Maryland race. He said the legislation creates the framework to facilitate any new operating structures.
“Clearly there’s a lot going on in this industry,” Cole said.
The law provides that MTROA will study and make recommendations that it deems most beneficial to Thoroughbred racing, and develop new and existing racing and training facilities. If necessary, the agency will manage and oversee daily racing operations and live race days and, in collaboration with Maryland Economic Development Corp., purchase assets for the operations; enter into any agreements, leases, partnerships or contracts necessary to place an equal bet and to comply with the rules and regulations.
The MTROA will be in effect for four years and one month, but, as noted in the committee hearing, can be extended through statutory changes if necessary.
Five members of the MTROA will be appointed by the governor: one of two is nominated by the MTHA; one of two persons nominated by the MHBA; and three other members with industry, business or government experience (one in real estate or financial services). Others are the president or chief executive officer of both MSA and MEDCO; a person who is not an elected official appointed by the president of the Senate; and a person other than an elected official appointed by the Speaker of the House.
Three non-voting members will automatically be appointed by the governor: one who resides near Laurel, one who resides near Pimlico, and one who resides near the former Bowie Training Center, given to the city of Bowie and the University by Bowie. The other non-voting ex-officio member will be from the Maryland Racing Commission.
MRTOA on or before December 1, 2023, must report to the Senate Tax and Budget Committee, House Appropriations Committee, and House Ways and Means Committee on the “feasibility of establishing at least two alternative Purebred training centers in the state, a review of best practices for Purebred racing operating models and recommendations for operating models in the state, as well as as the progress of plans to redevelop the Pimlico and Laurel Park racing facilities.”
The Racing and Community Development Act authorized about $375 million in bonds to pay for the rebuilding of Laurel and Pimlico. That cost has almost doubled for a variety of reasons, and it remains to be seen what the model will look like in the future.
This press release has been edited by BloodHorse Staff for content and style.
