The bill passed the Senate without debate by a 41-6 margin. All six “nay” votes were from Republicans: Sens. William Folden, Jason Gallion, Stephen Hershey, Johnny Mautz, Mike McKay, and Justin Ready.

The primary action Monday was in the Budget and Taxation Committee, after Senators, Gov. Wes Moore’s representatives, and members of the Maryland Thoroughbred Racetrack Operating Authority (MTROA) spent the weekend trying to hammer out agreements to get the bill through.

None of the Senators in the committee sounded very happy about the bill, but in the end it passed the committee unanimously.

“It’s not fair to us to bring this to us 11^th hour like this,” said Sen. J. B. Jennings (R-Baltimore and Harford Counties), adding, “I’m taking a leap of faith with this vote… I will probably vote for it, but it’s a vote that I’m not certain it’s the right vote.”

“I think some of your feelings are well-founded,” responded committee chair Sen. Guy Guzzone (D-Howard County). “I certainly share your concern that we’re doing this now, at this moment, but, however, this is what we have before us. I believe we’ve done the best we can.”

The overall bill, coupled with a series of agreements its passage is expected to trigger, will remake Maryland racing. It will lead to the closure of Laurel Park, the revitalization of Pimlico Race Course, and the acquisition of land for and building of a training center. It will also end Maryland’s tradition of private, for-profit ownership of racetracks, replacing that with a state-owned, nonprofit-managed model.

The legislation authorizes the Maryland Stadium Authority to issue up to $400 million in bonds to support the project.

Though the legislation had sailed through the House, passing by a 104-34 margin, it nearly came off the rails in the Senate. A lengthy hearing April 5 laid bare numerous concerns with the bill, and some close to the situation believed it might not pass this session.

The amendments adopted in the Senate will have the overall effect of requiring greater accountability of the MTROA, both to the General Assembly and to the communities in which it will operate. They also will protect money intended for use by harness tracks.

This latter issue had threatened to upset the apple cart altogether, and at an April 2 meeting of the state Racing Commission, commissioners had called provisions repurposing harness-targeted facilities funds for debt service on the new Pimlico “despicable” and “absolutely awful.”

CHECK OUT THE LATEST OFF TO THE RACES RADIO!

The money in question is from the slots-fueled Racetrack Facilities Renewal Account (RFRA), which provides tracks matching funds for facilities improvements on a reimbursement basis. While the 2020 Racing and Community Development Act had already dedicated all of the RFRA funds targeted for Thoroughbred tracks to the project that has become Pimlico Plus, this new one also sought to take funds otherwise targeted for use by Rosecroft Raceway, the Ft. Washington harness track owned by the Stronach Group, which also owns Laurel and Pimlico. The Stronach Group did not oppose the move.

Those funds include more than $4.5 million currently available but not thus far used and additional money that will accrue over the next several years until the RFRA setaside expires in 2033. In all, the total is expected to exceed $10 million – money that harness interests have sought to keep in that industry.

The Senate amendment permits the Rosecroft funds to continue to accrue regardless of whether the track uses them or not. In addition, the bill provides for an appropriation next year to backfill the $4.5 million previously directed away from harness interests.

If Rosecroft ceases to offer live racing – as many expect to happen in the coming years – then the bill says that the money that would otherwise have gone to Rosecroft “shall be made available to Ocean Downs Race Course.”

“I was not happy with the idea of that money being lost from Rosecroft and subsequently possibly lost by Ocean Downs,” Guzzone said, describing how he pushed for the change. “All the money that would be in there is still going to be there.”

In an additional change, the amendment requires that the MTROA provide to the legislature each year with a financial statement. If the MTROA shows a profit, it is directed to set aside 10% of that profit to be distributed as community impact grants to the surrounding community.

If it shows a loss, then that loss is to be covered by moneys from the Purse Dedication Account – the money from slot machine revenues set aside for racing purses.

Greg Cross, chairman of the Authority, has repeatedly testified that the MTROA expects to turn a profit. The Stronach Group, current operators of the racetracks, says it has sustained operating losses in each of the last 10 years.

The bill also adds two new voting members to the MTROA, one representing Park Heights Renaissance, the umbrella community group for the neighborhoods around Pimlico, and one representing the community surrounding the still to be identified training center. Park Heights Renaissance will also play the lead role in developing workforce housing for backstretch employees at Pimlico.

“Everyone would like to see the Preakness to continue,” Guzzone said on the floor in urging the bill’s adoption, adding that the Senate had moved “with thoughtfulness about what happens to the communities around” racing facilities.

Moments later, the vote was complete. “HB 1524, having received a Constitutional majority, is declared passed,” Senate President Bill Ferguson (D-Baltimore City) told the Senate. “And that hot potato is in the House.”