HB 1259
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
House Bill 1259 (Cecil County Delegation)
Ways and Means Budget and Taxation
Horse Racing – Fair Hill Natural Resources Management Area
This bill alters the manner in which the distribution to the Fair Hill Improvement Fund
from the amount wagered at race days is calculated. The bill also alters specified
requirements regarding racing at the Fair Hill Natural Resources Management Area. The
bill takes effect July 1, 2021.
Fiscal Summary
State Effect: None. The bill is not expected to materially affect State operations or
finances, as discussed below.
Local Effect: None.
Small Business Effect: Minimal.
Analysis
Bill Summary/Current Law: The Maryland Racing Commission must issue a license to
the Cecil County Breeders’ Fair, Inc., or its successor to hold at least two, but no more than
eight, one-day race meetings each year for steeplechase, hurdle, or flat racing at the
Fair Hill Natural Resources Management Area. The bill repeals the requirement that at
least two one-day race meetings be held.
In conjunction with racing, an agricultural fair with livestock entered for exhibition must
be held under the auspices of the State Fair Board on at least one racing day. The bill
repeals this requirement and authorizes an agricultural fair with livestock entered for
exhibition.
For each racing day, the licensee must offer at least one steeplechase or hurdle race for
each flat race, but an additional flat race may be substituted for a steeplechase race or
hurdle race that is not filled. The bill repeals this requirement.
The licensee must deduct from the handle (1) all the breakage and (2) 25%. From the 25%
that the licensee deducts from the handle, 9% of the handle must be credited to the Fair
Hill Improvement Fund. The bill alters this formula by authorizing the licensee to deduct
an amount of up to 25% from the handle and, from the amount deducted (excluding the
breakage), requiring that 36% of that amount be credited to the Fair Hill Improvement
Fund.
The Fair Hill Improvement Fund is operated by the Department of Natural Resources for
the operation, maintenance, development, and improvement of the Fair Hill facilities.
State Fiscal Effect: Special fund revenues are not anticipated to materially change from
the altered formula. Exhibit 1 shows the amount of the handle from racing at Fair Hill in
fiscal 2015 through 2019. In fiscal 2019, the Fair Hill Improvement Fund received $11,243
from racing at Fair Hill. Under the bill, the Fair Hill Improvement Fund would have
received that same amount in fiscal 2019, as 25% of the handle ($124,920) equals $31,230
and 36% of that amount equals $11,243.
Exhibit 1
Handle at Fair Hill
Fiscal 2015-2019
Fiscal Year Handle
2015 $162,414
2016 132,518
2017 157,712
2018 151,676
2019 124,920
Source: Maryland Racing Commission
Additional Information
Prior Introductions: None.
HB 1259/ Page 2
Designated Cross File: SB 919 (Senator Gallion) - Budget and Taxation.
Information Source(s): Maryland Department of Labor; Department of Natural
Resources; Department of Budget and Management; Department of Legislative Services
Fiscal Note History: First Reader - March 3, 2021
an/jrb Third Reader - April 12, 2021
Revised - Amendment(s) - April 12, 2021
Analysis by: Michael Sanelli Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 1259/ Page 3


Statutes affected:
Text - First - Horse Racing – Fair Hill Natural Resources Management Area: 11-702 Business Regulation, 11-704 Business Regulation, 5-908 Natural Resources
Text - Third - Horse Racing – Fair Hill Natural Resources Management Area: 11-702 Business Regulation, 11-704 Business Regulation, 5-908 Natural Resources