Section 11-316 - Background review of prospective buyers. - Maryland Statutes

§ 11-316. Background review of prospective buyers.
 

(a)  Required.- Before a prospective buyer buys a majority controlling interest in a licensee, the Commission shall review the personal and financial background of the prospective buyer. 

(b)  Regulations.-  

(1) The Commission shall adopt regulations to carry out this section. 

(2) The regulations shall: 

(i) require a personal and financial background check of the prospective buyer; 

(ii) specify a period of time to review the required personal and financial information before a purchase or transfer of racing days is made; and 

(iii) require that notice and an invitation to comment be given to the Legislative Policy Committee at least 15 days before final approval of a purchase or transfer of racing days resulting from a purchase. 

(3) The background check shall include: 

(i) a review by a certified public accountant of certified financial statements, including contingent or pledged liabilities, sufficient to determine the ability of the prospective buyer to buy and maintain the licensee; 

(ii) an income statement for the most recent year; 

(iii) a statement of financial and related records of any person in which the prospective buyer has at least a majority interest; 

(iv) a disclosure of each financial interest in racing; 

(v) a disclosure of each person who will have beneficial ownership of the licensee as a result of the purchase; 

(vi) a criminal history records check under § 11-312 of this subtitle; and 

(vii) a character review. 
 

[An. Code 1957, art. 78B, § 13; 1992, ch. 4, § 2; 2002, ch. 418, § 3.]