§ 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.

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