Section 71 IAC 11-1-12 - Contracts with a permit holder; approval by commission or executive directorAuthority: IC 4-31-3-9
Affected: IC 4-31-5; IC 4-31-6-1; IC 4-35
Sec. 12.
(a) The following contracts must be approved by the commission or the executive director: (1) contracts for management;(2) contracts for totalizator services;(3) contracts with horsemen's associations; and(4) a contract or a series of contracts between a permit holder and a related party that exceeds fifty thousand dollars ($50,000), other than a contract for employment; and(5) a contract or transaction, or a series of contracts or transactions, between a permit holder and any party that equals or exceeds fifty million dollars ($50,000,000) in value.(b) "Related party" means: (1) An individual or business entity having a pecuniary interest in a permit holder, or an affiliate thereof if the permit holder or affiliate is not a publicly held company.(2) A holder of more than five percent (5%) of the outstanding shares of a permit holder or an affiliate thereof if the permit holder or affiliate is a publicly held company.(3) A key person of a permit holder or an affiliate thereof.(4) An affiliate of a permit holder.(5) A relative of a holder of more than five percent (5%) of the outstanding shares of a permit holder or an affiliate thereof if the permit holder or affiliate is a publicly held company.(6) A relative of a key person of a permit holder or an affiliate thereof.(7) A relative of an affiliate of a permit holder.(8) A trust for the benefit of or managed by a permit holder or an affiliate or a key person thereof.(9) Another person who is able to control or significantly influence the management or operating policies of a permit holder or an affiliate thereof.(c) The commission, an agent of the commission, or the executive director may review, at any time prior to execution or thereafter, a contract or transaction entered into by a permit holder or permit applicant upon demand.(d) Commission authority to review contracts as provided in subsection (c) shall not be limited by the provisions listed in subsection (a). The commission shall have discretion to review any contract or transaction that may impact the horse racing industry in Indiana.(e) Any contract required to be approved by the commission or the executive director shall be submitted to for approval within seven (7) days of the execution of the contract. The commission or the executive director may refuse to approve a contract in subsection (a) if it is determined that the contract is not in the best interest of horse racing and pari-mutuel wagering.(f) A contract or transaction entered into by a permit holder or permit applicant that has not been submitted to the commission or executive director for approval as provided for in subsection (d) [redesignated subsection (e) by the Publisher] shall contain a provision indicating that the commission may subsequently disapprove of the contract.(g) A contract or transaction entered into by a permit holder that exceeds the total dollar amount of fifty thousand dollars ($50,000) shall be a written contract.(h) The commission is required to maintain the integrity of the commission and the horse racing industry and act in the best interest of the state of Indiana. In consideration of the aforementioned goals, when entering contracts or transactions, permit holders and permit applicants shall: (1) promote this policy by entering into contracts and transactions in accordance with IC 4-31, IC 4-35, and this title; and(2) be held accountable for contracts and transactions entered into under this rule.(i) The commission is not undertaking the policy of approving contracts, but will maintain oversight over contracts and transactions entered into by permit holders and permit applicants. The commission reserves the right to disapprove of and terminate a contract that does not: (1) comply with IC 4-31, 4-35 [IC 4-35 ], or this title; or(2) maintain the integrity and protect the highest standards of the horse racing industry.Indiana Horse Racing Commission; 71 IAC 11-1-12; emergency rule filed Feb 10, 1994, 9:20 a.m.: 17 IR 1212; errata filed Mar 9, 1994, 2:50 p.m.: 17 IR 1622; emergency rule filed Mar 25, 1996, 10:15 a.m.: 19 IR 2086; readopted filed Oct 30, 2001, 11:50 a.m.: 25 IR 899; readopted filed Mar 23, 2007, 11:31 a.m.: 20070404-IR-071070030RFA; readopted filed November 26, 2013, 11:25 a.m.: 20131225-IR-071130345RFAReadopted filed 8/28/2019, 1:23 p.m.: 20190925-IR-071190319RFAReadopted filed 8/3/2023, 12:49 p.m.: 20230830-IR-071230428RFA