810 KAR 1:025. Licensing thoroughbred racing.

PUBLIC PROTECTION CABINET

Kentucky Horse Racing Commission

Division of Licensing

(Amendment)

810 KAR 1:025. Licensing thoroughbred racing.

RELATES TO: KRS 230.260, 230.280, 230.290, 230.300, 230.310, 230.320, EO 2009-535

STATUTORY AUTHORITY: KRS 230.215(2), 230.260(4), 230.300(1)(h), EO 2009-535 [~~230.290(2) 230.320~~]

NECESSITY AND FUNCTION: KRS 230.215(2) grants the commission the authority to regulate conditions under which thoroughbred racing shall be conducted in Kentucky. EO 2009-535, effective June 12, 2009, established the Kentucky Horse Racing Commission and transferred all authority, function, and responsibilities of the Kentucky Horse Racing Authority to the commission. This administrative regulation establishes licensing procedures and requirements for participation in thoroughbred racing.[~~The function of this administrative regulation is to establish the licensing procedures and requirements for participation in thoroughbred racing.~~]

Section 1. Definitions. (1) "Person" means an individual, proprietorship, firm, partnership, joint venture, joint stock company, syndicate, business, trust, estate, company, corporation, association, club, committee, organization, lessor, lessee, racing stable, farm name, or other group of persons acting in concert.

(2) "Restricted area" means a portion of association grounds to which access is limited to licensees whose occupation or participation requires access, and to those individuals accompanying a licensee as permitted by the association.

Section 2. Persons Required to Be Licensed. (1) A person shall not participate in pari-mutuel racing under the jurisdiction of the commission without a valid license issued by the commission. License categories shall include the following:

(a) Racing participants and personnel including the following: owner, authorized agent, trainer, assistant trainer, jockey, apprentice jockey, jockey agent, farm manager or agent, veterinarian, veterinary technologist or technician, veterinary assistant, farrier, vendor, mutual clerk, exercise rider, stable employee, and any employee listed in Section 5 of this administrative regulation;

(b) Racing officials;

(c) Persons employed by the association, or employed by a person or concern contracting with or approved by the association or commission to provide a service or commodity associated with racing or racing patrons, with job duties which require their presence anywhere on association grounds while pari-mutuel wagering is being conducted;

(d) Sole proprietors, independent contractors, and all partners of a partnership contracting with or approved by the association or commission to provide a service or commodity on association grounds.

(e) Commission employees with job duties which require their presence anywhere on association grounds; and

(f) Commission members.

(2)(a) The commission shall require a person working at a facility which provides information concerning timed public works to obtain a valid license issued by the commission.

(b)The executive director, chief racing steward, or their designees may refuse entry or scratch any horse involving any person who, after requested to obtain a valid license, fails to or is unable to obtain a license.

(3)(a) A person required to be licensed shall submit a completed written application on the form Licensing Application (KHRA 25-01 (10/08)) or the Multi-jurisdictional License Form, along with the fee required by Section 5 of this administrative regulation.

(b) A temporary license may be obtained by an authorized representative of an owner in accordance with Section 18 of this administrative regulation.

(c) A conditional or probationary license may be issued by the executive director, chief racing steward, or Director of Licensing upon submission of a written application.

Section 3. General License Application Requirements for All Applicants. (1) Any person, other than an association, required to be licensed by Section 1 of this administrative regulation and desiring to participate in thoroughbred racing in the Commonwealth may apply to the commission for a license.

(2)(a) The application shall be made in writing on application forms and in the manner prescribed by the commission, including presentation of appropriate photo identification.

(b) An application may be submitted on or after November 1 of the calendar year preceding the calendar year in which the license is to be in force.

(c) An application shall be submitted not later than twenty-four (24) hours after an applicant has arrived on association grounds, unless a temporary license is obtained in accordance with Section 18 of this administrative regulation.

(d) The license application shall be reviewed and issued by commission personnel.

(e) The executive director, the chief steward, or the Director of Licensing shall have the authority to personally review and refuse or deny a license application if the application is incomplete or if refusal or denial is appropriate pursuant to Section 15 of this administrative regulation.

(3) Information provided on or with a license application shall be complete and correct. Material misrepresentation by a license applicant or his agent shall result in an immediate license suspension, revocation, refusal, denial, or imposition of a fine by the commission or the chief racing steward.

(4) An application from a person whose age is not readily ascertainable by commission staff shall be accompanied by an attested copy of a birth certificate or work permit showing the applicant is sixteen (16) years of age or older.

(a)1. An applicant for licensing shall be a minimum of sixteen (16) years of age unless otherwise specified in these administrative regulations.

2. An applicant may be required to submit a certified copy of his or her birth certificate.

3. Persons under the age of eighteen (18) may be required to show evidence of active participation in a certified educational program or have a high school diploma or equivalent.

(b) The commission may grant an owner’s license to a person less than sixteen (16) years of age if the person’s parent or legal guardian is licensed by the commission. An application under this subsection shall be signed by the applicant's parent or legal guardian in the presence of one (1) or more of the stewards.

(5) An application from a person or other entity consisting of more than one (1) individual person desiring to race horses in the Commonwealth shall, upon request, in addition to designating the person or persons representing the entire ownership of the horses, be accompanied by documents which fully disclose the identity, degree, and type of ownership held by all individual persons who own or control a present or reversionary interest in the horses.

(6) The commission shall provide notice to an applicant that the license application has been issued, denied, or refused. If all requirements for licensure are met, a license shall be issued to the license applicant.

Section 4. Additional Licensing Requirements for Specific Licenses. (1) Veterinary personnel.

(a) An application from a person desiring to treat, prescribe for, or attend to any horse on association grounds as a practicing veterinarian shall be accompanied by evidence that the person is currently licensed as a veterinarian by the Commonwealth of Kentucky.

(b) An application from a person desiring to work on association grounds as a veterinary technologist or veterinary technician, shall be accompanied by evidence that the person is currently registered as a veterinary technologist or veterinary technician by the Commonwealth of Kentucky, and KHRA Form 25-4 signed by a licensed veterinarian certifying that the applicant is working for the veterinarian as required by KRS Chapter 321.

(c) An application from a veterinary assistant shall be accompanied by a KHRA Form 25-4 signed by a licensed veterinarian certifying that the applicant is employed by him or her as required by KRS Chapter 321.

(2) Farriers. An application from a person not previously licensed in the capacity of farrier shall submit a diploma or other document signifying successful completion of a recognized farrier course or examination, or submit a letter of recommendation from an experienced farrier known to the stewards.

(3) Stable employee, occupational employee, vendor employee. In order to obtain a stable employee, occupational employee, or vendor employee license, the license applicant shall submit a KHRA Form 25-4 from his or her employer verifying employment and workers’ compensation coverage.

(4) Special event licensees.

(a) A special event license shall be issued to employees who are employed by an association only for the duration of a special event.

(b) A special event license shall be valid for the days of the event only, and the duration of the license shall not exceed three (3) calendar days.

Section 5. Licensing Fees. (1) The following annual fees shall accompany the application and shall not be refundable:

(a) $150 - owner, trainer, assistant trainer, veterinarian, jockey, jockey agent, claiming license, and temporary license;

(b) $100 - racing secretary, assistant racing secretary, director of racing, starter, assistant starter, paddock judge, patrol judge, placing judge, timer, jockey apprentice, farrier, steward, testing laboratory employee, racing department employee, valet, and outrider;

(c) Fifty (50) dollars - veterinary assistant, veterinary technician, veterinary technologist, vendor, mutual employee, farm manager, farm agent;

(d) Twenty-five (25) dollars - association employee, occupational employee, vendor employee, or any person employed by a concern contracting with the association to provide a service or commodity and which employment requires that person’s presence on association grounds during a race meeting; horse identifier, photo finish operator, film patrol crew member, television production employees, member of an association security department (including a policeman, watchman, fireman, ambulance driver, or emergency medical technician), track superintendent, member of maintenance department staff, admissions department manager or his or her employee, association concessions manager and employee, parking manager and employee, and all other persons employed by the association;

(e) Ten (10) dollars - exercise rider, special event mutual, special event occupational, or special event vendor employee, stable employee, including but not limited to stable foreman, exercise personnel, hotwalker, groom, watchman, pony person.

(2) A replacement fee for a duplicate license shall be ten (10) dollars, except that this fee shall be waived for the first duplicate license issued during any calendar year.

Section 6. Fingerprinting. (1) A license applicant may be required to furnish to the commission a set of fingerprints or submit to fingerprinting prior to issuance of a license.

(2) If the license applicant has been fingerprinted in the Commonwealth or another racing jurisdiction within the five (5) years preceding the date of the license application, then the commission may accept the previous fingerprints or require new fingerprints.

(3) The cost of fingerprinting and fingerprint analysis shall be paid by the license applicant.

Section 7. Multi-state/National Licenses. (1) In lieu of a license application from this jurisdiction, the commission may accept an ARCI Multi-State License and Information Form and the National Racing Compact form and license if these forms ensure compliance with all licensing requirements in this administrative regulation.

(2) A license applicant shall be required to pay the fee prescribed in Section 5 of this administrative regulation, in addition to any fee which may be prescribed by ARCI or NRC.

Section 8. Consent to Investigate by License Applicants and Licensees. The filing of an application for a license shall authorize the commission to do the following:

(1) Investigate the criminal background, employment history, and racing history record of the applicant.

(2) Engage in research and interviews to determine the applicant's character and qualifications.

(3) Verify information provided by the applicant.

Section 9. Consent to Search and Seizure by Licensees. (1) By acceptance of a license, a licensee consents to search and inspection by the commission or its agents at any location described in KRS 230.260(2), including any training facility, and to the seizure of any prohibited medication, controlled substance, paraphernalia, or device in violation of state or federal law or KAR Title 810 or 811.

(2)(a) A licensee shall consent to a reasonable search of the property in his or her possession by the commission or its representatives, including tack rooms, living or sleeping quarters, motor vehicles, trunks, boxes, and containers of any sort at any location under the jurisdiction of the commission.

(b) A licensee shall consent to the seizure of any object which may be evidence indicating a violation of an administrative regulation.

(c) A licensee shall cooperate in every way with the commission or its representatives during the conduct of an investigation, to include responding correctly to the best of his or her knowledge to all questions asked by the commission or its representatives pertaining to racing matters.

(d) A licensee shall consent to out-of-competition testing at any time or place designated by the commission.

Section 10. Approval or Recommendations by Stewards. (1) The commission may designate certain categories of licenses which shall require the prior approval or recommendation of the stewards.

(2) If a license application does not match any established category, the application shall be submitted to the executive director, chief racing steward, or Director of Licensing.

Section 11. Employer Responsibility. (1) The employment or harboring of any unlicensed person at a facility under the jurisdiction of the commission is prohibited, and may subject an employer to license suspension, denial, revocation, or other appropriate penalty under KRS Chapter 230, or KAR Title 810 or 811.

(2) Every employer shall report in writing to the commission or its designee, within twenty-four (24) hours, the discharge of any licensed employee, including the employee's name, occupation, and reason for the discharge.

(3) Every employer shall be responsible for ensuring compliance with all applicable employment laws.

(4) The license application of an employee shall be signed by the employer.

(5) A licensed employer shall carry workers' compensation insurance covering his or her employees as required by KRS Chapter 342.

Section 12. Financial Responsibility. (1) An applicant for a license may be required to submit evidence of financial responsibility to the commission and shall maintain financial responsibility during the period for which the license is issued.

(2) A licensee's failure to satisfy a final judgment rendered against him or her by a Kentucky court, or a domesticated judgment from another jurisdiction, for goods, supplies, services, or fees used in the course of his or her licensed occupation, constitutes a failure to meet the financial responsibility requirements of KRS 230.310.

(3) If the licensee fails to show just cause for his or her failure to satisfy the judgment, then his or her license may be suspended or revoked by the stewards until the licensee provides written documentation of satisfaction of the judgment to the stewards.

Section 13. Voluntary Withdrawal of License Application. (1) A license applicant may with the approval of the license review committee voluntarily withdraw his or her license application from the license review process.

(2) If the applicant chooses to voluntarily withdraw his or her application, then this withdrawal shall not constitute a denial or suspension of a license and shall be without prejudice.

(3) The stewards shall issue a ruling noting a withdrawal, and the ruling shall be communicated to the ARCI.

Section 14. License Review Committee. (1) The executive director, chief racing steward, or Director of Licensing may refer a license applicant to the License Review Committee in lieu of license denial or issuance.

(2)(a) The License Review Committee shall be composed of the executive director or his or her designee, the Director of Licensing or his or her designee, the chief state steward or his or her designee, and at least one (1) other commission member or commission staff member as designated by the executive director.

(b) At least three (3) members of the committee shall participate in any license review committee meeting.

(3)(a) If a referral to the committee is made, then no license shall be issued until the committee makes a favorable ruling on the license application.

(b) The applicant may be required by the committee to appear personally

(c). If the committee is unable to make a favorable ruling on the license application, then the committee may give the license applicant the opportunity to voluntarily withdraw his or her license application in accordance with Section 13 of this administrative regulation.

(d) If the license applicant does not wish to voluntarily withdraw his or her application, then the committee shall deny the application.

(4) The denial or refusal of the application shall be subject to appeal to an administrative hearing in accordance with KRS Chapter 13B.

(5) In the alternative, the commission, the License Review Committee, or the executive director may refer the case directly to the Commission without denial or approval of the application.

Section 15. License Denial, Revocation, or Suspension. (1) The commission, executive director, chief racing steward, or Director of Licensing may refuse or deny a license application, and the commission or chief state steward may suspend or revoke a license, or otherwise penalize a licensee, or other person, for any of the following reasons:

(a) The public interest for the purpose of maintaining proper control over horse racing meetings or pari-mutuel wagering may be adversely affected if the license is issued;

(b) The licensee or applicant has been convicted of a felony or misdemeanor within ten (10) years preceding the date of submission of a license application with the commission;

(c) The licensee or applicant has had a license issued by the legally instituted racing or gaming commission of a state, province, or country denied, suspended, or revoked for violation of a statute, administrative regulation, or other rule;

(d) The licensee or applicant is presently under suspension of a license by the legally constituted racing commission of a state, province, or country;

(e) The licensee or applicant has had a license issued by the Commonwealth of Kentucky revoked, suspended, or denied;

(f) The licensee or applicant has applied for and received a license at less than sixteen (16) years of age, except as permitted in Section 3 of this administrative regulation;

(g) The licensee or applicant has made a material misrepresentation, falsification, or omission of information in an application for a license;

(h) The licensee or applicant has been ejected, ruled off, or excluded from racing association grounds in the Commonwealth of Kentucky or a racetrack in any jurisdiction;

(i) The licensee or applicant has violated or attempted to violate a statute, administrative regulation, or similar rule respecting horse racing in any jurisdiction;

(j) The licensee or applicant has perpetrated or attempted to perpetrate a fraud or misrepresentation in connection with the racing or breeding of a horse or pari-mutuel wagering;

(k) The licensee or applicant has caused, attempted to cause, or participated in any way in an attempt to cause the pre-arrangement of a race result, or has failed to report knowledge of this kind of activity immediately to the stewards;

(l) The licensee or applicant has demonstrated financial irresponsibility by accumulating unpaid obligations, defaulting on obligations, or issuing drafts or checks that are dishonored or not paid;

(m) The licensee or applicant has failed to disclose to the commission complete ownership or beneficial interest in a horse entered to be raced;

(n) The licensee or applicant has misrepresented or attempted to misrepresent facts in connection with the sale of a horse or other matter pertaining to racing or registration of thoroughbreds;

(o) The licensee or applicant has been charged with criminal conduct;

(p) The licensee or applicant has been convicted of a crime involving bookmaking, touting, or similar pursuits or has consorted with a person convicted of such an offense;

(q) The licensee or applicant has offered, promised, given, accepted, or solicited a bribe in any form, directly or indirectly, to or by a person having any connection with the outcome of a race, or failed to report conduct of this nature immediately to the stewards;

(r) The licensee or applicant has abandoned, mistreated, abused, neglected, or engaged in an act of cruelty to a horse;

(s) The licensee or applicant has engaged in conduct that is against the best interest of horse racing, or compromises the integrity of operations at a track, training facility, or satellite facility;

(t) The licensee or applicant has entered or aided and abetted the entry of a horse ineligible or unqualified for the race entered;

(u) The licensee or applicant has possessed on association grounds, without written permission from the commission or the chief state steward:

1. A firearm; or

2. Any other appliance or device other than an ordinary whip, which could be

used to alter the speed of a horse in a race or workout;

(v) The licensee or applicant has violated any of the alcohol or substance abuse provisions outlined in KRS Chapter 230 or 810 KAR 1:060;

(w) The licensee or applicant has failed to comply with a written order or ruling of the commission, the stewards, or the judges pertaining to a racing matter or investigation;

(x) The licensee or applicant has failed to answer truthfully questions asked by the commission or its representatives pertaining to a racing matter;

(y) The licensee or applicant has failed to return to an association any purse money, trophies, or awards paid in error or ordered redistributed by the commission;

(z) The licensee or applicant has been intoxicated, used profanity, or engaged in fighting or any conduct of a disorderly nature on association grounds;

(aa) The licensee or applicant has used profane, abusive, or insulting language to or interfered with a commission member, commission employee or agent, or racing official, while these persons are in the course of discharging their duties;

(bb) The licensee or applicant has interfered with or obstructed a member of the commission, a commission employee, or a racing official while performing official duties;

(cc) The name of the licensee or applicant appears on the Commonwealth of Kentucky Revenue Cabinet’s most recent tax warrant list, and the licensee or applicant’s delinquent tax liability has not been satisfied;

(dd) The licensee or applicant is unqualified to perform the duties for which the license is issued;

(ee) The licensee or applicant has discontinued or is ineligible for the activity for which the license is to be issued, or for which a previous or existing license was issued;

(ff) The licensee or applicant has made a material misrepresentation in the process of registering, nominating, entering, or racing a horse as Kentucky owned, Kentucky bred, or Kentucky sired;

(gg) The licensee or applicant has failed to pay a required fee or fine, or has otherwise failed to comply with Kentucky Revised Statutes or administrative regulations;

(hh) The licensee or applicant has failed to comply with a written directive or ruling of the commission or the chief state racing steward;

(ii) The licensee or applicant has failed to advise the commission of changes in the application information as required by Section 17 of this administrative regulation;

(jj) The licensee or applicant has failed to comply with the temporary license requirements of Section 18 of this administrative regulation;

(kk) The licensee or applicant has violated the photo identification badge requirements of Section 21 of this administrative regulation;

(ll) The licensee or applicant has aided or abetted any person in violation of any statute or administrative regulation pertaining to horse racing;

(mm) The licensee or applicant has employed or harbored an unlicensed person required by these administrative regulations to be licensed;

(nn) The licensee or applicant, being a person other than a licensed veterinarian, has possessed on association grounds:

1. A hypodermic needle, hypodermic syringe, or other device which could be used to administer any substance to a horse, except as permitted by 810 KAR 1:018, Section 3(5); or

2. A medication, stimulant, sedative, depressant, local anesthetic, or any foreign substance prohibited by the commission; or

(oo) The licensee or applicant has manufactured, attempted to manufacture, or possessed a false license photo identification badge.

(2) A license suspension, revocation, or denial shall be reported in writing to the applicant by the chief steward, and to the ARCI by the Division of Licensing, to ensure that other racing jurisdictions shall be advised of the license suspension, revocation, or denial.

(3) A licensee or applicant may appeal the suspension, revocation, or denial in accordance with KRS Chapter 13B.

Section 16. Reciprocity. If the license of a person is denied, suspended, or revoked, or if a person is ruled off, excluded, or ejected from a racetrack in Kentucky or another jurisdiction, the commission may require reinstatement at that track before a license shall be granted by the commission.

Section. 17. Changes in Application Information. (1) During the period for which a license has been issued, the licensee shall report to the commission changes in information provided on the license application, including the following:

(a) Current legal name.

(b) Marital status.

(d) Pending criminal complaints.

(e) Criminal convictions.

(f) License denials and license suspensions of ten (10) days or more in other jurisdictions.

(g) License revocations or fines of $500 or more in other jurisdictions.

(h) Racing related disciplinary charges pending in other jurisdictions.

(i) Withdrawal, with or without prejudice, of a license application by the licensee in any jurisdiction.

(2) A change in application information shall be submitted in writing upon the appropriate commission form, signed by the licensee, and filed at the commission central office, within thirty (30) days of the change.

Section 18. Temporary Licenses. (1)(a) Only an owner is eligible for a temporary license.

(b) A horse in a trainer's care shall not start in a race unless the owner has a current license or an application for a temporary license on file with the commission.

(d) Failure by the applicant to supply a name, Social Security number, and mailing address for a temporary license is grounds for refusal.

(e) A temporary license shall be valid for no more than thirty (30) days from the date of issuance and shall automatically lapse after the 30th day pending completion of all licensing procedures.

(f) Upon expiration of the thirty (30) day temporary license, the owner's license shall be suspended and the owner's horses shall be ineligible to race in Kentucky pending completion of all licensing procedures.

(g) Completion of all owner licensing procedures shall extend the owner's license to the end of the calendar year.

(2) An owner shall not be eligible to be issued more than one (1) temporary license in any calendar year.

Section 19. Eligibility for Multiple Licenses. More than one (1) license to participate in horse racing may be granted to a person except as prohibited by Section 20 of this administrative regulation due to a potential conflict of interest.

Section 20. Conflict of Interest. (1) The License Review Committee and the chief state steward or their designees shall deny or refuse to process the license of a person, and the commission or the chief state steward shall revoke or suspend the license of a person, whose spouse, immediate family member, or other person in a similar relationship holds a license which the License Review Committee or chief state steward find to be a conflict of interest. A finding of a conflict of interest may be appealed to the commission pursuant to KRS Chapter 13B.

(2) A racing official who is an owner of either the sire or dam of a horse entered to race shall not act as an official during that race.

(3) A person who is licensed as an owner or trainer, or has any financial interest in a horse entered in a race, shall not be employed or licensed in that race as any of the following:

(a) Racing official;

(b) Assistant starter;

(d) Veterinary technician/veterinary technologist;

(e) Officer or managing employee;

(f) Track maintenance supervisor or employee;

(g) Outrider;

(h) Race track security employee;

(i) Farrier;

(j) Photo finish operator;

(k) Horsemen's bookkeeper;

(l) Racing chemist;

(m) Testing laboratory employee;

(n) Jockey;

(o) Apprentice jockey; or

(p) Jockey agent.

(4) Veterinary technicians and veterinary assistants shall not be licensed in any other capacity that allows access to the stable area.

Section 21. License Photo Identification Badges. (1) If a licensee desires access to restricted areas of a racing association grounds, then the licensee shall carry on his or her person at all times within the restricted area his or her assigned commission license (photo identification badge). A photo identification badge is available to a licensee upon presentation of appropriate, valid photo identification by the licensee to commission personnel at commission licensing offices.

(2) A person shall present an appropriate license to enter a restricted area.

(3) The stewards or racing association may require visible display of a license in a restricted area.

(4) A license may only be used by the person to whom it is issued, and a licensee shall not allow another person to use his or her badge for any purpose.

(5) Licensee credentials (photo identification badges) are the property of the Commission and shall be surrendered to the executive director, the stewards, the Commission Director of Security, or Director of Licensing, or their designees, upon request.

Section 22. Duties of Licensees. (1) A licensee shall be knowledgeable of these administrative regulations and, by acceptance of the license, agrees to abide by these administrative regulations.

(2) A licensee shall report to track security or the stewards any knowledge the licensee has that a violation of these rules has occurred or may occur.

(3) A licensee shall abide by all rulings and decisions of the stewards and the commission, and all decisions by the stewards and the commission shall remain in force unless reversed or modified by the commission or a court of competent jurisdiction upon proper appeal pursuant to KRS 230.330.

(4) Rulings and decisions of the stewards may be appealed to the commission, except those made by the stewards as to:

(a) Findings of fact as occurred during and incident to the running of a race; and

(b) A determination of the extent of disqualification of horses in a race for fouls committed during the race.

(5) A licensee shall cooperate fully with all investigations and inquiries made by commission representatives or association security, or both.

(6) A licensee shall obey instructions from commission representatives or association security, or both.

(7) All licensees shall immediately report to the commission any known or suspected irregularities, any violation of the rules of the commission, or any wrongdoings by any person, and shall cooperate in any subsequent investigation.

Section 23. Common Law Rights of Associations. The validity of a license does not preclude or infringe on the common law rights of associations to eject or exclude persons, licensed or unlicensed, from association grounds.

Section 24. Incorporation by Reference. (1) The following material is incorporated by reference:

(a) "Licensing Application", KHRC 25-01, 10/08;

(b) "Licensing Ownership/Control Form", KHRC 25-02 10/08;

(d) "Verification of Employment and Workers Compensation Form", KHRC 25-04 10/08; and

(e) "Termination of Stable Employee Form", KHRC 25-05 10/08;

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Horse Racing Commission, 4063 Iron Works Parkway, Building B, Lexington, Kentucky 40511, Monday through Friday, 8 a.m. to 4:30 p.m., or can be viewed at www.khrc.com.[~~(1) Information provided on or with license application shall be complete and correct.~~

~~(2) A licensee shall abide by all rulings, and decisions of the stewards and all decisions by the stewards shall remain in force unless reversed or modified by the commission upon proper appeal.~~

~~(a) Rulings and decisions of the stewards may be appealed to the commission, except those made by the stewards as to:~~

~~1. Findings of fact as occurred during and incident to the running of a race; and~~

~~2. A determination of the extent of disqualification of horses in a race for fouls committed during the race.~~

~~(b) Excepted rulings and decisions by the stewards shall be final with no right of review by the commission.~~

(3)(a) A licensee shall consent to a reasonable search of his property in his possession by the commission or its representatives, the property being restricted to that on association grounds and including tack rooms, living or sleeping quarters, motor vehicles, trunks, boxes, and containers of any sort.

~~(b) Licensee shall consent to seizure of any object which may be evidence indicating a violation of an administrative regulation.~~

(c) A licensee shall cooperate in every way with the commission or its representatives during the conduct of an investigation, to include responding correctly under oath to the best of his knowledge to all questions asked by the commission or its representatives pertaining to racing matters.

(4)(a) A licensed trainer shall be responsible for the condition of horses in his charge and shall be held to a high standard of care in taking all precautions as are reasonable and necessary to safeguard the horses from tampering.

(b) Upon a finding of a positive test result for a prohibited medication, stimulant, sedative, depressant, local anesthetic, or any foreign substance, in a saliva, urine, blood, or other specimen taken from a horse, the trainer of the horse shall be held responsible for the test results unless the trainer can establish that the stimulant, sedative, depressant, local anesthetic, or any foreign substance was administered to the horse by another person.

~~Section 2. The commission may issue a license to an association which applies for a license to conduct a thoroughbred race meeting on days as the commission may deem appropriate.~~

Section 3. Grounds for Refusal, Suspension, or Revocation of a License. The commission in its discretion may refuse to issue a license to an applicant, or may suspend or revoke a license issued, or order other disciplinary measures, on the following grounds:

(1) Denial of a license to an applicant, or suspension or revocation of a license in another racing jurisdiction; the commission may require reinstatement in the original racing jurisdiction where the applicant was denied a license or where his license was suspended or revoked;

~~(2) Conviction of a crime or violation of any statute or administrative regulation;~~

~~(3) Falsification, misrepresentation, or omission of required information in a license application to the commission.~~

~~(a) Failure to disclose to the commission complete ownership or beneficial interest in a horse entered to be raced; or~~

~~(b) Misrepresentation or attempted misrepresentation in connection with the sale of a horse or other matter pertaining to racing or registration of thoroughbreds;~~

~~(4) Making false or misleading statements to the commission or the stewards in an application for a license or in the course of an investigation;~~

~~(5) Failure to comply with any order or ruling of the commission, stewards, or racing official;~~

(6) Ownership of any interest in, or participation by any manner in, any bookmaking, pool-selling, touting, bet solicitation, or illegal enterprise, or association with any person so engaged in these activities;

~~(7) Applying for an receiving a license by a person less than sixteen (16) years of age;~~

~~(8) Being incompetent or unqualified in the performance of the activity for which the license is granted as determined by standard examinations prescribed by the stewards;~~

~~(9) Intoxication, use of profanity, fighting or any conduct of a disorderly nature on association grounds;~~

~~(10) Employment or harboring of unlicensed persons required by these administrative regulations to be licensed;~~

~~(11) Discontinuance of or ineligibility for activity for which license was issued;~~

~~(12) Possession on association grounds, without written permission from the commission or stewards, of:~~

~~(a) Firearms;~~

~~(b) Battery, buzzer, or electrical device; or~~

~~(c) Other appliance other than an ordinary whip which could be used to alter the speed of a horse in a race or workout;~~

~~(13) Possession on association grounds by a person other than a licensed veterinarian of:~~

~~(a) Hypodermic needle, or hypodermic syringe, or other device which could be used to administer any substance to a horse; or~~

~~(b) Medication, stimulant, sedative, depressant, local anesthetic, or any foreign substance prohibited by the commission;~~

(14) Use of profane, abusive, or insulting language to or interference with a commissioner, member of the commission staff, or racing official, while these persons are in the discharge of their duties;

~~(15) Cruelty to a horse or neglect of a horse entrusted to a licensee's care;~~

(16) Offering, promising, giving, accepting, or soliciting a bribe in any form, directly or indirectly, to or by a person having any connection with the outcome of a race, or failure to report knowledge of same immediately to the stewards;

~~(17) Causing, or attempting to cause, or participation in any way in any attempt to cause the prearrangement of a race result, or failure to report knowledge of same immediately to the stewards;~~

~~(18) Entering, or aiding and abetting the entering of, a horse ineligible or unqualified for the race entered;~~

(19) Drug addiction, bad moral character, intemperate habits, bad reputation for honesty, truth and veracity, or involvement in a subject of public notice as involved in any activity which, in the opinion of the commission, may be inconsistent with the best interests of racing by reflection on the honesty and integrity of the sport of racing, or association with persons so characterized; or

~~(20) Aiding or abetting any person in violation of any administrative regulation of the commission.~~

(21) A licensee's failure to satisfy a judgment rendered against him, for goods, supplies, services or fees furnished him and used in the course of his licensed occupation, constitutes a failure to meet the financial responsibility requirements of KRS 230.310. Lack of a showing of legal and just cause for not satisfying said judgment is inconsistent with the best interests of racing and the maintenance of honesty, integrity and high quality thereof and is cause for suspension of the license and denial of any renewal of same.

Section 4. License Applications for Associations. Persons or legal entities desiring to conduct thoroughbred racing in the Commonwealth shall apply to the commission for an association license. Applications shall not be acted upon by the commission until the commission is satisfied a full disclosure has been made. The application shall contain:

(1) Names and addresses of all officers, directors, stockholders, and other persons owning or controlling a beneficial interest in the association with the degree of ownership or type of interest shown;

~~(2) Names and addresses of persons capable of exercising any control over affairs of the association as trustee or guardian or lessor, or mortgagee, or fiduciary;~~

(3) Corporations, partnerships, or other legal entities which own or control a beneficial interest in the association directly, or through other corporations or legal entities, shall similarly file with the application lists showing the names and addresses of all officers, directors, stockholders, and other persons owning or controlling a beneficial interest in the legal entities with the degree of ownership or type of interest pertaining to the ownership or interest;

~~(4) Names of racing officials and persons responsible for track security and fire protection;~~

~~(5) Proposed purse schedule, showing minimum purse, average daily distribution, added money for each stake, if any;~~

~~(6) An operating report on forms prescribed by the commission if the applicant is currently licensed.~~

Section 5. License Application for Participants in Racing. (1)(a) Any person other than an association required to be licensed by Section 1 of this administrative regulation and desiring to participate in thoroughbred racing in the Commonwealth may apply to the commission for a license.

(b)The application shall be made in writing on application forms prescribed by the commission and filed at the commission general office or with the commission license administrator at the association on or after January 2 of the calendar year in which the license is to be in force, but not later than twenty-four (24) hours after applicant has arrived on association grounds.

(2) An application from a person not previously licensed in Kentucky shall include the names of two (2) reputable persons who shall attest to the good reputation of the applicant and to the capability and general fitness of the applicant to perform the activity permitted by the license.

(3) An application from a person whose age is not readily ascertainable by the licensing committee shall be accompanied by an attested copy of birth certificate or work permit showing applicant is sixteen (16) years or older.

(4)(a) An application from a person, corporation, partnership, lessor, or other entity involving more than one (1) individual person desiring to race horses in the Commonwealth shall, in addition to designating the person or persons to represent the entire ownership of the horses, be accompanied by documents which fully disclose the identity and degree and type of ownership held by all individual persons who own or control a present or reversionary interest in the horses.

~~(b) An application shall not be acted upon by the commission until the commission is satisfied a full disclosure has been made.~~

(5)(a) An application from persons desiring to treat, or prescribe for, or attend any horse on association grounds as a practicing veterinarian, shall be accompanied by evidence that the person is currently licensed as a veterinarian by the Commonwealth of Kentucky.

(b) An accredited practicing veterinarian not licensed by the commission or the Commonwealth, however, may with permission of the stewards in an emergency be called in as a consultant, or to serve as a veterinarian for one (1) horse on a temporary basis, and shall not be considered as participating in racing in this state.

(6) An application from a person desiring to treat, or prescribe for, or attend any horse on association grounds as a dental technician shall be accompanied by the name of a licensed veterinarian who shall attest to the technical competence of the applicant and under whose sponsorship and direction the applicant shall work on association grounds.

(7) An application from a person not previously licensed in the capacity of farrier shall not be forwarded with recommendation to the commission by the licensing committee until the applicant has successfully completed a standard examination by an experienced farrier known to the stewards so as to provide the licensing committee a reasonable basis for recommendation as to the technical proficiency of the applicant for a farrier's license.

~~(8) The following annual fees shall accompany the application and shall not be refundable:~~

(a) $100 - owner, trainer, assistant trainer, veterinarian, farrier, apprentice farrier, jockey, jockey agent, racing official, steward, testing laboratory employee; racing department employee, racing secretary, assistant racing secretary, director of racing, starter and assistant starter, paddock judge, patrol judge, placing judge, timer, claiming license, and temporary license;

~~(b) Seventy-five (75) dollars - jockey apprentice;~~

(c) Fifty (50) dollars - veterinarian assistant, dental technician, stable-area supplier license (for suppliers of horse feed, tack, medication, or food vendors), mutuel employee, farm manager, farm agent;

(d) Twenty-five (25) dollars - association employee, occupational employee, vendor employee, or any person employed by a concern contracting with the association to provide a service or commodity and which employment requires their presence on association grounds during a race meeting, photo finish operator, film patrol, television production employees, association security department including policemen, watchmen, firemen, ambulance drivers, emergency medical technicians, track superintendent, maintenance department staff, admissions department manager and employees, association concessions manager and employees, parking manager, and employees, all other persons employed by the association;

~~(e) Ten (10) dollars - special event mutuel employee license.~~

~~1. Stable foreman, exercise personnel, hotwalker, groom, watchman, pony person; and~~

~~2. Special event mutuel employee license which shall be valid for the day of the event only.~~

~~(9) The fee for a duplicate license shall be ten (10) dollars.~~

~~Section 6. Licensing Committee. (1) The commission may appoint a licensing committee which may include the executive director and commission steward or their designated representative.~~

~~(2) The licensing committee shall review all applications for all licenses, and forward the applications to the commission with recommendations, subject to security checks, for final action.~~

(3) The licensing committee may issue to a license applicant a temporary permit to participate in the activity for which a license application was made pending administrative processing and final action on license application by the commission.

~~Section 7. The validity of a license does not preclude or infringe on the common law rights of associations to eject or exclude persons, licensed or unlicensed, from association grounds.~~

Section 8. Possession of License Required. A person required to be licensed by this administrative regulation shall not participate in any activity required to be licensed on association grounds during a race meeting without having been issued a valid license and having the license in his possession. Licenses specified under Section 5(8)(a), (b), (c), (d), and (e) of this administrative regulation shall include a color photograph of the licensee and shall be openly displayed on the backside of association grounds at all times. An owner shall not be required to have a color photograph included on his or her license.

~~Section 9. Incorporation by Reference. (1) The following material is incorporated by reference:~~

~~(a) "Licensing Application" (KRC-15(10/02));~~

~~(b) "Race Track License Application", (KRC-16 (12/01)); and~~

~~(c) "Corporate Disclosure Form", (KRC-17 (12/01)).~~

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Racing Commission, 4063 Iron Works Parkway, Building B, Lexington, Kentucky 40511, Monday through Friday, 8 a.m. to 4:30 p.m.]

ROBERT M. BECK, JR., Chairman

ROBERT D. VANCE, Secretary

APPROVED BY AGENCY: September 29, 2009

FILED WITH LRC: September 30, 2009

PUBLIC HEARING AND PUBLIC COMMENT PERIOD: PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on November 24, 2009 at 1:00 p.m., at the Kentucky Horse Racing Commission Office, Kentucky Horse Park, 4063 Iron Works Parkway, Building B, Lexington, Kentucky 40511. Individuals interested in being heard at this hearing shall notify the Kentucky Horse Racing Commission in writing by November 17, 2009, five working days prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be cancelled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until November 30, 2009. Please send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person below.

CONTACT PERSON: Nicole S. Biddle, Kentucky Horse Racing Commission, 4063 Iron Works Parkway, Building B, Lexington, Kentucky 40511, phone (859) 246-2040, fax (859) 246-2039.

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

Contact Person: Nicole S. Biddle

(1) Provide a brief summary of:

(a) What this administrative regulation does: This administrative regulation, 810 KAR 1:025, governs the licensing of individual participants in thoroughbred horse racing in the Commonwealth of Kentucky.

(b) The necessity of this administrative regulation: This regulation is necessary to provide licensing standards for thoroughbred racing, and to provide a licensing fee schedule. Revenues generated by licensing fees provide operational funds for the Kentucky Horse Racing Commission.

(c) How this administrative regulation conforms to the content of the authorizing statutes: This administrative regulation governs thoroughbred licensing pursuant to KRS 230.215(2) and KRS 230.260(3) which authorize the commission to promulgate administrative regulations governing the conditions of horse racing. In addition, KRS 230.290 and KRS 230.310 provide statutory criteria for the licensing of participants in Kentucky racing.

(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This regulation prescribes the conditions upon which licenses may be granted by the commission.

(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

(a) How the amendment will change this existing administrative regulation: This amendment contains several substantive changes which update the licensing standards fro thoroughbred racing and increase the licensing fee in some categories of licenses, in order to insure that there is adequate funding for operational costs of the Commission. In addition, it also amends the language of the regulation to conform to KRS Chapter 13A drafting requirements.

(b) The necessity of the amendment to this administrative regulation: The amendments are necessary to update the licensing standards for thoroughbred racing to be consistent with 810 KAR 1:034E, and to increase the licensing fees to provide adequate funding for the Kentucky Horse Racing Commission.

(c) How the amendment conforms to the content of the authorizing statutes: The amended regulation sets forth the rules regarding thoroughbred licenses.

(d) How the amendment will assist in the effective administration of the statutes: This regulation will provide further guidance and clarity.

(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: Approximately 17,000 thoroughbred licenses are issued in a calendar year to a variety of licensees, including owners, trainers, assistant trainers, jockeys, stable employees, veterinary personnel, racing officials, farriers, vendors, agents, mutual clerks, agents, and employees.

(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including: All of the above entities will be impacted by updates in licensing standards and procedures. The increase in licensing fees from $100 to $150 will apply to owners, trainers, assistant trainers, jockeys, jockey agents, and veterinarians. This fee increase will affect approximately 8,000 license applicants in these categories.

(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: All will file an updated application in the 2009 licensing year.

(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): There will be no additional costs to comply with the updates to the licensing regulations. There will be a $50 increase in licensing fees to owners, trainers, assistant trainers, jockeys, jockey agents, and veterinarians.

(c) As a result of compliance, what benefits will accrue to the entities identified in question (3): All participants will benefit from better notice to them of the qualifications to obtain a license, and of the licensing procedures.

(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation: It is estimated that there will be no new costs to the agency associated with these amendments.

(a) Initially: N/A

(b) On a continuing basis: N/A

(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: Operational budget of KHRC.

(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: Implementation will not require an increase in fees, expect as described in (4).

(8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees: Increase in fees as described in (4).

(9) TIERING: Tiering does not apply because the updates in the licensing regulation shall apply to all participants in horse racing equally.

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

1. Does this administrative regulation relate to any program, service, or requirements of a state or local government (including cities, counties, fire departments, or school districts)? Yes

2. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? Kentucky Horse Racing Commission.

3. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRR 230.215(2), 230.260(3), 230.290 and 230.310.

4. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect. Will increase funding for thoroughbred racing by approximately $400,000.

(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? See above.

(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? See above.

(d) How much will it cost to administer this program for subsequent years? N/A

Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

Revenues (+/-):

Expenditures (+/-):

Other Explanation: