Section 71IAC11-1-12. Contracts with a permit holder; approval by commission or executive director

   (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.

  (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) 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 (a) [subsection (a)] if it is determined that the contract is not in the best interest of horse racing and pari-mutuel wagering.

  (d) 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.

  (e) The commission reserves the right to terminate any contract executed by a permit holder that is not in compliance with IC 4-31, IC 4-35, or this title. (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 Nov 26, 2013, 11:25 a.m.: 20131225-IR-071130345RFA; emergency rule filed Apr 17, 2015, 3:15 p.m.: 20150422-IR-071150105ERA)