Section 71IAC13-1-2. Registration criteria

   (a) The commission shall approve the registration of a horsemen's association to receive monies pursuant to IC 4-35-7-12 if, on the basis of all of the information, facts and evidence before it, the horsemen's association establishes by a preponderance of the evidence and the commission determines in the exercise of its discretion that:

(1) its ability to receive and expend funds for the purposes established by IC 4-35-7-12 is superior to the ability of every other horsemen's association (if any) that has registered to be eligible to receive the same source of funds specified in IC 4-35-7-12;

(2) the approval of its request for registration is consistent with racing in Indiana being conducted with the highest of standards and the greatest level of integrity; and

(3) the payment of funds to that horsemen's association will be in the public interest.

  (b) In reviewing the registration of a horsemen's association to receive monies pursuant to IC 4-35-7-12, the commission may consider the following information, which shall be provided to the commission by the horsemen's association with its registration, and any other documents, information, data, reports, findings, factors, or indices available that the commission considers important or relevant to its determination of whether to approve or deny the registration of the horsemen's association:

(1) The name and mailing address of the horsemen's association, the name and address of its registered agent, the names of its officers and directors at the time the registration is filed, and a copy of its current bylaws.

(2) The identity of each person who will be authorized by the horsemen's association to have access to any funds received pursuant to IC 4-35-7-12 as may be supplemented from time to time by the horsemen's association and approved by the commission. For purposes of this article, "access to any funds received pursuant to IC 4-35-7-12" means that the person will be authorized for all or any part of the calendar year for which registration is being sought by the horsemen's association to make withdrawals, disbursements, transfers, payments, or other distributions of any funds received pursuant to IC 4-35-7-12, by any means whatsoever, including, but not limited to, cash, check, or electronic transfer.

(3) The number of owners, trainers, or breeders (when applicable) represented by the horsemen's association.

(4) The number of dues paying members of the horsemen's association.

(5) Efforts of the horsemen's association to promote, develop, and improve the horse racing industry in Indiana.

(6) Specific programs that have been proposed, designed, or implemented by the horsemen's association to promote, develop, and improve the horse racing industry in Indiana.

(7) The number of years, if any, that the horsemen's association has entered into a contract with one (1) or more permit holders pursuant to IC 4-31-8-6(b) and, if so, the history of performance of the horsemen's association's contractual obligations.

(8) Financial ability of the horsemen's association, including, but not limited to, the following:

(A) To comply with the reporting requirements set forth in this article.

(B) To meet ongoing financial obligations.

(C) To propose a separate, feasible budget for each source of funds set out in section 3(1) of this rule.

(D) To propose expenditures consistent with the directives contained in IC 4-35-7-12.

(E) Any other information relating to financial ability.

(9) Management ability of the horsemen's association to receive payments and expend funds as directed by IC 4-35-7-12, including, but not limited to, the following:

(A) The organizational experience of the horsemen's association and the qualifications of directors, officers, and managing employees to manage a horsemen's association.

(B) Any other information relating to management ability.

(10) The integrity of the horsemen's association, including, but not limited to, the following:

(A) Whether it is or has been a party to litigation over business practices, bankruptcy proceedings, or failure to timely renew a registration within the preceding five (5) years.

(B) Whether it is or has been a party to proceedings in which unfair labor practices, discrimination, or governmental regulation of pari-mutuel wagering was an issue within the preceding five (5) years.

(C) Whether it has failed to timely satisfy judgments, orders, or decrees within the preceding five (5) years.

(D) Whether it is or has been delinquent in filing tax returns or remitting taxes within the preceding five (5) years.

(E) Whether it has failed to comply with applicable statutes, charters, ordinances, or regulations within the preceding five (5) years.

(F) Whether any officers, directors, or employees who will have access to any funds received pursuant to IC 4-35-7-12 have a felony or misdemeanor plea or conviction or other criminal record that could reflect negatively on the integrity of racing.

(G) Whether any officers, directors or employees who will have access to any funds received pursuant to IC 4-35-7-12 have had a denial, suspension, or revocation of a registration or a license of the legally constituted racing or gaming authority of a state, province, or country within the preceding five (5) years.

(H) Whether any officers, directors, or employees who will have access to any funds received pursuant to IC 4-35-7-12 have a current suspension for cause of a registration or license by the legally constituted racing authority of a state, province, or country.

(I) Whether any officers, directors, or employees who will have access to any funds received pursuant to IC 4-35-7-12 have perpetrated or attempted to perpetrate a fraud or misrepresentation in connection with the racing or breeding of horses or pari-mutuel wagering.

(J) Whether any officers, directors or employees who will have access to any funds received pursuant to IC 4-35-7-12 have made a material misrepresentation in the process of registering, nominating, entering, or racing a horse in an Indiana owned, Indiana bred, or Indiana sired race within the preceding five (5) years.

(K) Whether the horsemen's association's officers, directors, or representatives have been truthful and accurate in matters relating to or in dealings with the commission, the commission staff, the permit holders, or other horse racing industry constituents.

(L) Any other information relating to the integrity of a horsemen's association.

(11) Extent of any public support or opposition to the registration of the horsemen's association to receive monies allocated pursuant to IC 4-35-7-12.

(12) The horsemen's association may submit, and the commission may consider, any other information that is relevant to a proper determination by the commission to approve or deny a registration.

(Indiana Horse Racing Commission; 71 IAC 13-1-2; emergency rule filed Jul 11, 2008, 2:13 p.m.: 20080723-IR-071080595ERA; readopted filed Nov 21, 2014, 2:25 p.m.: 20141217-IR-071140403RFA)