4-36-302 - Powers and duties of commission Time and place of race meetings Applications. - Tennessee Statutes

4-36-302. Powers and duties of commission Time and place of race meetings Applications.

The commission shall carry out the provisions of this chapter, including the following specific duties:

     (1)  (A)  The commission shall decide when and where certain recognized forms of race meetings may be conducted in this state. The commission shall take the following factors into consideration in its determination:

                (i)  The public interest;

                (ii)  A professional analysis of the wagering markets within Tennessee and adjacent states;

                (iii)  The ability of the city or county in which the proposed track is located to provide public services to the facility and surrounding areas, including, but not limited to: fire protection, law enforcement, roadways, water and waste water facilities, zoning, subdivision and building regulations and other public services as may be required by the track or the anticipated growth in the surrounding areas;

                (iv)  The proximity of the proposed track to any central business district and the effect of the track on other local tourist attractions;

                (v)  Community support for the proposed track or satellite teletheater location, or both, proposed by the applicant. To measure accurately this support, the commission shall hold at least one (1) public hearing in the area of the proposed track or satellite teletheater location, or both, to receive comments and testimony. Before conducting such public hearing, the commission shall publicize the meeting in a newspaper of general circulation in a notice of no less than five inches (5²) in width and five inches (5²) in length for three (3) consecutive weeks prior to the meeting, with the final notice under this subdivision (1)(A)(v) to be no less than four (4) days or greater than seven (7) days prior to the meeting. The applicant shall reimburse the commission for any cost incurred as a result of conducting such public hearing; and

                (vi)  Such other conditions as the commission believes to be pertinent to the licensing of an association to conduct a race meeting in conformity with the intent and policy of this chapter and the commission;

          (B)  The commission shall also consider, in determining whether to approve a proposed track location, reasons opposing or favoring the proposed location as may be presented to the commission by the governing body of any city or county;

          (C)  Except for associations that are fairs, the commission shall not grant more than one (1) license to conduct racing in each grand division, as defined in chapter 1, part 2 of this title;

     (2)  The commission shall require an application of each applicant desiring to operate a race meeting. An application to conduct a race meeting shall include, but not be limited to, the following:

          (A)  Ownership.

                (i)  Name of applicant and form of business organization;

                (ii)  The following information if a parent corporation is involved, the same information should be given for both corporations:

                     (a)  Year of organization;

                     (b)  State where organized;

                     (c)  Copy of bylaws;

                     (d)  Classes of capital stock authorized;

                     (e)  Amount of stock authorized;

                     (f)  Amount of stock outstanding not less than fifteen (15) days prior to the filing of the application;

                     (g)  Name and address of each person who owns, of record or beneficially, one (1) or more shares of any class of capital stock;

                     (h)  Terms of voting trust in which any capital stock may be held, if any, and the name, address, class of stock and number of shares of stock held in voting trust;

                     (i)  Terms of any proxy by which any capital stock is held, the holder of the proxy and name, address, class of stock, and number of shares of stock for all stock held by proxy;

                     (j)  Whether five percent (5%) or more of applicant's assets or five percent (5%) or more of any principal stockholder's stock is encumbered by long-term debt. Names and addresses of persons holding security interests or promissory notes from the applicant and stockholders, where stock is pledged as security, and the terms of agreements creating the security interests;

                     (k)  Dividend rights, voting rights, liquidation rights, preemptive rights, conversion rights, and redemption provisions;

                     (l)  If applicant was organized as a corporation within the past five (5) years, the following information: names of promoters, nature and amount of anything of value received or to be received by each promoter directly or indirectly from the applicant; and nature and amount of any assets, services or other consideration received or to be received by the applicant;

                           (1)  Names of all directors and officers and all persons chosen to become directors or officers;

                           (2)  All positions and offices with applicant held by each person named and principal occupation during past five (5) years of each person named; and

                     (n)  All parents of the corporation, if applicable, showing basis of control, percentage of voting securities owned by the parent, percentage of voting securities owned, or other basis of control by the parent;

                (iii)  Financial information.

                     (a)  Financial statements audited and certified by independent certified public accountants for each of the last three (3) fiscal years or for the period of organization if less than three (3) years; and

                     (b)  Any loan, including the borrower's name, the amount of loan and the collateral, if any, held by the applicant that is greater than one percent (1%) of the applicant's net income;

                (iv)  Any pending legal proceeding to which the applicant or subsidiary or parent is a party or to which any of its property is a party. This information, if applicable, shall include the name of the court or agency in which a proceeding is pending, the date instituted and the principal parties;

                (v)  Any ownership interest held by a director, officer, policy-making manager, or principal stockholder in any entity previously licensed by another racing commission;

                (vi)  The approximate amount of any material interest, direct or indirect, of any officer, director or principal stockholder of the applicant or any associate of any officer, director or principal stockholder of the applicant, in any material transaction during the last three (3) years to which the applicant was, or is to be, a party;

                (vii)  Principal purposes for which the net income received by applicant is intended to be used and an approximate percentage of the amount intended for each purpose;

                (viii)  Any contract the applicant has entered into within one (1) year of the date of application and any executory contract in which consideration exceeds one percent (1%) of the applicant's net income; and

                (ix)  Direct remuneration paid by the applicant or a subsidiary, if any, during the most recently concluded fiscal year to:

                     (a)  Each director of the applicant;

                     (b)  Each officer of the applicant; and

                     (c)  Any other person whose direct remuneration was more than ten thousand dollars ($10,000).

          (B)  Racing operations.

                (i)  Location.

                     (a)  County and, if applicable, municipality wherein the track will be located;

                     (b)  Actual legal description of site, names and addresses of all persons who are titleholders to real property and names and addresses of all persons holding mortgages or security interests in the property;

                     (c)  Transportation facilities serving the area; number of miles from nearest population center;

                     (d)  Climatic conditions during proposed racing season;

                     (e)  Population of local areas and growth trends;

                     (f)  Principal sources of local income where track would be located;

                     (g)  The effect of competition with other tracks in and out of state and with other sports or recreational activities of the area and effect of competition on availability of racing stock and track personnel; and

                     (h)  The total economic impact of the facility on the community and the facility's relationship with other tourist attractions.

                (ii)  Physical plant.

                     (a)  Exact dimensions of any track;

                     (b)  Grandstand size and type of construction, including a copy of an architect's plans with details of proposed construction;

                     (c)  Security and safety measures to be taken for safety of public and license holders;

                     (d)  Fire protection and law enforcement;

                     (e)  Parking facilities and capacity;

                     (f)  Number and type of stables, including capacity and fire prevention facilities;

                     (g)  Facilities for owners of animals and other racing personnel;

                     (h)  Arrangements for food and drink concessions. Providers of concessions, if operating as a lessee, shall provide the same ownership and financial records as an applicant;

                     (i)  Racing dates requested;

                     (j)  Kind of race conducted;

                     (k)  Pari-mutuel operation and terms of ticket sales; and

                     (l)  Financing arrangements for the construction of the track. Such arrangements may include the issuance of bonds by a county or a municipality; provided, that any issuance of bonds by a county or a municipality may not include the issuance of general obligation bonds or a pledge of the credit of the county or municipality.

                (iii)  Association membership.

                     (a)  Proof of membership or application therefor in the Thoroughbred Racing Association (TRA), if the applicant proposes to conduct thoroughbred racing; or

                     (b)  Proof of membership or application therefor in the United States Trotting Association (USTA), if the applicant proposes to conduct standardbred racing;

          (C)  Bond. A cash bond in an amount to be established by rule of the commission. The bond shall guarantee the applicant's performance, if issued a license;

     (3)  The commission shall request the assistance of the Tennessee bureau of investigation in performing background investigations on any applicant;

     (4)  The commission shall appoint three (3) stewards to serve each day of any race meeting at the track of a licensed racing association. Two (2) of the stewards shall be nominated by the association, but shall be subject to approval and appointment by the commission. The remaining steward shall be appointed by the commission. The commission shall be required to show just cause for not appointing a person nominated by an association to be a steward. All stewards shall be paid equally by the commission;

     (5)  The commission shall promulgate a set of rules and regulations for the holding, conducting and operating of all race meetings conducted in this state, as long as such rules and regulations are uniform in their application and effect;

          (A)  The commission shall cause this set of rules and regulations to be published and distributed to each association and every licensee under this chapter;

          (B)  The published set of rules and regulations shall contain:

                (i)  The racing law;

                (ii)  A complete set of definitions;

                (iii)  Table of contents and an index; and

                (iv)  Rules, regulations and conditions applying to each racing official, licensee and other persons and things that the commission believes to be pertinent to the accomplishment of this chapter;

          (C)  Such rules, regulations and conditions shall be consistent with this chapter and provide for and deal with, by way of illustration and without limitation, the following:

                (i)  Racing terms and definitions;

                (ii)  General rules of racing;

                (iii)  Authorized agents;

                (iv)  Claiming of race horses;

                (v)  Clerk of scales;

                (vi)  Racing colors;

                (vii)  Corrupt and fraudulent practices;

                (viii)  Daily double;

                (ix)  Dead heats;

                (x)  Declarations and scratches;

                (xi)  Drivers;

                (xii)  Engagements and transfers;

                (xiii)  Entries in races;

                (xiv)  Equipment and equipment changes;

                (xv)  Fines and suspensions;

                (xvi)  Handicapper;

                (xvii)  Jockeys;

                (xviii)  Jockey apprentices;

                (xix)  Jockey room custodians;

                (xx)  Licenses;

                (xxi)  Licensee's duties and obligations;

                (xxii)  Concessionaires and caterers;

                (xxiii)  Objections;

                (xxiv)  Owners and breeders;

                (xxv)  Paddock judges;

                (xxvi)  Paddock to post;

                (xxvii)  Pari-mutuel departments at tracks;

                (xxviii)  Pari-mutuel betting and types thereof;

                (xxix)  Partnerships;

                (xxx)  Patrol judges;

                (xxxi)  Placing judges;

                (xxxii)  Post positions;

                (xxxiii)  Post to finish;

                (xxxiv)  Postponements and cancellations of race days;

                (xxxv)  Races: Thoroughbred, Standardbred, Quarter Horse, Appaloosa, Arabian, others;

                (xxxvi)  Racing officials;

                (xxxvii)  Racing secretary;

                (xxxviii)  Refunds;

                (xxxix)  Stable names;

                (xl)  Official starter;

                (xli)  Stewards;

                (xlii)  Timers;

                (xliii)  Trainers;

                (xliv)  Vendors;

                (xlv)  Veterinarians;

                (xlvi)  Walking over;

                (xlvii)  Weights, scales of;

                (xlviii)  Weighing in, and weighing out;

                (xlix)  Weight penalties and allowances;

                (l)  Winnings, purses, prizes, etc.;

                (li)  Conduct detrimental to the best interests of racing;

                (lii)  Qualifications, terms and conditions of licensing;

                (liii)  Multiple wagering;

                (liv)  Jockeys' and drivers' agents; and

                (lv)  Medications and chemical testing;

          (D)  The commission shall cause this set of rules and regulations to be published and distributed to each association and licensee, which shall become familiar with the rules, regulations and conditions contained therein. Failure to abide by such rules, regulations and conditions shall result in the suspension or revocation of that person's license to act in any capacity in racing in this state;

     (6)  The commission may delegate to the stewards and judges such powers and duties as are necessary to fully carry out and effectuate the purposes of this chapter;

     (7)  The commission may visit and investigate the offices, tracks or places of business of any association, and place therein expert accountants and such other personnel as it deems necessary for the purposes of ascertaining compliance with the rules and regulations of the commission;

     (8)  The commission shall collect the fees payable for a permit or license issued by it, and shall supervise the pari-mutuel departments at all tracks in this state;

     (9)  The commission shall employ a chemist or contract with either a duly qualified chemical laboratory or university to determine by chemical testing and analysis of saliva, urine, blood or other excretions of body fluids, whether or not any prohibited substances have been introduced that would affect the outcome of any race, or whether or not any action has been taken or any substance or drug has been introduced that may interfere with the testing procedure. Procedures therefor and any action taken on positive reports shall be in conformity with the standards of the Association of Racing Commissioners International (ARCI), the Association of Official Racing Chemists (AORC) or such other procedures or standards as the commission may require. The commission may collect from each race meeting licensee an amount not to exceed such licensee's pro rata share of the costs associated with conducting such procedures; provided, that when chemical testing and analysis is requested by the owner or trainer of a horse, the owner or trainer shall reimburse the commission for the cost of the testing procedure;

     (10)  The commission shall appoint a supervisor of mutuels, security personnel and as many other employees as may be necessary for the enforcement of the laws of this state and the rules and regulations of the commission;

          (A)  The supervisor of mutuels shall supervise the wagering and the pari-mutuel departments of all race meetings and shall enter into no other employment involving racing or pari-mutuel wagering either within or without this state during those periods of time that the supervisor of mutuels is serving in such capacity at a race meeting;

          (B)  The security personnel appointed by the commission shall assist in keeping the peace at all race meetings, shall enforce all laws of the state relating to racing and all rules and regulations of the commission, and perform such duties as the commission may prescribe. In such capacity, these security personnel shall have the authority of law enforcement officers; the jurisdiction of such officers is statewide;

     (11)  The commission shall establish a security division charged with the responsibility for such investigative matters relating to the proper conduct of racing and pari-mutuel wagering including, but not limited to, the following:

          (A)  Barring undesirables from the premises of any race meeting;

          (B)  Undercover investigations;

          (C)  (i)  Fingerprinting of each person applying to the commission for a license, as a prerequisite for licensure. The commission shall submit such fingerprints to the federal bureau of investigation and to the Tennessee bureau of investigation for the purpose of determining whether the fingerprinted applicant has any recorded arrests or convictions.

                (ii)  Instead of being fingerprinted by the commission's security division, the commission may allow an applicant for licensure to submit the applicant's fingerprints to the Association of Racing Commissioners International (ARCI) in accordance with the procedures established pursuant to the federal Pari-mutuel Licensing Simplification Act of 1988, when the results of such submittal will be acceptable for the commission's licensing purposes. The commission may require that each such applicant also submit a fingerprint card to the commission.

                (iii)  The commission may by rule establish the frequency of submission of fingerprints by applicants and a fee for the background checks enabled by the submission of fingerprints;

          (D)  Production and distribution of photographed identification cards to each racing official and licensee of the commission; and

          (E)  The security division shall be assisted in this capacity by the Thoroughbred Racing Protective Bureau (TRPB), the Tennessee bureau of investigation, or local law enforcement officers;

     (12)  The commission may grant, refuse, suspend or revoke licenses issued pursuant to this chapter in conformance with the regulations governing such procedure as provided in this chapter;

     (13)  The commission shall require of each applicant for a license to conduct a race meeting, an application statement under oath that the information supplied therein is true and not misleading. Failure to do so shall result in the delay, refusal, suspension or revocation of a license to conduct a race meeting in this state;

     (14)  The commission shall publicly state its reasons for refusing, suspending or revoking a license granted by it, and such reasons shall be included in the minute book of the commission, and such book shall be open to public inspection during all regular office hours of the commission;

     (15)  The commission shall make rules governing, restricting or regulating bids on leases;

     (16)  The commission shall approve all proposed additions, extensions, improvements or original construction of buildings, stables or tracks upon property owned or leased by a licensee if such extension, addition, improvement or original construction is related to the conduct of a race meeting in this state;

     (17)  The commission shall completely supervise and control the pari-mutuel machines and equipment at all race meetings conducted in this state; and

     (18)  The commission may perform such other duties and functions as the commission deems necessary and desirable to ensure the honest and efficient conduct of racing in this state.

[Acts 1987, ch. 311, § 23; 1988, ch. 939, § 1; 1988, ch. 950, §§ 1, 2; 1990, ch. 684, §§ 3-5; 1996, ch. 1080, §§ 2, 8.]