RELATES TO: KRS 13B, 230.215, 230.225(5)(c), 230.320, 230.330,
230.400, 230.445, 230.770, 230.800, 230.802, 230.804.
NECESSITY, FUNCTION, AND CONFORMITY: KRS 230.400 establishes
the Kentucky Thoroughbred Development Fund and requires the Kentucky Horse
Racing and Gaming Corporation to promulgate administrative regulations as may
be necessary to carry out its provisions and purposes. KRS 230.800(2)(b)
requires the corporation commission to promulgate administrative regulations
establishing the conditions and criteria for the distribution of moneys from
the Kentucky Thoroughbred Breeders' Incentive Fund. KRS 230.770(6) and (7)
authorize the corporation commission to promulgate administrative regulations
establishing the eligibility of horses participating in races for which a
portion of the purse is provided by the Kentucky Standardbred Development Fund
and the conditions, class, and quality of the races. KRS 230.802(1) establishes
the Kentucky standardbred breeders' incentive fund. KRS 230.802(2)(b)
authorizes the corporation commission to promulgate administrative regulations
establishing the conditions and criteria for the distribution of moneys from
the fund. KRS 230.804(2)(b) authorizes the Kentucky Horse Racing and Gaming
Corporation to promulgate administrative regulations establishing the
conditions and criteria for the distribution of moneys from the Kentucky Horse
Breeders' Incentive Fund. KRS 230.445 establishes the Kentucky Quarter Horse,
Paint Horse, Appaloosa, and Arabian development fund and requires the
corporation commission to promulgate administrative regulations to carry out
the purpose of the statute and to administer the development fund in a manner
to promote and aid in the development of the horse industry in Kentucky;
upgrade the quality of racing in Kentucky; and to improve the quality of horses
bred in Kentucky. KRS 230.370 authorizes the corporation commission to
promulgate any reasonable and necessary administrative regulation for the
conduct of hearings before it. This administrative regulation establishes a
uniform process for enforcing the standards for distribution of money from
these funds and for resolving disputes related to them.
Section 1. Violations.
(1) It shall be a violation of this
administrative regulation if an applicant or registrant under 810 KAR
7:020 to
810 KAR
7:060, or a person otherwise eligible for or claiming entitlement to an award
from a fund administered under 810 KAR
7:020 to 810 KAR
7:060:
(a) Provides any official registrar under KRS 230.400, any advisory committee, or the corporation commission with incorrect,
false, or misleading information;
(b) Fails to furnish information requested by
the official registrar, advisory committee, or corporation commission within
thirty (30) days;
(c) Is charged or
convicted of a crime, offense, or other criminal or civil violation involving
cruelty, mistreatment, abuse, or neglect of a horse;
(d) Engages in conduct that is against the
best interests of horse breeding or horse racing; or
(e) Violates any provision of KRS Chapter 230
or KAR Title 810 in any other manner.
(2) For any violation of this administrative
regulation, the corporation commission may:
(a) Deny an application;
(b) Suspend, deny, or revoke a registration;
or
(c) Deny or revoke an
award.
(3) In addition
to the penalties in subsection 2, for a violation of this administrative
regulation, the corporation commission may bar a person from participation in
any incentive or development fund under 810 KAR Chapter 7 for a period of one
(1) to five (5) years based on the seriousness of the violation. For a second
or subsequent violation of this administrative regulation, the corporation
commission may impose a lifetime bar from participation in any fund
administered under 810 KAR Chapter 7.
(4) A person charged, but not convicted of a
crime, offense, or other criminal or civil violation as provided in subsection
(1)(c) may petition the corporation commission for reinstatement. The
corporation commission shall reinstate the earnings, registration, or
application upon submission of proof satisfactory to the corporation commission
that the charges were dismissed and the facts forming the basis of the charges
were false.
Section 2.
Disciplinary Process.
(1) The corporation
commission shall investigate suspected violations of this administrative
regulation.
(2) Upon the completion
of the investigation, the person or persons conducting the investigation shall
submit a written report to the executive director containing a statement of the
facts disclosed by the investigation.
(3) Based on consideration of the
investigative report, the executive director shall determine whether there is
prima facie cause to believe that a violation has been committed.
(4) Upon determination that prima facie cause
exists, the executive director shall issue written notice of disciplinary
action. The notice shall set forth:
(a) The
statutory or regulatory violation;
(b) The factual basis on which the
disciplinary action is based;
(c)
The penalty imposed; and
(d) A
statement that the notice may be appealed to an administrative hearing by
written notice sent to the corporation commission within twenty (20) calendar
days of issuance of the notice.
(5) Notice of a disciplinary action under
this section may be appealed to an administrative hearing. A written request
for an administrative hearing shall be filed with the corporation commission
within twenty (20) calendar days of the date of the executive director's
notice. The request shall identify the specific issues in dispute and the legal
basis on which the executive director's decision on each issue is believed to
be erroneous.
(6) An administrative
hearing under this section shall be conducted under KRS Chapter 13B.
(7) If the request for an administrative
hearing is not timely filed, the penalty laid out in the notice of disciplinary
action shall be effective upon the expiration of the time to request an
administrative hearing.
Section
3. Disputes.
(1) Any
non-disciplinary dispute between the corporation commission and an applicant or
registrant under
810 KAR 7:020 to
810 KAR 7:060, or a person otherwise eligible for or
claiming entitlement to an award from a fund administered under
810 KAR 7:020 to
810 KAR 7:060, shall be raised by the aggrieved party by filing a petition seeking
relief with the executive director of the corporation commission within thirty
(30) days of the action or the inaction leading to the dispute.
(2) If the executive director and the
aggrieved party do not agree on a resolution of the dispute, the executive
director shall refer the matter for an administrative hearing under KRS Chapter
13B.
Section 4. Consent
to Investigate; Additional Information. Application or registration under 810 KAR
7:020 to 810
KAR
7:060, or submission of any claim for an award from a fund
administered under 810 KAR
7:020 to 810 KAR
7:060, shall constitute consent to:
(1) Investigation by the corporation
commission or any advisory committee of all information provided to the
corporation commission or any advisory committee;
(2) Site visits to verify all mare and
stallion residency requirements set forth in 810 KAR Chapter 7; and
(3) Provide any additional information
requested by the corporation commission or any advisory committee.
