Commission proposes review rules for horse and dog racing transfers

Except for publicly held corporations, covered transfers of more than 10% of a licensed racing facility or corporation’s value or stock would require prior written Commission approval. It covers license holders and certain owners, officers, or directors transferring interests in a horse or dog racing facility or its licensed company. The rule does not apply to publicly held corporations. Some public market transfers and qualifying loans are exempt from advance notice and approval, but must be reported promptly after they occur. Approval is required before a covered transfer. Exempt public market and loan transactions must be reported promptly after they occur.

The Commission may temporarily authorize a proposed buyer to hold an interest while it reviews the buyer’s suitability. It applies to proposed buyers who must qualify because of a transfer of a racing license or ownership interest in a license holder or related company. Temporary approval requires a hearing and the Commission’s required findings, including a complete application and trust agreement. For contractual transfers under section 17.03(1), no closing is allowed before a final suitability decision if no interim report is requested or temporary approval is denied. Denial for publicly traded securities under section 17.03(2) requires those securities and interests to enter a trust.

A covered buyer would agree in writing to assume license obligations, subject to allowed exceptions. The transferor would pay review costs for transfers requiring prior Bureau notification under section 17.02(2). It applies to transfers covered by the regulation, except where the Commission allows an exception to the written agreement requirement. The buyer may petition for allowed changes to license terms before agreeing. Required review fees are nonrefundable and remain due after withdrawal, abandonment, or denial. The transferor and transferee are jointly and severally liable for amounts chargeable to the transferor. The written agreement is required as a condition of the transfer. Review costs remain due if the application is withdrawn, abandoned, or denied.