Current through Register Vol. 48, No. 39, March 25, 2024
Subpart
1.
Contracts and subcontracts subject to prior commission
approval.
A. All contracts entered
into, renewed, or extended by Class A, B, and D licensees and their contractors
for goods, services, and events are subject to prior approval by the
commission.
B. Contracts must
include a current Certificate of Compliance, if applicable, issued by the
Minnesota Department of Human Rights. Contracts must include a statement by the
contractor affirming compliance with the ADA, if applicable.
C. All Class A, B, and D licensees must
submit as soon as practicable to the commission the name and the address of the
contractor or subcontractor, amount and duration of the contract or
subcontract, and a description of the goods or services provided.
D. The commission shall determine whether the
contract or subcontract may affect the integrity of pari-mutuel racing or card
playing, and the commission shall notify the licensee whether the commission
intends to review and approve or disapprove the contract or
subcontract.
E. In making a
determination that a contract or subcontract may affect the integrity of
racing, the commission shall consider:
(1) the
amount and duration of the contract;
(2) the extent to which the contractor or
subcontractor will be on the premises of the licensee;
(3) the relationship of the contract or
subcontract to security;
(4)
opportunity for contact between the contractor or subcontractor and horses,
horsepersons, patrons, parimutuel wagering operations, card playing operations,
or the information technology operations of the licensee;
(5) opportunity for the contractor or
subcontractor to influence the management and conduct of pari-mutuel racing or
card playing;
(6) contact with
admission, pari-mutuel, concession, purse, or card-playing money; and
(7) whether the commission has reason to
believe that the contractor or subcontractor is incompetent, financially
irresponsible, or not of good character.
F. If notified of the commission's intention
to review and approve or disapprove a contract or subcontract, the licensee
shall promptly submit to the commission copies of any written contracts or
subcontracts as well as any documentation, records, or information the
commission may request with regard to the contract. If the commission notifies
a licensee of the commission's intention to review and approve or disapprove a
contract or subcontract, the contract or subcontract is not valid, nor is
either of the parties bound by the contract until it has been approved by the
commission.
G. The commission shall
approve or disapprove contracts and subcontracts within 30 days, as computed
pursuant to Minnesota Statutes, section
645.15, after
submission.
Subp. 2.
Waiver of review.
The commission, by application of the criteria in subpart
1 to contract information
received, may determine that contracts and subcontracts of certain types,
amounts, or durations will not affect the integrity of pari-mutuel racing and
need not be reviewed. If the commission so concludes, it shall give written
notice to affected licensees of the types, amounts, or durations of contracts
and subcontracts which will not be reviewed and affected licensees need not
thereafter submit the information required in subpart
1 for those contracts or
subcontracts. The commission, at any time, may by written notice to affected
licensees, rescind its decision not to review contracts and subcontracts of
certain types, amounts, or durations and require submission of the information
required in subpart 1 if it
determines that the integrity of pari-mutuel racing is affected.
Subp. 3.
Information
required. If the commission notifies a licensee of its intention to
review and approve or disapprove a contract or subcontract, and the contract or
subcontract is in an amount more than $100,000 or of a duration longer than 30
days, a Class A, B, or D licensee also must submit to the commission:
A. The name, address, and telephone number of
the contractor or subcontractor.
B.
The name and address of every director, officer, general partner, or other
policymaker and holder of a direct or indirect record or beneficial ownership
or other voting interest or control, whether absolute or contingent, of five
percent or more in the contractor or subcontractor and the nature and extent of
such interest or control. If a nonindividual holds more than a 25 percent
interest or control of a contractor or subcontractor, the disclosure required
by this item must be made of policymakers and holders of interests or control
of ten percent or more in that entity.
C. A description of any contract, agreement,
or understanding entered into by an individual or other entity identified in
item B with regard to performance of the contract or subcontract or its
benefits.
D. Descriptions of the
most recent five contracts or subcontracts performed or being performed, date,
and for whom.
E. Claims of delay or
failure in meeting tax, financial, or other obligations, including bankruptcy
proceedings, and any other litigation or administrative proceedings in which
the contractor or subcontractor was a party during the past five
years.
F. The signature, name,
address, and title of an individual providing the information. The licensee
must make its best effort to notify the commission promptly of any change in
the information required by items A, B, C, E, and F before performance is
completed.
G. The licensee must
make its best effort to notify the commission promptly of any change in the
information required by items A, B, C, D, and E before performance is
completed.
Subp. 4.
Basis for commission approval. The commission shall approve the
contract or subcontract if it determines that approval will not adversely
affect racing, pari-mutuel wagering, card playing, or the public interest, is
in accordance with applicable laws and rules, and will not adversely affect the
public health, safety, and welfare. In making that determination, the
commission must consider the contractor or subcontractor's competence,
experience, reputation, record of law abidance, and financial
responsibility.
Subp. 5.
Rescission of approval.
The commission, after notice and an opportunity to be heard,
may rescind its approval of a contract or subcontract during its performance if
the commission determines that the contractor or subcontractor no longer meets
the criteria in subpart
4.
Subp. 6. [Repealed, 17 SR 7]
Subp. 7. [Repealed, 17 SR 7]
Subp. 8. [Repealed, 17 SR 7]
Subp. 9. [Repealed, 17 SR 7]
Subp. 10. [Repealed, 17 SR 7]
Statutory Authority: MS s
240.03;
240.13;
240.15;
240.16;
240.19;
240.23;
240.24