Current through all regulations passed and filed through September 16, 2024
(A) If, at any time regardless of the filing
of a bankruptcy petition, a permit holder finds themselves in a situation where
they are unable to make any payments or fulfill any financial obligations that
are mandated under the permit, including but not limited
to payments due to an aggrieved party as defined under paragraph (C) of rule
3769-2-11 of the Administrative
Code, the permit holder will immediately notify the racing commission in
writing of its situation.
(B) If,
in the racing commission's discretion the permit holder lacks the financial
ability to continue its day to day operations; threatens the integrity of
pari-mutuel wagering; threatens the health, safety or welfare of the public,
horse racing participants or other participants; and/or puts the wagering
public at risk, the racing commission will:
(1) Immediately suspend the permit holder's
permit until such time that the racing commission determines that the permit
holder has the financial ability to continue its day-to-day operations;
or
(2)
The permit
holder has to:
(a) Have a person approved in advance by the
racing commission sign a guarantee of performance; or
(b) Set up a trust account, under terms and
conditions as approved by the racing commission, for the benefit of the Ohio
state racing commission for the benefit of aggrieved parties as defined by
paragraph (C) of rule
3769-2-11 of the Administrative
Code. The amount in such account is determined by the racing
commission; or
(c) Obtain a bond in
an amount prescribed by the racing commission, in favor of the Ohio state
racing commission as obligee, for the use and benefit of all aggrieved parties
as defined by paragraph (C) of rule
3769-2-11 of the Administrative
Code. This bond may be in addition to any bond provided in accordance with
paragraph (B) of rule
3769-2-11 of the Administrative
Code.
(C) The
filing of a bankruptcy petition by a permit holder does not relieve the permit
holder of any of the minimum requirements necessary to be issued and hold a
permit to conduct pari-mutuel horse racing if, in the racing commission's
discretion, it threatens the integrity of pari-mutuel wagering; threatens the
health, safety, or welfare of the public, horse racing participants or other
participants; and/or puts the wagering public at risk.
(D) For purposes of determining the amount
payable on any bond, should the racing commission believe it may make a claim
upon a bond, the racing commission will notify the
permit holder that
the permit holder will immediately, but no more than ten days from the date of the
notice, provide the racing commission with the
following information in writing:
(1) The
amount of any unpaid salaries or wages earned or due to the permit holder's
employees that are licensed by the commission. The permit holder
has to
provide a schedule detailing all unpaid wages and salaries by employee, by time
period.
(2) The amount of any purse
money that is unpaid or owed to any licensed owners by the permit holder. The
permit holder has to provide a schedule detailing such unpaid
amounts by owner, by race, and by date.
(3) The amount of any entry fees, nominating
fees, eligibility fees, or sustaining fees paid by licensed owners that the
permit holder has or should have in it possession. The permit holder
has to
provide a schedule detailing such amounts by owner.
(4) The amounts owed by the permit holder to
licensed owners by the horsemen's bookkeeper for horses claimed. The permit
holder has
to provide a schedule detailing such amounts by owner.
(5) The amount the permit holder owes to the
holders of winning uncashed parimutuel tickets. The permit holder
has to
provide a schedule detailing these unpaid amounts, listed by date and
race.
(6) The amount of outstanding
fees that the permit holder owes to jockeys and/or
drivers. The permit holder has to provide a schedule detailing such amounts by
jockey and/or driver.
(7) All horsemen's bookkeeper funds,
including purse money, should be held as separate interest-bearing trust funds. The permit holder
has to
verify that this has been done, that the amounts have not been commingled with
other funds, and that the accounts holding such funds will not be subjected to
the permit holder's claims of creditors, The permit holder
will
attach a detailed schedule of all such funds held, and the amounts, by the
permit holder on the date prior to the date of filing of the bankruptcy
petition, as well as any other amounts that were deposited into those funds
after that date.
(8)
All Ohio sires
stakes monies will be kept in a separate fund which will be used exclusively
for payment of purse money to entitled parties in Ohio sires stake fund races.
The permit holder has to verify that this has been done, that the amounts have
not been commingled with other funds, and the accounts holding such funds will
not be subjected to the permit holder's claims of creditors. The permit holder
has to attach a detailed schedule of all such funds held, and the amounts by
the permit holder on the date prior to the date of bankruptcy, as well as any
other amounts that were deposited into those funds after that
date.
(9) The amounts of the
"Combined Simulcast Horse Racing Purse Fund" due under section
3769.089 of the Revised Code and
payments due to the collection and settlement agent under section
3769.0810 of the Revised Code.
The permit holder has to provide a detailed schedule.
(10)
The amounts due and unpaid to any government authority in Ohio, including, but
not limited to, state and local income taxes; commercial activity taxes; sales
taxes; use taxes; excise taxes; horse racing taxes; employee withholding for
federal, state, and local taxes; net profits taxes; school district income
taxes; property taxes; workers' compensations premiums; unemployment
compensations; etc. The permit holder has to attach a
schedule detailing such liabilities by jurisdiction and time period.
(11)
A detailed list of any other amounts that are due or owed by the permit holder
to any other aggrieved party as defined by rule
3769-2-11 of the Administrative
Code.
(12) A schedule
detailing each bank account held in the name of or on behalf of the permit
holder. This will include the name of the bank, the account number,
the balance in the account as of the day of filing of the bankruptcy petition,
and a detailed description of what the account is used for.
(13)
Any other information the racing commission believes is necessary.
(E) The failure of the permit
holder to provide the information listed in paragraph (D) of this rule in the
prescribed time may result in an immediate suspension of the permit holder's
permits. The permit is to remain suspended until the permit holder has
satisfied the racing commission that it should re-open and continue to operate
and that the health, safety, or welfare of the public, horse racing
participants, or other participants will be
protected; and/or the integrity of pari-mutuel
wagering and the wagering public will be protected.
(F) Upon receipt of the information requested
in paragraph (D) of this rule, the permit holder and any necessary
representatives will appear before the racing commission no later than
the racing commission's next regularly scheduled monthly meeting.
The racing commission may set a special meeting for the permit
holder and its representatives to appear at.
(G) If the racing commission is concerned
that the financial condition of the permit holder threatens the integrity of
pari-mutuel wagering; threatens the health, safety, or welfare of the public,
horse racing participants or other participants; and/or puts the wagering
public at risk, then the failure of the permit holder to appear before the
racing commission as directed in paragraph (F) of this rule may result in an
immediate suspension of the permit holder's permit. The permit
will
remain suspended until the permit holder has satisfied the racing commission
that it should re-open and continue to operate.
(H) All of the above mentioned immediate
suspensions may occur without a hearing.
(1)
The racing commission will issue a
written order of suspension by certified mail or in person in accordance with
section 119.07 of the Revised Code. If
the permit holder subject to the immediate suspension requests an adjudicatory
hearing by the racing commission, the date set for the hearing
will be
within fifteen days, but not earlier than seven days, after the permit holder
requests the hearing, unless otherwise agreed to by both the racing commission
and the permit holder.
(2) Any
immediate suspension imposed under the division remains
in effect, unless reversed on appeal, until a final adjudicative order issued
by the racing commission becomes effective. The racing commission
will
issue its final adjudicative order within seventy-five days after completion of
its hearing. A failure to issue the order within seventy-five days
results in dissolution of the summary suspension order
but does
not invalidate any subsequent, final adjudicative order.
