71 IAC 12-1-15 Contracts with a license holder; approval by commission or executive director

Sec. 15. (a) The following contracts must be approved by the commission or the executive director: (1) contracts for management; (2) contracts for totalizer services; (3) a contract or a series of contracts between a license holder and a related party that exceeds fifty thousand dollars ($50,000), other than a contract for employment. (b) "Related party" means: (1) An individual or business entity having a pecuniary interest in a license holder, or an affiliate thereof if the license holder or affiliate is not a publicly held company. (2) A holder of more than five percent (5%) of the outstanding shares of a license holder or an affiliate thereof if the permit holder or affiliate is a publicly held company. (3) A key person of a license holder or an affiliate thereof. (4) An affiliate of a license holder. (5) A relative of a holder of more than five percent (5%) of the outstanding shares of a license holder or an affiliate thereof if the license holder or affiliate is a publicly held company. (6) A relative of a key person of a license holder or an affiliate thereof. (7) A relative of an affiliate of a license holder. (8) A trust for the benefit of or managed by a license holder or an affiliate or a key person thereof. (9) Another person who is able to control or significantly influence the management or operating policies of a license holder or an affiliate thereof. (c) Any contract required to be approved by the commission or the executive director shall be submitted for approval within seven (7) days of execution of the contract. The commission or the executive director may refuse to approve a contract in (a) [subsection (a)] if it is determined that the contract is not in the best interest of horse racing or pari-mutuel wagering. (d) A contract or transaction entered into by a license holder that exceeds the total dollar amount of fifty thousand dollars ($50,000) shall be a written contract. (e) The commission reserves the right to terminate any contract executed by a license holder that is not in compliance with IC 4-31, IC 4-35, or this title.