KRS 230.320: Denial, revocation, or suspension of license -- Stay of imposition of

stewards' decision -- Review -- Frivolous appeals.

(1) Every license granted under this chapter is subject to denial, revocation, or

suspension, and every licensee or oth er person participating in Kentucky horse

racing may be assessed an administrative fine and required to forfeit or return a

purse, by the corporation in any case where it has reason to believe that any

provision of this chapter, administrative regulation, or condition of the corporation

affecting it has not been complied with or has been broken or violated. The

corporation may deny, revoke, or suspend a license for failure by the licensee or

other person participating in Kentucky horse racing to pay an admi nistrative fine

imposed upon the licensee by the stewards or the corporation. The corporation, in

the interest of honesty and integrity of horse racing, may promulgate administrative

regulations under which any license may be denied, suspended, or revoked, and

under which any licensee or other person participating in Kentucky horse racing

may be assessed an administrative fine or required to forfeit or return a purse.

(2) (a) Following a hearing by the stewards, a person who has been disciplined by a

ruling of the stewards may apply to the corporation for a stay of the ruling,

pending action on an appeal by the corporation.

(b) An application for a stay shall be received by the president or his or her

designee within ten (10) calendar days of the issuance of the stewards' ruling.

(c) An application for a stay shall be in writing and include the following:

1. The name, address, telephone number, and signature of the person

requesting the stay;

2. A statement of the justification for the stay; and

3. The period of time for which the stay is requested.

(d) On a finding of good cause, the president or his or her designee may grant the

stay. The president or his or her designee shall issue a written decision

granting or denying the request for stay within five (5) calendar days from the

time the application fo r stay is received by the president or his or her

designee. If the president or his or her designee fails to timely issue a written

decision, then the stay is deemed granted. The president or his or her designee

may rescind a stay granted under this subsection for good cause.

(e) A person who is denied a stay by the president or his or her designee, or has a

previously granted stay rescinded under paragraph (d) of this subsection, may

petition the corporation to overrule the president's or designee's denial or

rescission of the stay. The petition shall be filed in writing with the

chairperson of the board of directors of the corporation and received by the

chairperson within ten (10) calendar days of the mailing of the president's or

designee's denial of the stay. The petition shall state the name, address, phone

number, and signature of the petitioner; a statement of justification of the stay;

and the time period for which the stay is requested. The chairperson shall

convene a special meeting of the board of directors of the corporation within

ten (10) calendar days of receipt of the petition, and the corporation shall issue

a written final order granting or denying the petition within two (2) calendar

days of the special meeting. If the corporation fails to timely issue a final

order on the petition, then the stay is granted. The corporation may rescind a

stay granted under this subsection for good cause.

(f) A person who is denied or has a previously granted stay rescinded by the

corporation may file an appe al of the final written order of the corporation in

the Circuit Court of the county in which the cause of action arose.

(g) The fact that a stay is granted is not a presumption that the ruling by the

stewards is invalid.

(3) If any license is denied, suspe nded, or revoked, or if any licensee or other person

participating in Kentucky horse racing is assessed an administrative fine or required

to forfeit or return a purse, after a hearing by the stewards or by the corporation

acting on a complaint or by its o wn volition, the corporation shall grant the

applicant, licensee, or other person the right to appeal the decision, and upon

appeal, an administrative hearing shall be conducted in accordance with KRS

Chapter 13B.

(4) The corporation may at any time order that any case pending before the stewards be

immediately transferred to the corporation for an administrative hearing conducted

in accordance with KRS Chapter 13B.

(5) (a) In an administrative appeal to the corporation by a licensee or other person

participating in Kentucky horse racing, the corporation may determine in its

final order that the appeal is frivolous. If the corporation finds that an appeal

is frivolous:

1. This fact shall be considered an aggravating circumstance and may be

considered in assessing any penalty against the licensee; and

2. The licensee or other person who raised the appeal may be required to

reimburse the corporation for the cost of the investigation of the

underlying circumstances of the case and the cost of the adjudication of

the appeal. Costs may include but are not limited to fees paid to a

hearing officer or court reporter, attorneys fees, and laboratory expenses.

(b) The corporation may by administrative regulation prescribe the conditions or

factors by which an appeal may be determined to be frivolous.

(6) Any administrative action authorized in this chapter shall be in addition to any

criminal penalties provided in this chapter or under other provisions of law.