KRS 230.3751: Interstate Compact on Licensure of Participants in Live Racing with

Pari-mutuel Wagering.

The Governor of this Commonwealth is authorized and directed to execute a compact on

behalf of the Commonwealth with any of the United States, the District of Columbia, the

Commonwealth of Puerto Rico, and each territory or possession of the United States,

legally joining therein in the form substantially as follows:

ARTICLE I

PURPOSES

SECTION 1. Purposes.

The purposes of this compact are to:

1. Establish un iform requirements among the party states for the licensing of

participants in live racing with pari -mutuel wagering, and ensure that all such

participants who are licensed pursuant to this compact meet a uniform minimum

standard of honesty and integrity.

2. Facilitate the growth of the pari -mutuel racing industry in each party state and

nationwide by simplifying the process for licensing participants in live racing, and

reduce the duplicative and costly process of separate licensing by the regulatory

agency in each state that conducts live racing with pari-mutuel wagering.

3. Authorize the Kentucky Horse Racing and Gaming Corporation to participate in

this compact.

4. Provide for participation in this compact by officials of the party states, and permit

those officials, through the compact committee established by this compact, to enter

into contracts with governmental agencies and nongovernmental persons to carry

out the purposes of this compact.

5. Establish the compact committee created by this compact as an interstate

governmental entity duly authorized to request and receive criminal history record

information from the Federal Bureau of Investigation and other state and local law

enforcement agencies.

ARTICLE II

DEFINITIONS

SECTION 2. Definitions.

"Compact committee" means the organization of officials from the party states that is

authorized and empowered by this compact to carry out the purposes of this compact.

"Official" means the appointed, elected, designated or otherwise duly selected member of

a racing commission or the equivalent thereof in a party state who represents that party

state as a member of the compact committee.

"Participants in live racing" means participants in live racing with pari -mutuel wagering

in the party states.

"Party state" means each state that has enacted this compact.

"State" means each of the several states of the United States, the District of Columbia, the

Commonwealth of Puerto Rico and each territory or possession of the United States.

ARTICLE III

ENTRY INTO FORCE, ELIGIBLE PARTIES AND WITHDRAWAL

SECTION 3. Entry into force.

This compact shall come into force when enacted by any four (4) states. Thereafter, this

compact shall become effective as to any other state upon both (i) that state's enactment

of this compact and (ii) the affirmative vote of a majority of the officials on the compact

committee as provided in Section 8.

SECTION 4. States eligible to join compact.

Any state that has adopted or authorized live racing with pari -mutuel wagering shall be

eligible to become party to this compact.

SECTION 5. Withdrawal from compact and impact thereof on force and effect of

compact.

Any party state may withdraw from this compact by enacting a statute repealing this

compact, but no such withdraw al shall become effective until the head of the executive

branch of the withdrawing state has given notice in writing of such withdrawal to the

head of the executive branch of all other party states. If as a result of withdrawals

participation in this compact decreases to less than three (3) party states, this compact no

longer shall be in force and effect unless and until there are at least three (3) or more

party states again participating in this compact.

ARTICLE IV

COMPACT COMMITTEE

SECTION 6. Compact committee established.

There is hereby created an interstate governmental entity to be known as the "compact

committee," which shall be comprised of one (1) official from the racing commission or

its equivalent in each party state who shall be appointed, se rve and be subject to removal

in accordance with the laws of the party state he represents. Pursuant to the laws of his

party state, each official shall have the assistance of his state's racing commission or the

equivalent thereof in considering issues re lated to licensing of participants in live racing

and in fulfilling his responsibilities as the representative from his state to the compact

committee. If an official is unable to perform any duty in connection with the powers and

duties of the compact com mittee, the racing commission or equivalent thereof from his

state shall designate another of its members as an alternate who shall serve in his place

and represent the party state as its official on the compact committee until that racing

commission or eq uivalent thereof determines that the original representative official is

able once again to perform his duties as that party state's representative official on the

compact committee. The designation of an alternate shall be communicated by the

affected state's racing commission or equivalent thereof to the compact committee as the

committee's bylaws may provide.

SECTION 7. Powers and duties of compact committee.

In order to carry out the purposes of this compact, the compact committee is hereby

granted the power and duty to:

1. Determine which categories of participants in live horse racing, including but not

limited to owners, trainers, jockeys, grooms, mutuel clerks, racing officials,

veterinarians, and farriers, and which categories of equivalent particip ants in dog

racing and other forms of live racing with pari -mutuel wagering authorized in two

(2) or more of the party states, should be licensed by the committee, and establish

the requirements for the initial licensure of applicants in each such category , the

term of the license for each category, and the requirements for renewal of licenses

in each category. Provided, however, that with regard to requests for criminal

history record information on each applicant for a license, and with regard to the

effect of a criminal record on the issuance or renewal of a license, the compact

committee shall determine for each category of participants in live racing which

licensure requirements for that category are, in its judgment, the most restrictive

licensure requirements of any party state for that category and shall adopt licensure

requirements for that category that are, in its judgment, comparable to those most

restrictive requirements.

2. Investigate applicants for a license from the compact committee and, as permitted

by federal and state law, gather information on such applicants, including criminal

history record information from the Federal Bureau of Investigation and relevant

state and local law enforcement agencies, and, where appropriate, from the Royal

Canadian Mounted Police and law enforcement agencies of other countries,

necessary to determine whether a license should be issued under the licensure

requirements established by the committee as provided in paragraph 1 above. Only

officials on, and employ ees of, the compact committee may receive and review

such criminal history record information, and those officials and employees may

use that information only for the purposes of this compact. No such official or

employee may disclose or disseminate such i nformation to any person or entity

other than another official on or employee of the compact committee. The

fingerprints of each applicant for a license from the compact committee shall be

taken by the compact committee, its employees, or its designee and, pursuant to

Public Law 92 -544 or Public Law 100 -413, shall be forwarded to a state

identification bureau, or to an association of state officials regulating pari -mutuel

wagering designated by the Attorney General of the United States, for submission

to th e Federal Bureau of Investigation for a criminal history record check. Such

fingerprints may be submitted on a fingerprint card or by electronic or other means

authorized by the Federal Bureau of Investigation or other receiving law

enforcement agency.

3. Issue licenses to, and renew the licenses of, participants in live racing listed in

paragraph 1 of this section who are found by the committee to have met the

licensure and renewal requirements established by the committee. The compact

committee shall not have the power or authority to deny a license. If it determines

that an applicant will not be eligible for the issuance or renewal of a compact

committee license, the compact committee shall notify the applicant that it will not

be able to process his appl ication further. Such notification does not constitute and

shall not be considered to be the denial of a license. Any such applicant shall have

the right to present additional evidence to, and to be heard by, the compact

committee, but the final decision o n issuance or renewal of the license shall be

made by the compact committee using the requirements established pursuant to

paragraph 1 of this section.

4. Enter into contracts or agreements with governmental agencies and with

nongovernmental persons to pro vide personal services for its activities and such

other services as may be necessary to effectuate the purposes of this compact.

5. Create, appoint, and abolish those offices, employments, and positions, including an

executive director, as it deems necessary for the purposes of this compact, prescribe

their powers, duties and qualifications, hire persons to fill those offices,

employments and positions, and provide for the removal, term, tenure,

compensation, fringe benefits, retirement benefits and other conditions of

employment of its officers, employees and other positions.

6. Borrow, accept, or contract for the services of personnel from any state, the United

States, or any other governmental agency, or from any person, firm, association,

corporation or other entity.

7. Acquire, hold, and dispose of rea l and personal property by gift, purchase, lease,

license, or in other similar manner, in furtherance of the purposes of this compact.

8. Charge a fee to each applicant for an initial license or renewal of a license.

9. Receive other funds through gifts, grants and appropriations.

SECTION 8. Voting requirements.

A. Each official shall be entitled to one (1) vote on the compact committee.

B. All action taken by the compact committee with regard to the addition of party

states as provided in Section 3, the li censure of participants in live racing, and the

receipt and disbursement of funds shall require a majority vote of the total number

of officials (or their alternates) on the committee. All other action by the compact

committee shall require a majority vote of those officials (or their alternates)

present and voting.

C. No action of the compact committee may be taken unless a quorum is present. A

majority of the officials (or their alternates) on the compact committee shall

constitute a quorum.

SECTION 9. Administration and management.

A. The compact committee shall elect annually from among its members a chairman, a

vice chairman, and a secretary/treasurer.

B. The compact committee shall adopt bylaws for the conduct of its business by a two-

thirds (2/3) vote of the total number of officials (or their alternates) on the

committee at that time and shall have the power by the same vote to amend and

rescind these bylaws. The committee shall publish its bylaws in convenient form

and shall file a copy thereof and a copy of any amendments thereto with the

Secretary of State or equivalent agency of each of the party states.

C. The compact committee may delegate the day -to-day management and

administration of its duties and responsibilities to an executive director and his

support staff.

D. Employees of the compact committee shall be considered governmental employees.

SECTION 10. Immunity from liability for performance of official responsibilities and

duties.

No official of a party state or employee of the compact commi ttee shall be held

personally liable for any good faith act or omission that occurs during the performance

and within the scope of his responsibilities and duties under this compact.

ARTICLE V

RIGHTS AND RESPONSIBILITIES OF EACH PARTY STATE

SECTION 11. Rights and responsibilities of each party state.

A. By enacting this compact, each party state:

1. Agrees (i) to accept the decisions of the compact committee regarding the

issuance of compact committee licenses to participants in live racing pursuant

to the committee's licensure requirements, and (ii) to reimburse or otherwise

pay the expenses of its official representative on the compact committee or his

alternate.

2. Agrees not to treat a notification to an applicant by the compact committee

under paragraph 3 of Section 7 that the compact committee will not be able to

process his application further as the denial of a license, or to penalize such an

applicant in any other way based solely on such a decision by the compact

committee.

3. Reserves the right (i) to charge a fee for the use of a compact committee

license in that state, (ii) to apply its own standards in determining whether, on

the facts of a particular case, a compact committee license should be

suspended or revoked, (iii) to apply its own standards in determining licensure

eligibility, under the laws of that party state, for categories of participants in

live racing that the compact committee determines not to license and for

individual participants in live racing who do not meet the licensure

requirements of the compact committee, and (iv) to establish its own licensure

standards for the licensure of nonracing employees at pari -mutuel racetracks

and employees to separate satellite wagering facilities. Any party state that

suspends or revokes a com pact committee license shall, through its racing

commission or the equivalent thereof or otherwise, promptly notify the

compact committee of that suspension or revocation.

B. No party state shall be held liable for the debts or other financial obligations

incurred by the compact committee.

ARTICLE VI

CONSTRUCTION AND SEVERABILITY

SECTION 12. Construction and severability.

This compact shall be liberally construed so as to effectuate its purposes. The provisions

of this compact shall be severable, and, if an y phrase, clause, sentence, or provision of

this compact is declared to be contrary to the Constitution of the United States or of any

party state, or the applicability of this compact to any government, agency, person or

circumstance is held invalid, the validity of the remainder of this compact and the

applicability thereof to any government, agency, person or circumstance shall not be

affected thereby. If all or some portion of this compact is held to be contrary to the

constitution of any party state, t he compact shall remain in full force and effect as to the

remaining party states and in full force and effect as to the state affected as to all

severable matters.