Request By:
Mr. Michael W. Davidson, Director
Kentucky State Racing Commission
P.O. Box 1080
Lexington, Kentucky 40518
Opinion
Opinion By: Steven L. Beshear, Attorney General; Christopher W. Johnson, Assistant Attorney General
You have requested on behalf of the Racing Commission the opinion of this Office on whether the Commission has the authority pursuant to KRS 230.300(2) to grant concurrent racing dates to two or more licensees. In our opinion the Commission has such authority.
The Commission has been granted "plenary power" to regulate racing in such a manner as will "foster and encourage the legitimate business of Thoroughbred racing. " KRS 230.215. In addition, the Commission's statutory grant of authority is broad and unambiguous:
"The Commission . . . shall have all powers necessary and proper to carry out fully and effectively the provisions of KRS 230.210 to 230.260." KRS 230.260.
A grant of authority to a commission must set out guidelines for the exercise of that authority. State Racing Commission v. Latonia Association, Ky., 123 S.W. 681 (1909). Such guidelines are established in KRS 230.300(2).
". . . The commission may issue such license to conduct a Thoroughbred race meeting to any association . . . if the commission finds that the proposed conduct of racing by such association would be in the best interest of the public health, safety, and welfare of the immediate community as well as to the Commonwealth, and if by reason of financial stability, track locations, traffic flow, facilities for the public, facilities for racing participants and horses, character and reputation for honesty of all persons identified with the association, competence of proposed racing officials and association employees, absence of conflict with other race meetings in time and patronage area, sentiment of the community in which such association proposes to conduct a race meeting, and capability to comply with the rules and rulings of the commission, the licensing of such association would serve to nurture, promote, develop, or improve the thoroughbred industry in the Commonwealth . . . ." [Emphasis added].
KRS 230.300(2) states:
"The commission shall as soon as practicable, but in no event later than March 1 in any calendar year award dates for racing in the Commonwealth during the year."
KRS 230.300(5) states:
"Thoroughbred racing dates may be awarded and licenses issued authorizing thoroughbred racing and Appolosa racing at a Thoroughbred race meeting on any day of the year."
These two statutes together specifically empower the Commission to grant racing dates on any day of the year, with the limitation that the award must be made before March 1 for that calendar year. An administrative agency such as the Commission may freely exercise its discretionary power, as long as it does not act arbitrarily and it acts within the framework of the guidelines established by the legislature. Lovern v. Brown, Ky., 390 S.W.2d 448 (1965).
In your letter you expressed concern with the language of KRS 230.300(2) emphasized above. This language does not prohibit the Commission from awarding concurrent dates; it merely establishes the effects of concurrent racing as one criteria which the Commission must examine when awarding racing dates pursuant to its discretionary power. If the Commission finds that awarding concurrent dates to two or more licensees would "serve to nurture, promote, develop, or improve the thoroughbred industry in the Commonwealth" after it considers all the criteria set forth in KRS 230.300(2), it may do so.