Request By:
Mr. Carl B. Larsen
Supervisor of Racing
Kentucky Harness Racing Commission
1051 H. Newtown Road
Lexington, Kentucky 40511
Opinion
Opinion By: Steven L. Beshear, Attorney General; Paul E. Reilender, Jr., Assistant Attorney General
This is in reply to your letter of October 8, 1981 presenting the following question:
"What would happen if a company like IT & T or General Motors bought race horses? Would every stockholder have to be licensed? "
To carry out the purpose and intent of KRS 230.610-230.760, as enunciated in KRS 230.640, the legislature required that persons desiring to participate in standardbred horse racing in this state must first be licensed by the commission. KRS 230.700 provides in part:
"Every person not required to be licensed under KRS 230.690 who desires to participate in standardbred horse racing in the commonwealth as a horse owner, trainer, driver, apprentice driver, agent, stable employe, racing official, association employe, mutuel clerk or employe of a person or concern contracting with the association to provide a service or commodity and which requires their presence on association grounds during a race meeting, or veterinarian, farrier, horse dentist, or supplier of food, tack, medication, or horse feed, shall first apply to the commission for a license to participate in such activity on association grounds during a race meeting. No person required to be licensed by this section may participate in any activity required to be licensed on association grounds during a race meeting without a valid license therefor. The commission may issue a license if it finds that the financial responsibility, age, experience, reputation, competence, and general fitness of the applicant to perform the activity permitted by a license, are consistent with the best interests of standardbred horse racing and the maintenance of the honesty, integrity, and high quality thereof. . ." (Emphasis added.)
Pursuant to its rulemaking power as established in KRS 230.620(3), the commission enacted 811 KAR 1:025 which provides:
"Racing, farm, corporate, or stable names may be used by owners or lesses if registered with the Kentucky Harness Racing Commission giving the names of all persons who are interested in the stable or will use the name. All persons listed in a registered stable and all stockholders of a corporation racing a horse must have a state license. All owners and persons listed in a registered stable, whether incorporated or not, shall be liable for entry fees and penalties against the registered stable. In the event one (1) of the owners or persons listed in a registered stable is suspended, all the horses shall be included.
If a horse is owned by a corporation, all officers, directors and persons owning any of the capital stock, or beneficial interest therein, shall be disclosed to, and licensed by the commission." (Emphasis added.)
Under the above-referenced statutes and regulations, it is our opinion that all stockholders of a corporation racing a horse would have to be licensed by the commission.