Indiana Administrative Code › Title 71 - INDIANA HORSE RACING COMMISSION › Article 4 - ASSOCIATIONS › Rule 2 - Financial Requirements › Section 2-7 - Purse monies

Current through July 10, 2024
Authority: IC 4-31-3-9; IC 4-35-7-12
Affected: IC 4-31-5; IC 4-35
Sec. 7.
(a) An
				association, its officers, director, officials, and employees shall ensure that
				distributions for purses mandated by IC 4-31, IC 4-35, 71 IAC 12, and contracts
				with any horsemen's association are made as provided for by statute. With the
				exception of purse money that it may owe as a result of the sale (export) of
				its simulcast signal, the association shall insure that any purse monies that
				it is obligated by statute regulation or contract to pay are deposited, before
				the fifteenth day of each month, based upon wagering from the previous month at
				the association's race tracks and/or off-track betting facilities, into the
				appropriate horse industry trust purse account as set forth herein. With
				respect to purse monies that an association is contractually obligated to pay
				as a result of a contract with a horsemen's association for the sale (export)
				of its simulcast signal, the association shall deposit those funds into the
				appropriate account as set forth herein within five (5) days of receipt or
				settlement by the association.
(b)
				An association is required to deposit and maintain the funds referenced in
				subsection (a) of this rule
[subsection (a)]
in separate
				horse industry trust purse accounts for each of the three (3) breeds racing at
				Indiana pari-mutuel facilities (standardbred, thoroughbred, and quarter horse).
				The funds deposited and maintained in those three (3) separate horse industry
				trust purse accounts shall be held and maintained separate from each other and
				separate from all other funds held and maintained by the association. The
				comingling
[sic]
of these funds with any other funds held or
				maintained by the association is strictly prohibited. This provision
				notwithstanding, an association may advance funds to a horse industry trust
				purse account from an operational account in order to make payment of purses
				that have been earned, and then receive reimbursement as soon as there are
				available funds in that horse industry trust purse account.
(c) The association shall issue a purse fund
				activity report (for each of the three (3) breeds racing in Indiana) no later
				than the fifteenth day of each month. Each report shall include a summary of
				both the prior month's activity as well as the year-to-date amounts deposited
				and dispersed from each horse industry trust purse account. The report shall
				include an itemized statement of receipts and expenditures for the prior month
				and shall be electronically delivered both to the horsemen's association
				representing the owners and trainers of a particular breed and to the
				commission. The format of the report is subject to the approval of the
				commission or its executive director.
(d) The association shall also provide no
				later than the fifteenth day of each month a copy of the bank statement for
				each horse industry trust purse account referenced herein to the commission and
				the horsemen's association representing the owners and trainers of the breed
				that benefits from the monies contained in that horse industry trust purse
				account.
(e) Any breach of the
				obligations or requirements of this section or the requirements set forth in IC
				4-35-7-12, including any misuse, misdirection, or misappropriation of funds
				specifically referenced in IC 4-35-7-12, may be considered a violation of this
				article and may subject the association and its officers, directors, and
				employees to penalties that may include, but are not limited to:
(1) the issuance of a warning to the
				association;
(2) the imposition of
				a civil penalty upon the association up to but not to exceed one million
				dollars ($1,000,000);
(3) the
				suspension of a permit issued under IC 4-31-5 to conduct a pari-mutuel wagering
				horse racing meeting in Indiana; or
(4) any other sanction that may be imposed by
				the commission.