Indiana Administrative Code › Title 71 - INDIANA HORSE RACING COMMISSION › Article 11 - PERMIT APPLICATION REQUIREMENTS AND CRITERIA › Rule 1 - Permit Application Requirements and Criteria › Section 1-13 - Transfers of permits

Current through July 10, 2024
Authority: IC
				  4-31-3-9; IC
				  4-31-5-8
Affected: IC
				  4-31-5; IC
				  4-31-13-1
Sec. 13.
(a) A
				permit issued under IC
				4-31-5 is for the benefit of the
				permit holder only and is applicable only to the location for which the permit
				is issued. The permit may not be sold or otherwise transferred and shall
				terminate upon a change of ownership of the permit holder, unless the
				commission has granted prior written approval of the change of ownership or
				unless this section has been otherwise complied with.
(b) The sale, pledge, encumbrance, execution
				of an option agreement, or other transfer of five percent (5%) or more of the
				equity securities or other ownership interest of a partnership, association,
				corporation, or other entity holding a permit shall be considered a substantial
				change of ownership. A "substantial change in ownership", for purposes of this
				subsection, includes ownership, directly or indirectly, by a person,
				individually or in association with others, contingent or otherwise, whether
				through a subsidiary or intermediary, who acquires or has a right to acquire,
				directly or indirectly, a five percent (5%) or more beneficial ownership of the
				permit holder. Any request for approval of a substantial change in ownership
				shall contain the same information that is required to be furnished under
				section 4 of this rule. Upon receipt of all information required by the
				commission with regard to a proposed substantial change in ownership, the
				commission shall, as soon as practicable, make a determination whether to
				authorize and approve the substantial change in ownership of a permit
				holder.
(c) The sale, pledge,
				encumbrance, execution of an option agreement, or other transfer of ownership
				of a permit which is less than five percent (5%) of the equity securities or
				other ownership interest of a partnership, association, corporation, or other
				entity holding a permit shall be considered a nominal change of ownership. A
				request for approval to make a nominal change of ownership shall be filed with
				the commission within fifteen (15) days of the execution of the documents upon
				which the proposed nominal change of ownership will be based. The commission
				shall determine whether the proposed nominal change of ownership may have an
				adverse effect upon pari-mutuel racing or the integrity of pari-mutuel racing.
				Upon receipt of all information required by the commission with regard to a
				proposed nominal change of ownership, the commission or its executive director
				shall, as soon as practicable, make a determination whether to authorize and
				approve the nominal change in ownership of a permit holder.
(d) For purposes of subsections (a) and (b),
				commission approval is not required for:
(1)
				the transfer of an ownership interest in a permit holder whether substantial or
				nominal, direct or indirect, if by a publicly traded corporation, and if the
				beneficial ownership transferred is acquired by a person who will hold the
				voting securities of the publicly traded corporation for investment purposes
				only; or
(2) a debt transaction of
				a publicly traded corporation unless such transaction results in the pledge or
				encumbrance of the assets or any portion thereof of the permit holder.
A "publicly traded corporation" is one that has voting
				  securities registered under Section 12 of the Securities and Exchange Act of
				  1934 (1934 Act), or issues securities subject to Section 15(d) of the 1934 Act,
				  or has voting securities exempted from the registration requirements due to
				  Section 3 of the Securities Act of 1933, or is required to file under the 1934
				  Act.