313.600. Track license--restrictions on transfer of ownership, record keeping requirements--disclosure requirements.
Track license--restrictions on transfer of ownership, record keepingrequirements--disclosure requirements.
313.600. 1. Whenever any organization has been granted arace track license to conduct a horse race meeting, no officeror director of such organization, or person who will therebybecome the owner or holder, directly or indirectly, of fivepercent or more of the shares of stock or certificates or otherevidence of ownership in such organization, may become theowner or holder, directly or indirectly, of any such shares ofstock or certificates or other evidence of ownership withoutfirst having obtained the approval of the commission. Thecommission may, after hearing, revoke or suspend a race tracklicense granted to any organization which shall register on itsbooks in the name of any such officer, director or person itsshare of stock or certificate or other evidence of ownership ofany interest in the organization without the prior approval ofthe commission or which shall knowingly permit any suchofficer, director or person to be directly or indirectlyinterested in its share of stock or certificates or otherevidences of ownership of any interest in the organizationwithout reporting the same to the commission or which violatesany rules or regulations of the commission.
2. Whenever the commission shall give to any officer ordirector of any organization, or person who will thereby becomethe owner or holder, directly or indirectly, of five percent ormore of the shares of stock or certificates or other evidencesof ownership of any interest in an organization, its approvalto own or hold the shares of stock or certificates or otherevidences of ownership of any interest in any suchorganization, it shall, by registered mail, notify theorganization of such approval. Under no circumstances shallthe commission give such approval to any such officer, directoror person who has been convicted of or is under an indictmentfor a crime involving moral turpitude or has violated anyprovisions of the racing law of any state or any rules orregulations of the commission of any state.
3. The commission shall require all licensees, includingany officers and stockholders thereof, to disclose fully to thecommission all financial interests that they may have in horseracing.
4. The commission shall require each licensee under thissection to maintain records of owners of stock of the licenseeso that the names of all persons, including corporations,trusts, estates, and partnerships, who are the beneficialowners of the stock are disclosed, regardless of the manner inwhich, or whether, the ownership interest is stated orregistered on the stock of the licensee. Beneficial ownershipincludes, but is not limited to record ownership and:
(1) Stock or other ownership in one or more entities in achain of parent and subsidiary or affiliated entities, any oneof which participates in the capital or profits of a licensee,regardless of the percentage of ownership involved; or
(2) Any interest which entitles a person to benefitssubstantially equivalent to ownership by reason of anycontract, understanding, relationship, agreement or otherarrangement even though the person is not the record owner.Unless there are special circumstances, securities held by anindividual's spouse or relatives, including children, living inthe home, are beneficially owned by the individual.
5. In addition to any other action which is necessary toobtain disclosure of beneficial ownership of stock, thecommission shall require each licensee, at least once everycalendar year, to obtain, pursuant to written notice to therecord owners of all stock of the licensee, an affidavit fromeach record owner owning two percent or more, sworn to underthe penalty of perjury, stating to the best of the affiant'sknowledge, information and belief:
(1) Whether any person other than the affiant has anyright of beneficial ownership of any kind in the stock held inthe name of the affiant;
(2) The name and address of the other person; and
(3) The amount and nature of the ownership.
6. If the licensee receives information indicating that aperson other than the record owner has a beneficial ownershipinterest in stock of the licensee, the licensee shall requestpromptly by written notice to the other person, that thisperson submit to the licensee within sixty days from the dateof the notice an affidavit, sworn to under the penalty ofperjury, stating to the best of the affiant's knowledge,information and belief:
(1) Whether the affiant has any right of ownership instock of the licensee attributed to the affiant in the noticeand the amount and nature of the ownership;
(2) Whether any person other than the affiant and therecord owner has any right of ownership of any kind in stock ofthe licensee attributed to the affiant by the notice to theaffiant; and
(3) The amount and nature of the ownership of any otherperson.
7. Notwithstanding the affidavit requirements of thissubsection, the commission may limit the ownership that must bereported in an affidavit to two percent or more of thebeneficial ownership of the licensee.
8. Each licensee shall submit the ownership records andaffidavits required by this section to the commission annuallyand at the other times required by the commission. Any changein the record ownership or beneficial ownership of stock of anylicensee shall be reported promptly to the commission. Uponthe failure of any licensee to maintain and report records ofownership of stock, as required by this subsection, or thefailure of any licensee to make a reasonable effort to obtainthe affidavits required by this subsection, the commissionshall suspend or revoke the license of the track for a perioddetermined by the commission.
9. All statements required to be filed with the commissionshall be filed under oath and shall be signed by the officersof the corporation, or, if unincorporated, by the owner or allthe partners, general and limited, of the licensee.
(L. 1986 S.B. 572)Effective 5-6-86