5-108. Issuance of permit or license; grounds for refusal to issue; nontransferable; renewal

A. The department shall conduct a thorough investigation concerning the application for a permit or a license and:

1. The department may refuse to issue or renew a license or the commission may refuse to approve or renew a permit for any applicant if there is substantial evidence to find that the applicant:

(a) Has been suspended or ruled off a recognized course in another jurisdiction by the racing board or commission thereof.

(b) Is not of good repute and moral character.

(c) Has, when previously licensed or granted a permit, violated the racing laws of this state or of any other state or the regulations of the commission.

(d) Is a corporation, firm or association not duly qualified and authorized to conduct business within this state.

(e) If an individual, has been convicted of a felony or any crime involving moral turpitude, or, if a corporation, firm or association, is controlled or operated directly or indirectly by a person or persons who have been convicted of a felony or any crime involving moral turpitude.

(f) If an individual, is engaged in or has been convicted of wagering by other than the mutuel method or in pool selling or bookmaking in any state of the United States or foreign country where such other method, pool selling or bookmaking is illegal or, if a corporation, firm or association, is controlled or operated directly or indirectly by a person who is engaged in or has been convicted of wagering by other than the mutuel method or in pool selling or bookmaking in any state of the United States or foreign country where such other method, pool selling or bookmaking is illegal.

(g) Has wilfully violated any provision of this chapter or any of the rules and regulations of the commission.

(h) Should not, in the best interest of the safety, welfare, economy, health and peace of the people of the state, be granted a license or permit.

(i) Has entered into any contract or contracts which will not further the best interests of racing or be in the public interest or, in the case of permittees or applicants for permits to conduct racing meetings, has failed to file with the department a contract, as an addendum to an application for a permit to conduct a racing meeting, providing for food and beverage concession rights, if any, at such racing meeting. A food and beverage concessionaire contract filed with the department pursuant to this section shall be available to the public upon request.

(j) Has failed to inform the department on or before May 15 of each year in writing of any material change, occurring during the immediately preceding year of the license or permit term, in the information supplied by the applicant in the application, for a license or permit. In the event that a licensee or permittee fails to file such information, the department shall notify the licensee or permittee of such failure to file and the licensee or permittee shall have an additional fifteen days, after the notice is mailed to the last known address of such licensee or permittee, to file such information.

2. The commission may refuse to approve or renew a permit to conduct a racing meeting or a food and beverage concessionaire license for any ground set forth in paragraph 1 of this subsection or if there is substantial evidence to find that:

(a) The applicant is not possessed of or has not demonstrated financial responsibility sufficient to meet adequately the requirements of the enterprise proposed to be authorized.

(b) The applicant is not the true owner of the enterprise proposed to be granted a permit, that other persons have ownership in the enterprise which fact has not been disclosed or, if the applicant is a corporation, that ten per cent of the stock of such corporation is subject to a contract or option to purchase at any time during the period for which the permit is issued unless the contract or option was disclosed to the department and the department approved the sale or transfer during the period of the permit.

(c) The granting of a permit or license in the locality set out in the application is not in the public interest or convenience.

(d) The applicant, if a corporation or any holder of more than ten per cent of the outstanding stock of any class, transferred, pledged or in any other way collateralized any of its stock after an application for a permit or license was filed with the department, without prior department approval. The provisions of subdivision (b) and this subdivision shall not apply to day-to-day transfers of stock of a publicly held corporation unless the transfer, or a combination of transfers, involves a controlling interest in or affects the operational control of the corporation, or involves ten per cent or more of any class of stock of the corporation owned by the controlling shareholders or the manager of any racing meeting.

(e) The applicant has, or if the applicant is a corporation, its officers, managerial employees, directors or substantial stockholders have, committed acts of moral turpitude in this state or have willfully violated a material racing statute of this state or a material rule or regulation of the commission. If the commission makes such a finding, with respect to an officer, managerial employee, director or substantial stockholder, the applicant may be denied a permit only upon the failure to remove the officer, managerial employee or director or the failure of the substantial stockholder to sell its stock interest. For purposes of this subdivision a substantial stockholder is one who owns ten per cent of the issued and outstanding stock of the applicant.

3. The department may deny or refuse to renew a license or the commission may refuse to approve or renew a permit for any person who has made a knowingly false statement of a material fact to the department.

4. The department may deny or refuse to renew a license or the commission may refuse to approve or renew a permit to any applicant if such applicant has failed to meet any monetary obligation in connection with any racing meeting held in this state.

5. The department shall refuse to issue or renew a license or the commission shall refuse to approve or renew a permit for any applicant if there is substantial evidence to find that the applicant, if an individual, has been convicted within the last five years of a felony or any crime involving moral turpitude or, if a corporation, firm or association, is controlled or operated directly or indirectly by a person or persons who have been convicted within the last five years of a felony or any crime involving moral turpitude.

B. The department in conducting the investigation referred to in this section shall have the full cooperation of all state agencies and departments, including the department of public safety, and such agencies and departments shall make their personnel available to the department, upon request.

C. If the commission determines that the applicant for a permit, whether such applicant is a lessee or an individual or corporate owner of the tracksite, meets the requirements prescribed by this article and the rules and regulations of the commission, it shall approve the permit. The permit shall be approved for a period of not to exceed three years, except that the commission may at its discretion approve a permit for a period of not to exceed five years for an applicant who has not previously been granted a permit pursuant to this section and who purchases an excess holding and interest required to be sold pursuant to section 5-108.03. Any renewal of a permit shall be pursuant to subsection D of this section.

D. Except as provided by subsection C of this section, permits shall be renewed for successive periods of not more than three years unless the commission revokes the permit or refuses to renew the permit for any of the grounds enumerated in this section or section 5-108.03. The renewal of a permit shall be denied only after a full hearing and a finding of good cause for refusing renewal has been made by the commission.

E. The director shall suspend or revoke a license or the commission shall deny or revoke a permit of a person who intentionally provides false information to the department or any other governmental agency concerning his criminal history background. The director may suspend or revoke a license or the commission may deny or revoke a permit of a person who negligently or recklessly provides false information to the department or any other governmental agency concerning his criminal history background.

F. Except as provided by this subsection, the director may grant a license or the commission may approve a permit to engage in the racing industry in this state only after all necessary investigation of the background of the applicant required by this article has been completed. A temporary permit approved by the commission or a temporary license valid for a period of not to exceed ninety days may be issued by the director prior to the time the investigation of the background of the applicant for the license or permit has been completed. After a temporary license or permit has been issued, the director may suspend or revoke a temporary license or the commission may revoke a temporary permit for any reason which would be grounds to refuse to issue, approve or renew a license or permit under the provisions of subsection A of this section.

5-108. Issuance of permit or license; grounds for refusal to issue; nontransferable; renewal

A. The department shall conduct a thorough investigation concerning the application for a permit or a license and:

1. The department may refuse to issue or renew a license or the commission may refuse to approve or renew a permit for any applicant if there is substantial evidence to find that the applicant:

(a) Has been suspended or ruled off a recognized course in another jurisdiction by the racing board or commission thereof.

(b) Is not of good repute and moral character.

(c) Has, when previously licensed or granted a permit, violated the racing laws of this state or of any other state or the regulations of the commission.

(d) Is a corporation, firm or association not duly qualified and authorized to conduct business within this state.

(e) If an individual, has been convicted of a felony or any crime involving moral turpitude, or, if a corporation, firm or association, is controlled or operated directly or indirectly by a person or persons who have been convicted of a felony or any crime involving moral turpitude.

(f) If an individual, is engaged in or has been convicted of wagering by other than the mutuel method or in pool selling or bookmaking in any state of the United States or foreign country where such other method, pool selling or bookmaking is illegal or, if a corporation, firm or association, is controlled or operated directly or indirectly by a person who is engaged in or has been convicted of wagering by other than the mutuel method or in pool selling or bookmaking in any state of the United States or foreign country where such other method, pool selling or bookmaking is illegal.

(g) Has wilfully violated any provision of this chapter or any of the rules and regulations of the commission.

(h) Should not, in the best interest of the safety, welfare, economy, health and peace of the people of the state, be granted a license or permit.

(i) Has entered into any contract or contracts which will not further the best interests of racing or be in the public interest or, in the case of permittees or applicants for permits to conduct racing meetings, has failed to file with the department a contract, as an addendum to an application for a permit to conduct a racing meeting, providing for food and beverage concession rights, if any, at such racing meeting. A food and beverage concessionaire contract filed with the department pursuant to this section shall be available to the public upon request.

(j) Has failed to inform the department on or before May 15 of each year in writing of any material change, occurring during the immediately preceding year of the license or permit term, in the information supplied by the applicant in the application, for a license or permit. In the event that a licensee or permittee fails to file such information, the department shall notify the licensee or permittee of such failure to file and the licensee or permittee shall have an additional fifteen days, after the notice is mailed to the last known address of such licensee or permittee, to file such information.

2. The commission may refuse to approve or renew a permit to conduct a racing meeting or a food and beverage concessionaire license for any ground set forth in paragraph 1 of this subsection or if there is substantial evidence to find that:

(a) The applicant is not possessed of or has not demonstrated financial responsibility sufficient to meet adequately the requirements of the enterprise proposed to be authorized.

(b) The applicant is not the true owner of the enterprise proposed to be granted a permit, that other persons have ownership in the enterprise which fact has not been disclosed or, if the applicant is a corporation, that ten per cent of the stock of such corporation is subject to a contract or option to purchase at any time during the period for which the permit is issued unless the contract or option was disclosed to the department and the department approved the sale or transfer during the period of the permit.

(c) The granting of a permit or license in the locality set out in the application is not in the public interest or convenience.

(d) The applicant, if a corporation or any holder of more than ten per cent of the outstanding stock of any class, transferred, pledged or in any other way collateralized any of its stock after an application for a permit or license was filed with the department, without prior department approval. The provisions of subdivision (b) and this subdivision shall not apply to day-to-day transfers of stock of a publicly held corporation unless the transfer, or a combination of transfers, involves a controlling interest in or affects the operational control of the corporation, or involves ten per cent or more of any class of stock of the corporation owned by the controlling shareholders or the manager of any racing meeting.

(e) The applicant has, or if the applicant is a corporation, its officers, managerial employees, directors or substantial stockholders have, committed acts of moral turpitude in this state or have willfully violated a material racing statute of this state or a material rule or regulation of the commission. If the commission makes such a finding, with respect to an officer, managerial employee, director or substantial stockholder, the applicant may be denied a permit only upon the failure to remove the officer, managerial employee or director or the failure of the substantial stockholder to sell its stock interest. For purposes of this subdivision a substantial stockholder is one who owns ten per cent of the issued and outstanding stock of the applicant.

3. The department may deny or refuse to renew a license or the commission may refuse to approve or renew a permit for any person who has made a knowingly false statement of a material fact to the department.

4. The department may deny or refuse to renew a license or the commission may refuse to approve or renew a permit to any applicant if such applicant has failed to meet any monetary obligation in connection with any racing meeting held in this state.

5. The department shall refuse to issue or renew a license or the commission shall refuse to approve or renew a permit for any applicant if there is substantial evidence to find that the applicant, if an individual, has been convicted within the last five years of a felony or any crime involving moral turpitude or, if a corporation, firm or association, is controlled or operated directly or indirectly by a person or persons who have been convicted within the last five years of a felony or any crime involving moral turpitude.

B. The department in conducting the investigation referred to in this section shall have the full cooperation of all state agencies and departments, including the department of public safety, and such agencies and departments shall make their personnel available to the department, upon request.

C. If the commission determines that the applicant for a permit, whether such applicant is a lessee or an individual or corporate owner of the tracksite, meets the requirements prescribed by this article and the rules and regulations of the commission, it shall approve the permit. The permit shall be approved for a period of not to exceed three years, except that the commission may at its discretion approve a permit for a period of not to exceed five years for an applicant who has not previously been granted a permit pursuant to this section and who purchases an excess holding and interest required to be sold pursuant to section 5-108.03. Any renewal of a permit shall be pursuant to subsection D of this section.

D. Except as provided by subsection C of this section, permits shall be renewed for successive periods of not more than three years unless the commission revokes the permit or refuses to renew the permit for any of the grounds enumerated in this section or section 5-108.03. The renewal of a permit shall be denied only after a full hearing and a finding of good cause for refusing renewal has been made by the commission.

E. The director shall suspend or revoke a license or the commission shall deny or revoke a permit of a person who intentionally provides false information to the department or any other governmental agency concerning his criminal history background. The director may suspend or revoke a license or the commission may deny or revoke a permit of a person who negligently or recklessly provides false information to the department or any other governmental agency concerning his criminal history background.

F. Except as provided by this subsection, the director may grant a license or the commission may approve a permit to engage in the racing industry in this state only after all necessary investigation of the background of the applicant required by this article has been completed. A temporary permit approved by the commission or a temporary license valid for a period of not to exceed ninety days may be issued by the director prior to the time the investigation of the background of the applicant for the license or permit has been completed. After a temporary license or permit has been issued, the director may suspend or revoke a temporary license or the commission may revoke a temporary permit for any reason which would be grounds to refuse to issue, approve or renew a license or permit under the provisions of subsection A of this section.