Request By:
Vic Hellard, Jr.
Director
Legislative Research Commission
State Capitol
Frankfort, Kentucky 40601
Opinion
Opinion By: Chris Gorman, Attorney General; Ross T. Carter, Assistant Attorney General
You have asked the following questions in reference to HB 749:
1. Can local interests invest in a simulcast facility in a joint business arrangement with a licensed track or tracks?
2. Can local interests invest in a simulcast facility by buying interest in a licensed track?
Section 2 of HB 749 says, "Any track licensed by the commission to conduct horse racing and desiring to establish a simulcast facility shall apply for and may receive approval from the commission for each simulcast facility." Section 11 of the bill defines "track" as any association duly-licensed by the Kentucky Racing Commission to conduct horse racing. " Licensing of tracks is authorized by KRS 230.300, which refers to the entity applying for a license as a "person" and as an "association." "Person" is defined in KRS 446.010 as "bodies-politic and corporate, societies, communities, the public generally, individuals, partnerships, and joint stock companies."
We find nothing in HB 749 or in chapter 230 that restricts investments in the entity comprising a licensed track. The only possible restriction comes from KRS 230.300(2), under which the racing commission is authorized to consider the financial stability of an applicant for a license and the "character and reputation for honesty of all persons identified with" the applicant. Therefore we conclude that as long as the simulcast facility is maintained and operated by a licensed track, local interests may invest in the facility through a joint venture with the track or through the purchase of an ownership interest in the track.