SECTION 325:35-1-34. Election of horsemen's representative organizations and agreements

(a)   The Commission of this state recognizes the necessity of horse Owners and Trainers to negotiate and to covenant with Organization Licensees as to the conditions for each race meeting, the distribution of commissions and purses not governed by statutory distribution formulae, simulcast transmission and reception, off-track wagering, all matters relating to welfare, benefits and prerogatives of the parties to the agreement, and any other matter required as a matter of law or necessity. To fulfill its duties to the public in authorizing the conduct of an uninterrupted, orderly race meeting during the licensed term of such race meetings, the Commission shall recognize the Organization elected by horsemen that was, in 2003, providing representation for participating Thoroughbred horsemen at meets restricted to Thoroughbred horses as the official representative of all Thoroughbreds participating in live race meets conducted by organization licensee. The organization elected by horsemen that was, in 2003, providing representation for the breeds participating in mixed-breed racing shall be recognized by the Commission as the official representative for all non-Thoroughbreds participating in live race meets conducted by organization licensee. In the event that more than fifty percent (50%) of the total participating horsemen for a single breed opt to be excluded from representation by the recognized organizations, the Commission may determine that an election be held among all participating horsemen of that breed(s) to designate an alternate representative organization.

(b)   Such an election shall be held so that an alternate organization can be elected to represent Thoroughbred Owners and Trainers throughout the State or represent Quarter Horse, Paint and Appaloosa Owners and Trainers throughout the State.

(c)   The Horsemen's Organizations elected at a bona fide election shall be recognized by the Commission as the organization empowered exclusively to contract with an Organization Licensee as to all issues pertaining to the conduct of races for the breed or breeds represented. No person shall serve as an officer or director of an acknowledged Horsemen's Organization, other than in an honorary capacity, at the same time such person serves as an officer or director of an Organization Licensee or as an officer or director of an entity which is a principal shareholder of any Organization Licensee.

(d)   The procedure for the election shall be as follows:

(1)   Within thirty (30) days after the Commission determines that more than 50% of the participating Owners and Trainers represented by either of the Horsemen's Organizations have opted out of participation, any eligible bona fide Horsemen's Organization or association, hereinafter the "Horsemen's Organization," desiring to be put on the election ballot shall make that intent known, in writing, to the Commission and to each Organization Licensee. If only one bona fide Horsemen's Organization has filed for any representative position, the Commission shall declare that Horsemen's Organization as the winner and there will be no election held with regard to that position.

(2)   Those persons eligible to vote in any election shall include Commission-licensed Owners, Trainers and Owner-Trainers that participated in starting a horse at a race meeting within 365 days of the Commission's determination that an election is to be held. In the case of partnerships, corporations, syndicates or other multiple ownerships, each such entity shall have only one vote regardless of the number of licensed Owners, partners or syndicate members making up such partnership, corporation or syndicate. However, any licensed Owners who start a horse in their own name, separate from the partnership, corporation or syndicate, shall be entitled to their own votes.

(3)   Each Horsemen's Organization which files an intent to become the Horsemen's Representative shall post a deposit as determined by the Commission for each election the Horsemen's Organization chooses to enter. Any projected deficiency for each Horsemen's Organization's proportionate cost of conducting the election will be established by the Oklahoma Horse Racing Commission and must be paid by each organization before its name can appear on the ballot(s). The money must be forwarded in the form of cash, check or money order and shall be held in a special account (the "Special Account") with the Horsemen's Bookkeeper at a racetrack designated by the Commission to be used exclusively for administering and conducting that particular Horsemen's Representative election and will be administered by an independent party. The ballot preparation, addressing, stamping, mailing, actual counting of the ballots, certification of results, and the administration of the Special Account will be conducted by an independent party (the "Independent Party") having no interest in the outcome of the election. The Commission shall select the Independent Party to conduct the duties required under this section.

(4)   All racetracks shall furnish the Racing Commission with names and addresses of each eligible Owner, Owner-Trainer and Trainer. The lists from racetracks shall be combined by the Independent Party conducting the election to prevent duplication in preparation of a single ballot for each eligible voting entity. A copy of the combined list will be provided to the Commission and to each of the bona fide organizations seeking election. Any organization seeking to challenge the validity of the list must do so within five (5) days of being provided with the list prepared by the Independent Party. Whenever possible, voting shall occur during a race meeting.

(5)   Ballots shall be prepared using a form not readily susceptible to falsification with said ballots being sequentially numbered. A log shall be maintained as to the eligible Owners, Owner-Trainers and Trainers with each such eligible Owner, Owner-Trainer and Trainer being assigned a sequentially numbered ballot. Each ballot shall require the voter to list the name of at least one horse started by that voting entity during the specified 365 day period. Only one ballot shall be issued to a person regardless of how many horses started or separate capacities held by that person.

(6)   All ballots will be mailed at the same time with the Independent Party's name and address being listed as the return address for all ballots. All ballots must be returned by mail directly to that Independent Party or they will be declared invalid.

(7)   The ballots will be prepared for mailing and mailed to all eligible Owners and Trainers within twenty (20) days after the deadline for Horsemen's Organizations to declare their intent to be put on the ballot.

(8)   Twenty (20) calendar days after the date of mailing of the ballots, the ballots returned will be opened and counted. The procedure for opening and counting will be as follows: The Independent Party will open, count and tabulate the ballots. Each organization on the ballot for an election may designate a representative to be present at the opening, counting and tabulation of the ballots. The Independent Party will certify the results to the Commission. All Independent Party's costs of this procedure will be paid for from the Special Account funds.

(9)   The winner of the election will be determined by majority of all eligible votes received by Independent Party by the twentieth day after mailing of ballots. In the event no Horsemen's Organization receives more than fifty percent (50%) of the eligible votes received in the election for Horsemen's Representative, then there shall be a run-off election (the "run-off") between the two Horsemen's Organizations receiving the highest number of votes. In the event of a tie in the run-off, then the run-off process will be repeated until one Horsemen's Organization receives a majority of the eligible votes received.

(10)   In preparation for each run-off, the Horsemen's Organizations participating therein are each required to post an additional deposit in an amount determined by the Commission to cover the anticipated cost of that run-off ("run-off deposit"). There will be an additional run-off deposit for each run-off conducted. The run-off deposit will be placed in the Special Account and administered in a like manner by the Independent Party to cover the costs of the run-off.

(11)   At the conclusion of the election(s), an accounting of the available monies on deposit will be made and all expenses of the election(s) will be paid, including reasonable reimbursement for Commission administrative expenses related directly to the election(s), if required by the Commission.

(12)   If there was no run-off, then each Horsemen's Organization participating will be assessed its proportionate share of the expenses if the deposits were inadequate. If funds from the deposits are left, they will be refunded proportionately. If after a run-off there are insufficient funds to cover the expenses, then each Horsemen's Organization is required to pay additional money into the fund to cover its proportionate share.

(13)   In the event the deposits exceed the expenses after the primary and any run-offs, then the expenses of each election will be separately tabulated and the

deposits will be refunded proportionately to the Horsemen's Organizations participating in each respective election.

(14)   All Horsemen's Organizations duly elected shall represent their respective breed(s) until replaced by an election conducted in accordance with Title 3A, Section 267, and this Rule.

[Source: Added at 13 Ok Reg 2961, eff 7-12-96; Amended at 18 Ok Reg 3473, eff 6-26-01 through 7-14-02 (emergency); Amended at 23 Ok Reg 974, eff 5-11-06; Amended at 30 Ok Reg 506, eff 5-15-13]

Note

EDITOR’S NOTE: This emergency action expired without being superseded by a permanent action. Upon expiration of an emergency amendatory action, the last prior permanent text is reinstated. Therefore, on 7-15-02 (after the 7-14-02 expiration of the emergency action), the text of 325:35-1-34 reverted back to the permanent text that became effective 7-12-96, as last published in the 2001 Edition of the OAC, and remained as such until amended by permanent action on 5-11-06.