National Racing Compact
Bylaws

Bylaws

Article I

Organization of National Racing Compact;
Addition of Other Party States;
Withdrawal of Party States

  • Section 1.
    • National Racing Compact. The compact committee created by the Interstate Compact on Licensure of Participants in Live Horse Racing with Pari-mutuel Wagering (the "Interstate Compact") shall be known as the "National Racing Compact" (the "Compact").
  • Section 2.
    • Composition of the Compact and Appointment of Members. The Compact shall be comprised of one (1) member (the "official") from the racing commission or its equivalent in each state that is a party (a "party state") to the Interstate Compact, who shall be appointed, serve and be subject to removal in accordance with the laws of that party state. Pursuant to the laws of the official's party state, each official shall have the assistance of that state's racing commission or its equivalent in considering issues related to licensure of participants in live horse racing with pari-mutuel wagering ("participants in live racing") and in fulfilling the official's responsibilities as the representative from that state on the Compact. Each official's membership on the Compact shall become effective after (1) the enactment of the Interstate Compact in that party state has become effective and (2) written notification of that official's appointment has been received from the Governor or the racing commission or its equivalent of that party state by the Chairman of the Compact or such officer as the Compact directs.
  • Section 3.
    • Alternates. In accordance with the requirements of its laws, each party state shall appoint a second member of its racing commission or its equivalent to serve as its alternate representative to the Compact. If a party state's official representative is unable to attend and participate in a given Compact meeting and that official representative or his or her racing commission or its equivalent has so notified the Chairman of the Compact or such other officer as the Compact may designate, that state's alternate may participate in place of the official representative for that particular meeting and vote the official representative's proxy as provided in subsection d of Section 13 of these bylaws. If the official representative is unable to perform his or her duties for physical, mental or other reasons, and the official representative or his or her racing commission or its equivalent so notifies the Chairman of the Compact or such other officer as the Compact may designate, that state's alternate may serve on the Compact in place of the official representative until such time as that state's racing commission or its equivalent notifies the Chairman of the Compact or such other officer as the Compact may designate that its official representative is able once again to perform his or her duties on the Compact. The designation of an alternate shall be communicated by the affected state's Governor or its racing commission or its equivalent to the Chairman of the Compact or to such officer as the Compact directs.
  • Section 4.
    • Terms. Each official on, and alternate to, the Compact shall serve on the Compact for such term as is provided by law in that official's or alternate's party state.
  • Section 5.
    • Addition of Other Party States and Appointment of Officials and Alternates. After the effective date of these bylaws, party states other than the signatories to these bylaws may be admitted to the Compact only upon the affirmative vote of a majority of the officials (or alternates) on the Compact at the time of such addition. Officials and alternates from party states added to the Compact pursuant to this Section shall be appointed to the Compact and shall serve for such terms as provided in Sections 2-4 above.
  • Section 6.
    • Withdrawal of a Party State and Effect on Force and Effect of Interstate Compact. Any party state may withdraw from the Interstate Compact by enacting a statute repealing the Interstate Compact, but no such withdrawal shall become effective until the head of the Executive Branch of the withdrawing state has given notice in writing of such withdrawal to the head of the Executive Branch of all other party states. If as a result of withdrawals participation in the Interstate Compact decreases to less than three (3) party states, the Interstate Compact no longer shall be in force and effect unless and until there are at least three (3) or more party states again participating in the Interstate Compact.

ARTICLE II
Powers and Duties of Compact.
  • Section 7.
    • Powers and Duties of Compact. In order to carry out the purposes of the Interstate Compact, the Compact is hereby granted the power and duty to:
    • a. Determine which categories of participants in live racing, including but not limited to owners, trainers, jockeys, grooms, mutual clerks, racing officials, veterinarians, and farriers, should be licensed by the Compact, and establish the requirements for the initial licensure of applicants in each such category, the term of the license for each category, and the requirements for renewal of licenses in each category. Provided, however, that with regard to obtaining and weighing criminal history record information on each applicant and all non-arbitrary other licensure requirements, each party state shall submit to the Compact its state licensing requirements and, from among these, the compact committee shall adopt licensure requirements that meet or exceed the combined most restrictive party state requirements for such a license. Any party state whose state licensing criteria become more restrictive shall promptly notify the Compact, so that the Compact can assure that its licensing requirements continue to meet the combined most restrictive party state requirements.
    • b. Investigate applicants for a license from the Compact and, as permitted by federal and state law, gather information on such applicants, including criminal history record information from the Federal Bureau of Investigation and relevant state and local law enforcement agencies, and, where appropriate, from the Royal Canadian Mounted Police and law enforcement agencies of other countries, necessary to determine whether a license should be issued under the licensure requirements established by the Compact as provided in paragraph 1 above. Only officials on, and employees of, the Compact may receive and review such criminal history record information, and those officials and employees may use that information only for the purposes of the Interstate Compact. No such official or employee may disclose or disseminate such information to any person or entity other than another official on or employee of the Compact. The fingerprints of each applicant for a license from the Compact shall be taken by the Compact, its employees, or its designee and, pursuant to Public Law 92-544 or Public Law 100-413, shall be forwarded directly or through another approved agency, to a state identification bureau or to the Federal Bureau of Investigation for a criminal history record check. The Compact may simultaneously, as authorized and permitted by the Federal Bureau of Investigation and applicant, also request such criminal history records on behalf of the racing commission, or its equivalent, of each state that is a member of the Compact, and upon receipt channel such records to those entities. Such fingerprints may be submitted on a fingerprint card or by electronic or other means authorized by the Federal Bureau of Investigation or other receiving law enforcement agency. The Compact investigation of each applicant for a license from the Compact shall cover all the licensing criteria for such a license, and the Compact requests and shall permit each party state, under the supervision of its official to the Compact (who may be assisted by the party state's racing commission or its equivalent) to perform all or any part of such licensing investigations.
    • c. Issue licenses to, and renew the licenses of, participants in live racing listed in paragraph 1 of this section who are found by the Compact to have met the licensure and renewal requirements established by the Compact. The license issued by the Compact shall be known as the "national racing license." The Compact shall not have the power or authority to deny a license. If it determines that an applicant will not be eligible for the issuance or renewal of a Compact license, the Compact shall notify the applicant that it will not be able to process his or her application further. Such notification does not constitute and shall not be considered to be the denial of a license. Any such applicant shall have the right to present additional evidence to, and to be heard by, the Compact, but the final decision on issuance or renewal of the license shall be made by the Compact using the requirements established pursuant to paragraph a of this section. As an essential and necessarily implied power from those powers enumerated in paragraphs a and b of this section of the bylaws and in the first portion of this paragraph c, the Compact shall have the power, as a condition to the issuance or renewal of its license, to establish the conditions upon which its license shall or may be issued or renewed to an applicant therefor, to require each licensee to abide by such conditions, to establish conditions for the suspension or revocation of a license issued by it, including the effect of a suspension or revocation of its license either by a party state or by a state that is not a party to the Interstate Compact, and to establish the conditions and requirements for the reinstatement, if any, of any license issued by it that has been so suspended or revoked.
    • d. Enter into contracts or agreements with governmental agencies and with non-governmental persons to provide personal services for its activities and such other services as may be necessary to effectuate the purposes of the Interstate Compact.
    • e. Create, appoint, and abolish those offices, employments, and positions, including an executive director, as it deems necessary for the purposes of the Interstate Compact, prescribe their powers, duties and qualifications, hire persons to fill those offices, employments and positions, and provide for the removal, term, tenure, compensation, fringe benefits, retirement benefits and other conditions of employment of its officers, employees and other positions.
    • f. Borrow, accept, or contract for the services of personnel from any state, the United States, or any other governmental agency, or from any person, firm, association, corporation or other entity.
    • g. Acquire, hold, and dispose of real and personal property by gift, purchase, lease, license, or in other similar manner, in furtherance of the purposes of this Interstate Compact.
    • h. Charge a fee to each applicant for an initial license or renewal of a license.
    • i. Receive other funds through gifts, grants and appropriations.
    • j. Adopt rules and procedures necessary to implement the various powers and fulfill the various duties set forth in these bylaws.
ARTICLE III
Rules and Procedures;
Meetings;
Voting Requirements
  • Section 8.
    • Adoption of Bylaws. These bylaws shall be adopted upon the affirmative vote of two-thirds of the total number of officials (or their alternates) appointed to the Compact by their party states at the time of such adoption. The Compact shall have the power to amend and rescind these bylaws by the same two-thirds vote of the total number of officials (or their alternates) appointed to the Compact at the time of such amendment or rescission, provided that notice in writing of the proposed amendment or rescission has been mailed to each official or alternate on the Compact at least thirty (30) days prior to the date of the meeting at which these bylaws are to be amended or rescinded.
  • Section 9.
    • Adoption of Rules and Procedures.
    • a. General. The Compact may adopt rules and procedures to govern its operations, including a code of conduct for its employees.
    • b. Conflicts of Interest. With regard to all matters before the Compact, officials of and alternates to the Compact shall be subject to the conflicts of interest rules of their particular party state; provided that, however, whenever an official or alternate, or individual in an official's or alternate's immediate family, has any financial interest in any matter to be considered or being considered by the Compact, or in any contract between the Compact and another person or entity, the member shall inform the Compact of that financial interest. For purposes of this provision, an official's or alternate's "immediate family" shall mean (i) the official's or alternate's spouse, children, grandchildren, parents, grandparents, and first cousins, and (ii) any other person who is residing in the same household as the official or alternate.
    • c. Records. The Compact shall have a duty to keep official records and shall maintain all official records at its office, such office being its primary office if it at any point the Compact shall have offices in more than one location. The records of the Compact shall be open for inspection by any official representative (or alternate serving in the place of that representative) on the Compact at any reasonable time.
    • d. Procurement of Goods, Services and Property. The Compact shall adopt general procedures that provide for competition in the procurement of goods, services and property to the extent practicable. The Compact may delegate the authority to its Executive Director to enter into such contracts on its behalf; provided, however, that all such contracts having a total value for the life of the contract of $20,000.00 or more, or with a total contract period, including periods of renewal, of two years or more shall be reviewed and approved by the Executive Committee of the Compact before they may be entered on behalf of the Compact, and all such contracts shall be reported to the full Compact at its next meeting.
    • e. Required Signatures on Checks. Any check written on behalf of the Compact of $5,000.00 or more shall be signed by two officers of the Compact. All other checks written on behalf of the Compact may be signed by the Executive Director or his designee on the Compact's staff.
    • f. Annual Independent Audit. The Compact shall cause an annual independent audit of its financial records to be conducted following the end of each fiscal year.
    • g. Distribution of Remaining Assets. If as a result of the withdrawal of a sufficient number of party states pursuant to Section 6 of these bylaws or otherwise, the Interstate Compact is no longer in force and effect, the Compact shall be liquidated and its remaining assets distributed as two-thirds of the remaining members of the Compact shall direct.
    • h. Bonds for Certain Officer and Employee. The Secretary-Treasurer and the Executive Director of the Compact shall be bonded each year in an amount deemed appropriate by the Compact.
    • i. Notice and Opportunity to Comment. Each official (or alternate) on the Compact shall be given reasonable notice and the opportunity to comment on any proposed rule or procedure to be adopted, amended, or rescinded.
  • Section 10.
    • Publication of Bylaws, Rules and Procedures. The Compact shall publish its bylaws and rules and procedures in convenient form and shall file a copy of its bylaws and a copy of any amendments thereto or rescission thereof with the secretary of state or the equivalent agency of each party state.
  • Section 11.
    • Compact Meetings. The Compact shall meet at least once each calendar year and also shall meet at the call of its Chairman or any two members of the Compact. Telephone meetings of the Compact shall be permitted upon the agreement of a majority of the members of the Compact. Reasonable notice of each meeting shall be given to all official representatives or their alternates then serving on the Compact.
  • Section 12.
    • Roberts Rules of Order. At the discretion of the Chairman or other person presiding at any meeting of the Compact, the rules and procedures contained in the current edition of Robert's Rules of Order may be used to conduct that meeting to the extent they are applicable and are not inconsistent with these bylaws or any special rule of order the Compact may adopt.
  • Section 13.
    • Voting Requirements.
    • a. Each official (or alternate) shall be entitled to one (1) vote on the Compact.
    • b. All actions taken by the Compact with regard to the addition of party states to the Interstate Compact, the licensure of participants in live racing, and the receipt and disbursement of funds shall require a majority vote of the total number of officials (or their alternates) on the Compact; provided, however, that each official (or alternate) on the Compact may give his or her proxy to the Executive Director of the Compact to approve the issuance or renewal of the appropriate license to each applicant who clearly meets the Compact's criteria for the issuance or renewal of that license. All other action by the Compact shall require a majority vote of those officials (or their alternates) present and voting.
    • c. No action of the Compact may be taken unless a quorum is present. A majority of the officials (or their alternates) on the Compact shall constitute a quorum.
    • d. If a party state's official representative is unable to attend and participate in a given Compact meeting, and the Compact has been so notified as required by Section 3 of these bylaws, the official representative may give his or her proxy to that state's alternate to participate in that meeting and vote on behalf of that party state. Such proxy shall be valid only for the meeting in question and shall not bind the alternate to vote in any particular way but shall allow the alternate to vote in whatever way he or she believes is in the best interests of the party state. No other proxy participation or voting shall be permitted.
    • e. Voting by telephone shall be permitted whenever the Compact meets by telephone as provided in Section 11 of these bylaws.
ARTICLE IV
Administration and Management
  • Section 14.
    • Officers of the Compact. The Compact shall elect annually from among its members a Chairman, a Vice-Chairman, and a Secretary/Treasurer, each of whom shall have such duties as the Compact shall prescribe. The Chairman shall preside at each meeting of the Compact, except that in the Chairman's absence, the Vice-Chairman shall preside, and in the Vice-Chairman's absence the Secretary-Treasurer shall preside.
  • Section 15.
    • Standing Committees or Subcommittees of the Compact. The Compact shall have an Executive Committee, consisting of the Chairman, the Vice-Chairman, and the Secretary/Treasurer, and such other standing or other committees or subcommittees as shall be appointed by the Executive Committee.
  • Section 16.
    • Executive Director and Support Staff. The Compact may delegate the day-to-day management and administration of its duties and responsibilities to an executive director and such support staff as it deems are required to assist the Compact in the fulfillment of its duties and responsibilities.
  • Section 17.
    • Employees Are Governmental Employees. Employees of the Compact shall be considered governmental employees.
  • Section 18.
    • Immunity from Liability and Indemnification for Acts or Omissions. No official or alternate from a party state or employee of the Compact shall be held personally liable for any good faith act or omission that occurs during the performance and within the scope of that person's responsibilities and duties under this Interstate Compact. The Compact shall indemnify each official (or alternate) serving on the Compact and each of its employees against all costs and expenses, including attorney's fees, actually incurred by the official (or alternate) or employee in connection with or resulting from any action, suit or proceeding or whatever nature, to which the official (or alternate) or employee is or shall be made a party by reason of the official (or alternate) or employee being or having been an official representative (or alternate representative) to or employee of the Compact, provided that (i) act or omission of the official (or alternate) or employee was within the standard set forth in the first sentence of this Section 18, and (ii) the official (or alternate) or employee reasonably believed that his or her conduct was in the best interest of the Compact. This indemnity shall not apply to actions in which the official (or alternate) or employee is adjudged liable to the Compact.

    Each of the signatories below has voted (1) to permit the state of each of the other signatories to become a party state to the Interstate Compact and (2) to adopt these bylaws effective this 10th day of October, 2000.

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Official Representative from Delaware
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Official Representative from Florida
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Official Representative from Louisiana
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Official Representative from Virginia
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Official Representative from West Virginia