(1) Every license granted under this chapter is subject to denial, revocation, or suspension, and every licensee or oth er person participating in Kentucky horse racing may be assessed an administrative fine and required to forfeit or return a purse, by the corporation in any case where it has reason to believe that any provision of this chapter, administrative regulation, or condition of the corporation affecting it has not been complied with or has been broken or violated. The corporation may deny, revoke, or suspend a license for failure by the licensee or other person participating in Kentucky horse racing to pay an admi nistrative fine imposed upon the licensee by the stewards or the corporation. The corporation, in the interest of honesty and integrity of horse racing, may promulgate administrative regulations under which any license may be denied, suspended, or revoked, and under which any licensee or other person participating in Kentucky horse racing may be assessed an administrative fine or required to forfeit or return a purse. (2) (a) Following a hearing by the stewards, a person who has been disciplined by a ruling of the stewards may apply to the corporation for a stay of the ruling, pending action on an appeal by the corporation. (b) An application for a stay shall be received by the president or his or her designee within ten (10) calendar days of the issuance of the stewards' ruling. (c) An application for a stay shall be in writing and include the following: 1. The name, address, telephone number, and signature of the person requesting the stay; 2. A statement of the justification for the stay; and 3. The period of time for which the stay is requested. (d) On a finding of good cause, the president or his or her designee may grant the stay. The president or his or her designee shall issue a written decision granting or denying the request for stay within five (5) calendar days from the time the application fo r stay is received by the president or his or her designee. If the president or his or her designee fails to timely issue a written decision, then the stay is deemed granted. The president or his or her designee may rescind a stay granted under this subsection for good cause. (e) A person who is denied a stay by the president or his or her designee, or has a previously granted stay rescinded under paragraph (d) of this subsection, may petition the corporation to overrule the president's or designee's denial or rescission of the stay. The petition shall be filed in writing with the chairperson of the board of directors of the corporation and received by the chairperson within ten (10) calendar days of the mailing of the president's or designee's denial of the stay. The petition shall state the name, address, phone number, and signature of the petitioner; a statement of justification of the stay; and the time period for which the stay is requested. The chairperson shall convene a special meeting of the board of directors of the corporation within ten (10) calendar days of receipt of the petition, and the corporation shall issue a written final order granting or denying the petition within two (2) calendar days of the special meeting. If the corporation fails to timely issue a final order on the petition, then the stay is granted. The corporation may rescind a stay granted under this subsection for good cause. (f) A person who is denied or has a previously granted stay rescinded by the corporation may file an appe al of the final written order of the corporation in the Circuit Court of the county in which the cause of action arose. (g) The fact that a stay is granted is not a presumption that the ruling by the stewards is invalid. (3) If any license is denied, suspe nded, or revoked, or if any licensee or other person participating in Kentucky horse racing is assessed an administrative fine or required to forfeit or return a purse, after a hearing by the stewards or by the corporation acting on a complaint or by its o wn volition, the corporation shall grant the applicant, licensee, or other person the right to appeal the decision, and upon appeal, an administrative hearing shall be conducted in accordance with KRS Chapter 13B. (4) The corporation may at any time order that any case pending before the stewards be immediately transferred to the corporation for an administrative hearing conducted in accordance with KRS Chapter 13B. (5) (a) In an administrative appeal to the corporation by a licensee or other person participating in Kentucky horse racing, the corporation may determine in its final order that the appeal is frivolous. If the corporation finds that an appeal is frivolous: 1. This fact shall be considered an aggravating circumstance and may be considered in assessing any penalty against the licensee; and 2. The licensee or other person who raised the appeal may be required to reimburse the corporation for the cost of the investigation of the underlying circumstances of the case and the cost of the adjudication of the appeal. Costs may include but are not limited to fees paid to a hearing officer or court reporter, attorneys fees, and laboratory expenses. (b) The corporation may by administrative regulation prescribe the conditions or factors by which an appeal may be determined to be frivolous. (6) Any administrative action authorized in this chapter shall be in addition to any criminal penalties provided in this chapter or under other provisions of law.
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