Section 4.26 - Partnerships(1) Each and every partnership must be registered with the Commission. Every member of the partnership with a beneficial interest of 20% or more shall be licensed. Every member of the partnership with a beneficial interest of less than 20% shall not be licensed unless they establish a bona fide need for the license and the issuance of the license shall be approved by the stewards.(2) Partnership papers shall, among other things, set forth the following: (a) the name and address of each and every person having an interest in the horse or horses involved;(b) the relative proportions of such interests;(c) to whom the winnings are payable;(d) in whose name the horse or horses shall run;(e) with whom the power of entry and declaration rests;(f) the terms of any contingency, lease or any other arrangement.(3) All partnership papers must be signed by all of the parties or by their authorized agents.(4) In case of emergency, authority to sign declarations of partnership may be given to the racing secretary by a telegram promptly confirmed in writing.(5) The part owner of any horse cannot assign his or her share or any part of it, without the written consent of the other partners, the said consent to be lodged with the Gaming Commission.(6) An alteration in a recorded partnership registration to be effective must be reported in writing to the Commission and signed by all partners.(7) All the parties licensed in a partnership and each of them shall be jointly and severally liable for all stakes, forfeits and other obligations.(8) In case of multiple ownership, each and every owner shall be in good standing in racing. In a Limited Partnership and every other form of partnership, only the Managing General Partner, General Partners or a person designated to act on behalf of the partnership and partners whose percentage of ownership is 20% or more of the total partnership shall be licensed as owners. A partner whose percentage of ownership is less than 20% of the total partnership shall not be licensed as an owner unless they establish a bona fide need for the license and the issuance of the license shall be approved by the stewards. Those not licensed must provide full disclosure by the partnership of: (a) The limited partner's name, address, date of birth, social security number and criminal history if any;(b) The percentage of total partnership interest owned by the limited partner. If limited partners are husband and wife, and their total ownership interest in the partnership represents 20% or more of the total partnership, then they shall both be licensed as owners.(c) Said disclosure statement shall be made under oath and accompanied by a copy of the partnership agreement. If a limited partner with less than 20% interest of the total partnership could not obtain a license for reasons outlined in 205 CMR 4.21, the Limited Partnership shall not be licensed. In the event that one of the persons listed in the Limited Partnership is suspended, all horses owned by the Limited Partnership may be suspended, at the discretion of the Stewards and or the Commission.
It shall be the responsibility of the General Partner or his or her licensed designee to notify the Stewards and Gaming Commission in writing of any change in the ownership or interest in the Limited Partnership.
Only the Managing General Partner or a licensed partner or a person designated to act on behalf of the partnership and is licensed can enter a horse in a race.