Section 303.92 - Thoroughbred Rules(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise: (1) Horse Owner--A person who is owner of record of an accredited Texas-bred horse at the time of a race.(2) Breeder--The owner of the dam at the time of foaling as stated on the foal's Jockey Club certificate of registration.(3) Stallion Owner--A person who is the owner of record, at the time of conception, of the stallion that sired the accredited Texas-bred horse.(4) Accredited Texas-bred Thoroughbred--A horse registered with the Jockey Club, accredited with the breed registry and foaled in Texas, out of a mare accredited with the breed registry that is permanently domiciled in Texas.(5) Accredited Texas Thoroughbred Mare--A mare registered with the Jockey Club, accredited with the breed registry, and permanently domiciled in Texas except for racing and breeding privileges. Annual reproductive activity of the mare may be required to be reported to the breed registry in writing via photocopy of the Live Foal Report/No Foal Report submitted annually to the Jockey Club.(6) Accredited Texas Thoroughbred Stallion--A stallion registered with the Jockey Club, accredited with the breed registry, and standing in Texas. The breed registry must be notified in writing within 10 calendar days each time the stallion leaves or enters the State of Texas. A photocopy of the annual Report of Mares Bred may be required to be submitted to the breed registry office on or before the date required by the Jockey Club (August 1). Stallion owners are eligible to receive stallion awards only from offspring sired in Texas after the stallion has become accredited with the breed registry and applicable administrative fees have been paid.(7) Breed Registry--The Texas Thoroughbred Association, the official breed registry for thoroughbred horses as designated in the Act.(8) Bred--A mare is considered to have been bred by a stallion if the physical act of breeding has occurred and the mare is listed on the stallion's Report of Mares Bred filed with the Jockey Club for a particular breeding season and is not subsequently bred during that breeding season to a stallion not accredited by the breed registry. A mare does not have to become pregnant or produce a live foal to be considered bred, so long as these criteria are met.(b) Organizational Structure. The breed registry shall comply with the provisions of the Act and Rules and shall further maintain substantially the following: (1) Records of the breed registry shall be kept so as to identify separately the activities of the accredited Texas-bred program.(2) Management of the accredited Texas-bred program shall be under the control of the board of directors of the breed registry and may be exercised through a committee or other governing body appointed by and accountable to the board of directors. The committee shall keep records or minutes of its proceedings and shall establish its operational procedures. The committee's records must be available for inspection at any time by the commission at the office of the breed registry. The committee is authorized to reasonably interpret the definitions and standards of this section, subject to approval by the board of directors, whose decision in such matters shall be final.(3) The committee shall prepare and implement a budget on an annual basis, subject to prior approval of the board of directors. The budget may contain provisions for reserves for contingencies deemed appropriate. The breed registry may develop and implement a fair system for sharing and allocating expenses and operational costs between breed registry activities and accredited Texas-bred program activities, taking into consideration the promotion and improvement of thoroughbred horses in Texas. In no event may funds that are dedicated by law to fund the incentive awards program be used for any other purpose. Any funds or services advanced or provided by the breed registry to the accredited Texas-bred program may be offset or otherwise recouped upon proper accounting. The committee is authorized to set and collect application and administration fees.(4) From time to time, additional accredited Texas-bred awards become due after the fact of initial awards calculation and timely distribution for each race meet. The additional awards are most often due as the result of a disqualification with subsequent revised order of finish and redistribution of purse funds. Other factors may include incomplete or incorrect data received by the breed registry. In all instances, the changes are beyond the control of the breed registry. The committee shall establish an awards redistribution fund for each racetrack, not to exceed 5% of the total awards payout for each racetrack. The committee shall determine the amount of the redistribution fund for each racetrack and shall review the amount annually to make appropriate adjustments. The committee shall also establish a minimum fund balance for each racetrack. The fund shall be replenished only when a minimum fund balance is reached. Redistribution funds shall be derived from accredited Texas-bred awards funds generated from multiple wagers at each racetrack and shall be set aside before any regular accredited Texas-bred awards are calculated or paid. Redistribution funds shall only be used to pay accredited Texas-bred awards that become due after the initial calculation and timely distribution of awards payable for each race meet. In the event that, after initial awards calculation, a disqualification or other change in accredited Texas-bred awards that cannot be paid because a horse that is not eligible for awards moves up in the order of finish, those awards shall be added to the redistribution fund.(5) Eligibility for awards under the accredited Texas-bred program may not be conditioned upon membership in an organization.(c) Procedure for Payment of Awards.(1) Conditions precedent for payment of awards are: (A) If a horse is leased, there must be on file with the breed registry a lease agreement specifying which party shall receive award money.(B) Breeder's Awards will be paid only on an accredited Texas-bred Thoroughbred whose dam was accredited with the breed registry either prior to foaling the subject horse or within the same calendar year of foaling the subject horse and is covered by the definition set forth in §2021.003(50) of the Act. A horse covered by §2021.003(50)(C) of the Act is eligible for only one-half of the incentives awarded pursuant to §2028.103 and §2028.105 of the Act, except as provided by subparagraph (C) of this paragraph.(C) If an accredited Texas-bred Thoroughbred mare dies during or after foaling a foal that was not sired by an accredited Texas-bred stallion and before she can be bred back to an accredited Texas-bred Thoroughbred stallion during that breeding season, said foal shall be eligible for full accredited Texas-bred breeder awards provided that, not later than August 1 of the year of foaling, the breeder files an official death report with the Jockey Club and submits the following documentation to the Texas Thoroughbred Association via certified mail or other return receipt delivery method:(i) a copy of the Jockey Club death report;(ii) a completed official Texas Thoroughbred Association death report; and(iii) a veterinarian's statement of the date, location, and cause of the mare's death.(D) Accreditation fees are non-refundable after a work order has been assigned to an eligible entry. If a horse is ineligible, the fee will be refunded to the applicant.(E) When any accredited Texas-bred horse becomes breeding stock, it must be converted, with the breed registry, to an accredited mare or stallion.(F) All applicable fees set by the breed registry must have been paid.(G) All participants in the accredited Texas-bred program must provide the breed registry in writing the identity of the authorized payee and the address to which awards are to be sent. Any change in ownership, payment entitlement, or address shall not be effective unless and until it is provided to the breed registry in writing. The breed registry may rely on the information so provided to it.(2) Owner's awards. (A) Any accredited Texas-bred Thoroughbred that finishes first, second, or third in any race in Texas (with the exception of a stakes race restricted to accredited Texas-breds) shall receive an owner's incentive award. All owner's incentive awards shall be noted in each association's condition book and race program so as to identify the availability of the accredited Texas-bred program owner incentive awards.(B) An accredited Texas-bred Thoroughbred horse that finishes first, second, or third in a race, other than a Texas-bred race, shall receive an owner's bonus award as a purse supplement, as provided by §2028.107 of the Act.(3) Award funds derived by the breed registry pursuant to §2028.103 of the Act may be allocated and disbursed by the breed registry to purses at Texas associations for races restricted to accredited Texas-bred thoroughbred horses for special event races or days.(4) Funds actually received from a greyhound association pursuant to §2028.202 of the Act shall be used as purses by the breed registry within a reasonable time, not to exceed 18 months from date of receipt.(5) If a share of the breakage cannot be distributed to the person who is entitled to a share, the breed registry shall retain that share. Thereafter, a notice of the entitlement shall be published in the Texas Thoroughbred magazine for the first three issues of the second calendar year after accrual of the entitlement. If the entitlement is not claimed before August 31 following such publication, the funds shall be transferred to the breed registry's general account. If the person entitled to the share thereafter makes a claim in a form acceptable to the breed registry, the breed registry shall pay such person the amount of the share.(d) Procedure for hearings. The following provisions shall apply to hearings on matters pertaining to administration of the accredited Texas-bred program. (1) Right to a hearing. If the breed registry proposes to deny an application for accreditation, revoke an accreditation previously granted, or withhold payment of an award, the person(s) affected shall be notified in writing of the proposed action and the basis therefore. The action shall become final, unless within 10 days of the date of receipt of the notice by the affected person(s), the person(s) files with the breed registry a written request for a hearing before its board of directors. On timely receipt of a request, the board of directors shall conduct a hearing. The board of directors, in its sole discretion, may grant or conduct a hearing on any other matter or issue raised by the administration of the accredited Texas-bred program.(2) Notice of hearing. The board of directors shall send written notice of the hearing to all affected parties. The notice must be received at least 10 days prior to the date of the hearing, must specify the time and place of hearing, must contain a statement of the matters to be considered and possible action to be taken, and must advise the recipient(s) of the right to appear and present evidence.(3) Conduct of hearing. The breed registry shall have the burden of proof in any proceeding for denial or revocation of accreditation. In all other matters, the burden of proof is on the party seeking action by the breed registry. Each party shall be entitled to representation by legal counsel. The board of directors may determine the order and length of the proceeding and shall allow each party the opportunity to submit sworn testimony, documents, and argument as the party may desire, but formal rules of evidence shall not apply. All witnesses are subject to cross-examination and to questions from the members of the board of directors. A record of the proceedings shall be made and kept, and a transcript shall be provided to any party who requests and pays in advance for same.(4) Decision. At any time after the closing of the hearing, the board of directors may issue its decision, which shall be in writing and which shall state the findings and reasons for the action taken. In addition to ruling on the issues presented, the decision may require any party to reimburse the breed registry for its expense and attorneys fees incurred in the preparation for and conduct of the hearing and may require repayment with lawful interest to the breed registry of any funds found to have been wrongfully or improperly received. The decision of the board of directors is final and not subject to review. A copy of the decision shall be filed with the Commission and shall be published in the next issue of the Texas Thoroughbred, and thereafter all persons shall have constructive notice of the decision and its contents.16 Tex. Admin. Code § 303.92
The provisions of this §303.92 adopted to be effective March 28, 1989, 14 TexReg 1364; amended to be effective December 1, 1996, 21 TexReg 11163; amended to be effective April 1, 1997, 22 TexReg 2963; amended to be effective January 1, 1999, 23 TexReg 12914; amended to be effective July 1, 1999, 24 TexReg 4226; amended to be effective June 1, 2000, 25 TexReg 4735; amended to be effective September 1, 2000, 25 TexReg 8401; amended to be effective July 22, 2002, 27 TexReg 6294; amended to be effective January 1, 2003, 27 TexReg 12188; amended to be effective November 12, 2003, 28 TexReg 9827; amended to be effective January 10, 2008, 33 TexReg143; Amended by Texas Register, Volume 46, Number 23, June 4, 2021, TexReg 3515, eff. 6/7/2021