(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context indicates otherwise.
  (1) AQHA--American Quarter Horse Association.
  (2) ATB horse--A horse accredited by the TQHA as a Texas-bred quarter horse.
  (3) ATB broodmare--A mare accredited by the TQHA as breeding stock for participation in the Texas Bred Incentive Program for quarter horses.
  (4) ATB stallion--A stallion accredited by the TQHA as breeding stock for participation in the Texas Bred Incentive Program for quarter horses.
  (5) Breeder--A person who is, at the time of conception, the owner of record of an ATB broodmare that foals an ATB horse.
  (6) Owner--A person who is the owner of record of an ATB horse at the time of a race.
  (7) Stallion Owner--A person who is, at the time of conception, the owner of record of an ATB stallion that sired an ATB horse.
  (8) TQHA--Texas Quarter Horse Association.
(b) Eligibility for Accreditation.
  (1) ATB Horses. A horse may be accredited as an ATB horse if the horse was foaled in Texas from an ATB broodmare and is bred to an ATB stallion at least every other breeding. TQHA may require documentation regarding breeding activity to prove eligibility for accreditation.
  (2) ATB Broodmares.
    (A) A mare may be accredited as an ATB broodmare if the mare is registered with the AQHA or the Jockey Club and is accredited by the TQHA as breeding stock.
    (B) An application for accreditation must be on a form prescribed by TQHA and include the applicable one-time payment as prescribed by TQHA. The deadline for filing an application for accreditation is June 30 of the year in which an ATB eligible foal is conceived. TQHA may accredit a broodmare for which the application for accreditation is filed after June 30 but no later than December 31 of the year in which an ATB eligible foal is conceived, provided the application includes payment of a late fee as established by TQHA. An application for accreditation is considered timely filed if it is placed in U.S. mail and is postmarked on or before the applicable deadline.
    (C) TQHA may accredit a broodmare for which an application is filed after December 31 of the year in which an ATB eligible foal is conceived; however, the breeder of that foal is not eligible to receive breeder awards for that foal.
  (3) ATB Stallions.
    (A) A stallion may be accredited as an ATB stallion if the stallion is permanently domiciled in Texas, is registered with the AQHA or the Jockey Club, and is accredited by the TQHA as breeding stock.
    (B) An application for accreditation must be on a form prescribed by TQHA and include the applicable payment as prescribed by TQHA. The deadline for filing an application for accreditation is April 15 of the year in which an ATB eligible foal is conceived. TQHA may accredit a stallion for which the application for accreditation is filed after April 15 but no later than December 31 of the year in which an ATB eligible foal is conceived, provided the application includes payment of a late fee as established by TQHA. An application for accreditation is considered timely filed if it is placed in U.S. mail and is postmarked on or before the applicable deadline.
    (C) A stallion may not be accredited for a particular foal unless all foals conceived in that year, other than foals conceived by a shipped semen process, were conceived in Texas. TQHA may require a report of mares bred to be submitted to verify eligibility for accreditation. A stallion may leave Texas for medical or racing purposes without losing its accreditation provided the stallion returns to Texas each year before January 1.
(c) Accreditation requirements for multiple foals.
  (1) Subject to the other provisions of this subsection, multiple foals conceived in the same year by a single ATB broodmare are eligible for accreditation provided the mare was bred to an ATB stallion at least every other breeding and all other requirements for accreditation are satisfied.
  (2) If the multiple foals are the result of a transferred embryo or oocyte process conceived in a single breeding, all foals sired by an ATB stallion are eligible for accreditation. If the foals were sired by a non-ATB stallion:
    (A) only one of the foals sired by a non-ATB stallion may be accredited; and
    (B) the owner of the ATB broodmare at the time of conception must select which foal is to be accredited, must notify the TQHA of the selection, and is considered the breeder for purposes of breeder awards.
  (3) An ATB broodmare that produces multiple foals in a single year using the transferred embryo or oocyte process must submit to TQHA an Embryo/Oocyte Transfer Report. The report must be submitted on or before December 31 of the year of conception.
(d) Accreditation requirements for foals produced from frozen semen.
  (1) A foal produced from frozen semen is eligible for accreditation provided all other requirements for accreditation are satisfied.
  (2) A stallion for which frozen semen is to be used must have satisfied all requirements for accreditation and be permanently domiciled in Texas during the year of conception. For frozen semen to be used after a stallion's death, the stallion must, at the time of the stallion's death, have satisfied all requirements for accreditation and been permanently domiciled in Texas.
  (3) In a single year, frozen semen may not be used in more than one jurisdiction.
(e) Organizational Structure.
  (1) The TQHA shall maintain all ownership records for the Accredited Texas Bred Quarter Horse program. TQHA shall comply with all sections of the Act, including but not limited to §§2028.101-.107 and 2030.001-.004, Tex. Occ. Code. TQHA shall comply with the rules promulgated by the Commission, including but not limited to §§303.81 - 303.85 of this title (relating to General Provisions.)
  (2) The Board of Directors of TQHA shall have managerial control over the activities of the breed registry as to the operation and performance of the ATB program. The Board of Directors may delegate such authority to a committee. The Board of Directors shall establish budgeting and other procedures to ensure that the TQHA is in substantial compliance with the Act and the rules of the Commission and shall be subject to audit or inspection by the Commission. The Board of Directors shall reasonably interpret the definitions and standards of this section and decision by that body or its delegate shall be final.
  (3) The TQHA shall develop a system of accounting for the ATB funds that accrue prior to payment. In no event may funds that are dedicated by law to the incentive awards program be used for any other purpose.
  (4) Eligibility for ATB awards may not be conditioned upon membership in any organization.
(f) Procedure for the Payment of ATB Awards.
  (1) The Commission shall forward monthly to the TQHA the total amount of Texas bred funds due to the TQHA pursuant to the Act and the rules of the Commission.
  (2) Conditions for payment of ATB awards.
    (A) Payment of ATB awards is conditional upon proper accreditation of horses and current ownership records as evidenced by TQHA and AQHA ownership records. In the event a horse owner, breeder or stallion owner is not listed on both registries, the payment of ATB awards may be withheld until such registration is completed in compliance with this section.
    (B) Leased horses must have an AQHA lease form on file with the TQHA prior to receiving any ATB awards on that horse.
    (C) A breeder is eligible to receive breeder awards for an ATB horse only if the ATB broodmare was accredited in accordance with subsection (b)(2)(B) of this section. A stallion owner is eligible to receive stallion awards for an ATB horse only if the ATB stallion was accredited in accordance with subsection (b)(3)(B) of this section and the owner paid the stallion participation fee established by TQHA for the year in which the ATB horse was conceived.
    (D) Accreditation fees are refundable only in the event they were submitted on an ineligible horse or if they were duplicated.
    (E) ATB horses that are registered as racing stock must be accredited also as either an ATB broodmare or ATB stallion to receive breeder or stallion awards from subsequent foals.
  (3) Procedures for Payment of Awards. Any accredited Texas-bred quarter horse that finishes first, second, or third in a pari-mutuel horse race in Texas (except stakes race restricted to Texas-breds) shall be entitled to receive an incentive award, as herein set forth.
Cont'd...
(A) Upon the completion of a racing period not to exceed five racing days, all associations currently conducting quarter horse racing shall forward to the TQHA offices via telecopy or other electronic means a copy of the official results from that period of racing. The official results shall include the date, race number, race conditions, name of each horse in the race, official order of finish, the owner of record, and purse earned from the purse amount.
    (B) TQHA will verify the ownership, registration, and eligibility of all horses that finish first, second, or third in a race at the association during the time period.
    (C) The Act provides that the funds that are accrued to the awards fund will be paid 40% to owners, 40% to breeders, and 20% to stallion owners. Also, 1.0% of all multiple two and multiple three wagers are to be paid to the Texas-bred program and are to be paid as awards.
    (D) TQHA shall maintain records of all ATB racing stock that earn awards. At the completion of a race meeting, TQHA will begin the process to generate awards checks for the owners, breeders, and stallion owners corresponding to those ATB racing stock by apportionment according to the percentages expressed in subparagraph (C) of this paragraph. The awards for each race shall be divided 50% to first place, 30% to second place, and 20% to third place. Upon receipt of the ATB funds from the commission for the race meeting, TQHA shall disburse the awards by U.S. mail.

Source Note: The provisions of this §303.93 adopted to be effective March 28, 1989, 14 TexReg 1364; amended to be effective December 1, 1996, 21 TexReg 11163; amended to be effective June 15, 1997, 22 TexReg 4571; amended to be effective January 1, 1999, 23 TexReg 12914; amended to be effective September 1, 1999, 24 TexReg 6482; amended to be effective September 7, 2003, 28 TexReg 7368; amended to be effective November 12, 2003, 28 TexReg 9829; amended to be effective September 8, 2004, 29 TexReg 8510; amended to be effective August 3, 2006, 31 TexReg 5960; amended to be effective July 29, 2010, 35 TexReg 6520; amended to be effective March 7, 2018, 43TexReg 1263; amended to be effective July 1, 2019, 44 TexReg 3261