(a) Rules pertaining to a licensee and rulings against a licensee apply to another person if continued participation in an activity by the other person would circumvent the intent of a Rule or ruling by permitting the person to serve, in essence, as a substitute for the ineligible licensee because:
  (1) the other person is legally liable for the conduct that violated the Rule or is the subject of the ruling; or
  (2) the other person benefited financially from that conduct.
(b) The fraudulent transfer of a race animal to avoid application of a Rule or ruling is prohibited.

Source Note: The provisions of this §307.66 adopted to be effective January 1, 2002, 26 TexReg 10530