(a) All money required to be set aside for purses, whether from wagering on live races or on simulcast wagering, are trust funds held by an association as custodial trustee for the benefit of horsemen. No more than three business days after the end of each week's wagering, the association shall deposit the amount set aside for purses into purse accounts maintained as trust accounts for the benefit of horsemen by breed by the horsemen's organization in one or more federally or privately insured depositories.
(b) Purse money for a completed race shall be made available to the horsemen's bookkeeper on or before the third day after the week's races have run. The horsemen's bookkeeper shall distribute purse money for a race to the accounts of the persons entitled to the money immediately after the executive secretary advises the horsemen's bookkeeper that the race has been cleared for payment.
(c) If an association fails to run live races during any calendar year, all money in the respective breed's purse account may, at the discretion of the horsemen's organization be distributed as follows:
  (1) first, payment of earned but unpaid purses; and
  (2) second, subject to the approval of the horsemen's organization, transfer after the above mentioned calendar year period of the balance in the respective breed's purse account to the respective breed's purse account for one or more other associations.
(d) If an association ceases a live race meet before completion of the live race dates granted by the Commission, the funds in and due the respective breed's purse account shall be distributed as follows:
  (1) first, payment of earned but unpaid purses;
  (2) second, retroactive pro rata payments to the horsemen if provided by contract with the horsemen's organization; and
  (3) third, subject to the approval of the horsemen's organization, transfer within 120 days after cessation of live racing of the balance in the respective breed's purse account to the respective breed's purse account for one or more other associations.
(e) The Commission may at any time inspect, review, or audit the records and performance of the association, the horsemen's organization, or the horsemen's bookkeeper to determine compliance with this section.
(f) No part of any funds allocated to any race or races from the purse fund shall be subject to any surcharge, promotion fee, advertising fee, or expense by the association for any reason whatsoever.

Source Note: The provisions of this §309.297 adopted to be effective October 21, 1999, 24 TexReg 8970; amended to be effective January 8, 2004, 29 TexReg 374; amended to be effective July 11, 2004, 29 TexReg 6642; amended to be effective September 28, 2014, 39 TexReg 7574; amended to be effective March 13, 2016, 41 TexReg 1684