(a) An association may dismiss a kennel only:
  (1) on revocation by the Commission of the kennel owner's license;
  (2) for repeated violations of the Act or a Rule; or
  (3) for poor performance, as provided by subsection (b) of this section.
(b) A contract between an association and a kennel owner must provide a uniform dismissal clause. The clause must state the following:
  (1) if a kennel has been continuously booked at the association for more than two years, the association shall dismiss a kennel if the kennel's win record is in the bottom four positions at the end of a race meeting for two of the past three years and the association may not rebook the kennel for a period of five years;
  (2) the association may place a kennel on probation by written notice if the kennel's win record is in the lowest three positions during each of the three preceding months;
  (3) an association may place a kennel on probation by written notice if the kennel is in breach of the kennel contract in a manner that materially affects the rights or privileges of the association; and
  (4) an association may dismiss a kennel on probation if during the three-month period following the beginning of probation, the kennel fails to cure the breach or fails to place higher than at least three other kennels.
(c) A kennel owner may apply to the Commission for an exemption from the operation of the uniform dismissal clause. The kennel owner must demonstrate to the Commission that the kennel's failure to perform as required by the contract was due to a force majeure.
(d) For the five-year period after a kennel is dismissed pursuant to this section, an association may not book another kennel that is owned substantially by the same owners as the dismissed kennel. For purposes of this subsection, "substantially" means more than a 50% ownership interest in the kennel.

Source Note: The provisions of this §309.353 adopted to be effective October 21, 1999, 24 TexReg 8971