(a) The racing secretary for an association shall grade the greyhounds for the races in accordance with this section.
(b) Before the first day of a race meeting, the racing secretary shall classify the greyhounds and assign an appropriate grade. In assigning the grades, the secretary shall consider the greyhound's past performances.
(c) The racing secretary shall use seven grades of AA, A, B, C, J, D, and M. Grade M is for maidens of any age and Grade J is for winning maidens.
(d) The racing secretary shall lower a greyhound to the next lower grade, including lowering a grade J to a grade D, if the greyhound:
  (1) fails to finish in the top three positions in three consecutive starts;
  (2) fails to earn better than one third place finish in four consecutive starts; or
  (3) fails, as a Grade J, to finish in the top four positions in four consecutive starts.
(e) The racing secretary shall advance a greyhound that wins a race graded A, B, C, J, or D.
(f) The racing secretary shall advance a greyhound that wins a maiden race to Grade J. The racing secretary shall advance a greyhound that wins a Grade J race to Grade C. On request by a kennel owner or trainer, the racing secretary may regrade a greyhound that finishes second, third, or fourth in a maiden or a Grade J race to Grade D or C. For a greyhound regraded on request under this subsection, an association shall place the letter "M" or "J" after the greyhound's name in the racing program.
(g) A greyhound that fails to finish in the top four positions in four consecutive starts in Grade D may requalify and, at the discretion of the racing secretary, be returned to the active list. If a greyhound fails to finish in the top four positions in four consecutive starts for a second time in the same race meeting, at the discretion of the racing secretary, that greyhound may requalify again; however, when the greyhound returns to the active list, that greyhound has two consecutive starts to finish in the top four positions. If the greyhound fails to do so, then that greyhound shall be dropped from further racing during the current race meeting.
(h) A greyhound that falls in a race is considered a starter in that race and shall comply with the conditions set forth in subsection (d) of this section, unless lowering the greyhound would require the greyhound to be dropped from further racing in that race meeting.
(i) For a greyhound that transfers to the racetrack from another racetrack during a race meeting, the racing secretary shall assign a grade that is appropriate for the greyhound's ability considering the competition at the racetrack and at the racetrack from which the greyhound transfers.
(j) The racing secretary may regrade a greyhound that has not raced for at least 30 days.
(k) During a greyhound's first three starts, the racing secretary may regrade the greyhound only once and only to a next higher or lower grade level.
(l) The racing secretary may schedule up to eight mixed grade races each week. The racing judges may approve additional mixed grade races each week if there will otherwise be an insufficient number of greyhounds on the active list to complete the scheduled performances. A mixed grade race must be designated by the letter "T" in the racing program.
(m) A stake race must be designated by the letter "S" in the racing program.
(n) An association may require a kennel owner to furnish a minimum of 15% of the active list of greyhounds for 660-yard or longer races. The association may reduce the active list and available starts until the kennel complies with the rule.
(o) If a maiden fails to finish in the top four positions in six consecutive starts, the maiden may not race again at the race meeting until it requalifies. If the maiden fails to finish in the top four positions in the two starts after requalifying, the maiden may not race again at the race meeting.

Source Note: The provisions of this §309.355 adopted to be effective October 21, 1999, 24 TexReg 8971; amended to be effective April 1, 2001, 26 TexReg 2154; amended to be effective January 8, 2004, 29 TexReg 375; amended to be effective May 6, 2004, 29 TexReg 4148; amended to be effective January 5, 2010, 35 TexReg 93; amended to be effective September 19, 2013, 38 TexReg 6202; amended to be effective July 7, 2014, 39 TexReg 5148