(a) Purses.

(1) An association shall recommend the percentages by which it will divide the purse revenue generated from simulcasting among the various breeds of horses. The percentages are subject to the approval of the Commission.

(2) Negotiations. (A) At least 30 days before recommending the percentages, the association shall begin negotiations with the organizations recognized by the Commission or in the Act as representatives of horse owners, trainers, and/or breeders. (B) When requested, the association shall provide the material specified in paragraph (3) of this subsection to the organizations recognized by the Commission or in the Act as representatives of horse owners, trainers, and/or breeders.

(3) When requesting Commission approval of the percentages, the association shall present in writing studies, statistics, or other documentation supporting the association's application of the criteria in paragraph (4) of this subsection in its proposed division.

(4) The Commission may consider the following criteria in evaluating whether to approve the association's proposed division of purse revenue: (A) local public interest in each breed as demonstrated by, but not limited to, the following factors: (i) live handle by breed; (ii) simulcast import handle by breed; (iii) live attendance at the racetracks; and (iv) sales and market survey information. (B) earnings generated by the association from each breed; (C) national public interest in each breed as determined by the live simulcast export handle of each Texas meet; (D) racetrack race date request and opportunities given to each breed; and (E) availability of and ability to attract competitive horses.

(5) If the Commission determines that the association's proposed division of purse revenue is inconsistent with the association's obligation to accord reasonable access to races for all breeds of horses, the Commission may: (A) require the association to submit additional information supporting its recommendation for consideration at the next Commission meeting; (B) reject the association's recommendation and require the association to submit a new recommendation for consideration at the next Commission meeting; or (C) reject the association's recommendation and approve an alternate division of purse revenue as determined by the Commission.

(6) In lieu of the process outlined in paragraphs (3) - (5) of this subsection, the association may submit a signed agreement between the association and the organizations referenced in paragraph (2) of this subsection for the Commission to consider for approval. For the Commission to approve the agreement, the agreement must: (A) delineate the percentages by which the association will divide the purse revenue generated from simulcasting among the various breeds of horses; and (B) be signed by the association and all organizations referenced in paragraph (2) of this subsection.

(b) Texas Bred Incentive Program Funds.

(1) The Commission shall determine the percentages by which Texas Bred Incentive Program funds generated from simulcasting are divided among the various breeds of horses.

(2) In determining the percentages by which Texas Bred Incentive Program funds generated from simulcasting are divided, the Commission may consider the following criteria: (A) the amount of participation in live racing by each of the breeds; (B) the activities of the breed registries to promote their breed for racing and breeding, taking into consideration each registry's available administrative funds; (C) the national public interest in each breed as determined by the live simulcast export handle of each Texas meet; (D) the effect of the proposed allocation on the state's agricultural racing horse breeding industry; (E) the effect of the proposed allocation on the state's agricultural racing horse training industry; (F) the amount of Texas Bred Incentive Programs funds from simulcasting generated by each breed; and (G) the median sales price of accredited Texas bred horses as submitted on the performance measures report as required under §303.83 of this title.

(3) Before determining the percentages, the Commission shall provide an opportunity for the official horse breed registries designated in the Act to present information in writing regarding the criteria specified in paragraph (2) of this subsection and any other information that the registries believe may be useful to the Commission.

(4) In lieu of the process outlined in paragraphs (2) and (3) of this subsection, a signed agreement between the organizations referenced in paragraph (3) of this subsection may be submitted to the Commission for consideration and approval. For the Commission to approve the agreement, the agreement must: (A) delineate the percentages by which the Texas Bred Incentive Program funds generated from simulcasting are divided among the various breeds of horses; and (B) be signed by all organizations referenced in paragraph (3) of this subsection.

Source Note: The provisions of this §321.505 adopted to be effective April 1, 2001, 26 TexReg 2161; amended to be effective November 26, 2007, 32 TexReg 8479