Sec. 09.10.01.49. Rewards to Breeders — Maryland-Bred Rules

A. For the purposes of this regulation:

(1) A horse is considered to be bred where it is foaled;

(2) The breeder of a horse is the owner of the dam at the time the horse was foaled;

(3) A Maryland stallion is a stallion that is:

(a) In Maryland for at least one full breeding season, which begins on February 15 and ends after July 15 of each year; or

(b) Brought into Maryland subsequent to the start of the breeding season and approved as a Maryland stallion by the Registration Committee of the Maryland Horse Breeders Association;

(4) The owner of Maryland stallion qualifies for a stallion owner award if:

(a) The person was the owner at the time that a registered Maryland-bred sired by the stallion was conceived and the conception occurred during the Maryland breeding season as described in §A(3)(a) of this regulation; and

(b) The stallion is registered annually with the Maryland Horse Breeders Association; and

(5) Unless otherwise limited, the purse amount upon which an award may be calculated is the base amount of the advertised purse without an enhancement predicated on the number of participants in the race.

B. If the Maryland Horse Breeders Association refuses to register a horse under Business Regulation Article, §11-538, Annotated Code of Maryland, making the horse ineligible to participate in the Maryland-Bred Fund Race program, the owner or breeder of the horse may appeal the refusal to the Commission.

C. From the money allocated to this Fund under Business Regulation Article, §11-515, Annotated Code of Maryland, $15,000 shall be deducted at each of the first two meetings of the year at each of the two mile tracks in Maryland before any other calculations are made, and these amounts shall be forwarded to the Maryland Horse Breeders Association to be distributed as follows in accordance with a formula devised annually by the Maryland-Bred Race Fund Advisory Committee and approved by the Racing Commission by March 31 of each calendar year:

(1) To the exhibitors of yearlings at the Maryland Horse Breeders Association's Maryland-Bred Yearling Show based on the performance of those yearlings during each of their respective 2-year-old and 3-year-old campaigns;

(2) To the exhibitor of a yearling that placed either first, second, third, fourth, or fifth in its class at the Maryland Horse Breeders Association's Maryland-Bred Yearling Show;

(3) To the exhibitor of a yearling that was selected as the Grand or Reserve Champion at the Maryland Horse Breeders Association's Maryland-Bred Yearling Show; and

(4) The balance, if any, shall be used to proportionately decrease the deductions for this purpose the following year.

D. Subject to the approval of the Commission, up to 10 percent of all monies allocated to the Maryland-Bred Race Fund under Business Regulation Article, §§11-515 and 11-525(d), Annotated Code of Maryland, and all earnings on these monies, after the deduction of the amounts under §C of this regulation, shall be paid to the Maryland Horse Breeders Association as compensation for the administration of the Maryland-Bred Race Fund.

E. The Maryland Horse Breeders Association shall render an accounting in a manner satisfactory to the Commission regarding the monies paid to it under §D of this regulation.

F. The Commission may allocate a portion of the monies allocated to the Maryland-Bred Race Fund, calculated on the balance remaining after the deductions required under §§C and D of this regulation, to races which are restricted to horses conceived, but not necessarily foaled, in Maryland.

G. With the exception of the monies allocated to this Fund which were generated by the handle on Maryland Million Day, subject to the approval of the Commission, a portion of all the remaining money allocated to this Fund, and all earnings on these monies, shall be distributed in the form of purse money and owner awards as follows:

(1) A percentage to purses for horses which have been registered with the Maryland Horse Breeders Association as being Maryland-bred horses; and

(2) A percentage to owner’s awards, to be paid to the owner of a horse which won a race or finished second or third in any race except a stakes race, and which has been registered with the Maryland Horse Breeders Association as being a Maryland-bred horse.

H. After the application of §G of this regulation, the remaining portion of the monies allocated to this Fund, and all earnings on these monies, shall be distributed in the form of breeder and stallion owner awards as follows:

(1) To a breeder of a registered Maryland-bred horse which won a race, or finished second or third; and

(2) To the owner of a stallion, as defined by §A(4) of this regulation, if a registered Maryland-bred sired by the stallion won a race, or finished second or third.

I. On a semiannual basis, the Commission, with the advice of the Maryland-Bred Race Fund Advisory Committee, shall determine the amount to be distributed in the form of purses and owner, breeder, and stallion owner awards using the following formulas:

(1) Under §H(1) and (2) of this regulation, the award percentage shall be based on a relationship between the total amount of the purses on which these awards are to be paid, limited to the first $100,000 of the gross purse for a stakes race, and the total amount of money available for distribution regarding breeder and stallion owner awards;

(2) The breeder and stallion owner award percentages established under §I(1) of this regulation shall apply to all Maryland-Bred Fund races except the races conducted on Maryland Million Day; and

(3) The breeder and stallion owner award percentages for races conducted on Maryland Million Day shall be determined annually by the Commission with the advice of the Maryland-Bred Race Fund Advisory Committee.

J. The owner, breeder, and stallion owner awards shall be paid as soon as practical.

K. On Maryland Million Day, all monies allocated this day to the Maryland-Bred Race Fund under Business Regulation Article, §11-515, Annotated Code of Maryland, shall be distributed as breeder and stallion owner awards for the horses racing on Maryland Million Day in the manner specified by §I(3) of this regulation.

L. The awards under §§G, H, and K of this regulation shall be calculated on the order of finish as determined by the stewards notwithstanding any dispute as to the proper order of finish, and:

(1) If there is a dispute, the award in dispute shall be held in escrow until a final determination is made by the Maryland Racing Commission;

(2) If the award is not allowed, that calculated award shall be carried over to the next semiannual time period described under §I of this regulation; and

(3) If an additional award becomes payable after the completion of the computation of awards, that award shall be paid from the next semiannual period described under §I of this regulation.

M. If, after making the distributions required under this regulation, monies allocated to the Maryland-Bred Race Fund:

(1) Are undistributed, these monies shall be placed in an interest-bearing escrow account and distributed, with interest, under the provisions of §I of this regulation; or

(2) Are not fully funded from the monies generated by the deficit shall be funded from monies available from the next semiannual time period described under §I of this regulation.

N. Amounts received by the Fund as its share of the fee from out-of-State bets on Maryland races, in conformance with Business Regulation Article, §11-804.1, Annotated Code of Maryland, shall be expended for the purposes of fostering and promoting the well-being of the thoroughbred breeding industry:

(1) On the advice of the Maryland-Bred Race Fund Advisory Committee; and

(2) Subject to the approval of the Commission.