8 PROPOSED ADMINISTRATIVE RULES

 

 

ORR # 2002-045 DEPARTMENT OF AGRICULTURE

FINANCE AND TECHNOLOGY DIVISION FAIRS, EXHIBITONS AND RACING DIVISION REGULATION NO. 817. QUARTER HORSE BREEDERS' AWARDS AND STATE SUPPLEMENTS

 

Filed with the Secretary of State on

These rules take effect 7 days after filing with the Secretary of State

 

(By authority conferred on the director of the department of agriculture by sections 9 and 178 of Act No. 279 of the Public Acts of 1965, as amended, 1965 P.A. 279, MCL 16.109 and 16.278 and section 13 of Act No. 327 of the Public Acts of 1980, as amended, being SS16.109, 16.278, and 431.73 of the Michigan Compiled Laws) 1995 P.A. 327, MCL 431.73)

 

R 285.817.l, R 285.817.2, R285.817.3, R 285.817.4, R 285.817.5, R 285.817.6 and R 285.817.7 of the

Michigan Administrative Code are amended and R 285.817.8, R 285.817.9, and R 285.817.10 are added to the Code as follows:

 

R 285.817.1 Definitions.

Rule 1. As used in these rules:

(a)       "Breeder" means a person who is domiciled in the state of Michigan and who owns a mare at the time of breeding. The lawful lessee of a mare at the time of breeding is deemed the owner of the mare. AN INDIVIDUAL, PARTNERSHIP, ASSOCIATION, OR CORPORATION THAT OWNS A MARE AT THE TIME OF FOALING. THE LESSEE OF A MARE, WHICH IS REGISTERED WITH THE AMERICAN QUARTER HORSE ASSOCIATION AT THE TIME OF FOALING, IS DEEMED THE OWNER OF THE MARE.

(b)        "Conditions" means a specification of the terms under which a race is conducted. such as the distance, weight, purse, stakes, trials, finals, and money won.

(c)      "Department" means the Michigan department of agriculture.

(d)     "Director" means the director of the department OF AGRICULTURE.

(e)     "Domicile" means the fixed, permanent and principal home to which a person intends to return. “EARNED TRACK PURSE” MEANS THE PORTION OF A PURSE OFFERED BY AN AMERICAN QUARTER HORSE RACING ASSOCIATION OR CERTIFIED HORSEMEN’S GROUP THAT IS  AWARDED FOR THE ORDER OF FINISH UP TO THREE PLACINGS, BUT DOES NOT INCLUDE A STATE SUPPLEMENT OR ANY OTHER AWARDED FUNDS.

(f)     "Fairs and racing division" means the fairs and racing division of the department. “FIRST-TIME BREEDER” IS AN INDIVIDUAL, PARTNERSHIP, ASSOCIATION, OR CORPORATION THAT HAS NEVER REGISTERED AS A BREEDER WITH THE DEPARTMENT. ANY PARTNERSHIP, ASSOCIATION,

 

 

OR CORPORATION OF WHICH ANY PART OF THE OWNERSHIP HAS REGISTERED AS A BREEDER WITH THE DEPARTMENT IS NOT ELIGIBLE AS A FIRST-TIME BREEDER.

(g)      "Foaling year" means the calendar year in which the foal is born. MARE FOALED.

(h)      "Gross purse" means the track purse plus the state supplement.

(i)       "Licensed quarter horse racing association" means associations licensed by the Michigan racing commissioner to conduct quarter horse

races in Michigan.

(j)      "Michigan-bred quarter horse" means a horse which is from a mare owned by a person who is domiciled in Michigan at the time of breeding and sired by a registered stallion which: is owned exclusively by a person who is domiciled in Michigan and which did not serve a mare at a location outside of Michigan during the calendar year in which the service occurred. Each mare and stallion shall be registered with the director of  the department.

IS REGISTERED WITH THE DIRECTOR BY FEBRUARY 15TH OF THE FOALING YEAR,

IS IN MICHIGAN ON OR BEFORE FEBRUARY 15TH OF THE FOALING YEAR, AND

(iii) REMAINS IN THIS STATE UNTIL FOALING AND FOR NOT LESS THAN SEVEN CONSECUTIVE MONTHS OF THE FOALING YEAR.

(k)       "Owner" means the person INDIVIDUAL, PARTNERSHIP, ASSOCIATION, OR CORPORATION listed on the American quarter horse association registry as the most current owner of the horse.

(l)       "Quarter horse racing association of Michigan" means a nonprofit corporation, OR A SUBCOMMITTEE THEREOF, consisting of those persons organized for the purpose of improving quarter horse racing and breeding.

(m)          "State supplement" means money allocated by the director from the state fund for a race conducted exclusively for Michigan-bred horses.

(n)       "Track purse" means the money offered by a LICENSED quarter horse racing association for 1 race, not including a state supplement.

 

R 285.817a Determination of domicile.

Rule 1a. Factors to be considered in determining domicile are as follows: Voting registration or alien registration showing a Michigan address.

Federal income tax return showing a Michigan address. State income tax return showing a Michigan address.

 

R 285.817.2 Eligibility of horses FOALS for breeders' awards and OWNERS’ AWARDS, AND state supplements.

Rule 2. (1) Eligibility of horses TO BE ELIGIBE for breeders' awards and OWNERS’ AWARDS, AND state supplements, is established upon compliance with all of the following provisions: AN OWNER SHALL COMPLY WITH ALL OF THE FOLLOWING PROVISIONS:

(a)  A mare shall be registered, with the expositions and racing section, on forms provided by the director, once per ownership, when the ownership is transferred with the American quarter horse association ONCE PER OWNERSHIP, WITH THE DIRECTOR BY February FIFTEENTH OF THE FOALING YEAR.

(b)  A stallion shall be registered with the expositions and racing section, on forms provided by the director, once per ownership, when the ownership is transferred with the American quarter horse association. A FOAL SHALL BE FROM A MARE WHICH WAS REGISTERED WITH THE DIRECTOR AND WHICH WAS IN MICHIGAN ON OR BEFORE February FIFTEENTH OF THE FOALING YEAR. THE MARE

 

 

SHALL REMAIN IN THIS STATE UNTIL FOALING AND FOR NOT LESS THAN SEVEN CONSECUTIVE MONTHS OF THE FOALING YEAR.

(c)  A certificate of eligibility shall be issued by the director for a Michigan-bred horse after proper registration of the mare and stallion and after the department receives a completed foal application. This certificate shall accompany the American quarter horse association registration certificate at the time of entry in a race. THE AMERICAN QUARTER HORSE ASSOCIATION, INCORPORATED, CERTIFICATE OF FOAL REGISTRATION SHALL STATE: “FOALED IN MICHIGAN, USA.”

(d)  WITHIN 15 DAYS OF THE DEPARTURE OF A REGISTERED MARE, AN OWNER SHALL GIVE THE DIRECTOR WRITTEN NOTICE OF THE MARE’S DEPARTURE FROM MICHIGAN. IN ADDITION, AN OWNER SHALL GIVE THE DIRECTOR WRITTEN NOTICE OF THE MARE’S RETURN TO MICHIGAN WITHIN 15 DAYS OF THE DATE OF RETURN.

(e)        A DEPARTMENT MICHIGAN-BRED EMBOSSED SEAL OF ELIGIBILITY SHALL ACCOMPANY THE AMERICAN QUARTER HORSE ASSOCIATION CERTIFICATE AT THE TIME OF ENTRY IN A RACE. THE CERTIFICATION SHALL BE ISSUED SEVEN BUSINESS DAYS OR MORE BEFORE POST TIME.

(2)   The American quarter horse association's record shall be considered the official record in determining the eligibility of a Michigan-bred horse that is foaled before 1979. IF A BREEDER OR OWNER HAS COMPLIED WITH ALL OTHER RULES, THEN THE DIRECTOR MAY WAIVE THE DATE REQUIRMENTS OF SUBRULES (1) (A) AND (D) OF THIS RULE FOR THE FIRST TIME A BREEDER OR OWNER REGISTERS WITH THE DEPARTMENT.

(3)    A MICHIGAN-BRED CERTIFICATION OF AMERICAN QUARTER HORSE ASSOCIATION FOAL ELIGIBILITY SHALL BE ISSUED BY THE DIRECTOR FOR A MICHIGAN-BRED HORSE.

 

R 285.817.3 Eligibility of races for state supplements.

Rule 3. (1) State supplements shall be allocated for ALL OF the following races:

(a)  Michigan-bred quarter horse overnight races.

(b)  The Michigan futurities.

(c)  Michigan-bred 2-year-old championships, handicaps, and stakes.

(d)  Michigan-bred 3-year-old handicaps and stakes.

(e)  Michigan-bred 4-year-old and older handicaps and stakes.

(2)        State supplements shall be paid first for races specified under subdivisions SUBRULE (1)(b) to (e) of subrule THIS RULE. (1). If funds are not available to provide state supplements for all races approved by the director under subdivision SUBRULE (1) (a) of subrule (1)THIS RULE, then the director shall prorate available money at his OR HER discretion among the races so run.

(3)      Not less than 3 2 races of Michigan-bred horses shall be scheduled on each full quarter horse program, with not less than AT LEAST 1 race of Michigan-bred horses on any split program.

(4)       An association licensed to conduct quarter horse racing in Michigan shall not offer a smaller track purse, excluding the state supplement, for a race of Michigan-bred horses, than it offers for a race of non-Michigan- bred horses which, in the judgment of the director, is a comparable race.

(5)      If the programmed race of Michigan-bred horses does not draw sufficient entries to run, the licensed quarter horse racing association may substitute a race approved by the director.

 

R 285.817.4 Conditions and purses for races; allocation of state supplements.

Rule 4. (1) The racing association of the track where races of Michigan-bred horses are to be conducted shall propose conditions and purses for the races of Michigan-bred horses. The conditions of all races of Michigan-

 

 

bred horses are subject to the approval of the director. These conditions shall be submitted to the director not less than 18 calendar days before the first race is conducted for each race program.

(2)         The allocation of state supplements shall be determined by the director with the advice of the racing commissioner, a representative of the licensed quarter horse racing associations, and a representative of the quarter horse racing association of Michigan, AND A REPRESENTATIVE OF THE TRACK LICENSED TO RUN QUARTER HORSE RACING.

(3)      The director shall announce, noT later than 4 calendar days before the start of the race meet, his OR HER allocation of state supplements to purses for each of the approved races of Michigan-bred horses in the race program. If proposed conditions for those races are not submitted to the director, along with a substitute race list, within the time fixed by subrule (1) OF THIS RULE, the director may determine conditions and allocate state supplements for those races at his OR HER discretion, but state supplements may SHALL not be allocated later MORE than 96 hours before the first race scheduled in each condition book. A state supplement shall not be allocated to a race of Michigan-bred horses after the race has been run.

 

R 285.817.5 Payment of breeders' awards.

Rule 5. (1) The director shall pay a breeder's award, IN AN AMOUNT SPECIFIED BY LAW, to the breeder of a Michigan-bred horse for each time the horse runs first, second, or third in a race, including approved fair races. The total award shall be in the amount of 10% of the gross purse. EACH TIME THE HORSE WINS AT A LICENSED TRACK IN THIS STATE. If more than 1 winner, place, or show is declared, each breeder is entitled to a FULL breeder's award. Breeders' awards shall only be payable for wins after the date that the mare and stallion are properly registered. A BREEDER AWARD SHALL NOT BE PAID FOR RACES WON AFTER THE DATE OF DEATH OF A BREEDER.

(2) If 3 breeders are eligible for a breeder's award, the breeder whose horse came in first shall receive 5% of the gross purse, the breeder whose horse came in second shall receive 3%, and the breeder whose horse came in third shall receive 2%. If breeders of only 2 of the first 3 horses are eligible, the division shall be 6% and 4%. If only 1 breeder is eligible, he or she shall receive 10%.

(2) Rights to breeders' awards are not assignable. Breeders' awards and are not inheritable. The director is under no DOES NOT HAVE AN obligation to pay a breeders' award in excess of available funds or other than as provided in these rules. In the case of a death of a breeder, breeders' awards shall only be paid for a race won prior to the date of death recorded on a certified death certificate. Such certificate shall be submitted to the fairs and racing division when requesting payment of breeders' awards after the death of a breeder.

(4) If monies are not available for full payment of both breeders' awards and state supplements, payments shall be made in full for supplements as provided in R 285.817.3 and remaining monies shall be prorated for breeders' awards.

 

R 285.817.6 Certification of racing results; burden of proof; processing of Payment OF BREEDERS’ AWARDS, OWNERS’ AWARDS, AND STATE SUPPLEMENTS

Rule 6. (1) In each condition book, The racing commissioner shall certify to the director at the completion of racing, IN EACH CONDITION BOOK, the results of all races in which a Michigan-bred horse AND THEIR BREEDERS  AND  THE  RESULTS  OF  ALL  RACES  IN  WHICH  A  MICHIGAN-BRED  HORSE

FINISHED placed first, second, or third IN A RACE THAT WAS NOT RESTRICTED TO MICHIGAN- BRED HORSES. along with the names of the owner and breeder of the horse.

(2)  The secretary of a fair shall provide the director with a copy of each day's race program for the fair's races within 15 days, showing the first 4 places or a complete film strip of each race, with placings checked on the program and certified by the race secretary. IF THE ELIGIBILITY OF A BREEDER OR AN OWNER TO

 

 

RECEIVE BREEDERS’ AWARDS OR OWNERS’ AWARDS IS QUESTIONED, THEN THE BURDEN OF PROOF THAT A HORSE WAS MICHIGAN-BRED OR IN COMPLIANCE WITH THESE RULES IS ON THE BREEDER AND OWNER.

(3)   When the eligibility of a breeder to receive a breeder's award is questioned, the burden of proving that a horse is a Michigan-bred horse, or is in compliance with these rules, is on the breeder. PAYMENT OF BREEDERS’ AWARDS AND OWNERS’ AWARDS SHALL BE PROCESSED AT LEAST TWICE EACH YEAR AFTER JUNE 30 AND DECEMBER 31.

(4)           State supplements may be processed for payment to the owners of winning horses once each month. (5) Payment of breeders' awards shall be processed not less than once each month.

 

R 285.817.7 Ineligibility for future breeders' awards and state supplements.

Rule 7. A person or entity willfully accepting and retaining a breeder's award or state supplement contrary to these rules is ineligible for a future breeder's award or state supplement in this state.

 

RULE 285.817.8 OWNERS’ AWARDS.

RULE 8. (1) AN AWARD OF UP TO 30% OF THE EARNED TRACK PURSE SHALL BE PAID TO THE PURSE ACCOUNT OF THE OWNER OF A MICHIGAN-BRED HORSE THAT  FINISHES FIRST, SECOND, OR THIRD IN AN ELIGIBLE RACE THAT WAS NOT RESTRICTED TO MICHIGAN-BRED OR SIRED HORSES AT A STATE-LICENSED PARI-MUTUEL TRACK IN MICHIGAN.

(2)   THE DIRECTOR, WITH ADVICE FROM THE CERTIFIED QUARTER HORSE ASSOCIAION, AMERICAN PAINT HORSEMEN’S ORGANIZATION AND THE AMERICAN PAINT BREEDERS AND OWNERS ASSOCIATION, SHALL DETERMINE THE ALLOCATION OF OWNERS’ AWARD PERCENTAGES.

(3)  A SINGLE OWNERS’ AWARD IS LIMITED TO $10,000.00.

 

RULE 285.817.9 PAYMENT OF OWNERS’ AWARDS.

RULE 9. (1) THE RACING COMMISSIONER SHALL CERTIFY TO THE DIRECTOR, AT THE COMPLETION OF RACING, IN EACH CONDITION BOOK, THE NAMES OF THE OWNERS OF ALL MICHIGAN-BRED HORSES THAT FINISHED FIRST, SECOND, OR THIRD IN A RACE THAT WAS NOT RESTRICTED TO MICHIGAN-BRED OR SIRED HORSES.

(2) IF THE ELIGIBILITY OF AN OWNER TO RECEIVE AN OWNERS’ AWARD IS QUESTIONED, THEN THE BURDEN OF PROOF THAT A HORSE WAS MICHIGAN-BRED OR IS IN COMPLIANCE WITH THESE RULES IS ON THE OWNER.

 

RULE 285.817.10 CERIFICATION OF RACING RESULTS; BURDEN OF PROOF; PROCESSING OF PAYMENT.

RULE 10. (1) IN EACH CONDITION BOOK, THE RACING COMMISSIONER SHALL CERTIFY TO THE DIRECTOR, AT THE COMPELTION OF RACING, THE RESULTS OF ALL RACES IN WHICH A MICHIAN-BRED HORSE PLACED FIRST, SECOND, OR THIRD, ALONG WITH THE NAMES OF THE OWNER AND BREEDER OF THE HORSE.

(2)   THE SECRETARY OF A FAIR SHALL PROVIDE THE DIRECTOR WITH A COPY OF EACH DAY’S RACE PROGRAM FOR THE FAIR’S RACES WITHIN 15 DAYS, SHOWING THE FIRST 4 PLACES OR A COMPLETE FILM STRIP OF EACH RACE, WITH PLACING CHECKED ON THE PROGRAM AND CERTIFIED BY THE RACE SECRETARY.

 

 

(3)      WHEN THE ELIGIBILITY OF A BREEDER TO RECEIVE A BREEDERS’ AWARD IS QUESTIONED, THE BURDEN OF PROVING THAT A HORSE IS A MICHIGAN-BRED HORSE OR IS IN COMPLIANCE WITH THESE RULES IS ON THE BREEDER.

(4)     STATE SUPPLEMENTS MAY BE PROCESSED FOR PAYMENT TO THE OWNERS OF WINNING HORSES ONCE EACH MONTH.

(5)  PAYMENT OF BREEDERS’ AWARDS SHALL BE PROCESSED NOT LESS THAN ONCE EACH MONTH.