A. Except as provided by this section, an owner may not be allowed to start a horse under the jurisdiction of the Commission until the owner has obtained from the Commission a current owner's license. The license may be revoked, for cause, by the Commission or, in the discretion of the Commission, may be suspended, for cause, for any period of time. Before issuance of a license, an owner may be required to satisfy the Commission of his financial responsibility. An owner shall maintain his financial responsibility so long as he is licensed by the Commission. The stewards, in their discretion, may allow an owner to race a horse one time while awaiting action on the owner's application for licensure. An owner who so races but does not complete his application for a license and pay the appropriate fee within a reasonable period of time, shall be precluded from racing until his application is filed, and license fee paid.
B. Disqualification of a husband or wife from having a license may apply equally to both.
C. The application for a license shall be made upon a form of application prepared by the Commission. Registration of the owner's colors is included in this application. The proper fee shall accompany each application.
D. If a renewal is not made after a period of 5 years, the applicant shall apply again and pay the fee for an original license.
E. The Commission, after a period of 5 years, shall remove from its records the license card of a licensee who has not renewed.
F. Multiple Ownership.
(1) Forms of multiple ownership shall be duly licensed by the Commission before being allowed to start a horse.
(2) The license application of the multiple ownership entity ("entity") shall be accompanied by the relevant documents governing the formation of the entity which shall contain, among other things, the following:
(a) The name, address, social security number, and date of birth of each person having an interest in the entity;
(b) The relative proportions of the interests in §F(2)(a);
(c) To whom the winnings are payable;
(d) In whose name the horse or horses owned by the entity shall run;
(e) The name of the person designated to act as agent for the entity in all racing matters;
(f) The names of the horse or horses owned by the entity;
(g) The terms of any contingency, lease, or other arrangement. A copy of the documents shall be attached to the registration certificate of any horses owned by the entity.
(3) A person holding an interest of 5 percent or more in an entity shall be deemed to hold a beneficial interest and shall obtain an owner's license. Beneficial interest includes all direct and indirect forms of ownership or control, or both, voting power, or investment power, held through any contract, lien, lease, partnership, stockholding, syndication, joint venture, understanding, relationship (including family relationship), present or reversionary right, title or interest, or otherwise.
(4) A person holding a beneficial interest in an entity shall disclose any beneficial interests which that person holds in any horses to the Commission, at the time of licensing and at the track not later than the time of entry.
(5) Officers, directors, general partners, managers, and authorized agents of an entity shall obtain an owner's license.
(6) Each entity shall designate in writing the person authorized to act as agent for the entity in all racing matters. This person shall obtain an owner's license and represent more than 50 percent of the financial interests in the entity, and shall be subject to the rules governing the authorized agent. The Commission shall be notified in writing by the entity of any change in the person designated as its agent. An agent for an entity may not assume the responsibilities of the trainer unless that person is the trainer.
(7) The Commission may deny, suspend, or revoke the license of an entity in which a beneficial interest is held by a person who is or would be ineligible to be licensed as an owner in any respect.
(8) Changes either in the structure of the entity or in the persons holding any interest in the entity shall be immediately disclosed to the Commission in writing.
(9) Horses owned by the entity shall race in the name of the entity, the stable name of the entity, or the name of the agent designated to act for the entity with the designation "et al" following the agent's name.
(10) The Commission, through the racing secretary's office, shall review the ownership of each horse entered to race and ensure that each registration or eligibility certificate is properly endorsed by the transfer or to the entity. The Commission may determine, for racing purposes, the validity of all liens, transfers, and agreements pertaining to ownership of a horse and may call for adequate evidence of ownership at any time. The Commission may declare ineligible to race any horse whose ownership is in question.
(11) Coupled Horses.
(a) In §F(11) of this regulation, "commonality of ownership" means that the same person, persons, entity, or entities own at least 25 percent of a horse entered in a race and also own at least 25 percent of another horse entered in the same race.
(b) Except as provided in this subsection, horses may be uncoupled at the time of entry for betting purposes if the horses have commonality of ownership.
(c) If horses have commonality of ownership in a stakes race, the horses shall be uncoupled for betting purposes.
(d) If a race is split into two or more divisions, horses subject to the provisions of §F(11)(b) of this regulation shall be seeded in separate divisions, if possible, but the divisions in which they compete and the post positions shall be determined by lot.
(12) A person involved in a multiple ownership entity may lease, subject to the provisions of COMAR 09.10.04.22, the person's interest in the entity to another person in the multiple ownership entity.
G. If an owner engages two or more jockeys for the same race, he shall pay the losing fee for each engaged jockey not riding in the race, as well as the proper fee to the jockey who does ride.
H. An owner who makes a frivolous complaint or frivolously places a hold upon the results of a race being made official may be fined or suspended by the stewards.