.25 Owners.

A. Owner's License.

(1) Except as provided by §A(2), of this regulation, an owner may not be allowed to start any horse under the jurisdiction of the Commission, until the owner has obtained from the Commission an owner's license. This license shall be applied for annually and will be issued for 1 year in the full name of the owner. 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.

(2) The judges, in their discretion, may allow an owner to race a horse one time while awaiting the receipt of his owner's license. An owner who so races but does not complete his application for a license and pay the appropriate fee within 30 days shall be precluded from further racing in this State until his application is filed, and license fee paid.

(3) Purse money or prizes may not be distributed to an owner until he has received an owner's license from the Commission.

B. Multiple Ownership.

(1) Forms of multiple ownership shall be duly licensed by the Commission before being allowed to start a horse.

(2) For the purposes of this section, “entity” means a form of multiple ownership.

(3) The license application of the 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 those interests in §B(2)(a), of this regulation;

(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.

(4) A person holding an interest of 5 percent or more in an entity is considered 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.

(5) A person holding a beneficial interest in an entity shall disclose to the Commission, at the time of licensing and at the track not later than the time of entry, any beneficial interests which that person holds in any horses.

(6) Officers, directors, general partners, managers, and authorized agents of an entity shall obtain an owner's license.

(7) 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 an 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.

(8) 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.

(9) Changes either in the structure of the entity or in the individuals holding any interest in the entity shall be immediately disclosed to the Commission in writing.

(10) 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.

(11) The Commission shall review the ownership of each horse entered to race and ensure that each registration or eligibility certificate is properly endorsed by the transferor 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.

(12) Coupled Horses.

(a) A horse shall be coupled with another horse in the same race when there is commonality of ownership. “Commonality of ownership” means that at least 25 percent of each horse is owned by the same persons or entity or entities. Horses trained by the same trainer shall be coupled, except that when a trainer enters two or more horses in a stakes, handicap, futurity, or other special event, the horses may, at the request of the racing association, and with the approval of the Commission, be permitted to race as separate wagering interests.

(b) If a race is split into two or more divisions, horses in an entry shall be seeded in separate divisions if possible, but the divisions in which they compete and the post position shall be determined by lot.

(13) A person involved in a multiple ownership entity may lease, subject to the provisions of COMAR, the person's interest in the entity to another person in the multiple ownership entity.

C. Disqualification of a husband or wife from having a license applies equally to both.