| (a) Rules pertaining to a licensee and rulings against a licensee
apply to another person if continued participation in an activity by the other
person would circumvent the intent of a Rule or ruling by permitting the person
to serve, in essence, as a substitute for the ineligible licensee because:
(1) the other person is legally liable for the conduct that
violated the Rule or is the subject of the ruling; or
(2) the other person benefited financially from that conduct.
(b) The fraudulent transfer of a race animal to avoid application
of a Rule or ruling is prohibited.
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