|(a) Designation of horsemen's bookkeeper.
(1) An association shall ensure a horsemen's bookkeeper is
available to maintain the horsemen's account.
(2) The executive secretary may designate an entity unrelated
to the association to serve as the horsemen's bookkeeper. To be designated
as the horsemen's bookkeeper, an entity must submit a plan of operation acceptable
to the executive secretary that demonstrates the entity's ability to perform
the duties of the horsemen's bookkeeper.
(3) A designation as horsemen's bookkeeper does not constitute
a license, but the executive secretary may require any individual involved
with a designated entity to receive a license.
(4) If the executive secretary approves an association's request
to designate an entity as horsemen's bookkeeper, the association is relieved
of responsibility for providing a horsemen's bookkeeper and shall cooperate
fully with the horsemen's bookkeeper designated by the executive secretary.
(b) Revocation of designation.
(1) A designation as the horsemen's bookkeeper continues in
effect until revoked by the executive secretary.
(2) The executive secretary may revoke a designation as the
horsemen's bookkeeper if the executive secretary determines the designated
(A) failed to comply with the Act, or the plan of operation,
in a manner that indicates malfeasance as opposed to mere mistake;
(B) failed to maintain accurate and reliable records;
(C) misappropriated or mishandled funds in its possession or
(D) failed to correct within a reasonable time any deficiency
in operations identified by the executive secretary in writing; or
(E) had its authority to act as a horsemen's bookkeeper revoked
in another jurisdiction.
(3) Before revoking a designation as horsemen's bookkeeper,
the executive secretary must issue a notice of proposed revocation which specifically
describes the grounds for revocation. No later than 30 days after receiving
a notice of proposed revocation, the entity may file a written response to
the allegations with the executive secretary.
(4) The executive secretary may not revoke a designation without
making adequate provision for a successor horsemen's bookkeeper.
(c) Operations of horsemen's bookkeeper.
(1) Each owner engaged in racing must open and maintain an
account with the horsemen's bookkeeper. The horsemen's bookkeeper may permit
other individuals to open and maintain an account with the horsemen's bookkeeper,
subject to the approval of the executive secretary. The aggregate of all such
accounts is the horsemen's account.
(2) The horsemen's bookkeeper shall keep accurate records of
the horsemen's account and the constituent accounts. The horsemen's bookkeeper
(A) promptly credit each account with all earnings, awards,
(B) deduct or disburse all payments as directed by the owner
or authorized agent;
(C) render periodic statements of each constituent account;
(D) perform all other duties and functions as may be required
by the Act or the Rules.
(d) Audit. The executive secretary may at any time inspect,
review or audit the records and performance of the horsemen's bookkeeper.