SECTION 311.214. Financial Responsibility

(a) This section applies to the financial responsibility of licensees of the Commission for debts legally owed the transfer, purchase or lease of a race animal or for services or supplies relating to the care, transportation, or maintenance provided to a race animal while racing or in training at a licensed facility in this state. Services and supplies to which this section applies include, but are not limited to:

(1) veterinary services, medication, and veterinary supplies;

(2) transportation services;

(3) farrier services and supplies;

(4) feed and nutritional supplements; and

(5) racing supplies.

(b) The Commission finds that the failure of a licensee of the Commission to pay a debt that is legally owed for the transfer, purchase or lease of a race animal or a service or supply described in subsection (a) is:

(1) an activity or practice that is detrimental to the best interests of the public and the sport of pari-mutuel racing; and

(2) grounds for denial, suspension, or revocation of the licensee's license.

(c) For a debt that is legally owed for the transfer, purchase or lease of a race animal or a service or supply described in subsection (a), a licensee may not:

(1) willfully or intentionally refuse to pay the debt; or

(2) falsely deny the validity of the debt with the intent to defraud the person to whom the debt is owed.

(d) A person to whom a debt for the transfer, purchase or lease of a race animal or a service or supply described in subsection (a) is owed may file with the executive secretary a certified copy of a judgment of a court of competent jurisdiction that verifies the validity of the debt. On receipt of a judgment under this subsection, the executive secretary may initiate formal disciplinary action against the licensee involved. The executive secretary has sole discretion to determine whether formal disciplinary action is initiated against the licensee.

(e) At a hearing to deny, suspend, or revoke a licensee's license for a violation of this section, the person to whom the debt is owed is not entitled to reimbursement of travel expenses or any witness fees for attendance at the hearing.

Source Note: The provisions of this §311.214 adopted to be effective October 21, 1999, 24 TexReg 8973; amended to be effective March 20, 2008, 33 TexReg 2307