Current through Register Vol. 51, No. 19, September 20, 2024
A.
Purpose. The purpose of this regulation is to set forth the procedures for
resolving a challenge to the recognition of an organization by the Commission
as the representative of a certain segment of the racing industry in the State,
considering that certain sections of Business Regulation Article, Title 11,
Annotated Code of Maryland, require the:
(1)
Consent of certain organizations; and
(2) Distribution of funds to a certain
organization.
B.
Petition.
(1) An organization may petition
the Commission for recognition as the organization representing a majority of
the:
(a) Harness owners and trainers licensed
in the State;
(b) Thoroughbred
owners and trainers licensed in the State;
(c) Harness breeders in the State;
or
(d) Thoroughbred breeders in the
State.
(2) In order for
the Commission to act on any petition submitted under §B(1) of this
regulation, an organization shall submit evidence demonstrating that at least
15 percent of the individuals in the applicable segment of the racing industry
support the petition.
(3) The
evidence submitted under §B(2) of this regulation, for each individual
supporting the petition, shall consist of the individual's:
(a) Printed name;
(b) Signature; and
(c) License number issued by the Commission
for the current year, if applicable.
C. Action by the Commission.
(1) Upon receipt of the petition, the
Commission shall:
(a) Provide notice that a
petition has been received by the Commission to:
(i) The petitioner,
(ii) The organization currently recognized as
representing a majority of that segment of the racing industry, and
(iii) Other interested parties, if any;
and
(b) Verify the
status of the individuals who have signed in support of the petition.
(2) If the Commission determines
that the petition contains the required number of valid signatures, it shall
announce at a public meeting:
(a) That the
Commission will conduct an election to determine which organization is to be
recognized by the Commission as representing a majority of that segment of the
racing industry; and
(b) The dates
that the Commission sets regarding the mailing, return, and counting of the
ballots.
(3) The dates
set by the Commission under §C(2)(b) of this regulation may be changed by
the Commission, and the organizations involved shall be promptly informed of
the new dates and the reasons for the change.
D. If an election is announced, funds
accruing to the organization currently recognized as representing that segment
of the racing industry, either by law or by contract, may be held in escrow
from the date the election is announced until the date the result of the
election is determined.
E. Ballots.
(1) Ballots shall be printed and mailed by
the Commission.
(2) The ballots
shall:
(a) Be sequentially
numbered;
(b) Contain:
(i) The name of the individual eligible to
vote,
(ii) The names of the
competing organizations in alphabetical order and a selection block next to the
name of each organization, and
(iii) A signature line;
(c) Set forth the date by which the ballot
must be returned;
(d) Inform the
individual eligible to vote that a ballot is not counted if the:
(i) Individual is not currently
licensed,
(ii) Individual's
application for renewal, accompanied by the appropriate fees, is received by
the Commission after the deadline set by the Commission for the return of a
ballot,
(iii) Ballot is not signed
by the individual, or
(iv)
Indication of the selected organization is not clear; and
(e) Request any other information the
Commission may consider appropriate.
(3) If the election is in regard to an
owners' and trainers' organization for a certain breed of horse, a ballot shall
be sent to the following for the breed of horse involved:
(a) Each owner and trainer licensed in the
State during the current year, up to and including the day the election is
announced; and
(b) If the election
is announced before June 30th of the current year, each owner and trainer
licensed in the State on December 31st of the previous year who is not yet
licensed for the current year.
(4) If the election is in regard to a
breeders' organization, §E(2)(d)(i) and (ii) of this regulation does not
apply, and:
(a) If the election is for a
standardbred breeders' organization, a ballot shall be sent to each individual
recognized by the administrator of the breeding program as the owner or lessee
of a:
(i) Dam at the time of breeding that
had any of its produce registered with that program in the last 2 calendar
years,
(ii) Stallion that has been
registered with the Advisory Committee as a Maryland stallion and stood in
Maryland during the latest breeding season, or
(iii) Dam that was bred in Maryland within
the last 2 calendar years to a stallion registered with the Advisory Committee
as a Maryland stallion; or
(b) If the election is for a thoroughbred
breeders' organization, a ballot shall be sent to each individual who
registered a horse in the Maryland Bred Registry at least once in the last 3
calendar years.
(5) The
mailing date of the ballots may not be later than 30 days after the public
meeting of the Commission at which an election is announced.
(6) The deadline for the return of the
ballots may not be less than 15 days after the mailing date.
(7) When a ballot is returned to the
Commission, it shall be verified against the mailing list of eligible voters
and the corresponding ballot number.
F. A ballot sent to an individual qualified
to receive a ballot under the provisions of §E(3)(b) of this regulation
may not be counted unless the individual becomes licensed before the date the
ballots are to be returned as set by the Commission under §C(2)(b) of this
regulation.
G. Ballot Count.
(1) Following the close of business on the
date set by the Commission for the return of the ballots, the staff of the
Commission shall promptly count the ballots.
(2) The Commission shall provide adequate
notice to each competing organization of:
(a)
The date, time, and place the ballots will be counted; and
(b) The ability of a representative from each
of the competing organizations to be present for the counting of the
ballots.
(3) The
organization receiving a majority of the votes properly cast shall be
designated as the organization representing a majority of that segment of the
racing industry.
H.
Confidentiality.
(1) Except as provided in
this regulation, the vote of an individual shall be kept
confidential.
(2) The Commission
shall make available for inspection a:
(a)
List of those individuals to whom the ballots were mailed; and
(b) Current list of those individuals who
voted.
I.
Challenges.
(1) An individual wishing to
challenge any aspect of the election procedure shall file a written statement
to that effect with the Commission within 5 business days of the occurrence
about which the individual objects.
(2) A statement filed in accordance with
§I(1) of this regulation shall:
(a)
Contain the specifics of the challenge; and
(b) Establish, in the discretion of the
Commission, a prima facie showing that this regulation has been
violated.
(3) If the
Commission determines that:
(a) There is a
prima facie showing that this regulation has been violated, the Commission
shall schedule a hearing and give notice to all interested parties;
or
(b) There is not a prima facie
showing that this regulation has been violated, the Commission shall deny the
challenge.
(4) At a
hearing convened under §I(3)(a) of this regulation, the validity of the
challenge shall be determined by the Commission.
(5) The Commission may, in its discretion,
stay the operation of the election until the challenge is finally
decided.
J. Funds.
(1) If a timely challenge has been received,
the Commission may order that the escrow of funds, as provided under §D of
this regulation, continue, pending a final decision on the challenge.
(2) Any funds held in escrow shall be
released to the winning organization after the counting of the ballots if:
(a) A timely challenge has not been received
by the Commission; or
(b) The
Commission has denied all challenges.
K. The Commission's recognition of an
organization as representing a majority of a certain segment of the racing
industry may not be challenged within 365 days of the time recognition becomes
final.