Business Regulation (GBR) — Title 11. Horse Racing

In this title the following words have the meanings indicated.

“Breakage” means the odd cents that remain after all successful bettors are paid to the next lowest multiple of 10 cents.

“Central Repository” means the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services.

“Commission” means the State Racing Commission.

“Handle” means the gross amount, less refunds, of money bet.

“Harness racing” means the racing of horses that trot or pace in harness while pulling drivers in sulkies.

“Intertrack betting” means:

“License” means a license issued by the Commission to hold a race meeting.

“Licensee” means a person who has been awarded racing days for the current calendar year.

“Mile thoroughbred racing” means thoroughbred horse races at a track that is at least 1 mile long.

“Multiple mutuel pool” means a separate pari-mutuel betting pool in which an interest is represented by a single bet on 2 or more horses.

“Mutuel pool” includes a multiple mutuel pool and a regular mutuel pool.

“Pari-mutuel betting” means the system of betting in which those who successfully bet on horses that finish in specified positions share the mutuel pool, less the takeout and the breakage.

“Purse” means the prize money divided among the owners of horses that finish in specified positions in a race.

“Race meeting” means a period of time to hold racing that extends between specific dates over a number of racing days at a single track.

“Racing” includes:

“Receiving track” means a track where pari-mutuel betting is done on races held at another track.

“Regular mutuel pool” means a separate pari-mutuel betting pool in which an interest is represented by a single bet on 1 horse.

“Sending track” means a track where a race is held live or by interstate simulcast and is sent simultaneously by video signal to a receiving track or a satellite simulcast facility under Subtitle 8, Part III of this title.

“Special thoroughbred racing” means thoroughbred horse racing held by the Maryland State Fair and Agricultural Society, Inc., or the Maryland-National Capital Park and Planning Commission.

“Takeout” means the part of the handle that is not returned to successful bettors but is otherwise allocated under this title.

“Track” means a place where racing is held.

This title is statewide and exclusive in its effect.

A county, municipal corporation, or other political subdivision of the State may not:

the Elkridge-Harford Point to Point;

the Grand National;

the Marlboro Trials;

the Maryland Hunt Cup;

the Potomac Trials;

a race at the Cape Pine Farm in Church Hill, Queen Anne’s County;

a race held by the Pocomoke City Fair Committee, Inc. on any day during and in conjunction with the Great Pocomoke Fair; and

any other steeplechase or hunt-type race.

The Commission consists of 9 members, appointed by the Governor with the advice and consent of the Senate.

At the time of appointment and qualification:

Before taking office, each appointee to the Commission shall take the oath required by Article I, § 9 of the Maryland Constitution.

The Governor shall designate a chairman from among the members of the Commission.

Except as provided in § 11-310 of this title, a majority of the members then serving on the Commission is a quorum.

The Commission shall meet in the State, at the times and places that the Commission determines.

Each member of the Commission is entitled to:

While in office, each member of the Commission shall be covered by a surety bond or an insurance policy of the type and in the amount of coverage determined by the State Treasurer under § 5–108 of the State Government Article.

The executive director shall:

With the approval of the Commission, the executive director shall set the conditions under which a licensee must add to, change, make a reasonable improvement to, or repair property that a licensee owns or leases for racing.

The executive director is entitled to:

With the approval of the Commission and, except as otherwise provided by law, subject to the provisions of the State Personnel and Pensions Article, the executive director shall appoint a staff of the Commission.

Each member of the staff of the Commission, steward, and harness judge is entitled to:

An individual who holds a position under the Commission may not hold an official relation to a licensee or hold any stocks, bonds, or other financial interest in a licensee.

On the recommendation of the executive director, the Commission may employ additional employees or agents, including auditors, experts, guards, inspectors, a breathalyzer operator at each harness racing track, scientists, Commission secretaries, specimen collectors, veterinarians, and others whom the Commission considers to be essential at or in connection with a race meeting in the best interests of racing.

The licensee who holds the race meeting for which an additional employee is used shall pay:

A licensee who holds a race meeting shall employ and pay the officials at the race meeting, other than stewards and harness judges, including each clerk of the course, clerk of the scales, handicapper, paddock judge, patrol judge, placing judge, racing secretary, starter, assistant starter, and timer.

Notwithstanding any other provision of this title, if a licensee is required to allocate 0.25% of handle to either the Maryland Race Track Employees Pension Fund or the Maryland Harness Track Employees Pension Fund, the licensee shall first pay from the allocation any amounts required to be paid by the licensee under subsection (b) of this section and the remainder shall be paid to the appropriate pension fund.

Each law enforcement officer shall cooperate with the Commission to enforce this title.

On request of the Commission, the Governor may order the Police Commissioner of Baltimore City or the sheriff of a county to assign enough law enforcement officers to prevent unauthorized racing.

Besides its other powers under this title, the Commission has the powers necessary or proper to carry out fully all the purposes of this title.

Except as provided in subsection (b) of this section, the Commission may:

The Commission may not adopt regulations that allow:

The Commission may:

The Commission may require that an employee or official of the licensee be removed from the job.

The Commission may require that a licensee keep financial records in the way that the Commission determines.

The Commission may administer oaths.

The Commission may issue a subpoena for the attendance of a witness to testify or to produce evidence.

The Commission may maintain a testing laboratory and have tests done elsewhere.

On or before September 15 of each year, the Commission shall submit a report to the Secretary and, in accordance with § 2–1257 of the State Government Article, the Legislative Policy Committee about the preceding calendar year.

Each report shall include:

record ownership;

stock or other ownership in an entity in a chain of parent and subsidiary or affiliated entities, any 1 of which participates in the capital or profits of a licensee, regardless of the percentage of ownership involved;

an interest that entitles a person to benefits substantially equivalent to ownership by an agreement, relationship, or other arrangement even though the person is not an owner of record; and

unless there are special circumstances, ownership of a security by a relative of an individual who lives in the home of the individual.

An applicant for a license shall submit to the executive director of the Commission an application:

The application shall state:

The Commission shall issue a license to each applicant who:

A license shall state:

If a licensee does not hold racing on the full number of its authorized racing days because of bad weather conditions, the Commission may award to the licensee replacement races or racing days.

Subject to the hearing provisions of §§ 11-309 and 11-310 of this subtitle, the Commission may deny a license to an applicant or discipline a licensee in accordance with this section.

The Commission may deny a license to any applicant for any reason that the Commission considers sufficient.

Except as otherwise provided in § 10-226 of the State Government Article, before the Commission takes any final action under § 11-308 of this subtitle, it shall give the person against whom the action is contemplated an opportunity for a hearing before the Commission or, as provided under § 11-310 of this subtitle, a hearing committee.

The Commission shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.

If, after due notice, the person against whom the action is contemplated does not appear, nevertheless the Commission may hear and determine the matter.

The Commission may delegate to a hearing committee of at least 3 of its members the power to hold adjudicatory proceedings under this title, including evidentiary hearings.

On request of the Commission, the following individuals shall give the Commission their fingerprints:

The Commission shall:

The Commission shall require a licensee, and each officer or stockholder of a licensee, to disclose to the Commission each financial interest that the person has in racing.

On or before the 90th day following the end of a licensee’s fiscal year, the licensee shall submit to the Commission in the form that the Commission requires:

The audited statements of all licensees shall be sent to the Governor and, subject to § 2-1257 of the State Government Article, to the General Assembly.

The Commission shall require each licensee to keep records that show the beneficial ownership of the stock of the licensee, whether or not the beneficial ownership is registered or stated on the stock.

Notwithstanding the affidavit requirements of this section, the Commission may excuse the reporting of beneficial ownership that is less than 2% of the licensee.

Before a prospective buyer buys a majority controlling interest in a licensee, the Commission shall review the personal and financial background of the prospective buyer.

Before a license or racing days may be transferred to a buyer or a lessee of a track:

At least 30 days before the owner of a track enters into a contract to sell the track, the owner shall provide confidential notice of the contract to the governing body of the jurisdiction where the track is located.

contracts to pay money;

sets a salary, fee, or compensation to be paid; or

builds, extends, or improves a track or structure on property that the licensee owns or leases.

The Maryland Backstretch Employees Pension Fund shall be administered by the organization that represents a majority of the owners and trainers who race thoroughbred horses in the State.

The Maryland Race Track Employees Pension Fund shall be administered by representatives of:

The Maryland Harness Track Employees Pension Fund shall be administered by representatives of each harness racing licensee and its employees.

the State share of daily licensee fees;

pari–mutuel taxes;

the impact aid under § 11–812 of this title;

money from uncashed pari–mutuel tickets that are from bets made into the betting pools of licensees;

any permit fees under §§ 11–820 and 11–832 of this title;

subject to § 11–403(a)(9) and (b) of this subtitle, money from the State Lottery Fund distributed under § 9–120(b) of the State Government Article; and

any fines collected under § 11–1002(d) of this title.

The Comptroller shall pay from the Special Fund an annual grant of:

If the Maryland State Fair remains at the Timonium Fair Grounds, the Comptroller shall pay from the Special Fund an annual grant of:

Any amounts paid by the Comptroller for the purposes specified under subsections (a)(8) and (b) of this section shall remain available for those purposes and may not be used for any other purpose.

In any year, payments required under this section may not be less than the total allocated for 140 days of live racing at each track.

If in any fiscal year revenues to the Special Fund established under § 11–402 of this subtitle are insufficient to fully fund all grants required under §§ 11–403 and 11–404 of this subtitle, the Comptroller shall proportionally reduce the amount of payments required under §§ 11–403(a)(2) and (4), 11–403(c)(2), and 11–404 of this subtitle.

If in any fiscal year revenues to the Special Fund established under § 11–402 of this subtitle are sufficient to fully fund all grants required under §§ 11–403 and 11–404 of this subtitle, after all required deductions from the Special Fund are made, the Comptroller shall pay from the Special Fund an annual grant of:

The fiscal officer of each subdivision that is eligible to receive money under § 11-404 of this subtitle shall submit a written certification to the Comptroller and, subject to § 2-1257 of the State Government Article, the Department of Legislative Services on or before November 1 of each year.

The fiscal officer’s certification shall state:

50% to the Maryland Agricultural Education and Rural Development Assistance Fund established under § 2-206 of the State Finance and Procurement Article, with one-third of these funds to be allocated to support the operations of the Rural Maryland Council; and

50% to be allocated in the following way:

If an applicant qualifies for a license under this title, the Commission shall send the applicant a notice stating:

Before the Commission may issue a license to an applicant, the applicant shall pay to the Commission a license fee of $25 for each racing day of a race meeting.

A licensee shall pay each year $3,000 to the Maryland Horse Breeders Association, Inc.

A licensee shall pay to the Commission within 10 days after each racing day the State tax imposed in this subtitle on the handle for that racing day.

A licensee or an agent of the licensee shall submit with the daily tax payment a statement under oath of the handle for that day.

The Commission shall pay promptly to the Comptroller all taxes collected under this section.

Except as provided in subsection (b) of this section, the Commission may not issue a license, or award racing days, for racing at a mile track.

The Commission may issue a license and award racing days only to the Maryland Jockey Club, Inc., or a successor thoroughbred racetrack operator designated by the Maryland Stadium Authority under § 10–646.1 of the Economic Development Article.

The decision of the Commission on the award of a racing day is final.

on receipt of the appropriate license fees; and

with the express consent of the owner or lessee of the track to which the transfer is made.

Except as otherwise provided in this section, the Commission shall hold a public hearing before the Commission awards, for racing at a particular track, racing days that:

The Commission shall:

The Commission:

Except as provided in subsection (b) of this section, a licensee shall deduct from the handle:

Money that remains after deductions are made under subsection (a) of this section shall be returned as winnings to successful bettors.

Except as provided in § 11-516 of this subtitle, the takeout that a licensee deducts from the handle of a race shall be allocated in accordance with this section.

A licensee shall:

From the amount that a licensee deducts from each regular mutuel pool, the licensee shall:

From the amount that a licensee deducts from each multiple mutuel pool on 2 horses, the licensee shall:

From the amount that a licensee deducts from each multiple mutuel pool on 3 or more horses, the licensee shall:

Notwithstanding § 11-515 of this subtitle, the amount of the takeout relating to purses, the Maryland-Bred Race Fund, and the amount retained by the licensee may be allocated in accordance with the terms of a written agreement signed by the authorized representatives of:

Nothing in this section may be construed to permit the licensee to in any way alter the mandatory takeout allocated to the Commission for the State tax.

to the Maryland-Bred Race Fund, 1% of each mutuel pool;

to the Commission, for State tax, 4.09% of each mutuel pool;

to purses, 5% of each regular mutuel pool, 8% of each multiple mutuel pool on 2 horses, and 14% of each multiple mutuel pool on 3 or more horses; and

to the licensee, 6.91% of each regular mutuel pool and 5.91% of each multiple mutuel pool, from which the licensee shall pay 0.25% of all pools to the Maryland Race Track Employees Pension Fund.

In this section, “open purse” means any purse, except for one offered in a race funded by the Maryland–Bred Race Fund.

The Commission may direct a deduction from open purse money of 0.25% of all mutuel pools to be paid to the Maryland Backstretch Employees Pension Fund.

Subject to the approval of the Commission, the licensees and an organization that represents a majority of the owners and trainers in the State shall agree on a formula for distributing open purse money.

The formula shall distribute approximately 85% of the open purse money to the overnight races of the current year and approximately 15%, but not more than 17%, to the stakes races of the current year.

The organization that represents a majority of the owners and trainers in the State shall set an amount not less than 1% but not more than 3% that shall be deducted from all open purses and paid to the organization.

Until the conveyance required under subsection (d) of this section, the owner of the Bowie Race Course Training Center shall operate the Center as a thoroughbred training facility to provide more stall space for a race meeting that a licensee holds.

Until the conveyance required under subsection (d) of this section, the owner of the Bowie Race Course Training Center is responsible for the cost to improve, maintain, and operate the Center.

As long as the Bowie Race Course Training Center is used for the purpose specified in subsection (a) of this section, the Commission shall have general regulatory jurisdiction over the Center to:

The requirements of this section are established in recognition of the significance of the Preakness Stakes to the State.

The Preakness Stakes may be temporarily transferred to another track in the State only:

If the Preakness Stakes is transferred out of the State, the Commission may:

In addition to the other provisions of this subtitle, in accordance with the sovereign power of the State and the provisions of Article III, §§ 40 and 40A of the Maryland Constitution, and subject to subsections (b) and (c) of this section, the State may acquire by purchase or condemnation for public use with just compensation some or all of the following real, tangible, and intangible private property, including any contractual interests or intellectual property:

All proceedings for the condemnation for public use of the private property described under subsection (a) of this section shall be in accordance with the provisions of Title 12 of the Real Property Article and Title 12, Chapter 200 of the Maryland Rules.

Pursuant to the provisions of Article III, § 40A of the Maryland Constitution, as applicable, the private property described under subsection (a) of this section may be taken immediately on payment for the property consistent with the procedures of §§ 8–334 through 8–339 of the Transportation Article.

In this section, “Arabian breed horse” means a horse that:

A licensee at Pimlico Race Course or Laurel Park may conduct live racing of Arabian breed horses if:

The purse for the Maryland International shall be funded by the Special Fund established under § 11–402 of this title.

The takeout provisions of this subtitle shall apply to the Maryland International.

The licensee shall pay all taxes and fees associated with the Maryland International that would otherwise be imposed for a thoroughbred race.

The Maryland International shall be conducted only with the approval of the Commission.

The licensee may make the Maryland Lottery and Gaming Control Agency a sponsor of the Maryland International under terms agreed on by the licensee and the Agency.

The State Fair Society shall pay to the county treasurer of the county where the fair or exhibition is held, for the use of the county, a fee of $50 for each racing day of the race meeting.

The Commission may authorize the State Fair Society to transfer a race meeting from the State Fair Society’s own track to the track of a mile thoroughbred racing licensee:

If the State Fair Society ends special thoroughbred racing at the Timonium Race Course, the racing days that were awarded to it may be awarded to a mile thoroughbred licensee on the same terms as the additional racing days under § 11-511 of this subtitle.

If racing is discontinued at the Timonium Race Course:

On all races the State Fair Society holds each year, the State Fair Society may keep:

For each race that the State Fair Society holds, the State Fair Society shall allocate to purses:

The State Fair Society shall allocate to the Maryland-Bred Race Fund:

The State Fair Society shall allocate 0.25% of the mutuel pools to the Maryland Race Track Employees Pension Fund.

In this section, “Park and Planning Commission” means the Maryland-National Capital Park and Planning Commission.

The State Racing Commission shall issue a special thoroughbred racing license to the Park and Planning Commission to hold racing in 4 one-day race meetings at the Prince George’s Equestrian Center.

The racing days shall be held:

Repealed.

An officer of the Park and Planning Commission may not receive a salary or dividends from racing authorized under this section.

In this part the following words have the meanings indicated.

“Advisory Committee” means the Maryland-Bred Race Fund Advisory Committee.

“Fund” means the Maryland-Bred Race Fund.

“Fund Race” means a race funded by the Maryland-Bred Race Fund.

The Governor may remove a member of the Advisory Committee for incompetence or misconduct.

The member of the Commission who is on the Advisory Committee is the chairman of the Advisory Committee.

The term of the chairman of the Advisory Committee is 1 year.

The Advisory Committee shall determine the times and places of its meetings.

A member of the Advisory Committee:

The Commission shall:

The Commission shall:

Within 5 days after a race meeting ends, the licensee shall pay to the Commission, to be held in the Fund, all money that is allocated to the Fund under this title but that was not disbursed during the race meeting.

On recommendation of the Advisory Committee, the Commission may allocate a portion of the Fund to races that are restricted to horses conceived, but not necessarily foaled, in Maryland.

If the Commission uses ordinary care to choose the depository bank or trust company, the members are not personally liable for loss to the Fund because of failure, insolvency, or other fault of the depository bank or trust company.

Each mile thoroughbred racing licensee and the Maryland State Fair and Agricultural Society, Inc., shall provide for the running of races known as the Maryland-Bred Fund Races.

The Commission may approve the running of a Maryland-Bred Fund Race at a thoroughbred track outside the State.

the breeder of the horse has maintained a place of abode in Maryland for more than 9 months immediately before registration;

the breeder of the horse keeps breeding stock continually in Maryland;

the horse was conceived in Maryland during the previous season;

the horse’s dam was sent to Maryland to foal and after foaling was covered only by a Maryland stallion during the season of the horse’s birth; or

if the horse’s dam dies, is permanently retired, or is certified by a veterinarian as unable to be bred, the horse resided in the State for at least 6 months after the horse was foaled.

On recommendation of the Advisory Committee, the Commission shall set:

The Commission shall set the amount of each purse and the conditions for each Fund Race in time to allow a licensee who provides for a Fund Race to include the purse and conditions in the stake book and condition book of the licensee.

A licensee who provides for a Fund Race:

A purse, authorized under this part and paid in a Fund Race, is specifically excluded from breeders’ bonuses, purses, or stakes that are paid or offered by licensees in races other than Fund Races as determined by agreement or formula between a licensee and an organization that represents a majority of the owners and trainers.

If there are fewer than 5 separate qualified entries in a Fund Race, the Commission shall cancel the Fund Race.

If the Commission cancels a Fund Race, the Commission shall give notice to the licensee in time to allow the licensee to schedule a substitute race.

Subject to § 11-610 of this subtitle, if an applicant qualifies for a license under this title, the Commission shall send the applicant a notice stating:

Before the Commission may issue a license to a person, the person shall pay to the Commission a license fee of $25 for each racing day of the race meeting.

licenses to more than 3 racing associations;

a license for use in Carroll, Dorchester, Frederick, Montgomery, or Wicomico County; or

more than 1 license for use in any 1 county.

The Commission may award for any calendar year up to the number of racing days requested by an applicant.

The decision of the Commission on the award of a racing day is final.

on receipt of the appropriate license fees; and

with the express consent of the owner or lessee of the track to which the transfer is made.

Except as otherwise provided in this section, the Commission shall hold a public hearing before the Commission awards, for racing at a particular track, racing days that:

The Commission shall:

The Commission:

If an average handle is over $600,000, the takeout shall be:

If the average handle is $600,000 or less, the takeout shall be:

Money that remains after deductions are made under this section shall be returned as winnings to successful bettors.

allocate 0.50% of each mutuel pool to the Commission as State tax;

allocate 0.25% of each mutuel pool to the Maryland Harness Track Employees Pension Fund;

keep 16.25% of each regular mutuel pool;

keep 18.25% of each multiple mutuel pool on 2 horses; and

keep 24.25% of each multiple mutuel pool on 3 or more horses.

From a licensee’s share of the takeout on each mutuel pool, the licensee whose average handle is over $600,000 shall allocate equally to the Sires Stakes Program and the Foaled Stakes Program of the Maryland Standardbred Race Fund the following amounts:

From the licensee’s share of the takeout, the licensee shall allocate 0.50% on the part of an average handle over $150,000 to pay for:

From the licensee’s share of the takeout on each multiple mutuel pool on 2 horses, the licensee shall allocate at least 1% of the mutuel pool as follows:

From the licensee’s share of the takeout on each multiple mutuel pool on 3 or more horses, a licensee shall allocate at least 6.5% of each mutuel pool as follows:

allocate 0.32% of each mutuel pool to the Commission as State tax;

subject to § 11–618 of this part, allocate 0.25% of each mutuel pool to the Maryland Harness Track Employees Pension Fund;

allocate for purses 0.18% of each mutuel pool, or an amount that is otherwise agreed to by the licensee and the organization representing a majority of the harness owners and trainers in the State, which shall provide revenue in addition to any other funds set aside for purses by private parties;

keep 18.00% of each regular mutuel pool;

keep 20.00% of each multiple mutuel pool on 2 horses; and

keep 26.00% of each multiple mutuel pool on 3 or more horses.

From a licensee’s share of the takeout on each mutuel pool, the licensee whose average handle is $600,000 or less shall allocate 1.75% to increased purses.

From the licensee’s share of the takeout on each mutuel pool, a licensee whose average handle is over $150,000 shall allocate equally to the Sires Stakes Program and the Foaled Stakes Program of the Maryland Standardbred Race Fund the following amounts:

A licensee whose average handle is $150,000 or less shall allocate equally to the Sires Stakes Program and the Foaled Stakes Program of the Maryland Standardbred Race Fund:

From the licensee’s share of the takeout, the licensee shall allocate 0.50% on the part of an average handle over $150,000 to pay for:

From the licensee’s share of the takeout on each multiple mutuel pool on 2 horses, the licensee shall allocate at least 1% of the mutuel pool as follows:

From the licensee’s share of the takeout on each multiple mutuel pool on 3 or more horses, a licensee shall allocate at least 6.5% of each mutuel pool as follows:

deduct the fee for a driver from the purse of an owner; and

pay the fee to the driver not later than 7 work days after the last day of the month in which the driver earns the fee.

If the estimated tax paid by a licensee is less than 75% of the total tax due at the end of a race meeting, the Comptroller may assess a penalty of 25% of any additional tax due at the end of the race meeting.

The Commission promptly shall send to the Comptroller all taxes and estimated taxes it collects.

In this part the following words have the meanings indicated.

“Advisory Committee” means the Maryland Standardbred Race Fund Advisory Committee.

“Fund” means the Maryland Standardbred Race Fund.

“Fund Race” means a race funded by the Maryland Standardbred Fund.

A member of the Advisory Committee shall be a resident of the State.

The Governor may remove a member of the Advisory Committee for incompetence or misconduct.

The member of the Commission who is on the Advisory Committee is the chairman of the Advisory Committee.

The Advisory Committee shall set the times and places of its meetings.

A member of the Advisory Committee:

The Commission shall:

The Commission shall:

Within 5 days after a race meeting, the licensee shall pay to the Commission to be held in the Fund all money that is allocated to the Fund under this title but was not disbursed during the race meeting.

If the Commission uses ordinary care to choose the depository bank or trust company, members are not personally liable for loss to the Fund because of failure, insolvency, or other fault of the depository.

A horse shall be registered with the Advisory Committee before the horse may start in a race of the Foaled Stakes Program.

A horse may be registered with the Advisory Committee only if the horse was foaled in Maryland as shown by a foal certificate from the United States Trotting Association and:

the sire is registered with the United States Trotting Association and with the Advisory Committee;

the sire was at stud in the State for a full breeding season; and

the offspring was conceived during that breeding season.

A Fund Race shall be held in accordance with regulations that the Commission adopts on the recommendation of the Advisory Committee.

On recommendation of the Advisory Committee, the Commission shall set:

The Commission shall set the amount of each purse and the conditions for each Fund Race in time to allow a licensee to include the purse and conditions in the stake book and condition book of the licensee.

A licensee may add to any purse in a Fund Race.

A purse, authorized under this part and paid in a Fund Race, is specifically excluded from breeders’ bonuses, purses, or stakes that are paid or offered by licensees in races other than Fund Races, as determined by agreement or formula between a licensee and an organization that represents a majority of the owners and trainers.