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<subtitle num="16" heading="Maryland Horse Industry Board" title_num="15" title_heading="Maryland Department of Agriculture">
  <chapter num="01" heading="General Regulations">
    <regulation prefix="Regulation" num=".01" heading="Purpose.">
      <text>The Secretary of Agriculture, under Agriculture Article, Title 2, Subtitles 1 and 7, Annotated Code of Maryland, adopts the following regulations to insure the humane treatment of horses and the safety of horse riders.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Definitions.">
      <paragraph num="A.">
        <text>In these regulations, the following terms have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Board” means the Horse Industry Board.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Horse Establishment” means an establishment that solicits or offers the public any of the following activities:</text>
          <paragraph num="(a)">
            <text>A boarding stable;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>A lesson or rental stable; or</text>
          </paragraph>
          <paragraph num="(c)">
            <text>A rescue or sanctuary stable.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(3)">
          <text>“Operator's license” means that license that the Board has issued entitling a person to operate and maintain a horse establishment.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Exemptions.">
      <paragraph num="A.">
        <text>Horse Racing and Standardbred Stables.</text>
        <paragraph num="(1)">
          <text>Horse racing and standardbred stables are exempt from the regulations of this chapter.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>For purposes of this regulation, “horse racing and standardbred stables” means stables or farms where horses are bred, trained, and rested, for purposes relating to either or both of the following types of racing:</text>
          <paragraph num="(a)">
            <text>The racing of thoroughbreds, whether it be on a flat course or over hurdles; and</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The racing of standardbreds, whether they be trotters or pacers.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Farms Using Horses for Agricultural Purposes.</text>
        <paragraph num="(1)">
          <text>If farms are using horses for agricultural purposes and not for any of the activities listed in Regulation .02B(2) of this chapter, they are exempt from the regulations of this chapter.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>For purposes of this section, “agricultural purposes” includes the following uses:</text>
          <paragraph num="(a)">
            <text>Working or cultivating the soil; and</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Herding or cutting livestock.</text>
          </paragraph>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Operator's License.">
      <paragraph num="A.">
        <text>Required to Conduct Business. Except as provided under §I of this regulation, a person may not operate or maintain a horse establishment without first obtaining an operator's license in at least one of the three different licensing classifications developed by the Board.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Determination by Board. Before the Board may issue an operator's license in a particular class to a person, the Board shall first determine whether that person's horse establishment meets the requirements of that class. The requirements for each licensing class are stated in Regulation .07.</text>
      </paragraph>
      <paragraph num="C.">
        <text>Licensing Classifications. The licensing classifications developed by the Board are based on the three different activities that may be offered at a horse establishment and which, because any one of them is offered, requires that the establishment's operator be licensed. The licensing classifications and their respective activities are the:</text>
        <paragraph num="(1)">
          <text>Boarding stable class, for establishments that solicit or offer to the public to stable horses;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Rescue or sanctuary stable class, for establishments that offer to the public to shelter or keep one or more horses for humane purposes with or without compensation and with or without tax-exempt status; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Lesson or rental stable class, for establishments in which one or more horses are offered to the public to be let for hire, to be ridden or driven, either with or without the furnishing of riding or driving instructions.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>Limitations on Licensee. A person who has been issued an operator's license may:</text>
        <paragraph num="(1)">
          <text>Conduct such business only at the horse establishment shown on his application; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Offer only those activities allowed to be performed in the particular class or classes in which the person is licensed to do business.</text>
        </paragraph>
      </paragraph>
      <paragraph num="E.">
        <text>Who May Apply.</text>
        <paragraph num="(1)">
          <text>Only a person who either owns or is leasing a horse establishment may apply for an operator's license.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>If the owner or lessee of a horse establishment is a corporation or other association, the application shall be made in the name of that corporation or other association.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>If the owner or lessee of the horse establishment is an individual, the application shall be made in that individual's name.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>The Board shall issue the operator's license in the name of the person shown on the application.</text>
        </paragraph>
      </paragraph>
      <paragraph num="F.">
        <text>Application and Renewal Process.</text>
        <paragraph num="(1)">
          <text>A person applying for or renewing an operator’s license shall:</text>
          <paragraph num="(a)">
            <text>Use a Board-approved form which is available on request at the Board's principal office located at 50 Harry S Truman Parkway, Annapolis, MD 21401;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>As established under §C of this regulation, indicate on the application form which class or classes of activities the person intends to do business in for that application year; and</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Pay the nonrefundable fee of $125.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>The Board may not issue an operator's license to a person until that person's horse establishment has passed Board inspection as provided in Regulation .05.</text>
        </paragraph>
      </paragraph>
      <paragraph num="G.">
        <text>Duration of License. After issuance, unless suspended or revoked, an operator's license is effective for a period of 1 year or until the following June 30, whichever occurs first.</text>
      </paragraph>
      <paragraph num="H.">
        <text>Posting Requirements. After issuance, the licensee shall display his operator's license in a conspicuous place on the stable's premises.</text>
      </paragraph>
      <paragraph num="I.">
        <text>If a person holds a livestock dealer's or livestock market license under Agriculture Article, Title 3, Subtitle 3, and is engaged only in the activity under the licensing classification “Sales”, that person need not obtain an operator's license.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Board Inspection of Horse Establishments.">
      <paragraph num="A.">
        <text>Inspection Requirement. The Board shall inspect the horse establishments of the following persons:</text>
        <paragraph num="(1)">
          <text>Those who have applied for an operator's license; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Those who have obtained an operator's license.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Purpose of Inspection.</text>
        <paragraph num="(1)">
          <text>Applicant's Establishment. The Board shall inspect the applicant's establishment to determine whether it meets the requirements provided under Regulation .07 of the class or classes its operator is intending to do business in for that application year.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Licensee's Establishment. The Board shall periodically inspect a licensee's establishment to determine whether it still meets the requirements provided under Regulation .07 of the class or classes its operator is licensed to do business in.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>Consent to Inspection. Immediately on request by the Board or its inspector, the applicant or licensee shall permit Board inspections of the applicant's or licensee's establishment, only during normal business hours.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Establishment's Failure to Pass Inspection.">
      <paragraph num="A.">
        <text>Failure of Applicant's Establishment to Pass Initial Inspection.</text>
        <paragraph num="(1)">
          <text>Initial Inspection. The Board may not issue a license to a person to operate a horse establishment if the establishment fails to pass inspection.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Subsequent Inspection. If an establishment fails to pass its initial inspection, the Board may:</text>
          <paragraph num="(a)">
            <text>Conduct a subsequent inspection after giving the person sufficient time to correct the deficiencies; and</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Issue a license if it finds during the subsequent inspection that the deficiencies have been corrected.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Failure of Licensee's Establishment to Pass Inspection.</text>
        <paragraph num="(1)">
          <text>If, following an inspection, the Board determines that the licensee's establishment does not meet the requirements of the particular class or classes in which the operator is licensed to do business, the following actions shall be taken:</text>
          <paragraph num="(a)">
            <text>The Board shall:</text>
            <paragraph num="(i)">
              <text>Give the licensee written notice of the perceived deficiencies, and</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Schedule an additional inspection, allowing the licensee a reasonable period of time to complete necessary corrective measures;</text>
            </paragraph>
          </paragraph>
          <paragraph num="(b)">
            <text>The licensee, before the additional inspection is scheduled to occur, shall:</text>
            <paragraph num="(i)">
              <text>Complete those measures necessary to correct the perceived deficiencies, and</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Submit evidence to the Board that satisfactory corrective measures have been completed.</text>
            </paragraph>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>If, following the failed first inspection, the licensee does not submit evidence to the Board showing that satisfactory corrective measures have been completed, the Board shall conduct the scheduled additional inspection.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>If, following this second inspection, the Board determines that the licensee's establishment is still deficient in those areas in which it had been given written notice, the same actions outlined in §B(1) of this regulation shall be taken.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>If, following a third inspection, the Board again determines that the licensee’s establishment is still deficient in the areas in which it had been given written notice, the Board shall:</text>
          <paragraph num="(a)">
            <text>Bring formal charges against the licensee; and</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Conduct an administrative hearing in order to determine whether:</text>
            <paragraph num="(i)">
              <text>The operator's license in a particular class or classes should be suspended or revoked for any of the reasons listed in Agriculture Article, §2-715, Annotated Code of Maryland ; or</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>The operator shall pay an administrative penalty as provided under COMAR 15.16.03.</text>
            </paragraph>
          </paragraph>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Licensing Requirements.">
      <paragraph num="A.">
        <text>Compliance with General and Special Requirements. Each person issued an operator's license shall comply with the:</text>
        <paragraph num="(1)">
          <text>General requirements under §B; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Special requirements under §C for the particular class for which that person is licensed.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>General Requirements.</text>
        <paragraph num="(1)">
          <text>The Stable and Area In and Around the Stable. The licensed operator shall ensure that:</text>
          <paragraph num="(a)">
            <text>Each horse under his control is provided shelter, and that the shelter is:</text>
            <paragraph num="(i)">
              <text>Clean,</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Dry,</text>
            </paragraph>
            <paragraph num="(iii)">
              <text>Well-ventilated, but not drafty,</text>
            </paragraph>
            <paragraph num="(iv)">
              <text>Able to afford horses protection in inclement weather,</text>
            </paragraph>
            <paragraph num="(v)">
              <text>Neat and orderly, and</text>
            </paragraph>
            <paragraph num="(vi)">
              <text>Sturdy and in good repair;</text>
            </paragraph>
          </paragraph>
          <paragraph num="(b)">
            <text>Adequate measures are taken in and around the stable to:</text>
            <paragraph num="(i)">
              <text>Prevent excessive manure accumulation, and</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Control flies and rodents;</text>
            </paragraph>
          </paragraph>
          <paragraph num="(c)">
            <text>All fences used to confine horses are sturdy and in good repair;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Each stall occupied by a horse:</text>
            <paragraph num="(i)">
              <text>Is cleaned regularly, and</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Has a bedding of regularly changed straw, shavings, or other suitable material, sufficient enough to maintain the horse in a clean and dry condition;</text>
            </paragraph>
          </paragraph>
          <paragraph num="(e)">
            <text>All tools used to clean and maintain the stable and its immediate area are properly stored when not in use.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>Other Areas. The licensed operator shall ensure that other areas under the operator's control where horses are confined, exhibited, exercised, or permitted to be ridden, are free of hazards.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Food and Water. The licensed operator shall ensure that:</text>
          <paragraph num="(a)">
            <text>Each horse under his control is provided adequate food, water, and salt;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>These items are provided in suitable containers; and</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The food is:</text>
            <paragraph num="(i)">
              <text>Of good quality, free of molds and other contaminates, supplying all the needed nutrients, to maintain a horse depending on its age, reproductive status, level of exercise, and geographic location, and</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Properly stored so as to maintain its quality.</text>
            </paragraph>
          </paragraph>
        </paragraph>
        <paragraph num="(4)">
          <text>Health Care. The licensed operator shall ensure that:</text>
          <paragraph num="(a)">
            <text>Each horse under his control receives:</text>
            <paragraph num="(i)">
              <text>Regular routine care, including but not limited to worming, dental, and foot care, and</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Immediate attention, care, or treatment if it becomes sick, injured, or lame;</text>
            </paragraph>
          </paragraph>
          <paragraph num="(b)">
            <text>Basic first aid supplies are maintained in good order;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>A licensed veterinarian examines a horse, if the Board requires an examination; and</text>
          </paragraph>
          <paragraph num="(d)">
            <text>A horse not be ridden or driven if the caring veterinarian advises against it.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>Special Requirements.</text>
        <paragraph num="(1)">
          <text>Boarding Stable Class. A person who has been issued an operator's license in this class shall comply with the general requirements outlined in §A of this regulation.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Rescue or Sanctuary Class. A person who has been issued an operator’s license in this class shall comply with the general requirements outlined in §A of this regulation.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Lesson or Rental Class. A person who has been issued an operator's license in this class shall, in addition to the general requirements outlined in §A of this regulation, comply with the following:</text>
          <paragraph num="(a)">
            <text>That each horse receives the rest and sustenance it needs each working day, given its age, condition, and the type of activity it performs;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>That each horse tacked and awaiting use has its girths loosened, is protected from the weather, and is not tied to the bit;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>That a horse may not be used for riding or driving purposes if the horse is unfit;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>That tack and related equipment:</text>
            <paragraph num="(i)">
              <text>Is clean,</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Is in sound condition, and</text>
            </paragraph>
            <paragraph num="(iii)">
              <text>Cannot by its adjustment cause physical pain or injury to a horse;</text>
            </paragraph>
          </paragraph>
          <paragraph num="(e)">
            <text>That hoof picks, brushes, curry combs, and other grooming equipment are readily available, clean, and usable;</text>
          </paragraph>
          <paragraph num="(f)">
            <text>That any wagon used is in good condition and that its:</text>
            <paragraph num="(i)">
              <text>Axles are well greased, and</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Brakes are operating.</text>
            </paragraph>
          </paragraph>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".08" heading="Appeals.">
      <paragraph num="A.">
        <text>A person may appeal a decision by the Board:</text>
        <paragraph num="(1)">
          <text>Not to renew an operator's license in a particular class or classes;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>To suspend or revoke an operator's license in a particular class or classes; or</text>
        </paragraph>
        <paragraph num="(3)">
          <text>To impose a civil penalty as provided under COMAR 15.16.03.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Appeals are governed by the Administrative Procedure Act.</text>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §§2-707, 2-711, and 2-712, Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: April 4, 1973</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01 ,.02, .06, .08, .10, .11, .12, and .15 amended effective April 7, 1978 (5:7 Md. R. 522)</annotation>
      <annotation type="History" subtype="Administrative History">(The Board was transferred from the Department of Licensing and Regulation to the Department of Agriculture by Ch. 618 of the Acts of 1980. The transfer was effective on July 1, 1980.)</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01—.17 repealed effective March 19, 1990 (17:5 Md. R. 638)</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01—.08 adopted effective March 19, 1990 (17:5 Md. R. 638)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .02B amended effective April 1, 2013 (40:6 Md. R. 476)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .04 amended effective April 1, 2013 (40:6 Md. R. 476)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .04F amended effective February 28, 1994 (21:4 Md. R. 278)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .05 amended effective April 1, 2013 (40:6 Md. R. 476)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .06 amended effective April 1, 2013 (40:6 Md. R. 476)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .07B amended effective January 2, 1994 (20:26 Md. R. 2028)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .07c amended effective April 1, 2013 (40:6 Md. R. 476)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .08A amended effective April 1, 2013 (40:6 Md. R. 476)</annotation>
    </annotations>
  </chapter>
  <chapter num="02" heading="Maryland Horse Industry Grant Program">
    <regulation prefix="Regulation" num=".01" heading="General.">
      <text>These regulations provide qualifications and guidelines for the allocation of Maryland Horse Industry Board funds for equine-related activities.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Purpose.">
      <text>The purpose of the Maryland Horse Industry Grant Program is to provide funding for equine-related activities. This program will:</text>
      <paragraph num="A.">
        <text>Help the Maryland horse industry support research related to equine health and related issues;</text>
      </paragraph>
      <paragraph num="B.">
        <text>Promote the development and use of horses in the State;</text>
      </paragraph>
      <paragraph num="C.">
        <text>Create public awareness of the value of equine activities as they relate to the preservation of green space and agricultural land; and</text>
      </paragraph>
      <paragraph num="D.">
        <text>Develop and disseminate information concerning the equine industry, including the history and tradition of breeding, and the role of horses in recreational activities.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Definitions.">
      <paragraph num="A.">
        <text>In this chapter, the following terms have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Activity” means economic development, education, marketing, research, or promotion.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Board” means the Maryland Horse Industry Board.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Equine” means relating to the horse family, and includes horses, mules, donkeys, and ponies.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Who May Apply.">
      <paragraph num="A.">
        <text>The Board shall only provide financial assistance to an individual, group, association, organization, or institution for an equine-related activity that meets the program's objectives, as established in this chapter.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Applicants shall demonstrate knowledge, experience, and the capacity of initiating and implementing all aspects of the proposed project.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Application.">
      <paragraph num="A.">
        <text>An application shall contain the following:</text>
        <paragraph num="(1)">
          <text>The project title;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The applicant's name, address, and telephone number;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>A brief biography and qualifications of the project leader;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Brief biographies and qualifications of additional personnel who will work on the project, if applicable;</text>
        </paragraph>
        <paragraph num="(5)">
          <text>The amount of the grant requested;</text>
        </paragraph>
        <paragraph num="(6)">
          <text>A project description, which shall include:</text>
          <paragraph num="(a)">
            <text>The project's objective;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>A general summary of the proposed project;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The value of the project to Maryland's horse industry;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>The proposed start date of the project; and</text>
          </paragraph>
          <paragraph num="(e)">
            <text>The schedule for completion of the project; and</text>
          </paragraph>
        </paragraph>
        <paragraph num="(7)">
          <text>Any additional information the applicant wants the Board to consider during its review of the proposed project.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Only an original application, signed by the project leader and postmarked 30 days before the Board's announced allocation meeting shall be accepted.</text>
      </paragraph>
      <paragraph num="C.">
        <text>An applicant shall submit the application to the Maryland Department of Agriculture, Maryland Horse Industry Board, 50 Harry S Truman Parkway, Annapolis, Maryland 21401.</text>
      </paragraph>
      <paragraph num="D.">
        <text>An application, or corrections to an application, submitted through electronic means may not be accepted.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Board Evaluation.">
      <paragraph num="A.">
        <text>The Board shall decide whether to approve a qualified applicant's application for funding based upon the following criteria of the proposed activity:</text>
        <paragraph num="(1)">
          <text>Value to the industry;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Degree of industry promotion;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Size and scope of activity;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Financial need; and</text>
        </paragraph>
        <paragraph num="(5)">
          <text>Quality of the written presentation.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>The Board shall disapprove an application for any of the following reasons:</text>
        <paragraph num="(1)">
          <text>The application is incomplete or does not comply with these regulations;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Funds are not available; or</text>
        </paragraph>
        <paragraph num="(3)">
          <text>An applicant who is subject to stable licensing under COMAR 15.16.01 fails to possess a current license upon application submission.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>An application disapproved due to lack of funds may be held for consideration by the Board for the next fund cycle.</text>
      </paragraph>
      <paragraph num="D.">
        <text>The Board shall notify the applicant if an application is approved or disapproved within 30 days of the completion of the application review process. If the application is approved, the applicant shall be notified of the amount of the State grant for the project.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Funding Conditions.">
      <paragraph num="A.">
        <text>Upon approval of an application by the Board, the applicant shall execute an agreement that, among other things, shall require the applicant to:</text>
        <paragraph num="(1)">
          <text>Establish and operate the project according to the project description;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Bind any successor in title for the life of the project;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Maintain records as required by the Board;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Allow the Board access to monitor the project to assure that the project is operated in accordance with this agreement; and</text>
        </paragraph>
        <paragraph num="(5)">
          <text>Use the funds received from the Board for only those activities described in the project application.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>An applicant who is subject to stable licensing under COMAR 15.16.01 shall maintain a current stable license.</text>
      </paragraph>
      <paragraph num="C.">
        <text>Grant funds shall be distributed as follows:</text>
        <paragraph num="(1)">
          <text>Upon execution of the agreement, the Board shall award the funds to the applicant; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Upon the project's completion, the applicant shall submit a final report which shall contain:</text>
          <paragraph num="(a)">
            <text>An evaluation of the degree to which the project's objectives were met, as provided in Regulation .05A(6) of this chapter;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>An accounting of the disbursement of all funds, with an itemized list of costs associated with the project; and</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The date and the signature of the applicant certifying that the information presented is true and correct to the best of that individual's knowledge.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>The applicant's final report is subject to an audit by the Board.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".08" heading="Noncompliance.">
      <text>If a person fails to establish or operate a project in accordance with any agreement executed with the Board, that person shall be liable for the full amount of State funds paid for any project that was not implemented or properly executed. If a person violates any regulation contained in this chapter, the Board may deny any current or future fund allocations.</text>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §2-707, Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date:</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01—.08 adopted as an emergency provision effective December 29, 2000 (28:2 Md. R. 97); adopted permanently effective April 2, 2001 (28:6 Md. R. 622)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .06B amended effective March 29, 2004 (31:6 Md. R. 510)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .07 amended effective March 29, 2004 (31:6 Md. R. 510)</annotation>
    </annotations>
  </chapter>
  <chapter num="03" heading="Administrative Penalty Standards">
    <regulation prefix="Regulation" num=".01" heading="Scope.">
      <text>This chapter determines the administrative penalty amount for any person who operates an unlicensed horse establishment or has violated any provision of Agriculture Article, §2-715, Annotated Code of Maryland.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Penalty.">
      <paragraph num="A.">
        <text>Terms Defined. In this chapter, the following terms have the meanings indicated.</text>
        <paragraph num="(1)">
          <text>“Licensee” means a person who is licensed to operate a Horse Establishment.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Member of the Board” means a member of the Horse Industry Board including a Board inspector.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>After a hearing, or an opportunity for a hearing, the Board may impose a penalty on:</text>
        <paragraph num="(1)">
          <text>A person who operates or maintains a horse establishment without a license; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>A licensee who:</text>
          <paragraph num="(a)">
            <text>Refuses to allow a member of the Board to enter and inspect the licensed premises;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Obstructs any member of the Board in the performance of that person’s duties;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Fails to provide suitable food, water, and shelter for a horse under control of the licensee;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Maintains an unsanitary or unfit horse establishment;</text>
          </paragraph>
          <paragraph num="(e)">
            <text>Fails to provide suitable saddles, bridles, harnesses, or other tack or equipment;</text>
          </paragraph>
          <paragraph num="(f)">
            <text>Allows unfit horses to be used for riding or driving purposes;</text>
          </paragraph>
          <paragraph num="(g)">
            <text>Commits an act of cruelty as defined in Criminal Law Article, § 10-601, Annotated Code of Maryland, or allows the commission of an act of cruelty by any other person with relation to any horse under control of the licensee;</text>
          </paragraph>
          <paragraph num="(h)">
            <text>Does any other act that, in the opinion of the Board, taking into consideration the welfare of the horses under the control of the licensee, shows that the licensee is unfit to operate a horse establishment; or</text>
          </paragraph>
          <paragraph num="(i)">
            <text>Fails to comply with the rules and regulations of the Board after receiving a license.</text>
          </paragraph>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Violations for the Purpose of Determining Penalties.">
      <paragraph num="A.">
        <text>Except as provided in §B of this regulation, the Board may impose an administrative penalty up to $2,000 for each violation of this chapter taking into consideration the gravity of the offense as it relates to:</text>
        <paragraph num="(1)">
          <text>The risk of injury to member of the public who may let for hire, to be ridden or driven, a horse at that establishment; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The fitness or welfare of a horse under the control of the licensee.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>For violations of Regulation .02B(1) and B(2)(a)—(b) of this chapter, the Board may impose:</text>
        <paragraph num="(1)">
          <text>For a first violation, a penalty of not less than $500 or more than $1,000;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>For the second violation, a penalty of not less than $1,000 or more than $1,500; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>For the third and any subsequent violation, a penalty of not less than $1,500 or more than $2,000.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Appeal.">
      <paragraph num="A.">
        <text>Any person subject to the Board’s jurisdiction may appeal, according to Agriculture Article, §2-405, Annotated Code of Maryland, the Board's decision to impose an administrative penalty.</text>
      </paragraph>
      <paragraph num="B.">
        <text>An operator shall be notified of this right to appeal.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Penalty Payment.">
      <text>Unless a person appeals, the amount of a penalty shall be paid promptly to the Board.</text>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §§2-701, 2-710, and 2-718, Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: November 16, 2009 (36:23 Md. R. 1818)</annotation>
      <annotation type="History" subtype="Administrative History">Chapter revised effective April 1, 2013 (40:6 Md. R. 476)</annotation>
    </annotations>
  </chapter>
</subtitle>