If an error occurs in the payment amounts for parimutuel tickets that are cashed or entitled to be cashed and as a result of the error the parimutuel pool involved is not correctly distributed among winning ticket holders, the following will apply:

(1) In the event the error results in an overpayment to the ticket holders the association will be responsible for such payment.

(2) In the event the error results in an underpayment to tickets holders:

(a) The association will accept timely claims for such underpayment, investigate such claims and pay each claim, or a part thereof, that the association determines to be valid, and will notify the claimant if the claim is rejected as invalid.

(b) Any person whose claim is denied by the association may, within fifteen days from the date the denial notice was served, request the executive secretary to determine the validity of the claim. The failure to file such request with the executive secretary within the fifteen days will constitute a waiver of the claim.

(c) The executive secretary will investigate each claim denied, and determine the validity of the claim. Within seven days of service of the executive secretary's determination, the claimant or the association may challenge the executive secretary's determination by requesting a hearing before the commission as provided in WAC 260-08-675.

(d) If no valid claims are presented, or after all filed claims have been resolved, the amount of the underpayment or any part thereof, will be applied to the next available corresponding pool (i.e. exacta pools). If there is no similar pool the underpayment will be applied to the win pool of the first race. Such payment will be publicly announced prior to this day.