D. An owner or the authorized agent of an owner of a thoroughbred that will be used solely for horse racing or race horse breeding purposes and that has a certificate of registration or a facsimile of a certificate of registration issued by the jockey club of Lexington, Kentucky or a predecessor organization or a quarter horse that will be used solely for horse racing or race horse breeding purposes and that has a certificate of registration or a facsimile of a certificate of registration issued by the American quarter horse association of Amarillo, Texas is exempt from this section and all other statutes and rules that require an ownership and hauling certificate issued under this section with respect to that horse. This subsection applies to an unweaned foal if his or her dam has the certificate of registration required by this subsection. On the sale or disposition of a horse that is exempt from the ownership and hauling certificate requirements under this subsection, the seller or an authorized agent of the seller shall either:

1. 1. Properly execute and transfer the certificate of registration required under this subsection to the buyer.
2. 2. Complete and date an equine transfer request form issued by the department and give the form and a notarized bill of sale to the buyer. Within thirty days after the transfer of ownership, the buyer shall complete the buyer's portion of the equine transfer request form and shall comply with subsections A and B of this section.

E. Ownership and hauling certificates issued with respect to any equine shall be surrendered to the department or its authorized representative if any of the following occurs:

1. 1. The equine dies.
2. 2. The equine is sold and shipped out of state.
3. 3. The equine is sent to slaughter or is disposed of for humane reasons.