(a) For each Texas Derby, the race conditions, the entrance qualifications, and the preference system used to determine race finalists shall be developed by:
(1) the racetrack that is awarded the derby, for a race described by Section 2031.001(a)(1) or (3); or
(2) the respective official state horse breed registries and the official horsemen's organization, for a race described by Section 2031.001(a)(2) or (4).
(b) The race conditions, the entrance qualifications, and the preference system developed under Subsection (a) are subject to review and approval by the executive director.