Washington Horse Racing Commission
Meeting Minutes
April 12, 2007

Present were: Carol Smith-Merkulov, Chairperson; Jeff Colliton, Commissioner; Paul George, Commissioner; Dr. Bud Hallowell, DVM, Commissioner; Hartly Kruger, Commissioner; Cindy Evans, Assistant Attorney General; Robert M. Leichner, Executive Secretary; Patty Sorby, Confidential Secretary.

Ms. Cindy Evans, Assistant Attorney General was introduced. She will be representing the Commission during the interim. Ms. Susan Carlson has accepted another position.

Item #1. Approval of the meeting minutes of March 8, 2007.

Commissioner Colliton moved to approve the meeting minutes as submitted. Commissioner George seconded the motion. Unanimously approved.

Item #2. Chairperson’s report.

Chairperson Smith-Merkulov said that most of the past month was spent following the bills in the legislature. Ms. Smith-Merkulov said the bill to allow the Class C meets to simulcast races of regional or national interest during their live meet was passed and on the way to the Governor’s desk for signature.

Commissioner Colliton had visited the meet at Sun Downs and reported that staff had done a good job. The facility looked good, there was six inches of sand added to the track. The outside rail, the new lady jockey’s room, the men’s jockey room all looked in good condition. There were three articles on the front page of the local paper advertising the meet. Mr. Schellinger was very happy and Commissioner Colliton said the grant money had been spent well.

Commissioner Hallowell asked if there was advertising elsewhere for the meet.

Commissioner George said he had not seen any articles in the Yakima paper. He felt that Tri City Horse Racing Association should spend more money on advertising.

Item #3. Emerald Downs and Lottery Commission presentation to Commission members.

Susie Sourwine, Marketing Director, Emerald Downs presented to the Commission the partnership that’s been established between Emerald Downs and the Lottery Commission. The Lottery is placing terminals into the Emerald Downs facility to sell lottery tickets. They have been favorably received. Ms. Sourwine explained the partnership and the advertising that would take place on the terminals for Emerald Downs.

Christopher Liu, Director, Lottery Commission expressed his enthusiasm in working with Emerald Downs. The Lottery has a place in everyday life and he wanted to put horse racing into everyday life by offering promotional opportunities through advertising on the terminals and offering free visits to Emerald Downs by purchasing lottery tickets. Mr. Liu commented that he had been listening to the conversation regarding the advertising on the small race meets in Eastern Washington, he felt that with very little notice he may be able to get some advertising done through the lottery terminals located in Eastern Washington advertising the small meets race dates.

Commissioner Kruger said the opportunity to have Emerald Downs and the Lottery work together was a very positive move and congratulated Susie Sourwine. Ms. Sourwine in turn congratulated Mr. Adrian Buchan as this was his project.

Item #4. Emerald Downs’ report.

Mr. Ron Crockett, President, Northwest Racing Associates gave an overview of the past month’s wagering and said the money for purses was following projections. Mr. Crockett stated the situation with the grooms had been resolved.

Commissioner Kruger asked what was the current horse population. Mr. Crockett said they may get some horses from Bay Meadows because they may be closing for good.

Item #5. Emerald Downs’ handicapping contests:

a. Report on March 10, 2007 All Stakes Saturday Handicapping contest.

Mr. Buchan provided a recap. The contest was well received with fifty handicappers entered. All participants received a prize with the top four winners given cash prizes.

b. Request for May 27, 2007 Emerald Horseplayer Handicapping Contest.

Mr. Buchan discussed the request to conduct a handicapping contest on May 27. This contest has a fifty dollar entry fee and will be offered to a maximum of one hundred contestants. All participants will receive a prize and the top five placements will receive a cash prize.

Commissioner Kruger moved to approve the May 27 Emerald Horseplayer Handicapping Contest. Commissioner Colliton seconded the motion. Unanimously approved.

Item #6. Emerald Downs’ – Youbet.com contract – status report.

Mr. Leichner explained that the contract between Emerald Downs and Youbet.com and the contract between Emerald Downs and Xpressbet.com would expire soon. Both contracts have been renewed and will expire March 31, 2008.

Mr. Crockett said the advance deposit wagering handle was up over last year and felt this was good new.

Item #7. Satellite wagering facility change in Kittitas County to the Wild Goose Casino in Ellensburg, WA.

Mr. Leichner said a request had been received from Emerald Downs to relocate the Kittitas County satellite wagering facility from Cle Elum to Ellensburg.

WHRC Investigator Dick Smith presented the background report to the Commissioners and that staff recommended approval.

Commissioner Colliton moved to approve the request to relocate the satellite wagering facility to the Wild Goose Casino in Ellensburg, Washington. Commissioner Kruger seconded the motion. Unanimously approved.

BREAK 10:25 AM. Reconvene 10:33 AM.

Item #8. Discussion of draft rules for Washington Bred horses.

Mr. Leichner presented proposed language for discussion by stating the rules presented today for Chapter 260-16 WAC Washington-bred Horses, were draft rules, for comments and discussion only and to receive input from the public for corrections or changes. These draft rules have not been filed with the Code Reviser.

Mr. Leichner explained the amendment to WAC 260-16-040 and said the one Washington bred only race per day would apply at all race tracks including the non-profit race meets.

WAC 260-16-050 was streamlined to recognize the organizations to certify the foal as a Washington bred in Thoroughbreds, Quarter Horses, Appaloosas and Arabians and Paint.

WAC 260-16-065 amended sections of owner’s bonus and breeder’s award distribution. Specific formulas for distribution of breeder’s awards were developed. The WHRC would distribute owners and breeders awards.

Mr. Leichner said a new section was added dealing with the non-profit tracks exemption from collection of and distribution of owner and breeder’s awards.

Chairperson Smith-Merkulov asked how much it would cost to distribute the breeder awards. Mr. Leichner stated it would cost approximately $4000.00 and that staff was available to do this.

Public comment was received from Char Clark via email showing support for current practices by the Washington Thoroughbred Breeders Association on distributing breeder awards.

Mr. Crockett asked for a clarification on the one Washington bred race per day. In reading the proposed rules, he asked if the Washington bred only race didn’t fill, you would then go to a substitute race, if those don’t fill you go to an extra, and if those don’t fill you would cancel. So those few Washington bred’s that were in that first race won’t get the opportunity to race. Mr. Leichner confirmed Mr. Crockett’s understanding.

Ralph Vacca, General Manager, asked under what authority could the WHRC go against a statute requirement of one Washington bred race per day. Mr. Vacca’s commented on sending the awards out in a timely manner.

Charlie Dunn supported having a Washington bred race per day.

Glenda Roberts supported one Washington bred race per day and raise the bottom claiming price.

Debbie Pabst commented about her concerns with running and the chance of losing your Washington bred in a claiming race. She requested the bonuses be sooner than the ninety days as listed in the WAC rule. Ms. Pabst stated the WTBA was the best equipped to locate and distribute the breeder bonuses but they could not afford to do this without the five percent fee charge.

Suzette Coleman commented on the practice of other jurisdictions Pennsylvania, New York, Florida and California regarding bonus awards and their fees are set in statute.

Claudia Atwell-Canouse commented on the bonus awards being mailed timely and hadn’t attended previous Commission meetings and wanted to know why the WHRC was taking over the distribution of the awards.

Chairperson Smith-Merkulov explained that the WTBA had no authority to charge a fee for distributing the awards and the WTBA made it very clear that they would not do so without a fee.

Mr. Crockett commented that the past practice had been to not follow the statutes as carefully as this Commission was trying to do.

Anne Sweet, Editor, Washington Thoroughbred magazine, commented they were not financially able to distribute the bonuses without charging the five percent fee.

Mr. Dunn commented that he could not understand why the WTBA was not taking a stand and enforcing the one race per day, why have the rule if it cannot be enforced.

Frank McDonald, President, Horsemen’s Benevolent and Protective Association (HBPA) commented that the breeders need funding and that there must be a way to salvage them.

Ms. Atwell-Canouse asked what happens if the breeder award is not claimed.

Mr. Leichner explained how the WHRC would locate breeders addresses.

Chairperson Smith-Merkulov said after three years for a private organization and two years for a governmental entity if unclaimed, the amount is forwarded to the Department of Revenue, Unclaimed Property Division where it is held in perpetuity.

Chairperson Smith-Merkulov moved to file the proposed rules that the staff distribute the awards as early as possible. Commissioner Kruger seconded the motion. Unanimously approved.

BREAK 12:30 PM. RECONVENED 1:30 PM.

Item #9. Legislative update.

Mr. Leichner stated that HB 1291 was on the Senate floor, it hasn’t moved, but has assurances that it will pass.

Senate Bill 5389 dealing with one race of regional interest has been sent to the Governor for signature.

Item #10. Application for advance deposit wagering license by Churchill Downs Technology Initiatives Company dba TwinSpires.

Mr. Leichner presented the application to the Commission. Mr. Leichner described the requirements required to obtain a license. Mr. Leichner stated TwinSpires had complied with all requirements. Staff recommended approval of the application to conduct advance deposit wagering.

Mr. Brad Blackwell appeared on behalf of TwinSpires, he thanked Mr. Leichner for all his assistance and asked for approval of the application.

Ms. Susie Sourwine, Marketing Director, Emerald Downs requested approval of the application.

Commissioner Kruger moved to approve the license application for advance deposit wagering by TwinSpires. Commissioner Colliton seconded the motion. Unanimously approved.

Item #11. Darrell Haire discussion of safety reins.

Mr. Darrell Haire, Western Regional Manager, Jockey Guild Representative, demonstrated a new type of safety rein. This rein now is made with a nylon safety feature that is stitched inside of the leather rein. Several manufacturers now make the rein. The first type of safety rein had a piano wire and trainers objected.

Bryson Cooper presented a videotape of himself riding a horse when the reins break and supported the use of safety reins.

Mr. Haire said the rein would break if the rein gets over the horse’s head and the horse steps on the end it will safely break and not hurt the horse.

Mr. Leichner will follow-up with Darrell Haire to get the manufacturers for both the nylon and the wire reins.

Item #12. Executive Secretary’s report.

a. Class C simulcast approval.
i. Sun Downs – Kentucky Derby May 5, 2007
ii. Waitsburg – Preakness May 19, 2007

Mr. Leichner stated with the anticipated signing of SB 5389 requested on behalf of the small tracks, to approve Sun Downs to simulcast and wager on the Kentucky Derby on May 5; and approve Waitsburg to simulcast and wager on the Preakness on May 19.

Commissioner George moved to approve the simulcast and wagering on the Kentucky Derby at Sun Downs and the Preakness at Waitsburg. Chairperson Smith-Merkulov seconded the motion. Unanimously approved.

b. 2007 Class C purse money.

Mr. Leichner gave the Commissioners a breakdown of the purse money distribution for 2007 Class C race meets.

c. Benton County Donohue Fund report.

Mr. Leichner presented the Donohue Fund monies utilized by Benton County.

d. Accountant’s recap March 2006/2007.

Mr. Leichner presented the accountant’s recap of the wagering comparison for same March 2006 to March 2007 and the comparison of race year 2006 to race year 2007.

e. 2005/2007 Budget.

Mr. Leichner discussed the revenues and expenditures. The fund balance is $872,000.

f. Employee training.

Mr. Leichner said the annual employee in-service training was held on April 2, 2007. Chairperson Smith-Merkulov was in attendance and spoke to the employees in the afternoon session.

g. Review and possible approval: Draft Policy: Compensation for Ex-Officio and Commission Members.

Mr. Leichner said this is an amendment to the compensation policy for the WHRC. This is for review and approval. The time sheet has been changed to add the activity for each day turned in and the Chair will sign the time sheet.

Chairperson Smith-Merkulov moved to adopt the Compensation for Ex-Officio and Commission Members. Commissioner Colliton seconded the motion. Unanimously approved.

Item #13. Any other business that may be properly brought before the Commission.

None.

Meeting adjourned. (2:55 PM)

____________________________________
Robert M. Leichner, Executive Secretary

Washington Horse Racing Commission
Meeting Minutes
April 13, 2007

Present were: Carol Smith-Merkulov, Chairperson; Jeff Colliton, Commissioner; Paul George, Commissioner; Dr. Bud Hallowell, DVM, Commissioner; Hartly Kruger, Commissioner; Robert M. Leichner, Executive Secretary; Patty Sorby, Confidential Secretary.

Item #1. 2006 Equine Health and Safety Report, Dr. Sally Calkins.

Washington Horse Racing Commission, State Veterinarian, Dr. Sally Calkins, DVM gave the 2006 annual report on equine health and safety. Dr. Calkins spoke regarding medication testing, mediation violations, postmortem exams and goals.

Dr. Calkins requested the split sample labs as proposed be approved by the WHRC.

Commissioner Kruger moved to approve the list of split sample laboratories. Commissioner Hallowell seconded the motion. Unanimously approved.

Item #2. Dr. Russell Tucker, Director of Radiology VMTH, WA State University presentation.

Dr. Russell Tucker gave a presentation/discussion on radiology (MRIs), racehorse breakdown at Emerald Downs for 2006. Dr. Tucker explained the process for the MRIs, and gave an overview of looking for pre-exiting injuries, objective of the program, materials and methods and reporting of the gross necropsy results.

Dr. Tucker summarized the complexity of race horse deaths, how valuable the detection of sub-clinical injuries are, more history on the analysis of lesions detected by MRI need to be completed. Dr. Tucker stated that approximately fifty percent of the injuries were resulting from catastrophic breakdowns. Dr. Tucker recommended standardizing the protocols for imaging and necropsy and that MRIs should be read by multiple people. He concluded that by looking at current data a determination on how to improve future studies could be done and that years of data will provide more complete data to analyze factors associated with race track breakdowns.

Item #3. Status report on “An Evaluation of a New Surgical Treatment for Desmitis of the Proximal Insertion of the Suspensory Ligament in Horses.”

Dr. Robert Schneider was unable to attend the meeting but had sent a summary that Dr. Russell Tucker presented on Dr. Schneider’s behalf. Dr. Schneider thanked the WHRC for funding the research project. He was able to begin earlier than anticipated and indicated the project was well ahead of schedule. He said the project was going well and generating new information. The project is near completion.

Dr. Schneider requested to divert some of the funds for the graduate student, Dr. Brokken to travel to the University of Virginia to complete the project. It was a part of the initial grant but the travel was not identified as a line item request. There would be no additional funds required.

Mr. Leichner was given authority to approve the travel costs and he would send a letter to Dr. Schneider.

Meeting adjourned. (12:05 PM)

____________________________________
Robert M. Leichner, Executive Secretary

 


   
 

Washington Horse Racing Commission
6326 Martin Way Suite 209, Olympia, WA 98516
Telephone: 360.459.6462

In 2004, the Washington Legislature authorized advance deposit wagering and placed regulatory responsibility under the Washington Horse Racing Commission (WHRC). The bill, ESSB 6481, was signed by Governor Gary Locke on April 1, 2004, and became law immediately (RCW 67.16.260). The WHRC adopted new administrative rules, Chapter 260-49 WAC on May 13, 2004. On May 19, 2004, the WHRC received the first application to conduct advance deposit wagering from TVG. On June 10, 2004, the WHRC granted a license to TVG to conduct advance deposit wagering. On November 18, 2004, the WHRC also granted a license to XpressBet, Inc. to conduct advance deposit wagering.

Listed below are the only advance deposit wagering firms licensed by the WHRC to conduct business in the state of Washington:

TVG The Interactive Horseracing Network
6701 Center Drive West, Suite 160
Los Angeles, CA 90045

XpressBet, Incorporated

200 Race Track Road
Washington, PA 15301

Youbet.com, Inc.
5901 De Soto Avenue
Woodland Hills, California 91367

 
 
   

Copyright© 2005 Washington Horse Racing Commission
6326 Martin Way Suite 209, Olympia, WA 98516
Telephone: 360.459.6462  Fax: 360.459.6461
Use of this site is subject to the laws of the state of Washington.
Email Us