Washington Horse Racing Commission
Meeting Minutes
December 14, 2005

Present were: Hartly Kruger, Chairman; Dr. A.L. Hallowell, Commissioner; Judi Roland, Commissioner; Carol Smith-Merkulov, Commissioner; Susan Carlson, Assistant Attorney General; Robert M. Leichner, Executive Secretary; Patty Sorby, Secretary.

Item #1. Approval of the meeting minutes of November 10, 2005.

Commissioner Hallowell moved to approve the minutes as submitted. Commissioner Roland seconded the motion. Unanimously approved.

Item #2. Chairman’s report.

Chairman Kruger reported that he attended the Race Track Industry Program conference. He noted the Association of Racing Commissioners International (ARCI) and the North American Parimutuel Regulators Association (NAPRA) agreed to officially merge into one organization (ARCI) on January 1, 2006. He discussed wagering security and integrity measures being implemented by ARCI. Mr. Leichner also attended the conference and discussed topics regarding model rules, group bets, equine medication and penalties.

Chairman Kruger asked Mr. Leichner about Live Scan electronic fingerprint equipment purchase. Mr. Leichner stated the purchase was underway.

Item #3. Emerald Downs’ report.

Ron Crockett, President, Emerald Downs reported the simulcast handle continues to be positive. He reported that the purse fund would be $3 million for the 2006 meet. Mr. Crockett noted that without the Hollywood Park Wednesday simulcast, the figures were down more than expected.

Item #4. Emerald Downs’ 2006 race dates.

Mr. Crockett stated the dates requested were to begin racing on Friday, April 21 and end on October 1, 2006 for a total of 91 days of live racing.

Commissioner Smith-Merkulov moved to accept the dates as submitted. Commissioners Hallowell and Roland seconded the motion. Unanimously approved.

Item #5. Discussion regarding eliminating the licensing requirement for certain categories.

Mr. Leichner stated that in response to requests from Commissioners and stakeholders the staff had been asked to assess the need to license individuals in certain categories that are not directly involved in horse racing. The revenue that would be lost would only amount to approximately $2000-$3000. The members asked Mr. Leichner to move ahead with this process and prepare proposed language detailing the categories deemed to be unnecessary for licensing requirement.

The members also approved extension of 2005 licenses held by Emerald Downs staff to March 1 when the licensing office will open.

Item #6. Hearings:

a) Sheila Johnson

Ms. Johnson appeared on her own behalf and Commission staff was represented by Michael S. Tribble, Assistant Attorney General. Testimony was taken from Robert Leichner, WHRC Executive Secretary, Richard Smith, WHRC Investigator, and Ms. Johnson.

The Commission found Ms. Johnson to be in violation of WAC 260-12-250 and gave Ms. Johnson a warning.

Hearing closed.

b) Richard Robinson

Mr. Robinson’s hearing was continued.

Hearings closed. 10:46AM.

Item #7. Executive Secretary’s report.

a) Accountant’s November 2004/2005 recap.

Mr. Leichner said that in comparison with 2004, the handle was up 6.27% in 2005.

b) 05-07 Budget review.

Mr. Leichner reviewed the revenues and expenditures.

c) Update on WHRC Agency regulatory reform effort.

Mr. Leichner presented a summary of rules expected to be brought before the members in 2006 and the progress on rules revisions in process.

d) Update on Youbet.com irrevocable letter of credit.

Mr. Leichner had received on December 8, 2005 the amendment to the irrevocable letter of credit including the changes required by staff.

e) Attendance at the Organization of Racing Investigators Annual Conference, San Diego, California, February 27, 28 & March 1, 2006 by WHRC Inspectors.

Mr. Leichner said there was an opportunity for the WHRC investigators to attend an industry conference in 2006 and recommended Robert Lopez, Linda Hancock and Richard Smith attend.

Commissioner Smith-Merkulov moved to accept the recommendation that Mr. Lopez, Ms. Hancock and Mr. Smith attend the conference in February 2006. Commissioner Hallowell seconded the motion. Unanimously approved.

Item #8. Any other business that may be properly brought before the Commission.

Mr. Leichner also stated the 2006 rates for the Horse Industry Industrial Insurance Account had been announced.

Mary Ann O’Connell requested the Commission look at the industrial insurance rate for assistant trainers. They are suggesting that it be reduced to the same rate as a groom.

Mr. Leichner announced that there would be a discussion of license fees at the next meeting. Also, Dr.’s Calkins and Waterman would be in attendance to discuss medication changes, rules and penalties.

Meeting adjourned 11:17 AM.

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Robert M. Leichner, Executive Secretary