Washington Horse Racing Commission
Meeting Minutes
December 13, 2007

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

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

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

Item #2. Chairperson’s report.

Chair Smith-Merkulov said most of her time had been spent working with reviewing rule changes since the November meeting.

Commissioner Colliton reported that he and the Executive Secretary met December 6th in Kennewick with representatives of the Class C race meets. The main topic of the meeting was to identify ways to reduce the cost of licensing for the small race meets and to discuss the cost of the Labor & Industries premiums.

Commissioner Colliton said the meeting was well attended with about sixty participants. Discussions included obtain more funds for purses, the rising cost of licensing, the rising cost of Labor & Industries (L&I) insurance premiums and that the small meets are not represented by a horsemen’s organization.

Mr. Leichner provided detailed information to them going back as far as 1999, showing the WHRC financial condition, the Donohue Fund, the reasons why the claims affecting the L&I premium costs resulted in rising premiums and also how funding is achieved for the purse fund.

Commissioner Colliton said that after the meeting he had received favorable feedback and the meeting was well worth conducting, and was very informative for those who didn’t understand what was involved and how the fees were calculated.

Commissioner Colliton said he’d had no communication from anyone since the meeting was conducted.

Commissioner Colliton said he and Commissioner Hallowell had been asked by the Chair to look into the concerns that had arisen from horsemen regarding the race track surface. Commissioner Colliton said he and Dr. Hallowell had attended meetings with the association and horsemen regarding the track surface allegations and listened to any recommendations to remedy the situation from track management.

Commissioner Colliton said the general feeling from horsemen was that something had been done to the surface and the outcome was that nothing had been done by the administration to the track surface to change the racing surface.

Jack Hodge, Vice-President, Emerald Downs said he received a report on the track samples that were taken. The inordinate amount of rain was a major cause of the problem and the sand that was applied was discovered to not be consistent with the previously applied sand. It contained too much clay, which caused the surface to harden.

Commissioner Hallowell said he and Commissioner Colliton monitored the meeting issues and after talking with management and horsemen he personally felt confident that management was very concerned and is addressing the problems.

Item #3. Emerald Downs’ report.

Ron Crockett, President, Emerald Downs reported on the advance deposit wagering and satellite wagering.

a. Track surface.

Jack Hodge reported more on the results of the track surface samples and submitted a report to the WHRC. He said the report recommendations would be implemented.

b. Report of Hollywood Horseplayer Handicapping contest.

Susie Sourwine, Marketing Director, Emerald Downs reviewed the handicapping contest conducted on December 8, 2007. She said 88 players participated in the contest. Eighty percent of the entry fees were returned as cash prizes in addition to the non-cash prizes.

Ms. Sourwine also had recently attended the annual racing symposium in Tucson, Arizona and gave a report on the activities.

Item #4. Emerald Downs 2008 live race dates.

Mr. Leichner said Emerald Downs requested live race dates beginning April 18 racing three days per week until the end of May going to four days per week ending on September 28 for a total of ninety-one days.

Commissioner Kruger moved to approve the 2008 race days for Emerald Downs. Chairperson Smith-Merkulov seconded the motion. Unanimously approved.

Item #5. Rules of Racing: Adoption Hearings:

a. WAC 260-20-160 Medical aid.

Robert Lopez, Deputy Secretary, WHRC, said after public comment was received at the WHRC meeting held on September 13, 2007, the filed language was revised to reflect that all racing associations provide a vehicle properly equipped and two EMTs during racing and for Class A and B associations to provide a first-aid room with at least two beds and other appropriate equipment. The Horsemen’s Benevolent & Protective Association (HBPA) supported the amendments. Staff recommended approval.

Commissioner Colliton moved to adopt the amendments to WAC 260-20-160. Commissioner Hallowell seconded the motion. Unanimously approved.

b. WAC 260-44-150 Horseshoes.

Mr. Lopez said the amendment of this rule is to prohibit the use of toe grabs with a height greater than four millimeters (4 mm) worn on the front shoes of thoroughbred horses while racing or training.

Mr. Lopez said the WHRC had received information that the Pacific Coast Quarter Horse Racing Association had petitioned the California Horse Racing Board to defer action on toe grabs to allow them time to conduct testing on the effects of toe grabs on quarter horses. WHRC staff recommended amending the proposed language to prohibit toe grabs greater than 4 mm only on thoroughbred horses until results were received from the quarter horse association study.

Dick Monahan, of Walla Walla Fair & Frontier Days and American Quarter Horse Association, AQHA Executive Committee, supported the amendment. Staff recommended approval.

Commissioner Kruger moved to approve the amendment to WAC 260-44-150. Commissioner George seconded the motion. Unanimously approved.

Item #6. Discussion and public comment:

a. WAC 260-70-630 Threshold levels (Anabolic steroids).

Mr. Lopez said at a February 21, 2007 meeting, the Racing Medication and Testing Consortium (RMTC) had passed a model rule on anabolic steroids and forwarded it to the Racing Commissioners International (RCI) for approval. The RCI adopted an anabolic steroids rule and based upon that the WHRC staff developed a proposed amendment to WAC 260-70-630 Threshold levels.

Mr. Lopez sent copies of the proposed language to stakeholders. Mary Ann O’Connell, HBPA, responded requesting deferral of the adoption of the anabolic steroids rule due to inadequate thresholds and withdrawal times.

Mr. Lopez requested direction from the WHRC on how to proceed.

Public comment was taken from Dr. Sally Calkins, WHRC Equine Medical Director who was in favor of moving forward. Additional public comment was received by Ron Crockett, President, Emerald Downs, asking if data could be collected without penalties being imposed. Frank McDonald, President, HBPA and Mary Ann O’Connell, Executive Director, HBPA recommended waiting until further testing can be done. Dr. Charles Barth was in favor of anabolic steroid use but only as a therapeutic measure and it was the fault of poor training methods if it needed to be used at all. Debbie Pabst asked about geldings and naturally occurring steroids in the system of the horse.

Commissioner Kruger moved that staff proceed with the filing of the proposed language. Chairperson Smith-Merkulov seconded the motion. Chairperson Smith-Merkulov, Commissioners Colliton, Kruger, and George voted yes. Commissioner Hallowell voted no.
Motion carried.

BREAK – ten minutes.

Item #7. 2008 L&I Rates for Horse Racing:

a. One year moratorium on L&I medical aid fund for 2008.

Mr. Leichner advised the audience of a one-time, one-year moratorium on the medical aid portion of the L&I premium rate for 2008. This reduction results in approximately a thirty percent reduction in the premium rates.

Mr. Leichner reiterated this reduction is for 2008 only and the rates will go up in 2009.

Item #8. Request for reconsideration of WHRC Order by William P. Christian.

Chairperson Smith-Merkulov said the WHRC received a request from Mr. Christian to reconsider its Order #WHRC 07-021 that denied Mr. Christian’s 2007 application for a license permanently revoked his license, made him permanently ineligible to apply for a license, denying him access to all grounds and facilities under the jurisdiction of the WHRC including all satellite locations and permanently ineligible to obtain an account with a WHRC licensed advance deposit wagering firm.

Mr. Christian did not appear.

Chairperson Smith-Merkulov moved to deny the request for reconsideration. Commissioner Kruger seconded the motion. Unanimously approved.

Item #9. Discussion of fingerprint charges for volunteers at non-profit race meets.

Mr. Leichner received a request from the Class C race meet associations to consider waiving the cost of fingerprinting persons who volunteer at the Class C race meets. Persons applying for a license pay an annual $10 fee to have their fingerprints processed for volunteers at Class C meets. This fee paid by the association.

Mr. Leichner said the revenue lost to the WHRC would be, assuming approximately 45 returning volunteers plus approximately nineteen new volunteers (utilizing 2007 figures), the loss would be about $1,530 annually.

Chairperson Smith-Merkulov moved to approve the Class C request to waive the fingerprinting fee for volunteer workers. Commissioner Colliton seconded the motion.

Commissioner George stated he had a problem regarding volunteers not paying for fingerprints.

Chairperson Smith-Merkulov, Commissioners Colliton, Hallowell and Kruger voted yes. Commissioner George voted no. Motion carried.

Item #10. Executive Secretary report:

a. Accountant’s recap November 2006/2007.

Mr. Leichner explained the accountant’s recap of the year-to-date wagering through November 2006 and 2007 and the comparison of the wagering for the month of November 2006 and November 2007.

b. 2007/2009 Budget.

Mr. Leichner explained the expenditures, revenues and fund balance.

Item #11. Any other business that may be properly brought before the Commission.

Ms. Suzette Coleman thanked the WHRC for ending the five percent reduction in the Breeder Awards.

Jim Orr had some questions for Jack Hodge regarding the report on the race surface. Dr. Barth questioned Mr. Hodge also regarding the track surface report.

Sharon Ross suggested that association management send out some type of information sheet to the trainers regarding the race surface report to dispel rumors that have been generated.

Meeting adjourned.

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Robert M. Leichner, Executive Secretary