Washington Horse Racing Commission
Meeting Minutes
February 8, 2007

Present were: Carol Smith-Merkulov, Chairperson; Jeff Colliton, Commissioner; Paul George, Commissioner; A. L. Hallowell, DVM, Commissioner; Hartly Kruger, Commissioner; Susan Carlson, Assistant Attorney General; Robert M. Leichner, Executive Secretary; Patty Sorby, Confidential Secretary.

Item #1. Approval of the meeting minutes of January 11, 2007.

Commissioner Kruger moved to approve the January 11, 2007 minutes. Commissioner George seconded the motion. Unanimously approved.

Item #2. Chairperson’s report.

Chairperson Smith-Merkulov reported she had been working with the legislature regarding the advance deposit wagering legislation to remove the sunset clause and said it was moving forward.

Commissioner George mentioned it was a sad day for racing with the demise of the popular race horse Barbaro.

Item #3. Emerald Downs’ report.

Mr. Crockett said the handle was down 6.4 percent at the track and attributed this to the bad weather the northwest had been experiencing recently. He said advance deposit wagering is up.

Paul Ryneveld, Racing Secretary reported the stall count on February 1 was 1,200 stalls assigned with 451 horses on the grounds.

Mr. Crockett said the trainers were having problems with hiring grooms. The paperwork that allows the grooms to return from Mexico was not in place and the trainers were grooming their own horses and cleaning their own stalls.

Commissioner George mentioned that in eastern Washington the growers that hire farm laborers were contracting out to get laborers and asked if Emerald Downs could do something similar. Mr. Crockett didn’t know.

Mr. Crockett reported the House version of the bill to repeal the advance deposit wagering sunset clause had passed the House with a 91-4 vote. He commended the WHRC for a really nice job in supporting the bill. Chairperson Smith-Merkulov seconded Mr. Crockett’s comments and especially thanked Robert Leichner for his work.

Mr. Crockett also alerted the WHRC that he had heard prices for importing signals from out-of-state might rise significantly.

Item #4. Emerald Downs 2007 Officials.

Mr. Leichner said Emerald Downs had submitted the requested information for their 2007 meet which included association information, information on race dates and times, wagering, satellites, equipment, personnel, officials, facilities, simulcasting, race conditions and admissions. The WA Horsemen’s Benevolent & Protective Association has extended the horsemen’s contract with Emerald Downs until October 30, 2008 and approved the simulcast and stakes schedule.

Commissioner Kruger moved to approve the Emerald Downs 2007 officials as submitted. Commissioner Hallowell seconded the motion. Unanimously approved.

Item #5. WHRC officials for Emerald Downs.

Mr. Leichner read the WHRC officials and recommended Mr. Doug Moore be presiding steward. He stated the clerk of scales position is vacant and recruitment for that position is open until February 15.

Commissioner George moved to approve the WHRC officials for Emerald Downs 2007 race meet. Commissioner Colliton seconded the motion. Unanimously approved.

Item #6. Emerald Downs Handicapping Contest March 10, 2007.

Mr. Crockett advised the WHRC on the rules for the handicapping contest, including that it would have a twenty-five dollar entry fee and be limited to fifty people. The payout is 80 percent and twenty percent goes toward a steak dinner and other prizes.

Mr. Leichner said staff recommended approval.

Commissioner Kruger moved to approve the handicapping contest. Commissioner Hallowell seconded the motion. Unanimously approved.

Item #7. Class C live race dates for 2007 and officials.

a. Sun Downs Race Track
b. Walla Wall Fair & Frontier Days (Spring & Fall)
c. Waitsburg Days of Real Sport
d. Dayton Days

Mr. Leichner said the Class C meets had requested nineteen days of racing for 2007. Sun Downs requested ten days beginning April 7 and concluding May 6, with racing on Saturdays and Sundays; Walla Walla Fair & Frontier Days requested May 12 and 13 for the Spring meet and August 31, September 1 and 2 for the Fall meet; Waitsburg Days of Real Sport requested May 18 and 19; Dayton Days requested May 26 and 27. The officials and association information submitted was consistent with prior years submittals.

WHRC staff recommended approval.

Commissioner George moved to approve the Class C race dates and officials for 2007. Commissioner Kruger seconded the motion. Unanimously approved.

Item #8. WHRC Officials for Class C meets.

Mr. Leichner read the officials for the Class C meets and recommended Robert Lightfoot as presiding steward. The other WHRC steward and the investigator positions are vacant and recruitment closes on February 15. Mr. Leichner said he will inform the Commissioners when these positions are filled.

WHRC staff recommended approval.

Commissioner Colliton moved to approve the WHRC officials for the Class C 2007 race meets. Commissioner Hallowell seconded the motion. Unanimously approved.

Item #9. Hearings:
a. Jamaica S. Pulver

Chairperson Smith-Merkulov moved this item to the end of the agenda. Ms. Pulver had not yet appeared.

Item #10. WHRC Interpretive Policy – Initial License.

Mr. Leichner said the purpose of this policy is to tighten the rules and improve safety practices. He stated the rules require that applications for an initial license in the categories of trainer, assistant trainer, jockey, apprentice jockey, jockey agent, exercise rider, pony rider or outrider must be reviewed by the stewards.

The applicant must be qualified to perform the duties of the license and is required to pass a written exam, an oral interview and demonstrate the skills required for the license. Mr. Leichner said that over the winter Doug Moore and Thelma Lynn had developed the exams, study guides and the initial requirements to be met before applying for the license.

Mr. Leichner said the WA HBPA supports the exams and requirements and WHRC staff recommended approval of the policy.

Commissioner Hallowell commented that he had heard many comments that accidents had occurred because of the inexperience of those on horseback. He said he felt this was a good step in the right direction and encouraged horsemen to report incidents to the WHRC.

Commissioner Kruger asked if he could review the new exams and information and was advised that he could visit with the stewards to review and discuss them.

Commissioner Kruger moved to approve the WHRC Interpretive Policy – Initial License. Commissioner Hallowell seconded the motion. Unanimously approved.

Item #11. Discussion regarding possible change to Jockey Incentive Fund distribution.

Mr. Leichner said that Mr. Monahan, Walla Walla Fair & Frontier Days, had initially wanted to discuss a change in the distribution of the jockey incentive fund. Mr. Leichner spoke to Cliff Schellinger, Tri City Horse Racing Association who spoke with Mr. Monahan. After discussing the issue they decided that no change was needed. The only request was how much would be available for the 2007 fund.

Chairperson Smith-Merkulov moved to allocate to the Jockey Incentive Fund $35,000 for 2007. Commissioner Kruger seconded the motion.

Chairperson Smith-Merkulov said she had spoken to David Brown who said he would not have ridden in the Class C meet last Fall if not for the points it earned for the Jockey Incentive Awards. She also said Montana is unable to hold some of their race meets so we may have more jockeys participating this year.

Commissioner George asked if the Class C meets were having any trouble obtaining insurance this year. Mr. Leichner said he’d heard of no problems.

Chairperson Smith-Merkulov called for the vote. Unanimously approved.

Commissioner George moved to utilize the same distribution of fund money that was used in last year’s distribution. Commissioner Hallowell seconded the motion. Unanimously approved.

Break 10:26 A.M. Reconvened 10:36 A.M.

Item #12. 2007 Non-profit purse fund.

Mr. Leichner explained the recap of the 2007 Class C purse fund distribution he had prepared. He said the funds accumulated to date result in $83,705.78 that needs to be made up from the WHRC operating account for the $300,000 distribution requirement.

Item #13. 2007 Donohue Fund.

Mr. Leichner explained the Donohue Fund money distribution for 2005, 2006 and 2007. He said by moving the account from the local account to banking with the State Treasurer, the fund had significantly grown from a distribution in 2005 of $2,217.47 to a distribution of $7,465.35 in 2007.

Mr. Leichner said the checks had been mailed on February 5th.

Item #14. Legislative update.

Mr. Leichner reiterated Mr. Crockett’s statement that House Bill 1291 (repeal of the advance deposit wagering sunset clause) had passed the House 91-4. He is waiting to hear more information on House Bill 1593, the non-profit simulcast bill. He said time was critical and that bill must move quickly in order to allow simulcasting of the Kentucky Derby at the Sun Downs’ meet on May 5th.

Mr. Leichner also reported that Senate Bill 5389, the Senate version of the non-profit simulcast bill, is on the Senate floor calendar. Senate Bill 5270, the Senate version of the bill to repeal the sunset clause on advance deposit wagering, is on the Senate Rules Committee green sheet.

Item #15. American Graded Stakes Committee TOBA testing protocol for 2007.

Mr. Leichner had received correspondence from Andrew Schweigardt, Secretary for the American Graded Stakes Committee detailing the drug testing protocol for 2007. The protocol will be the same as utilized in 2006.

Item #16. Executive Secretary report:

a. CY 2002-2006 revenue recap.

Mr. Leichner discussed a table and bar chart showing actual revenue by source for the WHRC from 2002 to 2006. He said the revenue indicates the WHRC will not be able to give three hundred thousand dollars in grants this year, but he will know by the June meeting how much the WHRC should be able to authorize. The grant request process will be placed on the webpage and mailed to previous requestors after review by the Commission at the March meeting. The submittal deadline will be May 15th and it is anticipated the grants would be awarded at the June meeting.

b. Equine Incentive Funds update.

Mr. Leichner said the amount remaining on the rail project is $383.06 and for the barn renovation $1,618.59. All funds have been distributed for the Jockey Incentive Fund, Jockey Liability Insurance and wireless camera grants. The WSU grant has been signed and received at the WHRC.

Mr. Leichner said Dr. Schneider of WSU Veterinary College would be submitting a progress report on the MRIs that have been taken as part of the post mortem examinations. He also said the equine health and safety report will on the April meeting agenda.

c. Accountant’s recap January 2006/2007.

Mr. Leichner explained the accountant’s 2006/2007 comparison of the wagering handle distribution by wagering period showing down 13.58% and another distribution comparison by calendar year that indicates down 7.19%.

d. 2005/2007 Budget.

Mr. Leichner explained the revenues, expenditures and fund balance. The WHRC fund balance is $750,780 and the WHRC is financially in good shape. The projections are on track.

e. Racing investigators conference.

Mr. Leichner said an investigators conference is to be held in Oklahoma City, March 18-21, 2007. He requested travel and per diem approval for Richard Smith and Walter Roderick, WHRC investigators, to attend. A breakdown of the approximate expense of the conference was included.

Commissioner George moved to approve the request to attend the investigators conference for Richard Smith and Walter Roderick. Commissioner Hallowell seconded the motion. Unanimously approved.

Item #9. Hearing:

a. Jamaica S. Pulver.

Chairperson Smith-Merkulov opened the hearing for Jamaica S. Pulver at 11:15 A.M. and introduced the WHRC members present. Michael S. Tribble, Assistant Attorney General represented staff. Ms. Pulver did not appear.

Mr. Tribble offered fifteen exhibits which were admitted by Chairperson Smith-Merkulov. Walter E. Roderick, Investigator for the WHRC gave testimony. Douglas Moore, Presiding Steward gave testimony. After considering the evidence, the Commission revoked Ms. Pulver’s license and declared her permanently ineligible to apply in the state of Washington.

Hearing closed.

Commissioner Colliton asked if the May meeting was to be held on the eighteenth. Mr. Leichner confirmed the meeting would held on the afternoon of the eighteenth to allow travel time.

Commissioner Hallowell asked if Dr. Schneider could be asked to attend the May 18 meeting of the Commission. Mr. Leichner said he would contact Dr. Schneider.

Meeting adjourned.
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Robert M. Leichner, Executive Secretary