Washington Horse Racing Commission
Meeting Minutes
February 14, 2008

Present were: Carol Smith-Merkulov, Chair; 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. Approval of the meeting minutes of January 10, 2008.

Commissioner Kruger moved to approve the meeting minutes. Commissioner Colliton seconded the motion. Unanimously approved.

Item #2. Chairperson’s report.

Chair Smith-Merkulov said a lot of work had been done preparing for the amendments to the medication rules regarding anabolic steroids and working on legislative issues.

Ms. Smith-Merkulov announced and congratulated Hartly Kruger who was confirmed on February 13th by the senate. Commissioner Kruger’s term has been extended to January 2014.

Item #3. Emerald Downs report.

Ron Crockett, President, Emerald Downs gave the simulcast wagering statistics reporting a downturn in simulcast wagering. He attributed this to the change of race days at Santa Anita to add Monday racing. Mr. Crockett said Monday’s has historically never been a profitable day for Emerald Downs.

Mr. Jack Hodge, Vice-President, Emerald Downs reported approximately 540 horses on the grounds, applications are down approximately six percent in comparison with 2007. Mr. Hodge reported the track would be closed February 15 and 16 to conduct surface work.

Item #4. Emerald Downs 2008 officials.

Mr. Leichner presented the Emerald Downs officials, association information, race dates and post times, wagering, satellites, equipment, personnel, facilities, simulcast information, race conditions, and miscellaneous information for approval by the WHRC. The stakes schedule was still being finalized and was not included in the information presented.

Commissioner Kruger moved to approve the Emerald Downs officials and information as presented. Commissioner George seconded the motion. Unanimously approved.

Item #5. WHRC officials for Emerald Downs.

Mr. Leichner presented the WHRC officials for the Emerald Downs meet. Mr. Leichner said that Dr. Macomber would be the substitute veterinarian and the WHRC has hired a new clerk of scales, Mr. Dan Bryson.

Chair Smith-Merkulov moved to approve the WHRC officials for the Emerald Downs meet. Commissioner Colliton seconded the motion. Unanimously approved.

Item #6. TOBA graded stakes testing.

Mr. Leichner said the testing applies to the Longacres Mile only. Mr. Crockett added that the winner of the race is automatically entered into the Breeders’ Cup.

Item #7. Emerald Downs handicapping contest.

Mr. Leichner said Emerald Downs requested approval to conduct two handicapping contests one on March 8th and the other on July 27th. WHRC staff had reviewed the rules and recommends approval.

Ms. Susie Sourwine, Marketing Director, Emerald Downs stated both contests were conducted last year and were well received. Ms. Sourwine asked for approval.

Commissioner Colliton moved to approve the handicapping contests to be conducted on March 8th and July 27th. Commissioner George seconded the motion. Unanimously approved.

Item #8. Class C live race dates and officials for 2008.

a. Sun Downs Race Track
b. Walla Walla Fair & Frontier Days
c. Waistburg Days of Real Sport
d. Dayton Days

Mr. Leichner presented the race dates and officials for Sun Downs, Walla Walla, Waitsburg and Dayton race meets. Mr. Leichner also said Sun Downs and Waitsburg are requesting to simulcast: the Kentucky Derby on May 3rd and the Preakness on May 17. Sun Downs was also researching the possibility of two other simulcast races but had not obtained the final dates. Mr. Leichner said the simulcast races would only be conducted on their live race days.

Commissioner Kruger moved to approve the dates and officials as presented for Sun Downs, Walla Walla, Waitsburg and Dayton race meets. Commissioner George seconded the motion. Unanimously approved.

Chair Smith-Merkulov asked Mr. Leichner if it would be possible to have the Class C meets financial statements made easier to read. Mr. Leichner said he would check into that.

Item #9. WHRC officials for Class C meets.

Mr. Leichner presented the WHRC officials for the Class C meets. He said the first four weeks, Doug Moore, presiding steward at Emerald Downs would be presiding at the Sun Downs meet then Ken Doll for the last weekend at Sun Downs. The following spring weekends for Walla Walla and Waitsburg, Thelma Lynn, presiding steward and the last spring meet at Dayton would be presided by Ken Doll. Amanda Benton would substitute at Emerald Downs during their absence.

Chair Smith-Merkulov moved to approve the WHRC officials for the Class C meets. Commissioner Colliton seconded the motion. Unanimously approved.

Item #10. Donohue Fund.

Mr. Leichner explained the Donohue fund and said the 2008 funds were sent to Sun Downs and Waitsburg race meets associations, Walla Walla County Commissioners on behalf of Walla Walla Fair and Frontier Days and Columbia County Commissioners on behalf of Dayton Days. Mr. Leichner gave the Commissioners a table showing funds provided to the Class C meets from 2002 to present.

BREAK. 10:20 AM. Reconvened 10:30 AM.

Item #11. Hearings:

a. Vern Bronson.

Mr. Leichner said that Mr. Bronson had phoned the WHRC office in Olympia and requested an additional postponement until March 12, citing inability to find transportation. Mr. Leichner granted the request and a Notice to reschedule the hearing had been sent to Mr. Bronson.

b. Don Young.

Chair Smith-Merkulov opened the hearing at 10:30 A.M. and introduced those present. Robert Lopez, Deputy Secretary represented staff. Mr. Young was present and not represented by counsel. Mr. Lopez introduced thirteen exhibits and they were admitted. Testimony was taken from Doug Moore. Testimony was taken from Don Young.

After considering testimony, the WHRC found sufficient evidence to uphold the ruling of the board of stewards in part and the WHRC required Mr. Young to pay the Labor and Industries premium for two additional exercise rider premiums that had been underreported at the time of licensing for the 2007 Sun Downs race meet. The fine imposed by the board of stewards in the amount of $350 was dismissed. The decision of the WHRC was four voting yes, Commissioner Colliton dissented. Hearing concluded at 11:40 A.M.

c. Bill Hof.

Mr. Hof phoned the WHRC Olympia office and requested to reschedule the hearing to March 13, 2008. Mr. Leichner granted Mr. Hof’s request and a notice to reschedule Mr. Hof’s hearing to March 13, 2008 was sent.

d. Tracy LeBret.

Mr. LeBret phoned the WHRC Olympia office and requested to reschedule the hearing to March 13, 2008. Mr. Leichner granted Mr. LeBret’s request and a notice to reschedule Mr. LeBret’s hearing to March 13, 2008 was sent.

Item #12. Rules of Racing: Adoption Hearings:

a. Title 260 WAC Rules of Racing.

Mr. Lopez presented the WHRC with several amendments to Title 260 WAC. These amendments deal with aligning WHRC rules with the Association of Racing Commissioners International (ARCI) model rules where applicable in regard to chapter 260-24 WAC Association Officials and Employees; chapter 260-52 WAC The Race – Paddock to Finish; chapter 260-56 WAC Objections and Protests; chapter 260-60 WAC Claiming; chapter 260-64 WAC Winning; and chapter 260-66 WAC Walking Over. In addition, it repealed chapter 260-76 WAC Bookmaking and adopted a new section in chapter 260-80 WAC Prohibited Practices, to include rules prohibiting bookmaking. Mr. Lopez explained the key rule making filing dates, April 23, 2003 the original language was filed with the Code Reviser and that proposed language was shared with stakeholders on December 3, 2007; chapter 260-24 WAC was shared with stakeholders on December 11, 2007. No public/stakeholder comment was received. Staff recommended adoption as proposed.

Chair Smith-Merkulov asked for public comment. No public comment.

Chair Smith-Merkulov moved to adopt the amendments as proposed. Commissioner Kruger seconded the motion. Unanimously approved.

b. WAC 260-28-200 Trainer – Paddock duties.

Mr. Lopez said the purpose is to require trainers to have their horses at the receiving barn by the appointed time. Mr. Lopez said the rule was first filed with the Code Reviser on November 1, 2007 and language was shared with stakeholders on November 29, 2007 and no public/stakeholder comments were received. Staff recommended adoption of the amendment.

Chair Smith-Merkulov asked for public comment. No public comment.

Commissioner Kruger moved to adopt the amendment to WAC 260-28-200. Commissioner Colliton seconded the motion. Unanimously approved.

c. WAC 260-28-295 Trainers responsibility.

Mr. Lopez said the purpose was to amend WAC 260-28-295 to require trainers to promptly report to the Jockey Club or the racing secretary when a horse has been gelded; and ensure that any person employed by the trainer is properly licensed to perform the duties assigned. Mr. Lopez said the amendment was filed on November 1, 2007 and shared with stakeholders on November 29, 2007. Mr. Lopez said no public/stakeholder comments had been received and staff recommended adoption of the amendment.

Chair Smith-Merkulov asked for public comment. No public comment.

Commissioner Colliton moved to adopt the amendment to WAC 260-28-295 as proposed. Commissioner George seconded the motion. Unanimously approved.

d. Chapter 260-36 WAC Licensing.

Mr. Lopez explained the purpose of the amendments to Chapter 260-36 were to: waive the license fees for Class C association volunteers; add authority to the board of stewards to suspend or deny a license and/or issue a fine to an applicant who fails to submit fingerprints; deny a horse entry in a race if the horse is owned wholly or in part by a person failing to complete the owner’s application; and amend the section on additional industrial insurance premiums to clarify how the additional industrial insurance premiums are collected covering exercise riders. (Class A & B tracks based on stalls and Class C tracks based on horses started.) Mr. Lopez said the language had been filed with the Code Reviser on November 2, 2007 and proposed language sent to stakeholders on December 3, 2007. No public/stakeholder comments had been received. Staff recommended adoption of the amendments as proposed.

Chair Smith-Merkulov asked for public comment. No public comment.

Chair Smith-Merkulov moved to adopt the amendments to chapter 260-36 WAC. Commissioner Kruger seconded the motion. Unanimously approved.

BREAK FOR LUNCH. 12:05 PM. RECONVENED 1:00 PM.

e. WAC 260-44-080 Weighing out – Overweight.

Mr. Lopez said the purpose of the amendments were to remove unnecessary language and amend the rule to allow a jockey at a Class C race meet to weigh up to 135 pounds. Mr. Lopez said language had been filed with the Code Reviser on October 16, 2007 and shared with stakeholders on November 27, 2007. Comments were received from several class C associations and those comments were incorporated into the language being proposed. Staff recommended adoption of the amendments as proposed.

Chair Smith-Merkulov asked for public comment. No public comment.

Commissioner Kruger moved to adopt the amendments to WAC 260-44-080 as proposed. Commissioners George and Hallowell seconded the motion. Unanimously approved.

f. Chapter 260-84 WAC Penalties.

Mr. Lopez said the purpose of the amendments to 260-84 WAC were to reorganize the penalty matrix so that certain violations were treated the same at all tracks; increase penalties for a number of common violations; add new violations including the following: jockey failing to maintain straight course; unauthorized late scratch; failure to deliver Furosemide slips to the official vet by appointed time; failure to submit gelding report; failure to furnish fingerprints; and horses shod with improper toe grabs.

Chair Smith-Merkulov moved to adopt the amendments as proposed. Commissioner Hallowell seconded the motion.

Chair Smith-Merkulov asked for public comment.

Commissioner Kruger asked how the monetary amounts were reached. Doug Moore said he conducted a survey of several jurisdictions with similar purse structures.

Commissioner Colliton asked who enforces the penalty matrix. Doug Moore responded that the board of stewards enforce the penalty matrix.

Mary Ann O’Connell, Executive Director, Horsemen’s Benevolent & Protective Association (HBPA) cautioned on basing fines on purse structures. Doug Moore responded the board of stewards always considers mitigating circumstances.

Unanimously approved.

g. WAC 260-70-630 Threshold levels.

Mr. Lopez said the purpose of the amendments to WAC 260-70-630 was to adopt the model anabolic steroid rule. In mid-April 2007 the ARCI adopted the model anabolic steroid rule and sent it to their member jurisdictions with a recommendation to adopt. In Washington, the four anabolic steroids are class 4 drugs. Currently all anabolic steroids are prohibited in a test sample on race day. The penalty for use at any level is zero to 60 day suspension, up to $1,000 fine and possible loss of purse.

Mr. Lopez said the amendments before the WHRC establish permitted concentration levels in urine for:
Stanozolol (Winstrol®) at 1 nanogram per millimeter;
Boldenone (Equipoise®) in intact males at 15 nanograms per millimeter; Nandrolone (Durabolin®) 1 nanogram per millimeter for geldings, fillies and mares and 45 nanograms per millimeter for intact males; and
Testosterone 20 nanograms per millimeter for geldings and 55 nanograms per millimeter for fillies and mares.

Mr. Lopez stated the proposed amendment will prohibit the use of any other anabolic steroid, require the official veterinarian to notify the testing laboratory when the post race sample is collected from an intact male and allows any horse that has been treated with a permitted anabolic steroid to be placed on the vet’s list to monitor the concentration of the drug in urine.

Mr. Lopez said several states have adopted or are currently in the process of adopting the model rule.

Mr. Lopez said the amendments were filed with the Code Reviser on August 21, 2007 proposed language was shared with stakeholders on November 29 and December 21, 2007. Public meetings to discuss proposed amendments were held on December 13, 2007 and January 10, 2008.

Mr. Lopez stated after sharing proposed language with stakeholders, Ms. O’Connell sent some objections on the proposed language regarding: withdrawal times; plasma thresholds; anabolic steroids classified as Class 4 medications; more than one permitted anabolic steroid; the need to wait for scientific data; questions regarding Nandrolone and testosterone thresholds; notifying the lab if test sample comes from a gelding, filly or mare and placing the horse on the vet’s list.

Ms. O’Connell also requested adding dexamethasone concentration level of 50 nanograms per millimeter in urine; methocarbomol in concentration of 1000 nanograms per millimeter in urine to the rule.

Ms. O’Connell also requested and staff agreed to include the term “environmental substances” in the language proposed for adoption.

Staff recommended adoption of the amendments as proposed.

Commissioner Kruger moved to adopt the amendments to WAC 260-70-630 as proposed. Chair Smith-Merkulov seconded the motion.

Chair Smith-Merkulov asked for public comment.

Dr. Gary Bergsma, DVM, stated the June 12 report date as specified in Policy Statement 2008-01 is too soon to report data. Wants withdrawal times, he was very uncomfortable with the low levels.

Commissioner Colliton asked if WHRC should wait until the end of the meet. Dr. Bergsma stated yes.

Dr. Tom Brandli, DVM, said WHRC must consider neighbor jurisdictions, if a horse comes from out of state and tests positive, the horse remains on the vet’s list for ten days and that would prohibit the horse from racing and the owner or trainer may not consider coming to Emerald Downs at all.

Jack Hodge, VP, Emerald Downs said he was very concerned that if these amendments are adopted it would hurt entries at Emerald Downs. Mr. Hodge wanted to know what to tell the trainers at the trainers meeting.

Mike Feuerborn, Owner, stated that if the amendments were adopted at the levels proposed, it would end horse racing in the state. He asked the WHRC not to reduce the field size.

Mary Ann O’Connell, HBPA, asked the WHRC to consider holding off on adoption, National HBPA working on a compromise proposal and should have something by fall 2008. She supports the amendments with a proviso--her faith was in following the language in the policy statement.

Jack Peterson stated he was not against the rule, just very concerned.

Doug Moore said the board of stewards will look at a first time positive test and normally give a warning, and if a second time positive, will take into consideration the levels.

Commissioner Hallowell stated the horse doesn’t have to be sick, these serve as a vitamin, if the horse needed a little boost, then a steroid may serve a purpose to help build up the horse a little bit.

Dr. Brandli said the use of a steroid doesn’t immediately fix a problem, it is supportive therapy.

Commissioner Kruger amended the motion to adopt the amendments effective June 1, 2008, adopt Policy Statement 2008-01 with an effective date of June 1, 2008 to begin testing and receive the data report by the official veterinarian on September 11, 2008. Chair Smith-Merkulov and Commissioner George seconded the motion. Unanimously approved.

Item #13. Executive Secretary’s report.

a. Accountant’s recap January 2007/2008.

Mr. Leichner explained the accountant’s report recapping the parimutuel wagering for the year-to-date and the race year (wagering period).

b. 2007-2009 Budget.

Mr. Leichner explained the revenue, expenditures and fund balance for the month of January 2008.

Item #14. Any other business that may be properly brought before the Commission.

None. Meeting adjourned 3:30 P.M.
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Robert M. Leichner, Executive Secretary