Washington Horse Racing Commission
Meeting Minutes
January 10, 2008

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

Item #1. Approval of the meeting minutes of December 13, 2007.

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

Item #2. Chairperson’s report.

Chairperson Smith-Merkulov announced a letter had been received from the Governor’s office that Commissioner Kruger was reappointed to the Commission with a term ending January 2014. She congratulated Commissioner Kruger on his reappointment and said he was a real asset to the Commission.

Chairperson Smith-Merkulov also said Commissioner Paul George was excused.

Item #3. Emerald Downs’ report.

Mr. Ron Crockett, President, Northwest Racing Associates LP, Emerald Downs said the change in schedule at Santa Anita, simulcasting on Mondays and closed on Wednesdays, has had an adverse affect on the simulcast handle. Emerald Downs is normally closed on Mondays but Santa Anita is a favorite with the bettors so Emerald Downs is now open on Monday.

Mr. Crockett said Emerald Downs will submit a bill in the upcoming legislative session to amend the language in RCW 67.16.060(1)(d). This amendment would allow an association to break on wagers other than at ten cents. This change is needed when accepting wagers from other jurisdictions, such as Canada and Japan.

Mr. Crockett requested the Commission’s support.

Chairperson Smith-Merkulov moved to support the legislation to amend RCW 67.16.060(1)(d). Commissioner Colliton seconded the motion. Unanimously approved.

Item #4. Emerald Downs request for future wager.

Mr. Leichner said that in accordance with WAC 260-48-930 Future wager pool, Emerald Downs had formally requested in a letter dated December 29, 2007, to offer future wagers on the Kentucky Derby and the Oaks. The future bet pools take place for Pool 1, February 7-10; for Pool 2, March 6-9 and; for Pool 3, April 3-6. Staff is recommending approval.

Commissioner Colliton moved to approve the request for future wager on the Kentucky Derby and the Oaks. Commissioners Kruger and Hallowell seconded the motion. Unanimously approved.

Item #5. Emerald Downs and Washington Lottery Commission update.

Ms. Susie Sourwine, Marketing Director, Emerald Downs; Christopher Liu, Director and David Harrison, Marketing Director of the Washington State Lottery Commission were present to discuss their partnership for the 2007 Emerald Downs meet. A summary of the activities offered to racing fans to participate in Emerald Downs racing and playing the Lottery was presented. Both Emerald Downs and Lottery were pleased with the results.

Emerald Downs/Lottery presentation made a part of the record.

Mr. Leichner said he, Mr. Liu and Mr. Harrison recently met with the Class C associations in Walla Walla. It was a very successful meeting. The purpose was to offer the same type of partnership to the Class C associations and possibly mutually benefit each other.

Item #6. Rules of Racing: Adoption Hearings:

a) WAC 260-12-010 Definitions.

Robert Lopez, Deputy Secretary said the proposal was to amend WAC 260-12-010 to add new subsections to define denial, protest, revocation, suspension and walkover and to amend the current pick six definition to a “pick n.”

Mr. Lopez said proposed language was filed with the Code Reviser on September 25, 2007 and was shared with stakeholders on December 3, 2007. Mr. Lopez also said that during rulemaking it was discovered that two new terms needed to be added to define the terms intact male, ridgling and the definition of stallion include the term colt. No public/stakeholder comments had been received. Staff recommends adoption of the proposed amendments.

No one in attendance offered comments.

Commissioner Hallowell moved to adopt the amendments to WAC 260-12-010. Commissioner Colliton seconded the motion. Unanimously approved.

b) WAC 260-70-680 Uniform classification guidelines.

Mr. Lopez said the proposal was to update the list of all Class 1 through Class 5 drugs adopted by the Commission in March 2007. These amendments have been approved by the Racing Medication and Testing Consortium (RMTC) and adopted by the Association of Racing Commissioners International (ARCI).

Mr. Lopez said several new substances were added and a number of substances have changed classifications. The amendments were filed on August 23, 2007 and language was shared with stakeholders on December 5, 2007. No public/stakeholder comments were received. Staff recommended adoption of the proposed amendments.

Commissioner Hallowell asked about the drug Nandrolin - why was it was changed from a Class 4 to a Class 3. Commissioner Hallowell felt he could not support the amendments without science to support them. He is concerned about lab protocols, they need to be uniformly standardized before the Commission can adopt any rules regarding anabolic steroids.

Chairperson Smith-Merkulov moved to adopt the amendments to WAC 260-70-680 Uniform classification guidelines as proposed. Commissioner Kruger seconded the motion.

Chairperson Smith-Merkulov then asked for public comment.

MaryAnn O’Connell, Executive Director, Horsemen’s Benevolent & Protective Association (HBPA) said adoption of the model rules was not happening in other jurisdictions. She said that without thresholds on withdrawal times for anabolic steroids, to adopt these classifications on drugs, she did not know what the ramifications would be. She stated the model rules were guidelines and each state needed to do what was best for their jurisdiction and asked the Commissioners not to adopt the classification guidelines amendments.

Ron Crockett asked whether the Commission could adopt the amendments and then test for substances without penalty to discover if these substances were being used and in what levels.

Susie Sourwine brought up a concern regarding detrimental press coverage when there are no thresholds.

Frank McDonald, President, HBPA said it would be reasonable to hold off adoption until further research could be done.

Mr. Leichner said these amendments could be adopted and leave Nandrolin in class 4 and at the next meeting report why this drug was changed from a class 4 to a class 3.

Chairperson Smith-Merkulov modified the motion to move Nandrolon to Class 4 and adopt the remainder of the list as written. Commissioner Kruger seconded the motion.

Chairperson Smith-Merkulov urged anyone who is coming before the Commission at the next meeting to come forward with facts, not rumors, speculation, or assumptions. Staff has been directed to talk to jurisdictions throughout the country and labs and state exactly what is happening and where it’s happening. That is what is expected of anyone coming before this Commission at the next meeting. It is a significant issue.

Ron Crockett as a horseman requested the HBPA to respond in writing to the Commission.

Unanimously approved.

Item #7. Executive Secretary report:

a) Accountant’s recap December 2006/2007.

Mr. Leichner explained the accountant’s report comparing December 2006 and 2007.

b) Accountant’s report calendar year end.

Mr. Leichner explained the accountant’s calendar year end report.

c) 2007/2009 Budget.

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

d) Report on meeting with Lottery Commission and Class C associations.

Mr. Leichner summarized the favorable meeting between the Class C associations and the Lottery Commission.

e) Employee Climate Survey.

Mr. Leichner said this was a follow-up to the survey the WHRC employees had taken in 2006. The significant change is that in 2006 thirty-two WHRC employees participated and in 2007 only sixteen participated. The overall survey was fairly consistent with 2006, with scores being slightly higher.

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

None.

Meeting adjourned.

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Robert M. Leichner, Executive Secretary