Washington Horse Racing
Commission
Meeting Minutes
June 14, 2007
Present were: Carol Smith-Merkulov, Chairperson;
Jeff Colliton, Commissioner; Paul George, Commissioner;
Bud Hallowell, DVM, Commissioner; Hartly Kruger, Commissioner;
Cindy Evans, Assistant Attorney General; Robert M.
Leichner, Executive Secretary; Patty Sorby, Confidential
Secretary.
Item #1. Approval of the meeting minutes of May
18, 2007.
Commissioner Colliton moved to approve the meeting
minutes as submitted. Commissioner Kruger seconded
the motion. Unanimously approved.
Item #2. Chairperson’s report.
Chairperson Smith-Merkulov said she enjoyed visiting
the Class C race meets and is working with WHRC staff
on the status of the budget.
Commissioner Kruger said he had been working with
the National Racing Compact (NRC) and announced that
Ohio was near to becoming a member. He said the NRC
was continuing to exceed growth expectations and becoming
financially sound.
Item #3. Emerald Downs report.
Mr. Ron Crockett, President Northwest Racing Associates
said due to an illness in the barn area, there had
been fewer races. He said the average field size was
about nine horses per race, the satellite sites were
doing well and attendance appears normal; Advance
deposit wagering the purse account are doing well.
Chairperson Smith-Merkulov noted that Emerald Downs
also doing well in its partnership with the Lottery
and was number two in Lotto sales.
Item #4. Advance deposit wagering license renewal
for TVG.
Mr. Leichner presented the renewal application for
advance deposit wagering for TVG. Mr. Leichner said
there were no changes in directors. The background
investigation indicated no detrimental information
from a check at the Association of Racing Commissioners
International (ARCI) and a state check through the
Washington State Patrol (WSP). TVG paid the renewal
fee and their bond was in order and on file with the
Washington Horse Racing Commission (WHRC). The license
renewal would be from July 27, 2007 to July 26, 2008.
Mr. Leichner said staff recommended approval.
Ms. Melanie Sims-Frank representing TVG spoke to
the WHRC and said the Washington participants continue
to exceed their expectations. She stated that TVG
is in thirty-million households and TVG was adding
new channels that would be available on the basic
cable offered to customers. She thanked WHRC staff
for all their assistance.
Commissioner Colliton moved to approve the license
renewal for advance deposit wagering for TVG. Commissioner
Kruger seconded the motion. Unanimously approved.
Item #5. Advance deposit wagering license renewal
for Youbet.com.
Mr. Leichner presented the renewal application for
advance deposit wagering for Youbet.com. Mr. Leichner
said the application renewal period is July 13, 2007
to July 12, 2008. He stated a background investigation
found nothing detrimental disclosed, there were no
pending investigations and no enforcements actions
pending. The license renewal fee had been received
and the bond was in order. Mr. Leichner said staff
recommended approval.
Mr. Lonny Powell representing Youbet.com spoke regarding
the partnership between Emerald Downs and Youbet.com.
He stated the company was moving forward with less
content due to the formation of a company that holds
exclusive packaging for wagering on many of the favored
tracks. He thanked WHRC staff for all their assistance.
Commissioner Kruger moved to approve the license
renewal application for advance deposit wagering for
Youbet.com. Commissioner George seconded the motion.
Unanimously approved.
BREAK. (10:15 A.M.) RECONVENED (10:30 A.M.)
Item #6. Rules of Racing: Adoption hearing:
a. Chapter 260-16-WAC Washington-bred horses.
Robert Lopez presented the rule changes for Chapter
260-16 WAC Washington-bred races. He stated the reasons
for amending this chapter were to simplify the process
to certify Washington-bred horses; to amend the process
for distribution of Washington-bred owner’s
bonuses and breeder’s awards including providing
breeder’s awards to the breeders of horses finishing
first, second, or third; to repeal sections no longer
applicable and to amend rules using clear and understandable
language.
Mr. Lopez said key changes in WAC 260-16-040 were
to amend, to be more consistent with statute, RCW
67.16.070 regarding races for local breeders; WAC
260-16-050 was amended to define the distribution
for owner’s bonus and breeder’s awards
for a Washington-bred horse; and WAC 260-16-065 was
amended to define the Washington-bred owner’s
bonus and breeder’s award distribution formula
including the breeder’s award collection and
distribution of seventy-five percent to first place;
fifteen percent to second place; and ten percent to
third place.
Mr. Lopez stated the change to WAC 260-16-075 specifically
exempts non-profit race meets from the requirement
to collect and distribute owner’s bonus and
breeder’s awards.
Mr. Lopez said numerous oral and written comments
had been received regarding these rule amendments
and they have been incorporated. Staff recommended
adoption.
Commissioner Kruger moved to adopt the amendments
to WAC 260-16-040; 050; and 065 as submitted. Commissioner
Colliton seconded the motion.
Chairperson Smith-Merkulov asked for public comment.
Ralph Vacca, General Manager of the Washington Thoroughbred
Breeders Association (WTBA) asked if one Washington-bred
race would be conducted per race day no matter what
circumstance.
Chairperson Smith-Merkulov said it was not in the
best interests of horse racing to run a race with
only two entries.
Mr. Crockett said the data on Washington-breds was
that each day averaged to approximately 52.4 percent
of the time, Washington-breds were in the one, two
or three payouts. He stated there were a mixture of
Washington-bred, California-bred and Oregon-bred horses
stalled at Emerald Downs and the very best effort
was made to run a Washington-bred only race each race
day.
Chairperson Smith-Merkulov said MaryLou Griffin
recommended an effort be made to work with the trainers
to fill Washington-bred races.
Chairperson Smith-Merkulov called for vote. Unanimously
approved.
b. Policy/Interpretive Statement 2007-04 Owner’s
Bonus and Breeder’s Awards of Washington-bred
Horses.
Mr. Lopez said with the adoption of the amendments
to Chapter 260-16 WAC, Washington-bred horses, specifically,
WAC 260-16-065(3) requirement for WHRC to distribute
owner’s bonus and breeder’s awards within
ninety days after the end of the race meet this policy
is proposed to make it clear to the owners and breeders
that it is the intention of the WHRC to distribute
the awards and bonuses within forty-five days after
the end of the race meet from which they were generated.
Staff recommended adoption.
Commissioner Hallowell moved to adopt Policy/Interpretive
Statement 2007-04. Commissioner Colliton seconded
the motion.
Commissioner Kruger asked Mr. Leichner if the process
to obtain the names and addresses of the owners and
breeders was in place. Mr. Leichner said he had been
working with Emerald Downs and the Jockey Club and
Mr. Vacca stated the WTBA would share their address
list from the past two years. He said the WHRC had
resources available that may not have been available
for the WTBA to obtain addresses.
Chairperson Smith-Merkulov called for vote. Unanimously
approved.
Item #7. Moved to on the agenda to be heard after
Item #10.
Item #8. 07-09 Budget discussion.
Mr. Leichner provided the WHRC with projections
for the 2007-2009 biennial budget. He said some unforeseen
circumstances had arisen regarding some of the allotments
and Mr. Leichner said this had drastically changed
the ability to set aside funds for the Equine Incentive
grants. He stated that the WHRC only had the ability
to give one-hundred thousand dollars each fiscal year,
no more than two-hundred thousand dollars total for
the 2007-2009 biennium.
Commissioner Kruger asked Mr. Leichner the reason
for such a drastic increase in the Auditor’s
cost. Mr. Leichner explained the Auditor stated that
they had not billed the entire costs associated with
the 2003-2005 biennium and whistleblower costs. Mr.
Leichner said he was working with OFM and the Auditor’s
staff to track the billings against those already
billed.
Commissioner Colliton asked if these costs changed
was there a possibility of additional funds being
available? Would the WHRC know by the September or
October meeting if more funds become available? Mr.
Leichner said yes, that was a possibility.
Item #9. Equine Incentive Funds Award:
a. Equine Incentive.
Chairperson Smith-Merkulov asked Mr. Monahan to present
the requests for the Blue Mountain Circuit.
Mr. Monahan stated in light of the bad fiscal news
that Mr. Leichner presented, on behalf of the Blue
Mountain Circuit, in anticipation of the grant funds,
had already paid for some of the items on the grant
requests. Those items included: Insurance to cover
jockeys at $59,500; Payoff Commission trailer $18,668.96;
Transport Commission Trailer $3,800; Jockey Silks
$1,200.
Dr. Melissa Hines, Dr. Allison Stewart and Dr. Julie
Cary presented a proposal to the WHRC for Identification
of relative adrenal insufficiency in critically ill
neonatal foals and adult horses. This proposal would
identify the presence of a complication called relative
adrenal insufficiency (RAI) in critically ill foals
and adult horses. RAI is responsible for the majority
of case fatalities in horses. Requesting grant funding
of $38,142.00.
Dr. Julie Cary submitted a proposal on the relative
effectiveness of systemically administered ketamine,
lidocaine, and butorphanol delivered as a constant
rate infusion for treatment of orthopedic pain in
horses. This proposal is to evaluate the relative
pain relieving effects of systemically administered
ketamine, lidocaine, and butorphanol delivered as
a constant rate infusion compared to single bolus
administration of Phenylbutazone in an experimentally
induced sole pain model in the horse. Requesting grant
funding of $26,447.00
Chairperson Smith-Merkulov moved to approve grant
funding for the Jockey Incentive Fund of $35,000 and
approve Blue Mountain’s request for $59,500
for Jockey Insurance; total payoff of the Commission
trailer $18,500; transport for the trailer $3,800;
Jockey Silks $1,200; TriCities’ requests for
Men’s Jockey Room $7,050; Water Truck Boom $3,550;
Chain Link Fence $2,700; and resurfacing Race Track
$1,750 for a total of $132,946. Commissioner Kruger
seconded the motion.
Commissioner Hallowell asked about Dr. Russell Tucker’s
proposal regarding additional funding for histological
examination of samples obtained from the MRI/postmortem
program. Mr. Leichner stated this should be added
to the current Necropsy Program.
Chairperson Smith-Merkulov called the vote. Unanimously
approved.
Senator Rasmussen suggested some of the items proposed
such as the barn renovations may be placed in the
capital budget and also the Department of Agriculture
provide grants for sustaining the county fairgrounds
and suggested they apply. Senator Rasmussen said these
types of projects are exactly what they look for in
granting funds.
Commissioner George also suggested going before
the local fair boards and requesting assistance.
LUNCH BREAK (12:15 P.M.) RECONVENED (1:15 P.M.)
Item #10. Hearings:
a. Richard Broadhead
Chairperson Smith-Merkulov opened the hearing. Michael
S. Tribble, Assistant Attorney General, representing
staff. Richard Broadhead was not represented by counsel.
Mr. Tribble offered eight exhibits which were admitted.
Richard Smith, Investigator, WHRC gave testimony.
After considering evidence, the Commission denied
Mr. Broadhead’s license and declared him ineligible
to apply for a license in the future.
Hearing closed.
Item #7. 2007 end of meet reports for Sun Downs, Walla
Walla, Waitsburg and Dayton.
Mr. Leichner stated the reports had a common theme
regarding the rail and insurance. There were more
jockeys than horses to ride and this was attributed
to the incentive fund. Mr. Leichner said the Commission
trailer was not holding up to being moved and recommended
the trailer stay at the Sun Downs site and the other
associations could accommodate the Commission on their
grounds.
Item #11. Executive Secretary’s report.
a. Accountant’s recap 2006/2007.
i. Emerald Downs – May.
ii. Waitsburg – May 19 & 20.
iii. Dayton – May 26 & 27.
Mr. Leichner presented the handle reported by the
WHRC auditor. The meet at Waitsburg was down slightly
and the Dayton meet also was down from 2006.
b. 2005/2007 Budget.
Mr. Leichner reported on the revenue and expenditures
estimates compared to actuals.
Item #12. Any other business that may be properly
brought before the Commission.
Commissioner Hallowell felt it would be appropriate
to name the incentive grant funds the Leichner Fund.
He felt that Mr. Leichner had worked hard to identify
the funds to be able to give assistance to the small
race meets.
Commissioner Kruger stated they all recognize Mr.
Leichner’s ability.
Meeting adjourned.
_________________________________
Robert M. Leichner, Executive Secretary
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