Washington Horse Racing Commission
Meeting Minutes
March 9, 2006

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

Item #1. Approval of the meeting minutes of February 9, 2006.

Commissioner Hallowell moved to approve the minutes as submitted. Commissioner Roland seconded the motion. Unanimously approved.

Item #2. Chairman’s report.

Chairman Kruger said that he was the vice-Chair for the National Racing Compact and with the current Chairman leaving, he accepted the Chairmanship.

Chairman Kruger said the Winner’s Federation, an organization that provides education and resources for the racing industry on the effects of addictive behaviors by providing professional advice and assistance in development of treatment programs, research initiatives and related social services, will be the recipient of funds from a silent auction at the Association of Racing Commissioners International (ARCI) annual conference. The WHRC is donating a commemorative magnum of Washington State red wine from the Washington Wine Commission that will be displayed at the auction in Albuquerque. The winning bidder will also receive a case containing a variety of Washington produced wines provided by the Commissioners that will be shipped to them at a later date.

Item #3. Emerald Downs’ report.

Mr. Paul Ryneveld the Racing Secretary for Emerald Downs reported the number of horses on the grounds is up 3.16 percent over last year and there are 75 horses on the waiting list for stalls.

Mr. Ron Crockett, President, Emerald Downs, said the handle since January 8th was up 4.9%. Mr. Crockett said Emerald Downs’ estimates for purses for the 2006 meet are right on track. With the Muckleshoot Tribe enhancement funds, there would be about $110,000 per day for purses in 2006.

Mr. Crockett said the next important task is to remove the sunset clause from the advance deposit wagering statute.

Ms. Susie Sourwine gave an overview of the tenth anniversary activities that will take place throughout the 2006 season at Emerald Downs.

Mr. Crockett also said that a well-known local auction theme was horse racing this year and would provide some publicity for Emerald Downs.

Item #4. Hearing:

a) Thomas C. Dahlquist.

The agenda items were running ahead of the scheduled time for Mr. Dahlquist’s hearing (11:00 a.m.), so the commission proceeded with other items on the agenda.

Item #5. Rules of Racing: Adoption Hearings:

a) WAC 260-12-180 Safety equipment required; WAC 260-28-230 Trainer—Duty to register personnel.

Mr. Robert Lopez presented the rule amendments for adoption. WAC 260-12-180 addressing requirements for safety helmets and vests, is amended to require meeting industry standards instead of approval by the commission. WAC 260-28-230 was amended to require trainers to notify WHRC staff of all employees, to ensure that all of their employees are properly licensed, and to notify WHRC staff within forty-eight hours if they release an employee. The rule amendments were sent to stakeholders. The Horsemen’s Benevolent & Protective Association (HBPA) commented regarding the safety equipment requirements, and those changes were incorporated in the rule. Staff recommended approval. There was no public comment.

Commissioner George moved to adopt the amendments to WAC 260-12-180. Commissioner Roland seconded the motion. Unanimously approved.

Commissioner Roland moved to adopt the amendments to WAC 260-28-230. Commissioner Hallowell seconded the motion. Unanimously approved.

b) WAC 260-28-290 Trainer—Ownership interest.

Mr. Lopez stated the changes to this rule were to prohibit a potential conflict that could arise if a trainer who owns a horse, either in whole or in part. The conflict would occur if the trainer/owner enters a horse in a race in which other horses he/she trains are entered. The rule requires a trainer to train all horses he or she owns that are participating at the race meet. Amendments were sent to stakeholders and no comments were received. Staff recommended approval. No public comment.

Commissioner Roland moved to adopt the changes to WAC 260-28-290. Commissioner George seconded the motion. Unanimously approved.

c) Chapter 260-32 WAC Jockeys, Apprentices and Agents.

Mr. Lopez stated the changes to this chapter were: changing the minimum age for a jockey from sixteen to eighteen; allowing a jockey to wear rain pants during off track conditions; addressing the steward’s concern that a jockey may be unfit to ride, allowing the stewards to require the jockey to be examined by a physician and not allowing the jockey to ride until the jockey presents a physician’s statement that the jockey is physically fit to ride; allowing jockeys to wager in a race the jockey is riding in if an owner or trainer makes the wager; limiting jockeys to wagers on his/her own mount to win or finish first in combinations with other horses in multiple wagers; requiring jockeys to keep all records of wagers and make them available for the stewards on request; allowing a jockey to wager on any race as long as the jockey has fulfilled his/her riding engagements for the day and left the jockey’s quarters.

Amendments were sent to stakeholders. A comment was received regarding weight limits for jockeys and that comment was incorporated. Ms. MaryAnn O’Connell of the HBPA requested that the reference to “top boots” in WAC 260-32-100 be changed to “jockey boots” and this request was incorporated. Staff recommended approval. No public comments.

Commissioner Hallowell moved to adopt the amendments to chapter 260-32 WAC. Commissioner Smith-Merkulov seconded the motion. Unanimously approved.

The WHRC had adopted an interpretive statement #2005-02 regarding physician’s written statement that jockeys must be physically fit to ride. Staff recommends that WHRC Policy/Interpretive Statement 2005-02 be repealed as it is no longer needed with the rule amendments. No public comment.

Commissioner Smith-Merkulov moved to repeal interpretive statement 2005-02 regarding physician’s written statement for jockeys. Commissioner Hallowell seconded the motion. Unanimously approved.

d) Chapter 260-34 Drug and Alcohol Testing of Licensees.

Mr. Lopez described the amendments to chapter 260-34. The amendments were to repeal the penalties contained within this chapter and move them to chapter 260-84 WAC Penalties. The amendments were sent to stakeholders and no comments were received. Staff recommended approval. No public comment.

Commissioner Roland moved to adopt the amendments to chapter 260-34 WAC. Commissioner Smith-Merkulov seconded the motion. Unanimously approved.

e) Chapter 260-44 WAC Weights and Equipment.

Mr. Lopez stated the amendments to this chapter were consistent with the model rules. There are two substantive changes (1) adding leg wraps to equipment the stewards will monitor and (2) new section addressing horseshoes. Comments were sent to stakeholders. The HBPA had comments regarding horseshoes were incorporated. Staff recommended approval. No public comment.

Commissioner Roland moved to adopt the changes to chapter 260-44 WAC. Commissioner Hallowell seconded the motion. Unanimously approved.

f) WAC 260-48-925 Group bet wagering.

Mr. Lopez said the proposed language for this rule had been developed by staff and Emerald Downs and also utilized model rule language. Amendments were sent to stakeholders with no comments being received. Staff recommended approval. No public comment.

Chairman Kruger asked Ms. Susie Sourwine of Emerald Downs to explain the group bet.

Commissioner George moved to adopt the amendments to WAC 260-48-925. Commissioner Roland seconded the motion. Unanimously approved.

g) WAC 260-60-430 Claimed horse—Subsequent entry.

Mr. Lopez stated at the request of the WHRC stewards, the HBPA and the Emerald Downs racing secretary, staff is proposing repeal of WAC 260-60-430. This rule presents an unnecessary barrier to racing and unfairly penalizes the winners of claiming races. The proposed repeal was sent to stakeholders with no comment received. Staff recommended repeal of this section. No public comment.

Commissioner Roland moved to repeal WAC 260-60-430. Commissioner Hallowell seconded the motion. Unanimously approved.

h) Chapter 260-70 WAC Controlled Medication Program.

Mr. Lopez stated the amendments to this chapter would be consistent with recent changes made to the model equine medication rules as recommended by the Racing Medication and Training Consortium. The changes are: 1) require first time starters and horses that have previously started to be on the grounds at least five hours before running in a race to allow time for a pre-race inspection on first time starters, and to have horses at the Class C meets on the grounds in time for identification and proper administration of furosemide; 2) limiting in rule the number of persons allowed in the test barn with a horse to be tested; 3) permit the use of furosemide at the Class C race meets; 4) add non-classified substances to the uniform classification guidelines. These are substances that are considered to have no effect on the physiology of a horse except to improve nutrition or treat or prevent infection or parasitic infestation. Staff sent amendments to stakeholders and have incorporated comments as suggested by the stakeholders. Staff recommended that adoption of the amendments to chapter 260-70 WAC be on an emergency basis as necessary for the preservation of the public health, safety, or general welfare, and that observing the time requirements for adoption of a permanent rule would be contrary to the public interest because it is necessary that the rules be in effect at the beginning of the racing season. Adoption of these rules as permanent rules is scheduled for the next meeting of the commission. No public comment.

Commissioner Roland moved to adopt the amendments to chapter 260-70 WAC on an emergency basis as recommended by staff. Commissioner Hallowell seconded the motion. Unanimously approved.

i) Chapter 260-80 WAC Corrupt and Prohibited Practices.

Mr. Lopez stated the only substantive change to this chapter is a new section prohibiting any person while on association grounds from subjecting a horse to any form of cruelty, mistreatment, neglect, abuse, abandonment, injury, or maiming, killing, administering any noxious substance to or denying any horse necessary care or sustenance, shelter or veterinary care. The amendments were sent to stakeholders. Ms. O’Connell of the HBPA commented regarding the rule on disturbing the peace and no other comments were received. Staff recommended approval. No public comment.

Commissioner Roland moved to adopt the amendments to chapter 260-80 WAC. Commissioner George seconded the motion. Unanimously approved.

j) Chapter 260-84 WAC Penalties.

Mr. Lopez said amendments to this chapter were to correct errors in the penalty matrix and include penalties for violations of chapter 260-34 WAC. A meeting with stakeholder representatives expressed concerns regarding adoption of the penalties for equine medication consistent with the model rules. In response, staff withdrew the proposed model rule Equine Medication penalty language. The only other stakeholder comment was that the trainer penalty assessment for failing to license grooms should be the same whether the violation occurred at a Class A, B or C meet. Staff recommended approval. No public comment.

Commissioner Roland moved to adopt the amendments to chapter 260-84 WAC. Commissioner George seconded the motion. Unanimously approved.

Chairman Kruger complimented and thanked Mr. Lopez for all his efficient, hard work on updating the rules.

MaryAnn O’Connell, HBPA also thanked the commission for the unprecedented cooperation between stakeholders and commission staff, and wanted the members to know that this is not the case throughout the country. Washington is unique in including stakeholders in the rule making process.

Item #6. Executive Secretary’s report.

a) Legislative update.

Mr. Robert Leichner said SB 6382 giving the WHRC the authority to expend up to $300,000 of its operating funds to assist in the development of the equine industry, improvement of racing facilities and equine health research had passed the legislature and been delivered to the Governor’s office on March 7.

b) Class C liability insurance.

Mr. Leichner said the Class C meets had entered into an agreement with an insurance company with a $2500 deductible, and an approximate cost of $4000 per day of live racing. Mr. Crockett had agreed to assist with insurance for the Class C meets again this year by contributing $750 per day for each day of live racing.

Mr. Leichner provided the members with a breakdown on the Donohue funds noting the amount had doubled from the 2005 distribution. He reported the per race day distribution totaling $300,000 for the Class C purse money would change as Dayton Days had only requested two race days for 2006 instead of the traditional three-day meet. As a result, thee are a total of nineteen race days for the non-profit meets for 2006, instead of twenty as in recent years.

c) Photo Finish contract.

Mr. Leichner stated the photo finish contract for the non-profit race meets had been awarded to Trident Network Services.

d) Audit contract.

Mr. Leichner stated there was no response to the competitive solicitation for audit services. Mr. Patrick Crowley later reconsidered and indicated an interest in continuing to do the work. In discussing the lack of response with the Office of Financial Management (OFM) and Mr. Crowley’s interest, OFM recommended the WHRC advertise it as a sole source contract for five days.

e) Preparation of the Commissioner’s Manual.

Mr. Leichner had sent a copy of the outline of the new Commissioner’s Manual and requested the members notify him of any additions.

f) LiveScan fingerprinting update.

Mr. Leichner said the commission had acquired two LiveScan devices. They are in use now and criminal history information is being received back within 48 hours of submitting the fingerprints.

g) Accountant’s February 2005/2006 recap.

Mr. Leichner stated the total revenues were showing an increase of 1.28% for year-to-date for 2006 compared to 2005.

h) 05-07 budget review.

Mr. Leichner explained the revenues and expenditures. The fund balance is $962,000. The WHRC is moving into its most expensive time with the opening of Emerald Downs and the Class C meets in April. Mr. Leichner said the WHRC was continuing to upgrade equipment needed by staff.

Item #4. Hearing:

a) Thomas C. Dahlquist.

Hearing opened at 11:00 A.M.

Commissioner Hallowell recused himself from participation in the hearing. Chairman Kruger excused Commissioner Hallowell.

Assistant Attorney General Michael S. Tribble appeared on behalf of commission staff. Mr. Thomas C. Dahlquist represented himself.

Mr. Dahlquist requested a continuance to take care of business and seek legal advice.

Mr. Tribble had no objection to Mr. Dahlquist’s request.

Chairman Kruger continued the hearing until May 11, 2006.

Hearing closed 11:03 A.M.

Item #7. Any other business that may be properly brought before the Commission.

Mr. Crockett noted the amount of copies provided for the public that remained, and requested the WHRC make fewer copies for the next meeting in an effort to save funds.

Chairman Kruger directed staff to decrease the number of copies available for the public for future meetings.

Meeting adjourned at 11:10 A.M.

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Robert M. Leichner, Executive Secretary