Washington
Horse Racing Commission
Meeting Minutes
October 11, 2007
Present were: Carol Smith-Merkulov, Chair; Jeff
Colliton, Commissioner; Paul George, Commissioner;
Dr. Bud Hallowell, DVM, Commissioner; Hartly Kruger,
Representative Dave Quall, Ex-officio Member; Commissioner;
Robert M. Leichner, Executive Secretary; Patty Sorby,
Confidential Secretary.
Item #1. Approval of the meeting minutes of September
13, 2007.
Commissioner George moved to approve the meeting
minutes as submitted. Commissioner Hallowell seconded
the motion. Unanimously approved.
Item #2. Chairperson’s report.
Chairperson Smith-Merkulov reported on the interviews
conducted for the vacant Equine Medical Director
position and thanked all the participants on the
interview panel. A consensus was reached but because
of confidentiality requirements she could not announce
the person selected.
Chairperson Smith-Merkulov said the WHRC hosted
the Stewards & Judges Continuing Education Seminar
for 2007 it was very well attended and she appreciated
being one of the speakers.
Chairperson Smith-Merkulov said at the last meeting
an issue was raised regarding the surface of the
track at Emerald Downs during the season. At that
time, representatives of the HBPA and Emerald Downs
assured the Commission they were going to work together
to sort out these issues, discover the actual factual
issues and reach a conclusion on how to address
these issues, if any. There have been some discussions
between the HBPA and Emerald Downs, and Emerald
Downs has been doing a considerable amount of work
on the track surface. The Chair asked Dr. Hallowell
and Commissioner Colliton to work with representatives
from the HBPA and Emerald Downs and try to get to
the bottom of this during the next month and report
back at the next meeting, which is November 8th.
Commissioner Colliton and Commissioner Hallowell
both accepted the responsibility to take on the
task.
Commissioners Colliton and Hallowell attended the
Continuing Education Seminar and were pleased with
the sessions and speakers.
Representative Dave Quall, ex-officio member, was
introduced.
Item #3. Emerald Downs’ report.
Mr. Ron Crockett updated the Commissioners with
a favorable report on the first week of simulcasting
since the close of the live race meet on September
30th at Emerald Downs.
Item #4. 2008 License renewal XpressBet.com.
Mr. Leichner presented the advance deposit wagering
license renewal application for XpressBet.com. Mr.
Gene Chabrier, Xpressbet’s Director of Regulatory
Affairs was present for any questions.
The initial renewal application and license fee
were received on August 14, 2007; the required bond
had been issued with a termination date of October
18, 2008. A background check had been completed
on the officers and directors. The agreement between
XpressBet and Emerald Downs had been renewed until
March 31, 2008. Mr. Leichner stated there weren’t
any complaints lodged and no governmental agency
investigations were being undertaken. Staff recommended
approval of XpressBet’s application to renew
its advance deposit wagering license.
Commissioner Kruger moved to approve the advance
deposit wagering renewal application of XpressBet.com.
Commissioner Colliton seconded the motion. Unanimously
approved.
Item #5. Rules of Racing:
a. Adoption Hearing:
WAC 260-36-085 License and fingerprint fees
Mr. Robert Lopez stated the WHRC was required to
collect license fees adequate to recover the actual
cost of the license program. Since 2003 the WHRC
conducts an annual review of license and fingerprint
fees to ensure the costs collected cover the costs
of the licensing program.
A proviso was requested and approved for the 2007-2009
biennial budget to allow an exception to the fiscal
growth factor restriction to consider comprehensive
changes to WHRC license fees. After studying the
costs associated with the program, ways were discovered
to reduce some of the costs. Changes were filed
with the Code Reviser in April 2007, public comment
was taken, the proposed language was shared with
stakeholders, a subsequent meeting was held to discuss
license fees and additional public comment was taken.
Staff is recommending adoption of the proposed amendment
to WAC 260-36-085.
Commissioner Colliton moved to approve the amendments
to WAC 260-36-085. Commissioner George seconded
the motion. Unanimously approved.
b. Policy/Interpretive Statement
Denial of Application/Revocation of License 2007-05
Mr. Robert Lopez said in February 2005 the WHRC
amended WAC 260-36-120 to establish specific criteria
when the Commission or its designee would be required
to deny an application for license or suspend or
revoke an existing license. As a result, the WHRC
adopted a policy/interpretive statement. In 2005
the WHRC began taking fingerprints every three years.
Many of the provisions of the policy/interpretive
statement are no longer necessary. There is still
a need for a policy/interpretive statement to assist
the board of stewards in applying WAC 260-36-120;
provide a mechanism to withdraw an application;
outline the limitations of the Commission in reversing
the decision of the board of stewards; or issuing
a license with conditions. Amendments were shared
with stakeholders and no public comment had been
received. Staff recommends adoption of the policy/interpretive
statement.
Darrell Haire, Jockey’s Guild Representative
asked about the ability to withdraw an application
for a license. A person that may be eligible to
participate in racing in another jurisdiction but
due to Washington rules, may not be eligible for
license here and may withdraw their application
before it is processed and formally denied by the
WHRC.
Commissioner Kruger moved to adopt WHRC Policy/Interpretive
Statement 2007-05 as proposed. Commissioner Hallowell
seconded the motion. Unanimously approved.
Item #6. Hearings.
a. Request from Gary Lonctot for a stay.
Mr. Leichner said he had a conversation with Mr.
Lonctot’s counsel and had granted the request
to hold over Mr. Lonctot’s request for reconsideration
to the November 8, 2007 WHRC meeting.
Chairperson Smith-Merkulov moved to consider Mr.
Gary Lonctot’s motion for reconsideration
where Mr. Lonctot will be allowed to present additional
testimony in his own behalf and any additional testimony
by WHRC staff. Commissioner Colliton seconded the
motion. Unanimously approved.
b. William P. Christian.
Chairperson Smith-Merkulov opened the hearing and
introduced those present. Robert Lopez, Deputy Secretary
represented staff. Mr. Christian was present and
not represented by counsel. Mr. Lopez introduced
twelve exhibits and they were admitted. Mr. Christian
introduced six exhibits and they were admitted.
Testimony was taken from William Christian. After
considering testimony the WHRC found insufficient
mitigating evidence to reverse the decision of the
board of stewards and the WHRC permanently denied
the application for a WHRC license and permanently
prohibited Mr. Christian from being present in any
satellite facilities under WHRC jurisdiction; permanently
prohibit him from establishing any advance deposit
wagering account with any licensed firm; and permanently
prohibited from applying for a license in Washington
in the future.
c. Teri M. Velador.
Chairperson Smith-Merkulov opened the hearing and
introduced those present. Robert Lopez, Deputy Secretary
represented staff. Ms. Velador did not appear and
was not represented by counsel. Mr. Lopez introduced
nine exhibits and they were admitted. Walter Roderick,
WHRC Investigator gave testimony. After considering
the testimony the WHRC upheld the board of steward’s
suspension of year and imposed an additional two
year suspension to be served consecutively. Ms.
Velador is denied access to all grounds and satellite
facilities under the jurisdiction of the WHRC and
is prohibited from obtaining an advance deposit
wagering account from any firms licensed by the
WHRC.
d. Vern Bronson.
By letter Mr. Bronson requested and was granted
his request to be rescheduled for hearing in February
2008. His request was granted by the Executive Secretary.
Item #7. Saul Duarte request to extend apprentice
jockey license.
Doug Moore, WHRC Presiding Steward, explained that
Mr. Duarte had been injured and was unable to participate
for fifty-nine days. Mr. Duarte has now recovered
and wished to extend his apprentice jockey status
for the days he missed. The board of stewards recommended
approval.
Commissioner Kruger moved to extend the apprentice
jockey license of Saul Duarte for fifty-nine days.
Commissioner Hallowell seconded the motion. Unanimously
approved.
Item #8. Jackie Smith request to have her letter
read into WHRC record.
Chairperson Smith-Merkulov moved this item to last
on the agenda.
Item #9. Executive Secretary report.
a. Accountant’s recap September 2006/2007.
Mr. Leichner explained the comparative statements
for Emerald Downs race season 2006 vs. 2007 and
year-to-date.
b. Accountant’s recap 2007 race year.
Mr. Leichner explained the 2007 race year wagering
for advance deposit wagering.
c. 2007-2009 Budget update.
Mr. Leichner explained the WHRC revenues and expenditures.
Mr. Leichner had presented the final accounting
of the 2005-2007 biennial budget.
Mr. Leichner updated the WHRC on the Jockey Incentive
Fund distribution.
Mr. Leichner gave the WHRC an update on the Class
C grant awards.
d. Owner/Breeder award update.
Mr. Leichner received from the WHRC auditor the
Owner and Breeder fund monies and distribution payment
factors for the 2007 race year.
Commissioner Colliton asked if the forty-five day
distribution could be met. Mr. Leichner said the
checks would be mailed within the next few days.
Mr. Leichner said the steward’s continuing
education program was a success.
Mr. Leichner said the Auburn City Council Chamber
was not available in November and December. The
November meeting will be at the Peppertree Auburn
Inn and the December meeting will be held at Emerald
Downs. Notations will be on the WHRC website and
highlighted on the meeting agendas.
Item #10. Any other business that may be properly
brought before the Commission.
Darrell Haire wanted to thank Mr. Leichner for
the invitation to attend and speak at the Continuing
Education Seminar, he felt it was a good opportunity
and was well attended.
Mr. Haire also announced that Kevin Radke, jockey
riding at Emerald Downs will be representing the
United States horse racing industry by participating
in racing in Korea as a guest.
Ron Crockett wanted to update the WHRC about Emerald
Downs’ advance deposit wagering (ADW) exclusivity
with TVG. Emerald Downs is being contacted regularly
regarding allowing other ADW companies the same
opportunity to offer signals, but the other ADW
firms are not offering the same package as TVG now
provides. It may be that the most popular races
to Emerald Downs may not be offered such as the
Kentucky Derby, Preakness, and others in the future.
Mr. Crockett is continually working to provide the
best package possible to Emerald Downs patrons.
Item #8. Jackie Smith request to have her letter
read into WHRC record.
Chairperson Smith-Merkulov considers Ms. Smith’s
letter to be a part of the record.
Commissioner George asked about the per start charge
and insurance charge, wanted to know if that was
true.
Mr. Leichner said he did not know about these fees.
Meeting adjourned.
____________________________________
Robert M. Leichner, Executive Secretary
