OKLAHOMA HORSE RACING COMMISSION REGULARLY SCHEDULED MEETING AUGUST 20, 2015 MINUTES
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1 OKLAHOMA HORSE RACING COMMISSION REGULARLY SCHEDULED MEETING AUGUST 20, 2015 CALL TO ORDER/ROLL CALL Chairman Leonard called the of the Commission to order at 9:35 a.m. in Track North at Remington Park Racetrack and Casino, Oklahoma City, Oklahoma. Commission members answering roll call were Commissioners Bollenbach, Goumaz, Harrell, Kirk, Lucas, Marcum, Money, and Sanders and Chairman Leonard. Mr. Neal Leader, Commission Counsel, was present as well as the following Commission staff members: Mr. Kelly G. Cathey, Ms. Mary Ann Roberts, Mr. Mike Dixon, Ms. Mandy Hadley and Ms. Bonnie Morris. Approximately fourteen persons attended and signed the registry which is part of the record. OPENING STATEMENT Chairman Leonard welcomed Kelly Cathey as the Interim Executive Director who started in the position after the Commission s August 12, 2015 Special Meeting. Chairman Leonard thanked all Commission Staff for helping with the transition and working with Mr. Cathey. He said that this change presents an incredible opportunity to look at everything the Commission does to move toward providing the best product possible. Chairman Leonard said that he was very pleased with everyone s efforts in the last ten days. Chairman Leonard also thanked the nine Commissioners, stating that he thought the current Commission membership is the best nine members. He added that the members are engaged, asking questions, working on Ad Hoc Committees and being available. As a follow-up to the August 12, 2015 Special Meeting at which the Commission authorized the Chair to appoint three Commissioners to serve on the Search Committee for a permanent Executive Director, Chairman Leonard reported that he had named Commissioners Harrell, Lucas and Sanders to serve on that Committee.
2 Commissioner Bollenbach made a motion to approve the drafted Minutes of the June 18, Commissioner Kirk seconded the motion. The vote was recorded as follows: Aye: Mr. Bollenbach, Mr. Kirk, Ms. Goumaz, Mr. Harrell, Mr. Lucas, PRELIMINARY CONSIDERATION OF CY 2016 RACING AND GAMING APPLICATIONS The Commission received three renewal applications from Remington Park, Will Rogers Downs and Fair Meadows at Tulsa for organization licenses to conduct live racing and simulcasting in CY 2016 as well as gaming applications. Preliminary Staff Briefs were distributed on the review of the racing and gaming applications. Questions were asked for additional information and/or clarification. It was noted that Ms. Debbie Schauf, Executive Director of the Oklahoma Quarter Horse Racing Association, was unable to attend the meeting but forwarded her written comments for each racetrack. Those documents were forwarded to the Commissioners. Remington Park Remington Park, Inc. applied to conduct two race meetings: a Quarter Horse, Paint and Appaloosa race meeting, 50 days in length, from March 10 through June 4, 2016 and a Thoroughbred race meeting, 67 days in length, from August 12 through December 11, Mr. Matt Vance, Vice President of Operations, spoke on behalf of Remington Park. He responded to the Preliminary Staff Brief questions. The breed breakdown for the Mixed Breed race meeting was changed to reflect a total of 78 Paint and Appaloosa races rather than 67 Paint and Appaloosa races, 10 Paint races, and 1 Appaloosa race. With the 422 Quarter Horse races, the number of all races for that race meeting totals
3 Mr. Vance discussed the OQHRA s request not to increase the stall deposits. He said that Remington Park would work with the horsemen s groups. The increase was proposed to address the staff cost of cleaning the stalls if the horseman doesn t do so. Ms. Danielle Barber, Executive Director of the Thoroughbred Racing Association of Oklahoma, said she forwarded responses to Mr. Cathey late last night. She said there were some issues that could be negotiated with Remington Park. Chairman Leonard discussed the positive sign that the Thoroughbred overpayment was moving toward an underpayment. Mr. Vance said that the overpayment started in CY 2012 and had been reduced since then. He added that it was a goal to be at no over/underpayment at the end of CY Mr. Vance said that Remington Park would be making a $2 million upgrade to the backside and renovating a part of the casino floor in CY Chairman Leonard asked if Remington Park was going to propose any changes to its CY 2016 live race dates, and he said it might occur later in the fall for the Quarter Horse, Paint and Appaloosa race meeting. Mr. Kelly Cathey, Commission Interim Executive Director, advised the Commission that the general liability insurance certification had been received. Mr. Vance congratulated Mr. Cathey on his appointment to the Interim Executive Director position. Will Rogers Downs, L.L.C. Will Rogers Downs, L.L.C. [WRD] applied to conduct two race meetings: a Thoroughbred race meeting, 30 days in length, from March 14 through May 21, 2016 and a Quarter Horse, Paint and Appaloosa race meeting, 28 days in length, from September 10 through November 12, Mr. Jesse Ullery, Director of Racing/Racing Secretary, spoke on behalf of Will Rogers Downs. He said that the application was essentially the same as the last several years. The Thoroughbred race meeting was proposed to start a week earlier than the current year and end on Preakness Saturday. The one change in the Quarter Horse, Paint and Appaloosa race meeting was that a one non-pari-mutuel race date was not requested due to changes in the Black Gold program. 3
4 Chairman Leonard asked about the 13 deficiencies/violations in the State Fire Marshal report. Mr. Ullery said that the corrections had been made for most of the issues with the remaining few in the process of being resolved. Chairman Leonard asked Mr. Ullery to discuss the ambulance service. Mr. Ullery responded that the staffing was outsourced to a medical agency to staff based on the racetrack s requirements. He said that there were always two EMTs during live racing and another EMT who walked around who could assist in problems in the jockey quarters or the paddock. Mr. Ullery confirmed that the ambulance worked and in operation. Chairman Leonard noted that the emergency services appeared to be better in CY 2015 than CY Mr. Ullery agreed that the medical agency s staffing had improved based on Will Rogers Downs s needs. Chairman Leonard asked about there being eight (8) less Thoroughbred races in CY Mr. Ullery said that occurred due to a lost Tuesday plus a twilight racing schedule in which only eight (8) races were run on a Saturday. That program continuation was being negotiated. Mr. Ullery said that the total number of Thoroughbred races would be between 280 and 284. Ms. Danielle Barber, Executive Director of the Thoroughbred Racing Association of Oklahoma [TRAO], reported that TRAO was still in negotiations with Will Rogers Downs on some issues. In response to a question from Commissioner Lucas, Mr. Mike Dixon, Director of Law Enforcement, stated that there were a couple of issues in the Security Plan that appeared to be resolved. Chairman Leonard commended Mr. Dixon in providing the Law Enforcement Division Report on its on-site security review of the racetracks. Tulsa State Fair (Tulsa County Public Facilities Authority) The Tulsa State Fair (the Tulsa County Public Facilities Authority) applied to conduct one fair race meeting: a Thoroughbred, Quarter Horse, Paint and Appaloosa fair race meeting at Fair Meadows at Tulsa, 34 race days in length, from June 9 through July 30, Ms. Amanda Blair, Chief Operating Officer at Expo Square, spoke on behalf of Fair Meadows at Tulsa. She reported that Fair Meadows had forwarded its responses to 4
5 questions in the Preliminary Staff Brief. Ms. Blair advised the Commission that Expo Square would not be proposing a Starter Fee in CY She said she viewed that the recent race meeting went well, particularly with issues about the construction and new barns. Ms. Blair said that the changes, including entertainment opportunities, made the race meeting more popular. Mr. Blair noted that next year s race meeting would begin a week later in working in partnership with Remington Park that also moved its race meeting back a week. It was noted that there was usually a week between the end of Remington Park s Thoroughbred race meeting and the start of the Mixed Breed race meeting at Fair Meadows at Tulsa. Chairman Leonard asked if the Pinto Show would be held next year that required construction in CY Ms. Blair reported that Expo Square planned for the Pinto Show to be held next year with use of the SuperBarn before the race meeting would begin. In response to a question from Chairman Leonard, Mr. Mark Enterline, Operations Manager for Fair Meadows at Tulsa, stated that an exempt was provided that a two-bed infirmary in the grandstand was not required at Tulsa. He stated that, other than that, the services at Fair Meadows were the same as those at Will Rogers Downs. Chairman Leonard stated he assumed the fairgrounds had First Aid stations throughout the complex. Ms. Blair agreed, stating that there are numbers of such stations for the large events such as the state fair and the race meeting but none not permanently in place. Commissioner Lucas made a motion to take preliminary action to award CY 2016 racing and gaming licenses to Remington Park, Will Rogers Downs and Fair Meadows at Tulsa and direct Commission Staff to draft License Orders for consideration in further deliberations at the October 15, 2015 meeting. Commissioner Harrell seconded the motion. The vote was recorded as follows: Aye: Mr. Lucas, Mr. Harrell, Mr. Bollenbach, Ms. Goumaz, Mr. Kirk, 5
6 CONSIDERATION OF ADDING UNIVERSITY OF CALIFORNIA-DAVIS TO THE LIST OF APPROVED REFEREE [SPLIT] SAMPLE LABORATORIES Commission Staff recommended that the University of California-Davis be added to the approved list of split laboratories. According to the Equine Analytical Chemistry Lab website, preliminary results would be faxed within 10 working days of receipt of the sample. Confirmatory results would be reported within 30 working days after approval is provided by the customer. The current fees for out-of-state split sample analysis were $1,250 for urine only analysis and $500 for blood only analysis. Commissioner Goumaz made a motion to add the University of California-Davis to the List of Approved Referee [Split] Sample Laboratories. Commissioner Lucas seconded the motion. The vote was recorded as follows: Aye: Mrs. Goumaz, Mr. Lucas, Mr. Bollenbach, Mr. Harrell, Mr. Kirk, REPORT OF AD HOC COMMITTEE ON RULES Chairman Leonard, as Chair of the Ad Hoc Committee on Rules, reported that the group met May 13, 2015, June 10, 2015 and August 5, 2015 to propose rule amendments to OAC Rules of Racing. The Committee is comprised of three Commissioners [Mr. Harrell, Mr. Leonard and Mr. Lucas], the two horsemen s organizations, the Executive Director, Mr. Leader and Ms. Roberts. Chairman Leonard advised the Commission that the Ad Hoc Committee will continue to review and discuss amendments to racing rules other than the changes proposed for the current 15 racing rules. OPENING THE PERMANENT RULEMAKING PROCESS TO CONSIDER AMENDMENTS TO FIFTEEN RACING RULES The Ad Hoc Committee on Rules proposed amendments to the following 15 racing rules to update information and/or to delete obsolete language: 325:1-1-3, Description and Powers 325:1-1-7, Jurisdiction of Stewards to Suspend or Fine 325:10-1-8, Right of Commission to Information 325: , Procedure to Establish Horsemen s Purses at Fair Race Meeting [PROPOSED REPEAL OF RULE] 325: , Horsemen s Purses 325: , Grounds for Denial, Refusal, Suspension or Revocation of License 6
7 325: , Horse Ownership by Lease 325: , Honoring Official Credentials 325:20-1-6, Racing Officials Appointed by the Commission 325: , Duties of the Clerk of Scales 325:25-1-2, Definitions [definition of Authorized Agent] 325:35-1-8, Intoxication 325: , Filing and Processing of Financial Responsibility Complaints 325: , Communicating Results of Races [PROPOSED REPEAL OF RULE] 325: , Split Samples Commissioner Lucas made a motion to approve opening the permanent rulemaking process to consider proposed amendments to the 15 racing rules, including the publication of the Notices of Rulemaking Intent in The Oklahoma Register and the scheduling of a Public Hearing. There was unanimous consent to vote on all 15 rules in one motion. Commissioner Kirk seconded the motion. The vote was recorded as follows: Aye: Mr. Lucas, Mr. Kirk, Mr. Bollenbach, Ms. Goumaz, Mr. Harrell, SETTING OF REMAINING SUSPENSION DATES DUE TO DISMISSAL OF DISTRICT COURT APPEAL IN DONALD STEWART S APPEAL OF STEWARDS ORDER TO DISTRICT COURT Background In Stewards Order 14-RP-107, Mr. Donald Stewart was found to be in violation of OAC 325: , Tricks and Schemes Prohibited. The Stewards Order reflected that Mr. Stewart completed a claim form on HICLASS FLY from the 10 th race on March 22, 2013 and signed Mr. John Stinebaugh s name on the signature space on the claim form which subsequently resulted in the claim of HICLASS FLY by Mr. Stinebaugh. The Stewards Order also reflects that Mr. Stewart was not an Authorized Agent for Mr. Stinebaugh. The Board of Stewards suspended Mr. Stewart for ninety (90) days, beginning Friday, September 26, 2014, through Wednesday, December 24, 2014, and fined him $2,500. Mr. Stewart appealed the Stewards Order to the Commission. At its January 15, 2015 meeting, the Commission conducted an Appeal Hearing on Mr. Donald Stewart s appeal and the Stewards referral. After deliberations, the Commission took action to affirm the Stewards Order and modify the penalties to a $1,000 fine and a 10 day suspension 7
8 of license. The Commission set the suspension period for February 26, 2015 through March 7, Subsequent to the Commission s Order, Mr. Stewart filed an appeal with the District Court and asked the Commission to issue a Stay. By then, Mr. Stewart had served four (4) days of the suspension. The Commission issued an Order Granting Conditional Stay that included a condition that should the District Court affirm the Commission s Order, the Commission would establish new dates of suspension which would be scheduled during a Quarter Horse, Paint and Appaloosa race meeting at Remington Park. Mr. Stewart dropped the District Court case on June 11, 2015, filing a Dismissal with Prejudice. Current Consideration The Commission was asked to schedule the remaining six (6) days of the ten (10) day suspension during the CY 2016 Quarter Horse, Paint and Appaloosa race meeting at Remington Park. Commissioner Lucas made a motion to set the remaining six days to begin on the entry day for the first race day of the upcoming CY 2016 Quarter Horse, Paint and Appaloosa race meeting. Commissioner Harrell seconded the motion. The vote was recorded as follows: Aye: Mr. Lucas, Mr. Harrell, Mr. Bollenbach, Ms. Goumaz, Mr. Kirk, CY 2016 MEETING DATES Commission Staff recommended that the Commission consider scheduling eight monthly meetings in CY 2016 for the months of January, February, March, May, June, August, October and November. Although the meetings are usually held on the third Thursday of the month, the January 14, 2016 date was proposed so that the Commission meeting would not be held at the same time as the Heritage Place Sale scheduled for January 21-23, Commissioner Kirk made a motion to set the CY 2016 meeting dates for January 14, February 18, March 24, May 19, June 16, August 18, October 20 and November 17. Commissioner Goumaz seconded the motion. The vote was recorded as follows: 8
9 Aye: Mr. Kirk, Ms. Goumaz, Mr. Bollenbach, Mr. Harrell, Mr. Lucas, RECOMMENDATIONS FROM THE OKLAHOMA-BRED ADVISORY COUNCIL The Advisory Council met on August 5, 2015 and forwarded the following two funding recommendations for Commission consideration. Funding for CY 2015 Year-Ended Trophies Ms. Tara Teel, Co-Chair of the Oklahoma-Bred Advisory Council, submitted a funding request for the 2015 year-end Oklahoma-Bred champion trophies by breeds with the cost to be allocated by breed. The Advisory Council suggested a continuation of funding of up to $12,500. The Council also suggested a new procedure in which the Registry Department would forward a list of the champions to the respective horsemen s representative organization for that entity to decide if multiple trophies for an award need to be ordered. The Oklahoma-Bred Advisory Council unanimously recommended the funding and the new procedure. Commissioner Goumaz made a motion to approve (1) Oklahoma-Bred funding of up to $12,500 for the CY 2015 year-end Oklahoma-Bred champion trophies by breeds with the cost to be allocated by breed and presented at CY 2016 award banquets and (2) a new procedure to forward a list of the champions by breed to the respective horsemen s organization for that entity to decide if multiple trophies for an award need to be ordered. Commissioner Sanders seconded the motion. The vote was recorded as follows: Aye: Ms. Goumaz, Mr. Sanders, Mr. Bollenbach, Mr. Harrell, Mr. Kirk, Mr. Lucas, Mr. Marcum, Ms. Money, Mr. Leonard Funding for CY 2016 Promotional Advertising Ms. Tara Teel, Co-Chair of the Oklahoma-Bred Advisory Council, submitted a funding request for the annual promotional advertising of the Program in industry publications with up to $10,000 for the Quarter Horse, Paint and Appaloosa breeds and up to $20,000 for the Thoroughbred breed during CY The Oklahoma-Bred Advisory Council unanimously recommended the funding 9
10 Commissioner Goumaz made a motion to approve Oklahoma-Bred funding for the CY 2016 promotional advertisement of the Oklahoma-Bred Program in industry publications with up to $10,000 for the Quarter Horse, Paint and Appaloosa breeds and up to $20,000 for the Thoroughbred breed. Commissioner Sanders seconded the motion. The vote was recorded as follows: Aye: Ms. Goumaz, Mr. Sanders, Mr. Bollenbach, Mr. Harrell, Mr. Kirk, Mr. Lucas, Mr. Marcum, Ms. Money, Mr. Leonard REMINGTON PARK S REQUEST FOR OKLAHOMA-BRED FUNDING FOR TWO THOROUGHBRED STAKES RACES Remington Park requested an additional $50,000 purse supplements in Oklahoma-Bred funding for two stakes races to be run on Friday, November 27, 2015, during the Thoroughbred race meeting. The Don McNeill Stakes Race would be open to accredited Oklahoma-Bred two-year-olds. The Slide Show Stakes Race would be open to accredited Oklahoma-Bred two-year-old fillies. The payout percentages would be This request was not taken up by the Oklahoma-Bred Advisory Council at its August 5, 2015 meeting. The proposed funding breakdown follows: Purse Broodmare Stallion Supplements Awards Awards Total The Don McNeill Race $25,000 $17,000 $ 8,000 $ 50,000 The Slide Show Race $25,000 $17,000 $ 8,000 $ 50,000 $50,000 $34,000 $16,000 $100,000 Commissioner Lucas made a motion to approve Oklahoma-Bred funding of $100,000 [including $50,000 for purse supplements and $50,000 for breeder and stallion awards] for two stakes races, The Don McNeill Race and The Slide Show Race, to be conducted during Remington Park s CY 2015 Thoroughbred race meeting. Commissioner Kirk seconded the motion. The vote was recorded as follows: Aye: Mr. Lucas, Mr. Kirk, Mr. Bollenbach, Ms. Goumaz, Mr. Harrell, 10
11 ANY MATTER NOT KNOWN ABOUT OR WHICH COULD NOT HAVE BEEN REASONABLY FORESEEN PRIOR TO POSTING THE AGENDA There was no such matter. ANNOUNCEMENTS Chairman Leonard made the following announcements: Remington Park s Thoroughbred race meeting began on Friday, August 14, Chairman Leonard and Mr. Cathey were in attendance. The Oklahoma Classics, a series of stakes races for Oklahoma-Bred Thoroughbreds, will be held at Remington Park on Friday, October 16, ADJOURNMENT The meeting was adjourned at 10:29 a.m. Approved this 15 th day of October, Ran Leonard, Chairman On Behalf of the Commission: ATTEST: Kelly G. Cathey, Interim Executive Director KGC/bjm/8/25/15, 8/26/15, 10/15/15 In compliance with 25 O.S. 312, the Secretary of State was given notice of this meeting on August 22,
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