OKLAHOMA HORSE RACING COMMISSION REGULARLY SCHEDULED MEETING MAY 21, 2015 MINUTES

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1 OKLAHOMA HORSE RACING COMMISSION REGULARLY SCHEDULED MEETING MAY 21, 2015 CALL TO ORDER/ROLL CALL Vice-Chairman Leonard called the Regularly Scheduled Meeting of the Commission to order at 9:36 a.m. in Track North at Remington Park Racetrack and Casino, Oklahoma City, Oklahoma. Commission members answering roll call were Commissioner Bowers, Commissioner Goumaz, Commissioner Harrell, Commissioner Kirk, Commissioner Leonard, and Commissioner Sanders. Commissioners Bollenbach, Burton and Lucas were unable to attend the meeting. Mr. Neal Leader, Commission Counsel, was present as well as the following Commission staff members: Mr. Constantin A. Rieger, Ms. Mary Ann Roberts, Ms. Mandy Hadley, Mr. Mike Corey, and Ms. Bonnie Morris. Approximately twelve persons attended and signed the registry which is part of the record. Commissioner Sanders made a motion to approve the drafted Minutes of the March 26, 2015 Rescheduled Regular Meeting. Commissioner Bowers seconded the motion. The vote was taken as follows: Aye: Mr. Sanders, Mr. Bowers, Mr. Harrell, Mr. Kirk, Mr. Leonard, Abstain: Ms. Goumaz The motion passed on a vote.

2 Recommendation from Ad Hoc Committee on Budget and Finance for FY-2016 Gaming Regulatory Assessment per Gaming Machine Background Under the provisions of Title 3A, Section 282(B), the Commission is authorized to assess a fee upon each Organization Licensee authorized by the State-Tribal Gaming Act to conduct gaming authorized by the State-Tribal Gaming Act to provide adequate funding to the for the regulation of such gaming in this state. Under Subsection C of Section 282, the assessment is required to be proportional to the number of player terminals an Organization Licensee is licensed to operate pursuant to the State-Tribal Gaming Act. At the March 26, 2015 meeting, the Ad Hoc Committee on Budget and Finance recommended an increase of $50.00 in the assessment fee for each gaming machine to be effective April 1, 2015 for the current fiscal year. The Commission approved the recommendation. For the months of May and June 2015, the last two months of the current fiscal year, this resulted in payment of $50,000 [$37,500 from Remington Park and $12,500 from Will Rogers Downs]. Current Consideration Since the last Commission meeting on March 26, 2015, the Ad Hoc Committee on Budget and Finance met several times. After its April 30, 2015 meeting, Commissioner Kirk, as Chair of the Ad Hoc Committee, requested that Remington Park and Will Rogers Downs submit on or before May 8, 2015 all comments, recommendations, suggested amendments and supporting materials with regard to proposed budget allocations to gaming expenses used in calculating a proposed FY-2016 gaming regulation assessment. The two racetracks responded with comments. Commissioner Kirk reported that the Ad Hoc Committee on Budget and Finance recommended that the FY-2016 gaming regulatory assessment per player terminal [gaming machine] be set at $ with payments to be made quarterly of $ The first payment was proposed for July 15, 2015, the date the Commission approved the racetracks request to submit their CY-2016 racing and gaming renewal license applications. The submission dates for the other three quarterly payments were proposed as October 15, 2015, January 15, 2016 and April 15,

3 Commissioner Kirk made a motion that the Commission approve the Ad Hoc Committee on Budget and Finance s recommendation to set the FY-2016 assessment at $ with payments to be made quarterly of $ on July 15, 2015, October 15, 2015, January 15, 2016 and April 15, Commissioner Sanders seconded the motion. The vote was taken as follows: Aye: Mr. Kirk, Mr. Sanders, Mr. Bowers, Ms. Goumaz, Mr. Harrell, Mr. Leonard Vice-Chairman Leonard expressed appreciation for the hard work of the Ad Hoc Committee regarding this issue. Report from Ad Hoc Committee on Medications Commissioner Goumaz, as Chair of the Ad Hoc Committee on Medications, provided a report of the Committee s May 6, 2015 meeting at which time the Committee discussed recommending to the Commission that Cobalt be added to the Directive on Commission-Sanctioned Thresholds at a threshold level of 50 ng/ml plasma/serum to be effective June 4, 2015, the first day of the CY 2015 Mixed Breed race meeting at Fair Meadows at Tulsa. She noted that Cobalt has an RCI classification of (2) with a (B) penalty. Proposed Amendment to Directive on Commission-Sanctioned Thresholds Background The Association of Racing Commissioners International [RCI] recently set a threshold level for Cobalt. The RCI threshold level was set at 50 ng/ml of blood plasma/serum. The RCI sanctions would include suspending the Trainer for a minimum of 15 days and setting the fine at $500. The horse Owner(s) would face a loss of purse money. Cobalt is a naturally occurring element that can be found in horses in the form of Vitamin B-12. When given in excessive amounts, it may be used to cause an improved endurance by spurring the production of oxygen-carrying red blood cells. As the RCI document indicated, there are serious concerns that the excessive administration of Cobalt salts has the potential to be toxic for horses, leading to cardiovascular issues, nerve problems, thickening of the blood and thyroid toxicity. 3

4 Current Consideration The Commission considered the recommendation of the Ad Hoc Committee on Medications to update the Directive on Commission-Sanctioned Thresholds to include Cobalt with a threshold level of 50 ng/ml in plasma/serum to be effective June 4, (4) Cobalt 50 ng/ml in plasma/serum effective June 4, Mr. Rieger stated that the last line of the agenda description on Cobalt should be deleted as incorrect: Cobalt is a prohibited medication/substance. Commissioner Goumaz made a motion to add Cobalt at the 50 ng/ml in plasma/serum threshold level effective June 4, 2015 to the Directive on Commission-Sanctioned Thresholds. Commissioner Harrell seconded the motion. The vote was taken as follows: Aye: Ms. Goumaz, Mr. Harrell, Mr. Bowers, Mr. Kirk, Mr. Sanders, Mr. Leonard Proposed FY-2016 Pari-Mutuel and Gaming Auditing Contracts Between the Commission and the Office of State Auditor and Inspector (SA&I) The Office of the State Auditor and Inspector [SA&I] offered proposed racing and gaming auditing contracts with the Commission for FY-2016 [July 1, 2015 through June 30, 2016]. The pari-mutuel contract proposed a $38, annual budget whereas the gaming contract proposed a $162, annual budget. These proposed figures represented a 10% reduction from the current contracts in response to the Cmmission s ongoing reductions in appropriation levels. Commissioner Goumaz made a motion to accept the FY-2016 racing and gaming auditing contracts between the Commission and the Office of State Auditor and Inspector with no objection by any Commissioner to the consideration of both contracts in a single motion. Commissioner Sanders seconded the motion. The vote was taken as follows: 4

5 Aye: Ms. Goumaz, Mr. Sanders, Mr. Bowers, Mr. Harrell, Mr. Kirk, Mr. Leonard The Commission expressed appreciation to SA&I staff for reducing its FY-2016 parimutuel and gaming auditing contracts. Recommendations from the Oklahoma-Bred Advisory Council The Oklahoma-Bred Advisory Council met on May 6, 2015 and forwarded the following funding recommendations from the Oklahoma Breeding Development Fund Special Account. Renewal of Veterinary Medical Diagnostic Program [Necropsy Study] Dr. Keith Bailey, Director of the Oklahoma Animal Disease Diagnostic Laboratory at Oklahoma State University (OSU), submitted an April 13, 2015 request for continued funding of the Veterinary Medical Diagnostic Program (Necropsy Study). The funding would continue the basic pick up and necropsy services as well as a hauling charge per mile for a truck with a flat bed. The current financial commitment to the Necropsy Study is $50,000. fees were set as: Last year, the $ for necropsy and comprehensive limb examination $ for disposal of horse Pickup/travel expenses per racetrack: Remington Park: $ Fair Meadows at Tulsa: $ Will Rogers Downs: $ The only increase in fees requested by OSU is a $10.00 increase in the disposal fee [proposing a $ fee]. Since the current Oklahoma-Bred balance is $12,889.66, $37, would be needed to return the balance to $50,000. The Oklahoma-Bred Advisory Council unanimously recommended continuation of the Necropsy Study with a $50,000 financial commitment. 5

6 Commissioner Sanders made a motion to approve Oklahoma-Bred funding for the FY necropsy study with Oklahoma State University. Commissioner Bowers seconded the motion. The vote was taken as follows: Aye: Mr. Sanders, Mr. Bowers, Ms. Goumaz, Mr. Harrell, Mr. Kirk, Mr. Leonard Thoroughbred Racing Association of Oklahoma and Fair Meadow at Tulsa s Funding Request for CY 2015 Thoroughbred Stakes Races to be Conducted at Fair Meadows at Tulsa In an April 2, 2015 letter, Ms. Danielle Barber, Executive Director of the Thoroughbred Racing Association of Oklahoma, requested a total of $20,000 in added Oklahoma-Bred funding for two stakes races to be conducted during Fair Meadows at Tulsa s CY 2015 race meeting with the payout percentages at 60/20/11/6/3 as follows: Purse Broodmare Stallion Supplements Awards Awards Total Muscogee [Creek] Nation Stakes $ 5,000 $3,400 $1,600 $10,000 Route 66 Stakes $ 5,000 $3,400 $1,600 $10,000 $10,000 $6,800 $3,200 $20,000 The Oklahoma-Bred Advisory Council unanimously recommended $20,000 in funding from the Oklahoma Breeding Development Fund Special Account for the two stakes races. Thoroughbred Racing Association of Oklahoma and Remington Park s Request for Oklahoma-Bred Funding for CY 2015 Thoroughbred Stakes Races to be Conducted at Remington Park In an April 21, 2015 letter, Ms. Danielle Barber, Executive Director of the Thoroughbred Racing Association of Oklahoma, requested Oklahoma-Bred funding of $567,600 for sixteen [16] stakes races to be run during Remington Park s CY 2015 Thoroughbred race meeting with the payout percentages at 60/20/11/6/3 as follows: 6

7 Purse Broodmare Stallion Supplements Awards Awards Total Red Earth Stakes $ 20,000 $ 13,600 $ 6,400 $ 40,000 Remington Park Turf Sprint Stakes $ 20,000 $ 13,600 $ 6,400 $ 40,000 Tishomingo Stakes $ 20,000 $ 13,600 $ 6,400 $ 40,000 Te Ata Stakes $ 20,000 $ 13,600 $ 6,400 $ 40,000 Ladies on the Lawn Stakes $ 20,000 $ 13,600 $ 6,400 $ 40,000 Oklahoma Classics Sprint Stakes $ 15,200 $ 10,336 $ 4,864 $ 30,400 Oklahoma Classics Juvenile Stakes $ 12,000 $ 8,161 $ 3,839 $ 24,000 Oklahoma Classics Distaff Sprint Stakes $ 15,200 $ 10,336 $ 4,864 $ 30,400 Oklahoma Classics Lassie Stakes $ 12,000 $ 8,161 $ 3,839 $ 24,000 Oklahoma Classics Distaff Stakes $ 17,000 $ 11,560 $ 5,400 $ 34,000 Oklahoma Classics Cup Stakes $ 22,000 $ 14,961 $ 7,039 $ 44,000 Oklahoma Classics Distaff Turf Stakes $ 15,200 $ 10,336 $ 4,864 $ 30,400 Oklahoma Classics Turf Stakes $ 15,200 $ 10,336 $ 4,864 $ 30,400 Silver Goblin Stakes $ 20,000 $ 13,600 $ 6,400 $ 40,000 Jim Thorpe Stakes $ 20,000 $ 13,600 $ 6,400 $ 40,000 Useeit Stakes $ 20,000 $ 13,600 $ 6,400 $ 40,000 $283,800 $192,987 $90,813 $567,600 The Oklahoma-Bred Advisory Council unanimously recommended $567,600 in funding from the Oklahoma Breeding Development Fund Special Account for these 16 stakes races. Commissioner Goumaz made a motion to approve the Thoroughbred Racing Association of Oklahoma s requests for Oklahoma-Bred funding for two stakes races this year at Fair Meadows at Tulsa and 16 stakes races this year at Remington Park. There was no objection by any Commissioner to the consideration of both funding requests in a single motion. Commissioner Kirk seconded the motion. The vote was taken as follows: Aye: Ms. Goumaz, Mr. Kirk, Mr. Bowers, Mr. Harrell, Mr. Sanders, Mr. Leonard FY-2016 Membership on the Oklahoma-Bred Advisory Council Each year, the Commission appoints organizations and individuals to the Oklahoma- Bred Advisory Council for the next fiscal year (July 1 through June 30). The following organizations and individuals were appointed as members of the Advisory Council for the current year: Remington Park Will Rogers Downs Office of State Auditor & Inspector Oklahoma-Bred Registrar OQHRA Representative TRAO Representative At-Large Representative on request of OQHRA 7

8 At-Large Representative on request of TRAO At-Large Representative on request for the Commission Mr. Ed Melzer Commissioner Goumaz made a motion to appoint the same members to the Oklahoma- Bred Advisory Council for FY Commissioner Sanders seconded the motion. The vote was as follows: Aye: Ms. Goumaz, Mr. Sanders, Mr. Bowers, Mr. Harrell, Mr. Kirk, Mr. Leonard Commissioners Bollenbach, Burton and Lucas were absent from the meeting. Appointment of Nominating Committee to Present a Proposed Slate of Nominees for Commission Officers for FY-2015 Chairman Leonard announced that Chairman Burton appointed Commissioners Goumaz, Harrell and Lucas to serve on the Nominating Committee to develop a proposed slate of Commission Officers [Chair, Vice-Chair and Secretary] for FY-2016 (July 1, 2015 through June 30, 2016). Commissioner Lucas was appointed to serve as Chair. The Nominating Committee will present a proposed slate of nominees for the three positions for Commission consideration at the June 18, 2015 meeting. REPORTS Mr. Rieger reported on the current status of proposed rule amendments to 6 racing rules. At this point, the Office of Administrative Rules estimates that the earliest effective date would be July 11, Commissioner Lucas was commended for attending the Spring Meeting of the Association of Racing Commissioners [RCI] at his own expense. ANNOUNCEMENTS Announcements included the: Upcoming ending dates of race meetings at Remington Park and Will Rogers Downs were announced as well as the opening date of the Fair Meadows at Tulsa race meeting. The Commission s next meeting is scheduled for June 18, 2015 at Remington Park. It will be the last meeting for Commissioners Bowers and Burton. 8

9 The two new Commissioners will begin their 6 year terms on July 1, 2015 and their first meeting is scheduled for August 20, The Thoroughbred Racing Association of Oklahoma s annual awards program is scheduled for July 31, 2015 at the Skirvin Hotel. The Commission will present the CY 2014 Oklahoma-Bred Thoroughbred Champion Awards at the program. ADJOURNMENT Vice-Chairman Leonard adjourned the meeting at 10:00 a.m. Approved this 18 th day of June, On Behalf of the Commission: ATTEST: Constantin A. Rieger, Executive Director CAR/bjm/5/26/15, 6/8/15, 6/18/15 Ran Leonard, Vice-Chairman In compliance with 25 O.S. 312, the Secretary of State was given notice of this meeting on August 22,

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