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OKLAHOMA HORSE RACING COMMISSION REGULARLY SCHEDULED MEETING NOVEMBER 21, 2013 CALL TO ORDER/ROLL CALL Chairman Leonard called the of the Commission to order at 9:42 a.m. in Track North at Remington Park Racetrack and Casino, Oklahoma City, Oklahoma. Commission members answering roll call were Commissioner Bowers, Commissioner Burton, Commissioner Goumaz, Commissioner Harrell, Commissioner Lucas, Commissioner Sanders and Chairman Leonard. Commissioners Bollenbach and Kirk were absent from the meeting. Mr. Neal Leader, Commission Counsel, was present as well as the following Commission staff members: Mr. Constantin A. Rieger, Mr. Mike Corey, Ms. Tara Teel, Ms. Bonnie Morris and Ms. E J Brees. Approximately fourteen persons attended and signed the registry which is part of the record. APPROVAL OF Commissioner Goumaz moved to approve the drafted Minutes from the October 17, 2013 Regularly Scheduled Commission Meeting. Commissioner Sanders seconded the motion. The vot.e was as follows: Aye: Ms. Goumaz, Mr. Sanders, Mr. Burton, Mr. Lucas, Abstain: Mr. Bowers, Mr. Harrell The motion passed with 5 ayes and 2 abstentions. CONTINUED DELIBERATION REGARDING FAIR MEADOWS AT TULSA S CY 2014 RACING AND GAMING LICENSE APPLICATIONS Background At the October 17, 2013 meeting, Mr. Ron Shotts, Director of Racing at Fair Meadows at Tulsa [FMT], presented FMT s applications for CY 2014 racing and gaming licenses. Commissioners, Commission Staff and Commission Counsel asked questions. The Commission then took preliminary action to award CY 2014 racing and gaming licenses

to Fair Meadows at Tulsa and allot CY 2014 live race dates. The Commission also directed Commission Staff to draft proposed License Orders for consideration in continued deliberation at the next Commission meeting. Current Consideration The drafted racing and gaming license Orders were distributed to the Commissioners for review prior to the meeting. Before any discussion, Commissioner Lucas made a motion to go into Executive Session to deliberate on Fair Meadows at Tulsa s drafted CY 2014 racing and gaming license Orders and include Mr. Rieger and Mr. Leader in the deliberation. Commissioner Harrell seconded the motion. The vote was as follows: Aye: Mr. Lucas, Mr. Harrell, Mr. Bowers, Mr. Burton, Ms. Goumaz, Mr. Sanders, Commissioner Goumaz made a motion to reconvene in Open Session. Commissioner Burton seconded the motion. The vote was as follows: Aye: Ms. Goumaz, Mr. Burton, Mr. Bowers, Mr. Lucas, Mr. Harrell, Mr. Sanders, Commissioner Lucas made a motion to take final action to adopt the drafted Fair Meadows at Tulsa s CY 2014 racing license Order, excluding Condition #4 on Page 11 and renumbering the rest of the Conditions, and the companion gaming license Order. Commissioner Burton seconded the motion. The vote was as follows: Aye: Mr. Lucas, Mr. Burton, Mr. Bowers, Ms. Goumaz, Mr. Harrell, Mr. Sanders, 2

CONTINUED DELIBERATION ON APPEALS OF JAMES JONES, TRAINER, AND REFERRAL BY BOARD OF STEWARDS AT WILL ROGERS DOWNS Background At the October 17, 2013 meeting, the Commission conducted an Appeal Hearing regarding three Board of Stewards Orders 12-WRD-019, 12-WRD-026 and 12-WRD- 027, which found that Mr. James Jones was in violation of Rule 325:35-1-5, Trainer Responsibility, and Rule 325:45-1-4, Drugs or Medication, for each of three (3) horses under his care and custody testing positive for the drug Dermorphin following races at Will Rogers Downs. Each horse was disqualified and listed as unplaced in the order of finish. The Board of Stewards referred the cases to the Commission with the recommendation that the Commission examine the Findings of Fact and Conclusions of Law and assess a suspension greater than one (1) year and a fine greater than $2,500 for each case. After hearing arguments from Mr. Matt DeVilliers, Counsel for Mr. Jones, and Ms. Mary Ann Roberts, Counsel for the Board of Stewards; questioning by Commissioners, Commission Counsel and Commission Staff and deliberating, the Commission took preliminary action to affirm the Board of Stewards Orders on Mr. James Jones and set punishment as a fine of $10,000 per case for a total of $30,000 and a suspension of ten (10) years per case to run concurrently [for an effective total of ten (10) years]. The Commission also directed Commission Counsel to draft a proposed Order with Findings of Fact and Conclusions of Law for consideration in continued deliberation at a future Commission meeting. Current Consideration The drafted Order was distributed to the Commissioners for review prior to the meeting. Commissioner Burton made a motion to take final action on James Jones s Appeals and the Stewards decisions by adopting the drafted Order that affirmed the Stewards decisions and impose punishment as a fine of $10,000 per case for a total of $30,000 and a suspension of ten (10) years per case to run concurrently [for an effective total of ten (10) years]. Commissioner Goumaz seconded the motion. The vote was as follows: Aye: Mr. Burton, Ms. Goumaz, Mr. Bowers, Mr. Harrell, Mr. Lucas, Mr. Sanders, 3

WILL ROGERS DOWNS S REQUEST TO AMEND ITS CY 2014 LIVE RACE DATES FOR THE THOROUGHBRED RACE MEETING Background At the October 17, 2013 meeting, Mr. Jesse Ullery, Racing Secretary at Will Rogers Downs [WRD], advised the Commission of the possibility of WRD requesting amendments to its CY 2014 Thoroughbred race meeting dates. In a November 7, 2013 e-mail, Mr. Ullery requested an amendment to the live race dates. In its renewal license application, WRD proposed that the Thoroughbred race meeting would be conducted on Monday and Tuesday for the first week and then expanded to Mondays, Tuesdays, Wednesdays and Saturdays for the rest of the race meeting. The proposed amendment requested the live race days to be held on Saturdays, Mondays and Tuesdays. Current Consideration At the November meeting Mr. Ullery stated that Will Rogers Downs proposed changes to only the Thoroughbred race meeting to start one week later, add seven Saturday race days in March and April, and drop seven Wednesday race days in March and April in addition to the first two original days. Specifically, the starting live race date would change from Monday, March 3, 2014 to Monday, March 10, 2014, dropping March 3 and 4, 2014 as race days. Seven live race dates [March 15, 22, 29 and April 5, 12, 19 and 26] would be added, and seven live race days [March 12, 19, 26 and April 2, 9, 16 and 23] would be cancelled. These changes would result in the total number of race days for the Thoroughbred race meeting decreasing from 32 to 30. Commissioner Lucas made a motion to approve Will Rogers Downs proposed changes to the CY 2014 Thoroughbred race meeting to start March 10, 2014 and end May 17, 2014 for a thirty day race meeting. Commissioner Harrell seconded the motion. The vote was as follows: Aye: Mr. Lucas, Mr. Harrell, Mr. Bowers, Mr. Burton, Ms. Goumaz, Mr. Sanders, 4

PROPOSED AMENDMENTS TO DIRECTIVE ON COMMISSION- SANCTIONED THRESHOLDS The Ad Hoc Committee on Medications met on September 17, 2013 and forwarded recommended amendments to the Directive on Commission-Sanctioned Thresholds for Commission consideration. Chairman Leonard announced that he would like to continue this agenda topic because of emails and calls received urging the Commission to allow additional time by the Oklahoma Quarter Horse Racing Association and the Thoroughbred Racing Association of Oklahoma to discuss the proposed changes. Commissioner Lucas made a motion to continue consideration of proposed changes to the Directive on Commission-Sanctioned Thresholds to a future meeting. Commissioner Goumaz seconded the motion. The vote was as follows: Aye: Mr. Lucas, Ms. Goumaz, Mr. Bowers, Mr. Burton, Mr. Harrell, Mr. Sanders, PROPOSED OPENING OF THE PERMANENT RULEMAKING PROCESS TO CONSIDER REPEAL OF RULE 325:45-1-28, REPORT OF TREATMENT: PROCAINE PENICILLIN ADMINISTRATION, IN THE OHRC RULES OF RACING AS PROPOSED BY AD HOC COMMITTEE ON MEDICATIONS The Ad Hoc Committee on Medications recommended that the Commission consider repealing Rule 325:45-1-28, Report of Treatment: Procaine Penicillin Administration, which rule was added in CY 2009 to assist Trainers in using the therapeutic medication. The current regulatory language of Rule 325:45-1-28, Report of Treatment: Procaine Penicillin Administration, reads as follows: The efficacious nature of Procaine Penicillin shall permit its use as a therapeutic medication. A Trainer or his Veterinarian shall submit, prior to post time of the first race on the day of the race, a report to the Official Veterinarian that the horse participating on that day s race card has been previously treated with a Procaine Penicillin administration. The report must contain the Procaine Penicillin administration, treatment dates, dosage, name and tattoo number of the horse, Trainer s name and race date. The presence of Procaine Penicillin in the post race sample of a participating horse is permitted under the following conditions: 5

(1) Report of treatment is properly filed with the Official Veterinarian. (2) The treated horse is presented, prior to the first race, to the Official Veterinarian in order to draw an adequate blood sample for testing. (3) The pre-race blood/serum sample shall be tested and compared to the post-race blood/serum sample. The pre-race sample shall not exceed the Commission-sanctioned levels for thresholds. Should the pre-race sample levels be reported by the official testing laboratory as equal to or greater than the post-race levels, there shall be no positive affidavit filed by the laboratory. (4) Should the post-race sample levels exceed the pre-race levels by an amount not sanctioned by the Commission, the sample shall be treated as being in violation of the rules of this Chapter. A positive affidavit will be issued by the laboratory. The Stewards may use mitigating factors in their decision to impose disciplinary action against the Trainer, horse or other parties found to have been in violation of this Chapter. The cost of prerace testing shall be the responsibility of the Owner of the treated horse. The repeal of the rule would make it clear that the use of Procaine Penicillin as a therapeutic medication includes an assumption of risk by Owners and Trainers as cited in the Directive on Commission-Sanctioned Thresholds as follows: (7) Owner s and Trainer s Assumption of the Risk. In an effort to allow horses that have been treated with specified therapeutic medications to race, the Commission has replaced its no tolerance standard for those medications with Commission-Sanctioned Thresholds. As specified above, under this Directive, a specified therapeutic medication may be used if two (2) conditions are met: 1. The medication must be administered at least 24 hours prior to post time of the race in which the horse is entered, and 2. The post-race concentration level of the medication in the horse s plasma/serum cannot exceed the Commission- Sanctioned Threshold for the medication. While the Commission established thresholds are based on scientific studies, there is no guarantee that administration of an allowed therapeutic medication twenty-four (24) hours prior to post time will result in a concentration level of the medication that complies with Commission- Sanctioned Thresholds, as the condition of the horse, the horse s metabolism, the route of drug administration, the dosage of the drug administered, and other factors may affect the post-race levels of the medication in the horse s plasma or serum. Accordingly, owners and 6

trainers who use a permitted therapeutic medication assume the risk that, even if the drug is administered twenty-four (24) hours prior to post time, the concentration level of the medication in the horse s plasma or serum may, nevertheless, exceed the Commission- Sanctioned Threshold for the medication. Commissioner Goumaz made a motion to open the permanent rulemaking process to repeal Rule 325:45-1-28, Report of treatment: Procaine Penicillin Administration, by publishing a Notice of Rulemaking Intent in The Oklahoma Register and scheduling a Public Hearing. Commissioner Lucas seconded the motion. The vote was as follows: Aye: Ms. Goumaz, Mr. Lucas, Mr. Bowers, Mr. Burton, Mr. Harrell, Mr. Sanders, PROPOSED OPENING OF THE PERMANENT RULEMAKING PROCESS TO CONSIDER RULE AMENDMENTS OF THE OHRC RULES OF RACING AS PROPOSED BY COMMISSION STAFF Proposed Amendments to Medication Rules Chairman Leonard announced that he would like to continue discussion regarding proposed amendments to Rule 325:45-1-9, Furosemide (Salix) Use without Detention Barn, and Rule 325:45-1-22, Phenylbutazone Use, to a future meeting to give the Ad Hoc Committee on Medications time for further discussion. Commissioner Goumaz made a motion to continue consideration of opening the permanent rulemaking process for proposed amendments to Rule 325:45-1-9, Furosemide (Salix) Use without Detention Barn and Rule 325:45-1-22, Phenylbutazone Use, to a future meeting. Commissioner Lucas seconded the motion. The vote was as follows: Aye: Ms. Goumaz, Mr. Lucas, Mr. Bowers, Mr. Burton, Mr. Harrell, Mr. Sanders, Proposed Amendments to Oklahoma-Bred Program Rules In CY 2009, the Commission adopted a new rule, Rule 325:75-1-12.1, Application Requirements, Categories and Fees for Thoroughbreds, Beginning with an Effective 7

Date of January 1, 2010, that included a new fee, the yearly re-certification fee for Thoroughbred Stallions. Ms. Tara Teel, Oklahoma-Bred Registrar, recommended amendments to the following two rules to address the yearly re-certification of Thoroughbred Stallions. Rule 325:325-75-1-2, Definitions Add a definition for the re-certification of Thoroughbred stallions to Rule 325:75-1-2, Definitions, as follows: NOTE TO READER: underline fonts. Proposed additions are shown in the bold and Stallion Re-certification means completing a recertification application annually for Thoroughbred stallions that were previously accredited in the Stallion Registry. Rule 325:75-1-3, Definition of Accredited Oklahoma-Bred Thoroughbred Ms. Teel also recommended a new section regarding Thoroughbred Stallion Recertification in Rule 325:75-1-3, Definition of Accredited Oklahoma-Bred Thoroughbred, as follows: NOTE TO READER: underline fonts. Proposed additions are shown in the bold and (1)(C), Yearly Re-Certification Fee. The Owner of the Stallion must pay a yearly re-certification fee. If paid prior to February 1, the fee is $25.00; after February 1 but before June 30, the fee is $50.00. If the yearly fee is paid after June 30, the yearly fee is $400.00. If the Stallion is not re-certified, the horse loses its accreditation in the Oklahoma-Bred Stallion Registry, and the Owner is ineligible for stallion awards for all foals resulting from that breeding season. Commissioner Goumaz made a motion to open the permanent rulemaking process for proposed amendments to Rule 325:75-1-2, Definitions, and 325:75-1-3, Definition of Accredited Oklahoma-Bred Thoroughbred, by publishing a Notice of Rulemaking Intent in The Oklahoma Register and scheduling a Public Hearing. Commissioner Burton seconded the motion. The vote was as follows: Aye: Ms. Goumaz, Mr. Burton, Mr. Bowers, Mr. Harrell, Mr. Lucas, Mr. Sanders, 8

Proposed Amendment to Pari-Mutuel Wagering Rule Commission Staff recommended amending Rule 325:65-1-44, Pools Dependent Upon Betting Interests, regarding Option 7, in which the racetrack would be allowed to prohibit Trifecta wagering with six (6) or fewer betting interests scheduled to start, rather than six (6) or more interests, as shown below: NOTE TO READER: Proposed deletions are shown in the double strikethrough font; proposed additions are shown in the bold and underline fonts. Unless the Commission otherwise provides, at the time the pools are opened for wagering, the Organization Licensee: (1) may offer win, place, and show wagering on all contests with six (6) or more betting interests. (2) may be allowed to prohibit show wagering on any contest with five (5) or fewer betting interests scheduled to start. (3) may be allowed to prohibit place wagering on any contest with four (4) or fewer betting interests scheduled to start. (4) may be allowed to prohibit Quinella wagering on any contest with three (3) or fewer betting interests scheduled to start. (5) may be allowed to prohibit Quinella Double wagering on any contests with three (3) or fewer betting interests scheduled to start. (6) may be allowed to prohibit Exacta wagering on any contest with three (3) or fewer betting interests scheduled to start. (7) may be allowed to prohibit Trifecta wagering on any contest with six (6) or more fewer betting interests scheduled to start. (8) may be allowed to prohibit Superfecta wagering on any contest with seven (7) or fewer betting interests scheduled to start. (9) may be allowed to prohibit Twin Quinella wagering on any contests with three (3) or fewer betting interests scheduled to start. (10) shall prohibit Twin Trifecta wagering on any contests with seven (7) or fewer betting interests scheduled to start. (11) shall prohibit Tri-Superfecta wagering on any contests with seven (7) or fewer betting interests scheduled to start. (12) shall prohibit Twin Superfecta wagering on any contests with seven (7) or fewer betting interests scheduled to start. (13) may be allowed to prohibit Show Quinella wagering on any contest with four (4) or fewer betting interests scheduled to start. (14) may be allowed to prohibit Exacta (n) wagering on any contest with three (3) or fewer betting interests scheduled to start. Commissioner Goumaz made a motion to open the permanent rulemaking process to amend Rule 325:65-1-44, Pools Dependent Upon Betting Interests, by publishing a 9

Notice of Rulemaking Intent in The Oklahoma Register and scheduling a Public Hearing. Commissioner Burton seconded the motion. The vote was as follows: Aye: Ms. Goumaz, Mr. Burton, Mr. Bowers, Mr. Harrell, Mr. Lucas, Mr. Sanders, RECOMMENDATIONS FROM OKLAHOMA-BRED ADVISORY COUNCIL The Oklahoma-Bred Advisory Council met on November 6, 2013 and forwarded the following funding recommendations from the Oklahoma Breeding Development Fund Special Account for Commission consideration: 1. Thoroughbred Racing Association of Oklahoma s Funding Request for CY 2014 Thoroughbred Stakes Races at Will Rogers Downs In an October 29, 2013 letter from Ms. Danielle Barber, Executive Director, Thoroughbred Racing Association of Oklahoma [TRAO], and Mr. Jesse Ullery, Racing Secretary at Will Rogers Downs [WRD], TRAO and WRD request that Oklahoma-Bred funds be added to the following eight stakes races to be run during WRD s CY 2014 Thoroughbred race meeting with a payout percentage breakdown of 50/30/20 to the top three finishers, totaling $80,000: Purse Broodmare Stallion Supplements Awards Awards Total Classic Sprint $ 5,000 $ 3,400 $ 1,600 $10,000 Classic Distaff Sprint $ 5,000 $ 3,400 $ 1,600 $10,000 Clem McSpadden $ 5,000 $ 3,400 $ 1,600 $10,000 Wilma Mankiller $ 5,000 $ 3,400 $ 1,600 $10,000 OK Stallion Colts $ 5,000 $ 3,400 $ 1,600 $10,000 OK Stallion Fillies $ 5,000 $ 3,400 $ 1,600 $10,000 Classic Cup $ 5,000 $ 3,400 $ 1,600 $10,000 Classic Distaff $ 5,000 $ 3,400 $ 1,600 $10,000 $40,000 $27,200 $12,800 $80,000 The Oklahoma-Bred Advisory Council unanimously recommended funding from the Oklahoma Breeding Development Fund Special Account. 2. Oklahoma Quarter Horse Racing Association s Funding Request for CY 2014 Quarter Horse, Paint and Appaloosa Stakes Races at Remington Park In an October 22, 2013 e-mail, Ms. Debbie Schauf, Executive Director of the Oklahoma Quarter Horse Racing Association [OQHRA], requested a total of $782,000 in added Oklahoma-Bred funding for stakes races to be conducted 10

during Remington Park s CY 2014 Quarter Horse, Paint and Appaloosa race meeting. Percentage Payouts For 13 Quarter Horse races, the percentage payouts would be 60/20/11/6/3. For the Remington Park OKB Futurity and Derby Finals, the percentage payouts would be 40/17/11/9/7/5/4/3/2/2 with an estimated 20 Futurity Trials and 7 Derby Trials. For the Paint and Appaloosa stakes races, the payout percentages would be 60/20/11/6/3. At the meeting, Ms. Debbie Schauf, Executive Director of the Oklahoma Quarter Horse Racing Association (OQHRA), stated that after review of projections regarding income generated in the 2013 Mixed Breed race meeting at Remington Park, the OQHRA Board requested that the Commission approve additional funds for seven Quarter Horse stakes races and three Paint and Appaloosa stakes races for a total of $845,000 with the following breakdown by race: Purse Broodmare Stallion Supplements Awards Awards Total Quarter Horse Stakes Races Mighty Deck Three $ 10,000 $ 6,800 $ 3,200 $ 20,000 Mr. Jet Moore $ 10,000 $ 6,800 $ 3,200 $ 20,000 Mr. Master Bug $ 10,000 $ 6,800 $ 3,200 $ 20,000 Boyd Morris $ 10,000 $ 6,800 $ 3,200 $ 20,000 Laico Bird $ 10,000 $ 6,800 $ 3,200 $ 20,000 Easy Date $ 10,000 $ 6,800 $ 3,200 $ 20,000 Fl Lady Bug $ 10,000 $ 6,800 $ 3,200 $ 20,000 Sooner State Stakes $ 50,000 $ 34,000 $ 16,000 $100,000 Jack Brooks Stakes $ 25,000 $ 17,000 $ 8,000 $ 50,000 Easy Jet Stakes $ 25,000 $ 17,000 $ 8,000 $ 50,000 Remington Park OKB Futurity Trials $100,000 $ 68,000 $ 32,000 $200,000 Remington Park OKB Futurity Finals $ 70,000 $ 47,600 $ 22,400 $140,000 Remington Park OKB Derby Trials $ 35,000 $ 23,800 $ 11,200 $ 70,000 Remington Park OKB Derby Finals $ 30,000 $ 20,400 $ 9,600 $ 60,000 $405,000 $275,400 $129,600 $810,000 Paint and Appaloosa Stakes Races Paul Harbor Memorial* $ 2,500 $ 1,700 $ 800 $ 5,000 Mr. Lewie Memorial* $ 2,500 $ 1,700 $ 800 $ 5,000 Victoria Ennis Memorial* $ 2,500 $ 1,700 $ 800 $ 5,000 National Cowboy and Western Heritage Museum Stakes $ 5,000 $ 3,400 $ 1,600 $ 10,000 OK Paint & Appaloosa Futurity* $ 5,000 $ 3,400 $ 1,600 $ 10,000 $ 17,500 $ 11,900 $ 5,600 $ 35,000 *If eligible GRAND TOTAL $422,500 $287,300 $135,200 $845,000 11

The Oklahoma-Bred Advisory Council unanimously recommended funding from the Oklahoma Breeding Development Fund Special Account. 3. Oklahoma Quarter Horse Racing Association s Funding Request for CY 2014 Quarter Horse, Paint and Appaloosa Stakes Races at Fair Meadows at Tulsa In an October 22, 2013 e-mail, Ms. Debbie Schauf, Executive Director of the Oklahoma Quarter Horse Racing Association [OQHRA], requested a total of $49,600 to be paid to accredited horses if eligible for added Oklahoma-Bred funding. The eleven stakes races will be conducted during Fair Meadows at Tulsa s CY 2014 Quarter Horse, Paint and Appaloosa race meeting. The funds will be subject to availability with the percentage payouts set as 60/20/11/6/3. The breakdown by race is shown below: Purse Broodmare Stallion Supplements Awards Awards Total Quarter Horse Stakes Races Golden Driller $ 2,500 $ 1,700 $ 800 $ 5,000 FMT Juvenile $ 2,500 $ 1,700 $ 800 $ 5,000 Expo Square Stake $ 2,500 $ 1,700 $ 800 $ 5,000 Belles Stake $ 2,500 $ 1,700 $ 800 $ 5,000 FMT Maturity $ 2,500 $ 1,700 $ 800 $ 5,000 Rocky Henzig $ 2,500 $ 1,700 $ 800 $ 5,000 Walter Merrick $ 2,500 $ 1,700 $ 800 $ 5,000 Cherokee Nation $ 2,500 $ 1,700 $ 800 $ 5,000 $20,000 $13,600 $6,400 $40,000 Paint and Appaloosa Stakes Races Lewis Wartchow $ 1,600 $ 1,088 $ 512 $ 3,200 Spots and Dots $ 1,600 $ 1,088 $ 512 $ 3,200 Tulsa State Fair $ 1,600 $ 1,088 $ 512 $ 3,200 $ 4,800 $ 3,264 $1,536 $ 9,600 GRAND TOTAL $24,800 $16,864 $7,936 $49,600 The Oklahoma-Bred Advisory Council unanimously recommended funding from the Oklahoma Breeding Development Fund Special Account. 4. Oklahoma Quarter Horse Racing Association s Funding Request for CY 2014 Quarter Horse, Paint and Appaloosa Stakes Races at Will Rogers Downs In an October 22, 2013 e-mail, Ms. Debbie Schauf, Executive Director of the Oklahoma Quarter Horse Racing Association [OQHRA], requested a total of $67,600, subject to availability of funds, in added Oklahoma-Bred funding for nine stakes races to be conducted during Will Rogers Downs s CY 2014 Quarter Horse, Paint and Appaloosa race meeting. The payout percentages for the OHA 12

Mystery Futurity and Derby would be 45/25/15/10/5 pursuant to the conditions of those races. For the other races, the payout percentages would be 60/20/11/6/3 for distribution to if eligible horses. The breakdown by race is shown below: Purse Broodmare Stallion Supplements Awards Awards Total Quarter Horse Stakes Race OHA OKB Mystery Futurity $10,000 $ 6,800 $ 3,200 $20,000 OHA OKB Mystery Derby $10,000 $ 6,800 $ 3,200 $20,000 Cherokee Challenge* $ 2,400 $ 1,632 $ 768 $ 4,800 $22,400 $15,232 $ 7,168 $44,800 *If eligible Paint and Appaloosa Stakes Race Lorelei Derby* $ 2,500 $ 1,700 $ 800 $ 5,000 Cricket Bar* $ 2,500 $ 1,700 $ 800 $ 5,000 Dash for Colors* $ 1,600 $ 1,089 $ 511 $ 3,200 Sequoyah* $ 1,600 $ 1,089 $ 511 $ 3,200 Green Country* $ 1,600 $ 1,089 $ 511 $ 3,200 Talamina* $ 1,600 $ 1,089 $ 511 $ 3,200 $11,400 $ 7,756 $ 3,644 $22,800 *If eligible GRAND TOTAL $33,800 $22,988 $10,812 $67,600 The Oklahoma-Bred Advisory Council unanimously recommended funding from the Oklahoma Breeding Development Fund Special Account. 5. Allocation of Oklahoma-Bred Registration Fees Of the $147,765.75 received in Oklahoma-Bred registration fees during the period of July 1, 2012 through June 30, 2013, the Oklahoma-Bred Advisory Council recommended the following allocations based on the number of races for that breed in CY 2014: BREEDS RACETRACK Thoroughbred Quarter Horse Appaloosa/Paint TOTAL Remington Park $24,286.79 $44,350.05 $ 4,544.44 $ 73,181.28 Will Rogers Downs $12,952.95 $29,426.57 $ 3,495.73 $ 45,875.25 Fair Meadows at Tulsa $ 6,881.26 $17,866.13 $ 3,961.83 $ 28,709.22 $44,121.00 $91,642.75 $12,002.00 $147,765.75 The Oklahoma-Bred Advisory Council unanimously recommended funding from the Oklahoma Breeding Development Fund Special Account. 13

Commissioner Goumaz made a motion to approve the four CY 2014 Oklahoma- Bred funding requests, including the increases requested by the Oklahoma Quarter Horse Racing Association for the Remington Park stakes races, and the allocation of registration fees to racetracks. There was no objection by any Commissioner to the consideration of four funding requests and the allocation of registration fees in a single motion. Commissioner Sanders seconded the request. The vote was as follows: Aye: Ms. Goumaz, Mr. Sanders, Mr. Bowers, Mr. Burton, Mr. Harrell, Mr. Lucas, 6. Proposed Recognition for Oklahoma Thoroughbred Broodmares in CY 2013 According to The Jockey Club, Oklahoma is one of only three states with an increase in the number of Thoroughbred broodmares bred in 2013. Also, according to the Carter Sales Company of Washington, OK, there was a 41.6% increase from 2012 to 2013 for Oklahoma Thoroughbred broodmares in the summer sale with the average price of $7,796 in comparison to $5,654 in 2012. The Carter Sales Company also reported that the buy-back rate fell from 28% to 22%. The Oklahoma-Bred Advisory Council unanimously recommended that the increase in the number of Thoroughbred broodmares bred in Oklahoma and the increase in the number of sales and prices for Thoroughbred broodmares within the State of Oklahoma be acknowledged. The Commission commended the Oklahoma Thoroughbred industry. REPORT Mr. Constantin Rieger, Commission Executive Director, reported that the Tulsa County Public Facilities Authority approved the CY 2014 Horsemen s Agreements with each of the two horsemen s representative organizations at its November 7, 2013 meeting. ANY MATTER NOT KNOWN ABOUT OR WHICH COULD NOT HAVE BEEN REASONABLY FORESEEN PRIOR TO POSTING THE AGENDA There was no new business that could not have been foreseen prior to the posting of the agenda. 14

ANNOUNCEMENTS Chairman Leonard made the following announcements: The Secretary of Agriculture and the Oklahoma Equine Alliance held a meeting and press conference on November 19, 2013, announcing the release of the 2013 Oklahoma Equine Economic Impact Study. Will Rogers Downs s Quarter Horse, Paint and Appaloosa race meeting ended on November 9, 2013. Remington Park s Thoroughbred race meeting ended on December 15, 2013. The Commission s next regular meeting is scheduled for January 16, 2014 to be held at Remington Park. ADJOURNMENT Commissioner Sanders made a motion to adjourn. Commissioner Lucas seconded the motion. The vote was as follows: Aye: Mr. Sanders, Mr. Lucas, Mr. Bowers, Mr. Burton, Ms. Goumaz, Mr. Harrell, The meeting was adjourned at 10:37 a.m. Approved this 16 th day of January, 2014. CAR/ejb/12/3/13, 1/16/14 15