Minutes of Public Meeting - January 20, 2015

In accordance with the Notice of Public Meeting, as required by State Government Article, §10-506, Annotated Code of Maryland, the Maryland Racing Commission ("Commission") met in open session on January 20, 2015 commencing at 12:30 p.m. at Laurel Park, Laurel, Maryland.

Minutes - December 16, 2014.

The Commission waived a reading of the minutes of its December 16, 2014 meeting and voted unanimously to approve them.

Telephone Poll Ratification.

Executive Director J. Michael Hopkins asked the Commission to ratify its telephone poll regarding a request from the Maryland Jockey Club to begin racing on Sunday, starting February 1, 2015 and continuing through the end of the meeting. Hearing no objection, the Commission unanimously approved the request.

Maryland Bred Race Fund.

Executive Director J. Michael Hopkins presented the Commission with a request from the Maryland Bred Race Fund for the distribution of breeder, owner and stallion awards for the period from January 1, 2015 through June 30, 2015. J. Michael Hopkins noted that the owner bonus for the six month period has been increased from 17.5% to 30%. Hearing no objection, the Commission unanimously approved the request.

Regulations - Final - 09.10.03.02 Sanctions.

Executive Director J. Michael Hopkins informed the Commission that regulation 09.10.03.02 regarding the Multiple Medication Violations had been proposed at the September 16, 2014 Commission meeting and was being presented for final adoption. Hearing no objection, the Commission unanimously approved the request.

Penalties - Suspensions.

Chairman Bruce Quade commented that he has asked the Attorney General's Office to review all regulations and statutes related to horse racing and make recommendations to update or eliminate antiquated regulations and statutes.

Chairman Quade further stated that he has directed the Executive Director to create a spread sheet that would be used for tracking milestones in the appeal process. In addition, Chairman Quade expressed his concern over individuals who appeal stewards' or judges' rulings to take advantage of loopholes and never receive punishment, stating that "there is harm, but no foul." With the consent of the Commission, Chairman Quade asked the Maryland Thoroughbred Horsemen's Association and the Cloverleaf Standardbred Owners' Association to make recommendations to the Commission on ridding the appeals process from loopholes. Commissioner Lou Ulman recommended that the Chairman also discuss his concerns with the Jockeys' Guild to gain their input on how to dissuade jockeys from using the appeal process to take advantage of loopholes. Chairman Quade agreed and stated that he would develop some criteria and distribute it to industry organizations to review.

Chairman Quade also discussed his concern regarding medication infractions and his desire to improve the integrity of the sport. Tim Ritvo, the Chairman of the Maryland Jockey Club, noted that he appreciated the Commission desire to "level the playing field" and that the Stronach group would support the Commission's efforts. William Rickman, representing Ocean Downs, indicated that he was in agreement with any efforts by the Commission to level the playing field.

Alan Foreman and David Richardson, representing the Maryland Thoroughbred Horsemen's Association, cautioned that the Commission about sending the wrong message concerning the racing industry. They indicated that the message should be clear that the Commission is improving the integrity of the sport. Alan Foreman noted that the Commission should be careful about putting the "right label" on the pro-active reform efforts. Tom Cooke, representing Cloverleaf Standardbred Owners' Association, indicated that the system appears to be working and encouraged the Commission to send a positive message.

Tom Cooke - Cloverleaf Standardbred Owners' Association.

Tom Cooke, President of the Cloverleaf Standardbred Owners' Association, presented an overview of the standardbred racing industry for the previous three years, which indicated continued growth.

Mr. Cooke also addressed the Commission regarding Preferences, which had previously been discussed at the October meeting. Mr. Cooke indicated that Rosecroft was supportive of a shorter list of preferences. Chairman Quade expressed his concern of excluding people from running a horse at Rosecroft, because they did not match one of the additional preferences. Commissioner Lafferty commented that Delaware and Pennsylvania utilize a preference system that makes it difficult to run a Maryland horse in either of those states. Commissioner Ulman commented that he would have a difficult time allowing Rosecroft and the CSOA to dictate preferences, without Commission approval, as those preference might be construed as unfair. William Rickman, owner of Ocean Downs, expressed his concern that restrictive preferences could inhibit competition and further discussion is warranted. Chairman Quade commented that the current regulation did not allow preferences other than a date preference and that the Commission cannot delegate the responsibility of preferences purely to the tracks and horsemen. Tom Cooke responded that he would work on proposed language for an amended regulation, which would require Commission approval. Further, Mr. Cooke indicated that he would continue to work on the language of any agreement between the horsemen and the tracks.

Video Lottery Revenue - Report.

Executive Director J. Michael Hopkins provided the Commission with the December 2014 VLT report.

Racing Facility Redevelopment Fund.

Executive Director J. Michael Hopkins informed the Commission that he had received a request from the Maryland Jockey Club for the reimbursement of $517,440.00, which represented 50% of the current executed contracts and invoices for the construction of new barns at Laurel Park. Mr. Hopkins reminded the Commissioners that the Commission had approved an advance to Timonium in July 2014, before construction was completed on the grandstand. Hearing no objection, the Commission unanimously approved the request.

Public Comment.

Cricket Goodall, Executive Director of the Maryland Horse Breeders Association, presented a report to the Commission prepared by the Sage Policy Group, Inc., which documented the positive gains made by the Maryland racing and breeding industries since the introduction of video lottery terminals.

Next Commission Meeting.

The next Commission meeting will be held on February 17, 2015 at 12:30 p.m. in the Clubhouse at Laurel Park, Laurel, Maryland.

J. Michael Hopkins
Executive Director