Minutes of Public Meeting - April 19, 2016

In accordance with the Notice of Public Meeting, as required by §3-302, General Provisions Article, Annotated Code of Maryland, the Maryland Racing Commission (“Commission”) met in open session on April 19, 2016, commencing at 12:30 p.m. at Laurel Park, Laurel, Maryland. Chairman John McDaniel called the meeting to order.

Minutes – March 15, 2016.

The Commission waived a reading of the minutes of its meeting of March 15, 2016, and voted unanimously to approve them.

Maryland Stadium Authority Study.

Chairman John McDaniel stated that the Maryland Jockey Club and the Baltimore Development Corporation have asked the Maryland Racing Commission to initiate a study by the Maryland Stadium Authority. The purpose of the study, which Chairman McDaniel described as very important, is to provide an independent evaluation of the Pimlico Race Course facility and its ongoing ability to host the Preakness. Mr. McDaniel advised the Commission that the Maryland Stadium Authority would be the controlling agency for the study, since they have experience with these types of projects. The Chairman asked the Commission for permission and authority for him, on behalf of the Commission, to enter into an agreement with the Maryland Stadium Authority as well as the Maryland Jockey Club and Baltimore Development Corporation to begin the process of conducting the study, but alerted the Commission that the specific language of the agreements still needed to be worked out. Before taking a vote, Chairman McDaniel asked Commissioner Quade to provide more background on the issue.

Commissioner Quade reemphasized the importance of the study. Mr. Quade noted that due to the Stadium Authority’s neutral position, it was selected to conduct the study through one of its contractual consultants, “Crossroads Consultation Services, LLC.” The funding of the study has been determined and the goal is to have the documents necessary to begin the study signed and delivered to the Stadium Authority in time for its next meeting on May 3, 2016. Once the study begins, the cost is estimated to be approximately $200,000.00 and take 10 to 12 months to complete. The study is to be completed in two phases. Commissioner Tildon, as well as other commissioners, emphasized the importance of delineating the statement of work in a manner to ensure the analysis is completely unbiased. Commissioner Quade also commented that the Commission would provide the oversight and be involved in the decision whether to proceed to Phase 2 of the study.

The Maryland Racing Commission unanimously approved the concept, and authorized Chairman John McDaniel to finalize the memorandum of understanding with the Maryland Stadium Authority and other stake holders on behalf of the Commission.

Report – ARCI Meeting.

Chairman McDaniel commented the he and the Executive Director had attended the ARCI annual meeting in New Orleans in March and found it to be very informative and an opportunity to meet with other individuals working with the racing industry.

The Executive Director reported that that the ARCI meeting was attended by a number of racing jurisdictions including the United States, Canada, Trinidad & Tobago and Japan. A wide variety of subjects were discussed, including, but not limited to, model rules, medication, wagering initiatives, safety and welfare and legal perspectives. Mr. Hopkins encouraged anyone from the industry to attend these meetings in addition to any Commission member.

Alan Forman representing the Maryland Thoroughbred Horsemen’s Association, who also attended the meeting, commented that it was very pleasing to have individuals from all over the country walk up to him and congratulate the Mid-Atlantic racing industry for its work in creating medication uniformity between the States. Chairman McDaniel echoed Mr. Forman’s comments, a number of people at the meeting made similar remarks to him, and thanked Mr. Hopkins for the report and also congratulated Mr. Hopkins for being selected as one of the organization’s elected officers, as its Treasurer.

Boonsboro.

Chairman McDaniel reported that on April 12, 2016, the Commission held a public meeting in Boonsboro regarding a Satellite Simulcast Betting Facility and subsequently voted to approve a permit for it to operate. Commissioner Lafferty commented that the facility was very nice and wished them all the best moving forward. Commissioner Grecco expressed his concern that there was not an elevator that could take a disabled patron to the second floor, but otherwise was satisfied with the facility.

Regulations Proposed and Emergency 09.10.03.01-1

Executive Director J. Michael Hopkins explained to the Commission that the Association of Racing Commissioners International and the Racing Medication and Testing Consortium have recommend the adoption of four new therapeutic medications, along with their appropriate thresholds, and to increase the existing threshold of two other therapeutic medications. The Executive Director proposed that the new thresholds and medication be adopted as proposed regulations as well as emergency regulations, in an effort to make the Mid-Atlantic racing jurisdictions consistent. The Commission unanimously moved to approve the request as proposed and as an emergency for the following medications:

Cimetidine at no more than 400 nanograms per milliliter of blood plasma;
Ceterizine at no more than 6 nanograms per milliliter of blood plasma;
Guaifenesin at no more than 12 nanograms per milliliter of blood plasma;
Ranitidine at no more than 40 nanograms per milliliter of plasma;
Omeprazole at no more than 10 nanograms per milliliter of blood plasma; and
Xylazine at no more than 200 picograms per milliliter of blood plasma.

In addition, Mr. Hopkins recommended that the Commission instruct the Stewards and Judges to issue a warning only to a trainer if a horse tests positive, in races that occur subsequent to the date of the hearing, for any of the aforementioned medications at levels above the current thresholds but below the new threshold amounts prior to their official adoption. The Commission unanimously approved the recommendation made by Mr. Hopkins.

Maryland Standardbred Race Fund.

The Maryland Standardbred Race Fund Advisory Committee requested approval for its 2016 purse distribution of approximately $1,700,000.00 to be divided between the Maryland Sire Stakes and the Maryland Standardbred Fund Stakes. Hearing no objection, the Commission unanimously approved the request.

Maryland Bred Fund.

The Maryland Bred Fund Advisory Committee requested approval to schedule and conduct two restricted Maryland Bred stakes on June 25, 2016, at Pimlico Race Course. Hearing no objection, the Commission unanimously approved the request.

Annual Yearling Show Report.

On or before March 31st each year, the Maryland Horse Breeders Association reports to the Commission on the use of revenues and expenditures from the Maryland Bed Fund for the annual yearling show. Hearing no exceptions, the Commission unanimously accepted the report. Cricket Goodall also reported that the Maryland Horse Breeders Association voted to award the Frederico Tesio Award to Commissioner Bruce Quade for his significant contributions to the racing industry.

Racing Facility Redevelopment Fund – Maryland State Fair.

The Executive Director reported that he had received a request from the Maryland State Fair for the remaining funds due to the State Fair from the Racing Facility Redevelopment Fund. Mr. Hopkins reported that the request had been reviewed by the Commission’s Certified Public Accountant and found to be in compliance with the statutory requirements. Hearing no objection, the Commission unanimously approved the request for $650,000.

Maryland Jockey Club-Update.

Sal Sinatra, representing the Maryland Jockey Club, thanked the Commission for its approval of the Boonsboro Satellite Simulcast Betting facility. Mr. Sinatra also reported that the Timonium off track wagering facility is doing well and had approximately 300 people in attendance the previous Saturday. The new barn at Laurel Park is complete, including landscaping around the new barns, and security cameras in each stall and surrounding areas that retain the images for 36 hours. The Jockey Club is looking forward to a good showing for the Triple Crown races.

Legislative Update.

Executive Director J. Michael Hopkins reported that three legislative proposal impacting the racing industry had been passed during the 2016 legislative session.

HB 727 increases the amount of time from 15 days to 30 days for the Commission to notify the public of a public hearing to consider an application for a Satellite Simulcast Betting Facility, requires that a sign be posted at the property under consideration and imposes other notification requirements.

HB 515 authorizes Arabian racing at Fair Hill under the auspices of the Cecil County Breeders Fair, Inc.

HB 965 provides for $500,000.00 as a purse for the Maryland International and $500,000.00 for a bonus to be distributed in a manner determined by the Maryland Racing Commission to any Maryland Bred horse that participates in the Preakness Stakes.

March VLT Report.

Executive Director J. Michael Hopkins presented the Commission members with a VLT report which identifies the amount of revenue generated each month for the current fiscal year. Commissioner Quade commented that he would like to see a year to year comparison.

Public Comment.

President of the Maryland Horse Breeders Association, Josh Pons, praised the running of restricted races at Pimlico and hopes to see more in the future. David Richardson, Executive Director of the Maryland Thoroughbred Horsemen’s Association (MTHA) informed the Commission that the Med Star group, which provides medical coverage at the track, has developed and implemented a concussion protocol for the riders. Further, with the opening of Pimlico, the MTHA will begin to release all earned purse money at 72 hours that would otherwise be held until the post- race test results are cleared. Commissioner Grecco asked if there had been any progress in placing a Satellite Simulcast betting facility at Rocky Gap Casino. Sal Sinatra responded and commented that he has spoken to Skyler Dice at the Casino about the issue.

Next Commission Meeting.

The next Commission meeting will be held on May 17, 2016, at 12:30 P.M. in the Triple Crown room at Pimlico Race Course, Baltimore, Maryland 21215.

J. Michael Hopkins
Executive Director