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Minutes of Public Meeting - February 25, 2015

Commission Members Present:

Bruce Quade
Tammy Lafferty
John McDaniel
David Hayden
Louis Ulman

Members Absent:

John Franzone
Charles Tildon
Mary Louise Preis
Ernest Grecco

Staff Present Representing the Maryland Racing Commission:

J. Michael Hopkins

Executive Director
Eric B. London
Assistant Attorney General

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 February 25, 2015 commencing at 12:30 p.m. at Laurel Park, Laurel, Maryland.

Minutes - January 16, 2015.

The Commission waived a reading of the minutes of its January 16, 2015 meeting and voted unanimously to approve them.

Legislative Policy.

Executive Director J. Michael Hopkins informed the Commission that their folders included the Department's Legislative Policy, which had previously been disseminated.

Legislation.

Executive Director J. Michael Hopkins presented the Commission with House Bill ("HB") 180, which is cross filed with Senate Bill ("SB") 182. Mr. Hopkins explained that the legislation extended the period of time through calendar year 2019 for Ocean Downs and Rosecroft to apply to the Secretary of Labor, Licensing and Regulation for up to 1.2 million dollars for operating assistance. The Commission voted unanimously to support both proposals.

Mr. Hopkins reported that HB 1160 had been introduced to repeal Section §11-320 of the Business Regulation Article, which requires employees of the tracks to be at least 85% Maryland residents. Mr. Hopkins further explained that this section was first introduced in 1965, because transient employees would want to work in Maryland, when their out-of-state track would close. The Commission unanimously voted to support the legislation.

Mr. Hopkins further reported that HB 1176 had also been introduced, which would allow the organization which represents the majority of standardbred horsemen in the state to deduct not less than 1%, but not more than 2% of open purses to support the operation of their organization, which mirrors the language of the thoroughbred horsemen's organization. The Commission voted unanimously to support the proposed legislation with amendments that would provide for an approval process, accountability and an annual audit from all sources of revenue going to a horsemen's organization. Further, the Commission indicated that the amendments would also apply to the thoroughbred horsemen's organization as well.

Maryland State Fair - Racing Facility Redevelopment Fund.

Executive Director J. Michael Hopkins informed the Commission that the Maryland State Fair submitted a request to be reimbursed in the amount of $129,384.00 for capital improvements. Further, the State Fair made an additional request in the amount of $681,680.00 for fiscal year 2015, in an effort to begin reconstruction of the back wall of the Grandstand. Mr. Hopkins noted that without the work starting by April 1, 2015, the Grandstand would not be usable during the meet. Further, the State Fair confirmed that the work had been bid out, as suggested by the Commission in July of 2014. Hearing no objection, the Commission unanimously approved the request.

Maryland Jockey Club - Racing Facility Redevelopment Fund.

Executive Director J. Michael Hopkins presented the Commission with a request from the Maryland Jockey Club to be reimbursed in the amounts of $424,652.00 and $430,184.00 for 2012 and 2013, from their portion of the Racing Facility Redevelopment Fund. Mr. Hopkins further commented that the Maryland Jockey Club request had been reviewed by the Certified Public Accountant. Mr. Hopkins noted that a request for 2014 was being formulated. Hearing no objection, the Commission unanimously approved the request.

Pimlico Spring Stake Schedule.

Executive Director J. Michael Hopkins asked the Commission to ratify a telephone poll conducted on February 18, 2015, asking for approval of the 2015 spring stake schedule for Pimlico. Hearing no objection, the Commission unanimously ratified the request.

Chairman Bruce Quade - Standardbred Preferences.

Chairman Bruce Quade stated that preferences are established to ensure a horse receives a fair opportunity to race. Rosecroft had a preference system in place during the last meet, which benefited the Maryland horse industry. Chairman Quade stated that he and Tom Cooke, President of Cloverleaf Standardbred Owners' Association, agreed to alter the preference system at Ocean Downs and Rosecroft by implementing restricted races at both facilities for Maryland owned, foaled and sired horses. 80% of the races would be written as restricted races, and if the races do not fill, they will be opened by a date preference. As the Rosecroft race meeting starts on March 7, 2015, the restricted races will be in place and monitored over the next 60 days. The Commission will review the definitions applied to the restrictions and make any adjustments, if necessary. Tom Cooke commented that good progress has been made regarding this issue and that he believed it provided adequate protection for the Maryland horsemen. Commissioner David Hayden expressed his concern over the definition of what was considered a Maryland owned horse. Chairman Quade further commented that the goal is not to have a "closed shop," but to improve the standardbred racing industry. As an example, Commissioner Hayden commented that he was concerned with the distribution of purse money to a New Jersey bred horse that happens to be Maryland owned. Chairman Quade made a motion to allow Rosecroft to run 80% of their races as Maryland restricted races. The motion carried 3-0 with Commissioners Hayden and Ulman abstaining.

Tim Ritvo - Update Maryland Jockey Club.

Chairman Quade asked Tim Ritvo of the Maryland Jockey Club ("MJC") to update the Commission as to the current projects being undertaken by the MJC. Mr. Ritvo explained that a large number of high definitions televisions had been added to both Laurel and Pimlico, with more still scheduled to be installed. He also noted that the Laurel and Pimlico signal would be broadcasting in High Defintion. Mr. Ritvo noted that the new barn at Laurel with 150 new stalls is scheduled to be completed by mid-April. Mr. Ritvo also noted that the Sports Palace at Pimlico is being renovated, dorm rooms were being rehabilitated, marketing initiatives were being put in place, including a Preakness event at the Horseshoe Casino and developing an Off Track Betting ("OTB") in the casino as well. Chairman Quade commented that Mr. Ritvo and Executive Director J. Michael Hopkins were working together on an OTB project with the intent to have it ready by the Kentucky Derby. Mr. Ritvo further commented that the MJC was working on a regional racing circuit, which Commissioner John McDaniel commented would benefit racing. The Commission thanked Mr. Ritvo for the report and asked that the list of projects be provided to the Commission.

Video Lottery Revenue - Report.

Executive Director J. Michael Hopkins provided the Commission with the January 2015 VLT report.

Commissioner John McDaniel.

Commissioner McDaniel commented that Dr. Ernest Colvin, a former member of the Commission as well as a past Chairman of the old Harness Commission, who had served the Commission with distinction for 20 years, had recently passed away. Mr. McDaniel reminded the Commission that Dr. Colvin was a respected dentist in the Baltimore area, a horsemen, an owner and a man who a great passion for horse racing. Commissioner McDaniel asked for a moment of silence for Dr. Colvin.

Public Comment.

Bob Lillis of the Maryland Horsemen's Assistance Fund presented the Commission with information about 24 individuals representing the horse industry participating in the construction of a home in Baltimore City in conjunction with "Habitat for Humanity". Mr. Lillis further commented that the idea was moved forward by Gabby Gaudet, the handicapper for the thoroughbred tracks and the daughter of trainer Linda Gaudet. The Commissioners thanked Mr. Lillis for the information.

Cheri Stambaugh, Administrator of the Maryland Standardbred Advisory Committee, informed the Commission that the owner of Winbak Farm, Joe Thompson, had recently been inducted into the Harness Racing Hall of Fame.

John Robb, a thoroughbred horse trainer, commented to the Commission that he believed the use of the "quick official" has hurt the integrity of horse racing. As an example, Mr. Robb commented that he had a horse that he believed was bothered and could not get to a phone in time to place a hold on a race. Eventually, when Mr. Robb discussed the issue with the Stewards, they reported that they had looked at the incident and it did not warrant any action. Mr. Robb further commented that he believed the Stewards should put up the inquiry sign more often, so the public is aware the stewards are reviewing the race. Chairman Quade asked the MTHA to review the matter with the track and John Robb to determine if there are any alternatives. Tim Ritvo, representing the Maryland Jockey Club, commented that he believed the Steward stand was very competent, however the use of the quick official allows the track to progress to the next race and that he would like to be part of those discussions.

Next Commission Meeting.

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

J. Michael Hopkins
Executive Director