Commissioner Ulman asked why the breeder and stallion bonuses were not being phased in, as were the owner
incentives. Chairman Quade responded that the breeder and stallion awards were being increased by a re-programming of the
Maryland-bred Fund revenues; and the owner incentives ("purse enhancements") were being derived from a reallocation of the
purse account after taking into consideration the recommendations of the MTHA that this aspect be phased in over a period of time.
Commissioner Mary Louise Preis asked what the projections were based on. Chairman Quade responded that the projections
were based on current VLT revenue projections which include the operation of the Baltimore casino, anticipated to start
sometime in late summer, 2014 with the full implementation of the program beginning in 2015.
Commissioner John Franzone voiced concern that the amount of money paid to the jockeys would be decreased. Commissioner
David Hayden responded that a jockey and trainer would benefit by riding and training Maryland-bred horses. Commissioner
Franzone then withdrew his inquiry.
Commissioner Mary Louise Preis asked why, at its outset, the Program would not be applicable to claiming races with a
claiming price of less than $10,000. Chairman Quade noted that the Program would be applicable to all races once the final
phase is reached in 2015.
Chairman Quade asked Cricket Goodall, Executive Director of the Maryland Horse Breeders Association, for comments. She responded
that the Maryland Horse Breeders Association fully supported the initiative.
Chairman Quade asked Tom Chuckas, President of the Maryland Jockey Club, fro comment. Mr. Chuckas stated that the Maryland
Jockey Club supported the initiative. Mr. Chuckas also stated that he believed the final recommendations of the Task Force would
provide an incentive to the breeding industry and also provide an example to the State that the racing industry is looking for
ways to improve the racing and breeding industry.
Chairman Quade asked Alan Forman, representing the Maryland Thoroughbred Horsemens' Association (MTHA), for his comments.
Mr. Foreman asked if the Task Force recommendations would be provided to the parties for further discussion. Chairman Quade
responded that the Commission would not be sending the Task Force recommendation back to the MTHA or other parties for their
review, since the parties previously had an opportunity for input; that the final recommendations of the Task Force took into
account the recommendations of the MTHA; and that acceptance of the Task Force final recommendations by MTHA was not necessary
as a prerequisite to MRC adoption of the same,. Mr. Forman then asked under what authority the Commission can direct the payment
of purse monies; noting that the MTHA has had a fiduciary responsibility for the purse account for as long as he could remember
in the absence of the Commission taking this role. Mr. Forman commented that he believed the concept of the final recommendations
of the Task Force were good, but requested that the Commission, as a "courtesy", allow the MTHA to review the final recommendations
of the Task Force with an opportunity to further respond. In response to an assertion of David Richardson, Executive Director of
MTHA, that the final recommendations of the Task Force would result in a reduction of overnight purses, Chairman Quade noted that
such was not the case; and instead of there being a reduction in overnight purse money, there would be a re-programming (re-allocation)
of overnight purse monies. Mr. Forman argued that it appeared the Commission was taking control of an issue on behalf of one
particular segment of the industry. Mr. Forman further commented that he would like to have an opinion of the Attorney General
as to the Commission's authority with respect to Maryland breeders "usurping" the purse account over which they have no authority.
Chairman Quade responded that such was not the case; and that Mr. Forman's representation of the breeders controlling the purse
account was incorrect. Chairman Quade further commented that the initiative was not a breeders' organization initiative; but,
instead it was a Commission initiative which included input from, MJC (racetrack), MTHA(trainers and owners) and MHBA (breeders).
Chairman Quade asked Senior Assistant Attorney General Bruce C. Spizler to explain the authority of the Commission in
implementing the recommendations. In brief, Mr. Spizler responded by citing § 11-305,
Business Regulations Article, Annotated Code of Maryland ("Controls on Licensees") which states:
"A licensee is subject to all rights, regulations and conditions that the Commission sets for the calendar year in which the
race meeting of the licenses is held"
Mr. Spizler noted that, as a means of effectuating the Task Force recommendations, the Commission could impose a "condition"
on the issuance of a license for a racetrack licensee to conduct a race meet to the effect that the conditions of each "overnight"
race held during the meet include the payment of enhanced purse amounts to the owners of Maryland-bred horses. Mr. Spizler added
that to do so, or not, is a policy decision of the Commission.
Chairman Quade commented that the need for implementing the program is now; and that it was not necessary to await an assurance
of future slot revenues, since the recommendations are not dependant on the number of racing days to be purchased by the horsemen,
or the construction of stalls; nevertheless, the full implementation of the Task Force final recommendations would not be effective
until the casino in Baltimore City (and the resultant revenues allocated to the racing industry from slots) is operational.
Chairman Quade further commented that any suggestion that the Task Force did not engage, or discuss, or take into account the
recommendations of MTHA is incorrect. In conclusion, the Chairman reiterated that this is a Commission initiative which is good
for the racing industry overall.
Commissioner Ulman commented that he believed the Task Force had done a good job, but since the other Commission members were
seeing the final recommendations for the first time, as is the case with the stakeholders, he did think it was not unreasonable to
allow an additional month for review and comment. Chairman Quade responded that all of the information previously had been provided
to all of the stakeholders,; although not in its current format. Commissioner Ulman again expressed his concern.
Commissioner Mary Louise Preis commented that theTask Force presentations and recommendations had been discussed since January,
2013; and that by phasing in the recommendations, it provides the breeding industry with something to rely on. She also noted that,
if the recommendations of the Task Force proved to be inappropriate, the Commission would have the opportunity to address any
concerns on a monthly basis. Alan Forman responded that he was unaware of the Task Force having the authority to decide matters
regarding a breeders program or bonus programs or have the authority to implement such a program. Chairman Quade corrected Mr.
Forman, stating that the Task Force was not implementing anything; and that the Commission would be considering the implementation
of the recommendations. Alan Forman again expressed his concern that the final document outlining the Task Force's final
recommendations had not been reviewed by the MTHA. Chairman Quade responded that the Task Force had discussed the changes
with the stakeholders including the MTHA.
Commissioner Mary Louise Preis made a motion that the Commission accept and adopt the Task Force recommendations. The
motion was seconded by Commissioner Thomas Winebrener. The motion passed by a vote of 5-2 in favor with Commissioners John
Franzone and Lou Ulman dissenting.
Racetrack Facility Renewal Account - PGRV.
Executive Director J. Michael Hopkins informed the Commissioners that Prince Georges Racing Ventures, LLC (Rosecroft)
had submitted a request for a matching grant from the Racetrack Facility Redevelopment Account. Mr. Hopkins advised that
all of the financial data had been reviewed by a Certified Public Accountant and reported to be appropriate. However, in
addition to the financial data, Mr. Hopkins reported that the industry marketing plan, submitted in 2011 pursuant to §9-1A-09(b)(6),
State Government Article, Annotated Code of Maryland, was in need of being updated and expanded. The Commission agreed
and approved the request from PGRV while requiring all racing industry representatives (all racetrack licensees, horsemen's
organizations and breeder organizations) to submit an updated and expanded marketing plan on or before October 1, 2013 in order
for any of the racetrack licensees to remain eligible for any funds accrued in the Racetrack Facility Renewal Account. In
addition, Chairman Quade asked Commissioner Mary Louise Preis to assist in developing a template for the racing industry
representatives to follow. She agreed and would also include Commissioner Tildon.
Racetrack Facility Renewal Account - Maryland State Fair.
Executive Director J. Michael Hopkins provided the Commission members with a request from the State Fair Society for the race
course at Timonium requesting the annual payment from the Racetrack Facility Renewal Account pursuant to §9-1A-29(f),
State Government Article, Annotated Code of Maryland. Mr. Hopkins reported that the information from the State Fair Society
had been reviewed by a Certified Public Accountant and found to be sufficient and in compliance. The Commission unanimously voted to
approve the request.
Ratifications of Telephone Poll.
Executive Director J. Michael Hopkins informed the Commission that he had conducted a telephone poll of the Commission
members regarding: (1) live racing days at Ocean Downs; (2) the Stakes schedule for the Standardbred Race Fund at Ocean Downs;
and (3) a request from Prince Georges' Racing Ventures, LLC to changes the post time at Rosecroft on May 18, 2013 (Preakness Day).
None of the Commissioners had any comment regarding any of the above; and the Commission voted unanimously to approve each of
these matters.
Video Lottery Revenue - Report.
Executive Director Hopkins provided the Commission with the April, 2013 VLT reports.
Public Comments. Calling for any public comments, but hearing none, the Commission adjourned the meeting.
Next Commission Meeting.
Tuesday, June 18, 2013 at Laurel Park 12:30 p.m. The Commission also announced that the July 16, 2013 Commission meeting
would be held at Ocean Downs.
J. Michael Hopkins
Executive Director
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