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Minutes of Public Meeting - May 19, 2015

Commission Members Present:

Bruce Quade
Tammy Lafferty
John McDaniel
Charles Tildon
Mary Louise Preis
David Hayden
Lou Ulman
Dr. Thomas Bowman

Members Absent:

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 May 19, 2015 commencing at 12:30 p.m. at Pimlico Race Course, Baltimore, Maryland.

Minutes - April 21, 2015.

The Commission waived a reading of the minutes of its April 21, 2015 meeting and voted unanimously to approve them.

Maryland Standardbred Race Fund Advisory Committee.

Executive Director J. Michael Hopkins informed the Commission that he had received a letter from Cloverleaf Standardbred Owners' Association nominating Gary White to replace Dan Meyer as their representative on the Maryland Standardbred Race Fund Advisory Committee. Mr. Hopkins also informed the Commission that Commissioner Tammy Lafferty would need to be approved as the Advisory Committee's Chairman for the next 12 months. Hearing no objection, the Commission unanimously approved both Gary White and Commissioner Lafferty to serve on the Committee.

Maryland-Bred Race Fund Advisory Committee Members.

Executive Director J. Michael Hopkins presented the Commission with a request from the Maryland Horse Breeders nominating Joseph Pons, Jr. and Donald Barr as their representatives on the Committee and for Georganne Hale to represent the mile track and Andrew Cashman to represent the half mile track. Mr. Hopkins also reminded the Commission that Commissioner David Hayden would need to be re-appointed as the Committee Chairman for another year. Hearing no objection, the Commission unanimously approved the request.

Ocean Downs - Racing Facility Redevelopment Fund.

Executive Director J. Michael Hopkins provided the Commission with a report provided by Gegorek and Company on the request made by Ocean Downs, LLC for the reimbursement of $1,221,890.00 from their share of the Racing Facility Redevelopment Fund. Mr. Hopkins further commented that Ocean Downs had met all of the requirements to be eligible for this request. Commissioner Lou Ulman asked Mr. William Fasy, representing Ocean Downs, to briefly explain the completed projects. Mr. Fasy addressed the Commission regarding the report.

Proposed Regulation - Cobalt - 09.10.03.01-1

Executive Director J. Michael Hopkins informed the Commission that the Racing Medication and Testing Consortium, Inc. and the Association of Racing Commissioners International, Inc. have made a recommendation that racing jurisdictions should adopt a regulation that would not permit a level greater than 25 parts per billion (ppb) of Cobalt in a horse's post-race blood plasma or serum. Mr. Hopkins further explained that a horse which tests between 25 ppb, but not greater than 50 ppb would not be allowed to participate until the horse has been retested at the owners' expense and the Cobalt level was below 25 ppb. Moreover, if a horse tested above 50 ppb, the horse would be disqualified and the trainer would be fined and/or suspended. Commissioner Lou Ulman asked if blood specimens had been tested for both the thoroughbreds and standardbreds. Mr. Hopkins responded that both breeds had been tested and the results did not reveal any violations with thoroughbred horses, but did indicate elevated levels on several standardbred horses. The Commission voted unanimously to have the regulation presented on an emergency basis and as proposed, with an effective date of July 1, 2015.

Maryland Jockey Club - Update.

Tim Ritvo, General Manager of the Maryland Jockey Club, explained to the Commission that Preakness day was very successful, except for the rain during the Preakness Stakes race. Mr. Ritvo advised that overall handle at Pimlico is $500,000.00 more a day than the previous year and field size has increased from 7.24 horses per race to 8.26 horses per race. Mr. Ritvo also stated that the new Off Track Betting (OTB) facility at the Horseshoe Casino is increasing handle on a weekly basis and has not negatively impacted betting at Pimlico, but additional data will be necessary to show the impact of the OTB, since it has only been open for14 days. In addition, Mr. Ritvo commented that the new barn at Laurel Park has been welcomed by horsemen and the second barn is currently being constructed along with some other improvements in the simulcast area.

Mr. Ritvo added that the Maryland Jockey Club would be coming to the Commission over the next few weeks requesting an adjustment to its current racing schedule. Mr. Ritvo advised that after the Maryland Jockey Club meets with the horsemen, he anticipated transferring days to July and August in 2015, to make the most out of the racing schedule. Chairman Quade commented that he has had some discussion with Mr. Ritvo and that the proposed changes would not jeopardize the 10-year agreement.

Alan Foreman, counsel to the Maryland Thoroughbred Horsemen's Association, commented that over the many years he has been involved with the thoroughbred racing business, he could not speak more highly of the Maryland Jockey Club's management team and the way the management team treats the owners and trainers who participate in Maryland Racing. Mr. Foreman noted that Bob Baffert and D. Wayne Lukas had advised him that they "feel real good" about the Preakness experience and Mr. Foremen wanted to make special note of the Maryland Jockey's Club management team.

Video Lottery Revenue - Report.

Executive Director J. Michael Hopkins provided the Commission with the April 2015 VLT report. Mr. Hopkins commented that the first four months of 2015 compared to the same time frame in 2014 indicated a net increase to the Purse Dedication Account, even though the casinos were reducing the number of slot machines.

Public Comment.

Andy Cashman, representing Timonium Fair Grounds, reported that the recent horse sale was a tremendous success. Chairman Quade congratulated Mr. Cashman and thanked him for making improvements at the Timonium facility.

Commissioner Tom Bowman commented that no one in the racing industry could be disenchanted with the progress that has been made in Maryland Racing over the last couple of years. Commissioner David Hayden drew a parallel to the Renaissance in the 1980's for Maryland Racing.

Cricket Goodall, representing the Maryland Horse Breeders' Association, advised that the Maryland-Bred Champions Award Dinner would be held at Pimlico, on May 28, 2015.

A standardbred trainer asked if the Commission would be reviewing the current preference system. Chairman Quade responded by saying that the Commission has established a task force that will be reviewing all aspects of the standardbred industry and will be making recommendations when completed.

Next Commission Meeting.

The next Commission meeting will be held on June 16, 2015 at 12:30 p.m. on the Second floor of the Clubhouse at Laurel Park, Laurel, Maryland.

J. Michael Hopkins
Executive Director