OKLAHOMA HORSE RACING COMMISSION REGULARLY SCHEDULED MEETING JUNE 19, 2014 MINUTES
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1 OKLAHOMA HORSE RACING COMMISSION REGULARLY SCHEDULED MEETING JUNE 19, 2014 CALL TO ORDER/ROLL CALL Chairman Leonard called the Regularly Scheduled Meeting of the Commission to order at 9:34 a.m. in Track North at Remington Park Racetrack and Casino, Oklahoma City, Oklahoma. Commission members answering roll call were Commissioner Bollenbach, Commissioner Bowers, Commissioner Burton, Commissioner Harrell, Commissioner Kirk, Commissioner Lucas, Commissioner Sanders and Chairman Leonard. Commissioner Goumaz arrived at 9:51 a.m. Mr. Neal Leader, Commission Counsel, was present as well as the following Commission staff members: Mr. Constantin A. Rieger, Mr. Mike Dixon, Ms. Mary Ann Roberts, Ms. Bonnie Morris and Ms. E J Brees. Approximately twenty persons attended and signed the registry which is part of the record. APPROVAL OF Commissioner Bowers moved to approve the drafted Minutes from the May 15, 2014 Regularly Scheduled Commission Meeting. Commissioner Sanders seconded the motion. The vote was as follows: Aye: Mr. Bowers, Mr. Sanders, Mr. Bollenbach, Mr. Burton, Mr. Harrell, Mr. Kirk, Mr. Lucas, Mr. Leonard Ms. Goumaz was absent from the vote. The motion passed on an 8-0 vote. PRESENTATION ON MONITORING PROJECT OF COMPULSIVE GAMING ASSISTANCE PLANS BY RACETRACK GAMING OPERATOR LICENSEES Background Since FY-2008, Dr. Curtis Barrett has monitored the respective Compulsive Gambling Assistance Plans of the Racetrack Gaming Operators.
2 Historically, the budget has been calculated on the number of gaming devices at each racetrack so that Remington Park pays half and Will Rogers Downs pays one-fourth [with the other one-fourth paid by Blue Ribbon Downs]. Since FY-2008, the second year of the monitoring project, Remington Park has paid $11,000 with Will Rogers Downs paying $5,500 for a total of $16,500. Due to the increases in travel expenses over time, Dr. Barrett requested that the FY budget be increased by 10% to cover these expenses so that, if approved, Remington Park would pay $12,100 and Will Rogers Downs would pay $6,050 for a total of $18,150 for the FY-2015 monitoring project. Both racetracks were in agreement with the increase in fees. Current Consideration Dr. Barrett made a presentation regarding FY-2014 activities of the Compulsive Gambling Assistance Plans for each of the racetracks in relation to compliance with requirements established in the Rules for Racetrack Gaming. He stated that the Oklahoma racinos were positively influencing other racetracks due to the innovations that began in Oklahoma years ago. Dr. Barrett said that not only was the program doing what it was supposed to do, it was also increasing in its effectiveness due to the attention of key people at the two racetracks and that other states were voluntarily becoming involved with the Compulsive Gambling Assistance Plan program. Commissioner Kirk requested that Dr. Barrett provide a copy of the Winners! book, written by Dr. Barrett and Don C. Clippinger, to Commissioner Harrell and Commissioner Sanders. He noted that Winners! is a book that speaks to issues regarding alcohol and drug abuse programs in the horse racing industry. Commissioner Kirk made a motion to approve Dr. Barrett s request of an increase for the monitoring program for the Compulsive Gambling Assistance Plan activities with the budget of $12,100 to be paid by Remington Park and $6,050 to be paid by Will Rogers. Commissioner Burton seconded the motion. The vote was as follows: Aye: Mr. Kirk, Mr. Burton, Mr. Bollenbach, Mr. Bowers, Mr. Harrell, Mr. Lucas, Mr. Sanders, Mr. Leonard Ms. Goumaz was absent from the vote. The motion passed on an 8-0 vote. 2
3 PROPOSED FY-2015 PARI-MUTUEL AND GAMING AUDITING CONTRACTS BETWEEN THE COMMISSION AND THE OFFICE OF STATE AUDITOR AND INSPECTOR (SA&I) Proposed racing and gaming auditing contracts between the Commission and the Office of State Auditor and Inspector for FY-2015 [July 1, 2014 through June 30, 2015] were presented to the Commission for approval. The pari-mutuel contract proposed a $42, annual budget whereas the gaming contract proposed a $191, annual budget. These proposed figures represented a 4.6% reduction from the current contracts in response to the Commission receiving a 4.6% appropriation level reduction for FY Commissioner Kirk made a motion to accept the FY-2015 racing and gaming auditing contracts between the Commission and the Office of State Auditor and Inspector with no objection by any Commissioner to the consideration of both contracts in a single motion. Commissioner Harrell seconded the motion. The vote was as follows: Aye: Mr. Kirk, Mr. Harrell, Mr. Bollenbach, Mr. Bowers, Mr. Burton, Mr. Lucas, Mr. Sanders, Mr. Leonard Ms. Goumaz was absent from the vote. The motion passed on an 8-0 vote. PROPOSED SLATE OF COMMISSION OFFICERS PRESENTED BY THE NOMINATING COMMITTEE AND ELECTION OF OFFICERS FOR FY Commissioner Lucas, as Chair of the Nominating Committee [comprised of Commissioners Bowers, Harrell and Lucas], presented a proposed slate of Commission Officers [Chair, Vice-Chair and Secretary] to consider for election for FY-2015 (July 1, 2014 through June 30, 2015): Chair Vice-Chair Secretary Commissioner Burton Commissioner Leonard Commissioner Bollenbach Commissioner Bollenbach made a motion to accept the slate of FY-2015 officers. Commissioner Kirk seconded the motion. The vote was as follows: Aye: Mr. Bollenbach, Mr. Kirk, Mr. Bowers, Mr. Burton, Ms. Goumaz, Mr. Harrell, Mr. Lucas, Mr. Sanders, Mr. Leonard 3
4 REPORTS [Taken Out of Agenda Order] 1. Post-Session Legislative Tracking Report and Budgetary Reduction The CY 2014 Legislative Session adjourned on Friday, May 23, Commissioner Lucas reported that the following two significant legislative bills, supported by the horsemen s groups and the Commission, were passed and signed by the Governor: HB 2531 modified Section of Title 3A, Horse Racing Act, to allow the Commission s Executive Director to purchase vehicles, uniforms and equipment, and SB 1730 modified Section of Title 3A, Horse Racing Act, to allow the Horsemen s Bookkeeper to cancel uncashed disbursements of $50.00 or less after a period of three years with the approval of the official horsemen s representative organization and the Commission. The funds would be credited back for use as a payment of purses for participating horses of the same breed. It was also noted that the Commission received a FY-2015 appropriation of $1,976,189, representing a 4.6% budget cut [$95,978] from the FY-2014 funding of $2,072, Receipt of Renewal Applications for Organization [Racing] and Gaming Licenses for CY 2015 Racing and Gaming Activities By the annual deadline of June 1 [extended to June 2, 2014 since June 1 fell on a Sunday], the Commission received renewal applications for organization [racing] licenses from Remington Park, Will Rogers Downs and Fair Meadows at Tulsa to conduct racing activities in CY The companion CY 2015 gaming license applications were received as well. Mr. Constantin Rieger, Commission Executive Director, noted that Commission Staff is in the process of reviewing the racing and gaming applications and writing the Staff Narratives. At the same time, the Commission's Law Enforcement Division is currently conducting its background investigations. Hearings to consider these racing and gaming license applications will be conducted at the August 21, 2014 Commission meeting. 4
5 APPEAL HEARING OF ROBERT DIMITT, TRAINER, AND STEWARDS REFERRAL TO COMMISSION REGARDING FINE AND SUSPENSION Background Mr. Robert Dimitt, Trainer, was found to be in violation of OAC 325:35-1-5, Trainer Responsibility, and OAC 325:45-1-4, Drugs or Medication, for the following horses under his care and custody testing positive for the drug Chlorpromazine following races at Will Rogers Downs: STEWARDS RACE DAY & ORDER HORSE RACE NUMBER 14-WRD-006 LITTLE PRAIRIE WAGON 9/21/12, 9 th race 14-WRD-007 DIVINE PATRIOT 10/13/12, 4 th race In addition, the Board of Stewards at Will Rogers Downs referred the two cases to the under the authority of OAC 325:1-1-8, with recommendations that the Commission impose a suspension greater than one (1) year and a fine of more than two thousand, five hundred dollars ($2,500.00) in each case. Mr. Dimitt appealed the two Stewards Orders on March 18, Mr. Dimitt was represented by Mr. John Mac Hayes; Ms. Mary Ann Roberts represented the Board of Stewards at both the Stewards Hearing and the Appeal Hearing. Current Consideration Mr. Neal Leader, Senior Assistant Attorney General and Commission Counsel, advised the Commission of the need to discuss a procedural issue before the Appeal Hearing began. Mr. Leader noted that deadlines were set for the filing of briefs in this matter and that in May, 2014 an extension was requested by Mr. Hayes and was granted. After that, the appellant requested a second extension which was denied by the Commission; however, an additional five days were allowed for the filing of the Brief in Chief. The appellant then took the matter to the Oklahoma Supreme Court, asking that Court to exercise its original jurisdiction. Before that Court, Mr. Hayes complained that his client s due process rights were violated because no more time was granted by the Commission. The Supreme Court issued an Order refusing to exercise its original jurisdiction thus granting Appellant no relief. Mr. Leader further stated that the first issue for the Commission was to decide whether to accept and allow in the record the Brief in Chief, filed by Mr. Hayes, counsel for Mr. Dimitt, the afternoon of June 18, 2014, the day before this Commission meeting, which Brief had been due to the Commission by the extended deadline of May 27,
6 Commissioner Burton advised the Commission that it might be considered that he had a conflict of interest since Mr. Hayes and Mr. Burton had worked together on cases going back as far as twenty years and that he and Mr. Hayes currently had a client or two. Ms. Roberts and Mr. Hayes each advised the Commission that they had no objection to Commissioner Burton s participation in the Appeal Hearing. After discussion, Commissioner Harrell made a motion that Mr. Hayes Brief in Chief not be accepted for filing and not be made part of the record. Commissioner Kirk seconded the motion. The vote was as follows: Aye: Mr. Harrell, Mr. Kirk, Mr. Bollenbach, Mr. Bowers, Ms. Goumaz, Mr. Lucas, Mr. Sanders, Mr. Leonard Nay: Mr. Burton The motion passed on an 8-1 vote. Mr. Hayes then moved to re-open the record to add new evidence that he received late yesterday afternoon. He advised the Commission that a document was prepared by Dr. Thomas Tobin, University of Kentucky, at the request of Dr. Gary White, a veterinarian. Among other things, Ms. Roberts noted that the 48 page report included several articles published in 1997 and 2000, which were available before the Stewards Hearing. Commissioner Harrell made a motion to deny and/or not accept Mr. Hayes motion to admit the new evidence. Commissioner Kirk seconded the motion. The vote was as follows: Aye: Mr. Harrell, Mr. Kirk, Mr. Bollenbach, Mr. Bowers, Mr. Burton, Ms. Goumaz, Mr. Lucas, Mr. Sanders, Mr. Leonard The Appeal Hearing was then conducted in which Mr. Hayes presented argument followed by Ms. Roberts presenting argument. Commissioner Goumaz made a motion to deliberate in Executive Session regarding the Appeal Hearing of Mr. Dimitt and include Mr. Neal Leader in the deliberation. Commissioner Bollenbach seconded the motion. The vote was as follows: Aye: Ms. Goumaz, Mr. Bollenbach, Mr. Bowers, Mr. Burton, Mr. Harrell, Mr. Kirk, Mr. Lucas, Mr. Sanders, Mr. Leonard 6
7 Commissioner Bollenbach made a motion to return to Open Session. Commissioner Bowers seconded the motion. The vote was as follows: Aye: Mr. Bollenbach, Mr. Bowers, Mr. Burton, Ms. Goumaz, Mr. Harrell, Mr. Kirk, Mr. Lucas, Mr. Sanders, Mr. Leonard Commissioner Harrell made a motion to affirm the Board of Stewards decisions and accept the Stewards recommendation with respect to penalties for Mr. Robert Dimitt, including a three year suspension for each violation to run concurrently and a $5,000 fine for each violation for a total of $10,000. He noted for the record that the penalties were below the minimum recommendation from the RCI. Commissioner Kirk seconded the motion. At that time, Mr. Hayes stated that according to procedure and the printed agenda, he should have 10 minutes to discuss penalties. Mr. Leader said that Mr. Hayes admitted that he was only talking about mitigation, which was argument on penalty. Commissioner Harrell then withdrew his motion. The Commission heard additional argument from Mr. Hayes regarding the penalties of suspension and fine. Ms. Roberts then presented argument regarding the recommended suspension and fines. Commissioner Harrell made a motion to deliberate in Executive Session regarding Mr. Dimitt s cases and include Mr. Neal Leader in the deliberation. Commissioner Kirk seconded the motion. The vote was as follows: Aye: Mr. Harrell, Mr. Kirk, Mr. Bollenbach, Mr. Bowers, Mr. Burton, Ms. Goumaz, Mr. Lucas, Mr. Sanders, Mr. Leonard Commissioner Bollenbach made a motion to return to Open Session. Mr. Bowers seconded the motion. Aye: Mr. Bollenbach, Mr. Bowers, Mr. Burton, Ms. Goumaz, Mr. Harrell, Mr. Kirk, Mr. Lucas, Mr. Sanders, Mr. Leonard Commissioner Harrell stated that the Commission had wholeheartedly taken into account all the evidence. He then made a motion to take preliminary action to affirm the Stewards Orders 14-WRD-006 and Amended Order 14-WRD-007; set the penalties at a three year suspension for each violation to run concurrently and a $5,000 fine of each violation to total $10,000; and direct Commission Staff to draft a preliminary Order for consideration in further deliberations at the August 21, 2014 meeting. Mr. Harrell 7
8 further noted for the record that the penalties were below RCI s minimum recommendation. Commissioner Kirk seconded the motion. The vote was as follows: Aye: Mr. Harrell, Mr. Kirk, Mr. Bollenbach, Mr. Bowers, Mr. Burton, Ms. Goumaz, Mr. Lucas, Mr. Sanders, Mr. Leonard ANY MATTER NOT KNOWN ABOUT OR WHICH COULD NOT HAVE BEEN REASONABLY FORESEEN PRIOR TO POSTING THE AGENDA There was no new business that could not have been foreseen prior to the posting of the agenda. ANNOUNCEMENTS There were no announcements. ADJOURNMENT The meeting was adjourned at 12:36 p.m. Approved this 21 st day of August, On Behalf of the Commission: ATTEST: Constantin A. Rieger, Executive Director CAR/ejb/6/25/14, 7/7/14, 7/29/14, 8/21/14 Brandon Burton, Chairman 8
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