Delaware Thoroughbred Racing Commission Minutes of Regular Meeting Held On

August 14, 2013

The Delaware Thoroughbred Racing Commission held a regular meeting on

Wednesday, August 14, 2013, at 10:15 a.m., in the second floor conference room of the Horsemen’s Office, located on the grounds of Delaware Park, 777 Delaware Park Boulevard,

Wilmington, Delaware 19804.

The following Commission members were present:

W. Duncan Patterson, Jr., Chairman

Edward J. Stegemeier, Secretary/Commissioner

Debra Killeen, Commissioner

Richard A. Levine, Esq., Commissioner

The following individuals also were present:

Ed Kee, Delaware Secretary of Agriculture

Andrew Kerber, Esq., Deputy Attorney General, Commission Counsel

John F. Wayne, DTRC, Executive Director

Edward K. Black, Deputy Attorney General

Frederick L. Burkhardt, DTRC, Associate Steward

Robert E. Colton, Delaware Jockey’s Association, Director

Mike Delaney, DTRC, Inspector

Beverly Fowler, Delaware Park, Test Barn Supervisor

Bessie Gruwell, DTHA, Executive Director

G. Jack Houghton, Jr., DTRC, Chief State Steward

Dennis Lima, DTRC, Associate Steward

Madeline Locke, DTHA, President

John E. Mooney, Delaware Park, Executive Director of Racing

Nancy Myshko, Delaware Park, Senior Vice President

Scott Peck, DTHA, Owner and Trainer

Jordan Terrell, DTRC (recording minutes)

John T. Peters, D.V.M., DTRC, Chief Commission Veterinarian

Joe Strug, Dalare Associates Inc., Laboratory Director

Francis J. Swift, Jr., DTRC, Inspector

Jane Teichner, .V.M.D, DTRC, Commission Veterinarian

1. WELCOME & CALL TO ORDER At 10:15 a.m., Chairman Patterson called the meeting to order and welcomed those in attendance.

2. APPROVAL OF MINUTES

Upon a motion duly made (Killeen) and seconded (Levine) minutes of July 10, 2013 were approved.

3. OLD BUSINESS

A. Update on Uniform Medication Policy Chairman Patterson reviewed that around 27 out of 35 jurisdictions are moving forward with the policy. Pennsylvania has approved of the Uniform Medication Policy with Maryland in the process (hopefully in place by September) and Delaware looking to establish the policy by the beginning of the year. There are many verbal agreements but no other tracks have fully committed yet.

The lab accreditation for eight of twelve labs are in process, including Dalare Associates.

B. Multiple Medication Violation Point System Chairman Patterson: The point system was discussed in Saratoga. “Multiple Medication Violators” does not change the underlying model rules with penalties; it is to identify the people who continue to abuse the system. The point system would be used in an A, B, C, D fashion in accordance with our drug classification of one through five. A violation of Class A penalty would be six points, Class B for controlled therapeutic substance would be two points (non-controlled is four), Class C for controlled therapeutic substance is one point (non-controlled is two points,) and Class D for a non-controlled therapeutic substance is one point. If you get three to five points during the three year period (starting with your first violation,) is a thirty day suspension enhancement. If you get six to eight points, it is a sixty day suspension enhancement; nine to ten points is a 180 day suspension enhancement and more than eleven points is a 360 day suspension enhancement. There is an expungement period of one year for Class D, two years for Class C, three years for class B and permanent for Class A. Ed Stegemeier- When do we start the process? It is suggested to start January 1

st,

2014. There would be a 90 day implementation period where all parties involved would need to be advised. This should be applied to the entire state; Thoroughbred as well as Harness racing. Patterson- Pennsylvania has only approved Thoroughbred racing, not harness; however, Maryland will be approving for both. Andrew Kerber- states that there will be a Harness meeting held in October which will address this system. Madeline Locke (to Patterson) - Do you have a sense that this is taking the wind out of the sails of people in Congress who want to make a change at the national level? Patterson- There was a threat at the Jockey Club meeting that if no forward action was taken, the Jockey Club would move forward in the legislative process of involving the federal government. Patterson believes that the threat was just leverage to encourage this.

4. NEW BUSINESS

A. Report on ARCI Business Meeting in New York Most of the report from New York has just been covered but to address another topic, the Model Rule was passed, presented by Alan Leavitt of Harness, which states there will be $10,000 in fines and ten years suspension for the use of EPO. Typically this is only a problem for Harness (Standardbred) and not Thoroughbred. John Wayne- The winter meeting dates were moved earlier because of the symposium.

Patterson- There was some jurisdiction against the Multiple Medication Violations but it passed by a majority vote. Wayne- The concept of points assignment for minor infractions was ridiculous- it should be about integrity issues such as medication violations and not matters such as late to the paddock or issues causing a late scratch. Those infractions are best handled by the Stewards as they are currently doing. Patterson- This meeting was very important to the industry. Commissioner Levine commented on how impressed he was with the meetings at Saratoga and added that Delaware was fortunate to have two representatives in Chairman Patterson and Executive Director Wayne that are so well respected by the industry. Commissioner Levine added that he felt proud of the fact that Delaware has a national impact on racing in North America.

B. Delaware Park Capital Budget Report Update About 35% went against the budget, there were some unforeseen expenditures. Mr. Mooney confirmed that nothing has changed.

C. RFP process for Equine Forensic Drug Testing Contract Stegemeier- RFP process for drug testing will be starting up. It is a six person committee. The contract will be three years with two one- year extensions. The process will start September 19

th. It will require accreditation (Dalare is close) and there are

several different labs that responded in the past. Wayne- The yearly budget for Harness and Thoroughbred is near a million dollars. Our current budget is for $330,500, however with the decline of racing dates drug testing costs have declined as well. Debra Killeen- How long will this process take? Stegemeier- A couple months. We have improved our selection process and our communication is great.

D. Jockey Club Round Table Chairman Patterson: About a half a dozen young individuals are taking a bus to travel to racetracks and promote equine racing. They are trying to involve a new and younger crowd to make racing fun. Fox is developing Fox Sports Network to compete with ESPN to show about twenty horse races. Television is an important part of the industry but can be a double-edged sword because of racing injuries and fatalities. Japan and Ireland are experiencing similar declines in interest in horse racing, despite their no medication policy. They are upgrading their facilities and the races themselves. Robert Green interviewed people on their opinions about racing and what problems they saw with it. The most common response was “drug-use.” Stegemeier- It is amazing that the public claims drugs are a problem when they are consistently used in sports such as football, track and field, etc. We test for these substances, try to control it and still get no credit for our efforts. Patterson- Believes that it is a matter of a human’s choice versus an animal’s inability to chose. Bessie Gruwell- Agrees with Patterson and also states that we do not do enough to publicize our efforts and that we are our own worst enemy. John Mooney- A recommendation made is that all veterinarians who work on a race horse be turned over to public release every day. If that ever happens, we will see a change in what is given to horses in this country. Patterson- One of the Jockey Club’s goals is to create a national electronic database for veterinarians which may be a long way off. Mooney- When these issues come out publicly, people grab and run with these ideas. The forecast on the breeding industry according to the Jockey’s Club and Equibase states that by 2017 (if we run the same number of races as 2012) there will be an average of 4.2 starters per race. The concern is the effect it will have on overall mutuel handle in the United States. Patterson- The number of foals has decreased as well as the number of races. Wayne- Commented on the two-day conference in Saratoga this week presented by Albany Law School. Day One featured topics on Race Horse Medication Summit including the National Uniform Drug Policy, drug testing reform, therapeutic medications and information on positive drug tests.

5. REPORT FROM DTRC EXECUTIVE DIRECTOR

A. Summary of Activities Report Executive Director Wayne submitted his written report to the Commission for the period July 1 to July 31, 2013. Points of interest read into the record included: July 2013 Year-To-Date --Number of Persons Fingerprinted 31 141 --Fingerprint Fees Collected $2,449 $11,139 DTRC Licenses Issued 727 3,744 Fines & Appeal Fees Collected $1,225 $2,490 License Fees Collected $31,005 $117,920 Other Statistics during July ARCI National Surveys answered 3 Contacts from Police Agencies 8 Contacts from Video Lottery Enforcement 16 National Racing Compact Reviews 5 National Racing Compact Applications Rec’d 55 Contacts from Racing Industry Groups 6 Contacts from other Racing Commissions 18 Contacts from other Race Tracks 9 Contacts from the General Public 13 Media Contacts 3 Contacts from Racing Officials Accreditation Program (ROAP) 9

6. REPORT FROM DTRC CHIEF COMMISSION VETERINARIAN

A. Health Report July 2013: There were a total of two fatalities in the month of July. One horse was training and another was racing, similar to the cases in June. These numbers are not good but they are better than the past. August 1- 13, 2013: In the month of August, there was a horse training who suffered a spiral fracture in the right front humerus. This is typically seen in Standardbred horses and not usually in Thoroughbreds. This fracture resulted in a fatality.

B. Update on Mosquitoes

Dr. Peters reported that one of the sentinel chickens being used for disease detection has developed West Nile Virus from mosquitoes. There are no reports of equine or humans contracting this virus from the property yet but this virus is preventable by vaccine.

C. Update on Salix and Shock Wave Therapy Programs Beverly Fowler reported that there have been 21 treatments in shockwave therapy. Two hundred ten first-time starters were certified for Salix. This year, Salix has treated 2,842 horses. We have raced 3,474 horses that were carded for Salix out of the 3,751 that were actually on the card for the day. There are more people entering not on Salix. Horses start on Salix before they race (when they are tattooed) and are on a bleeder list; however, some may not race with it.

7. REPORT FROM DELAWARE THOROUGHBRED HORSEMEN’S ASSOCIATION

A. Delaware Certified Thoroughbred Program Report DTRC Executive Director, Ms. Gruwell, filed the following report. Advisory Board has increased the percentage to 20%, making a total of 40% (20% to the

owner and 20% to the certifier.) Did not originally pay out the extra 5% in Bonus money. In May, an additional $18,470, $41,837 in June and total of $196,314 in July. You will see the retroactive 5%. The Delaware Oaks had a Delaware certified horse win. Enrollment picked up for the Certified program and had 360 Delaware Certified Horses start, with 53 wins, 39 seconds and 45 thirds. DCTP paid out $461,224. DCTP will be racing for Delaware Certified Stakes on Owner’s Day (September 14) and will also have a few Delaware Certified restricted races. There will be awards from 2012 at that time.

8. DELAWARE JOCKEY’S NUTRITION SEMINAR

A. August 26, 2013 Robert Colton- invited anyone to this seminar featuring Dr. Sue Snider. September 13 and 14 is the International Conference for the Health, Safety and Welfare of Jockeys with the International Jockey Association Conference the day before (September 12.) Hopefully can discuss the Jockey Injury Database. Wayne- Reminding everyone of the meeting in October (October 2

nd.) There will be a

delegate appointed to that board. 9. PUBLIC COMMENT

A. Ed Kee- The governor signed the legislation. Dates must be announced by December 15

th of the year prior to the appointed race year. Delaware Park is in contract for the next

two years but afterward, if no contract or dates have been set, will the responsibility lie on the commission? There needs to be discussion on the Commission’s responsibility for the number of race days. B. Mooney- No further statements. There was no racing today due to the inclement weather yesterday. Racing will resume tomorrow. C. Stegemeier- Are there updates on Mindy Coleman’s presentation and the involvement of the Jockey’s Health Welfare and Benefit Board?

Mooney (to Stegemeier) – At the last meeting, there was going to be a survey done of the TRA Tracks. Of the tracks who answered, none would commit to it. Keeneland said they turned it over to the state, it is not their responsibility. Until we get an answer of how to do this, we will not go forward with this.

Patterson- Mindy would like a conference call. D. Locke- Nothing further to report.

10. EXECUTIVE SESSION

At 11:40 A.M., Chairman Patterson motioned to go into Executive Session which was seconded by Debbie Killeen. Staff present were excused from the Executive Session. Following Executive Session the commission returned to the public portion of the meeting.

11. RETURN TO PUBLIC SESSION

The meeting came back into public session. It was discussed that the next commission meeting is scheduled for September 18, 2013 at 10:15 a.m. However, the time is subject to change depending on whether there will be an appeal before the commission.

DELAWARE PARK

2013 BREAKDOWN/INJURY STATISTICS

May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 2012 total 2011 total 2010 total 2009 total 2008 total 2007 total 2006 total 2005 total 2004 total 2003 total 2002 total

# STARTED THIS MONTH 416 991 1152

# STARTED TO DATE 416 1407 2559 5692 7377 8177 8188 8460 8536 9318 10100 9967 10,184 10,962

Horses added to vet's list 7 15 21 141 176 133 167 189 171 185 210Gate scratch- flip 0 1 2

Prerace scratches 3 6 8 62 69 51 44 80 53 76 90

Gate scratches 0 1 2 25 20 27 35 27 37 27 31

Pulled up/return lame 4 7 9 32 60 41 59 55 63 71 69

Other 21 31 14 29 27 18 11 20

Removed via ambulance 5 7 7

racing 2 2 5 24 42 21 38 35 38 45 46

training 3 5 2 9 9 16 10 8 6 10 6

Total racing fatalities 0 0 2 14 20 14 14 16 11 12 15 10 17 18

M-S fatalities 0 0 2 12 19 12 13 15 10 9 15

Sudden death/heart att 0 0 0 2 1 2 0 0 0 2 0

Other 0 0 0 0 0 0 1 1 1 0

*fatal M-S rac. inj/1000 sts 0 0 0.78 2.11 2.58 1.47 1.59 1.77 1.17 0.97 1.49 1 1.67 1.56

( *cumulative)

Total training fatalities 1 2 2 8 7 12 8 7 5 8 7

M-S fatalities 1 1 2 7 7 10 8 6 5 7 6

Sudden death/heart att 0 1 0 0 0 2 0 1 0 0 1

Other 0 0 0 0 0 0 0 0 1 0

Other deaths on site 3 1 0 3 9 12 7 3 5 8 9

musculoskeletal injury 2 0 0 0 1 1 (pony) 0 2 2

colic/colitis 0 1 0 2 4 2 0 1 3 1

neurologic disease 0 0 0 1 2 1 0 0 2 0 0

laminitis 1 0 0 2 3 3 3

pleuropneumonia 1

other 2 3 1 2 2 3 6

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DELAWARE CERTIFIED THOROUGHBRED PROGRAM

Thursday, August 01, 2013

2011 DCTP Applications Foals Yearlings Totals

Jan - Mar 0 31 31Apr - Jun 4 57 61 -Jul - Sept 10 63 73Oct - Dec 43 120 163Total Applications 57 271 328

2012 DCTP Applications Foals Yearlings Totals

Jan - Mar 0 25 25Apr - Jun 2 52 54Jul - Sept 9 39 48Oct - Dec 36 71 107Total Applications 47 187 234

2013 DCTP Applications Foals Yearlings Totals

Jon - Mar 0 15 15Apr - Jun 0 40 40Jul - Sept 0 4 4Oct - Dec 0 0 0Total Applications 0 59 59

Total DCTPApplications to date: 3175

2013 DCTPHorses of Racing Age: 3067

244 (2 yr. aids), 349 (3 yr. olds), 450 (4 yr. aids), 2024 (older horses),20% DCTP 20% Certifier Total Annual

Year # of Starters # of Starts 1st 2nd 3rd Earnings Awards AwardsJ~2013 182 360 53 39 45 $ 230,612.00 $230,612.00 $ 461,224.002012 318 943 138 140 146 $ 437,340.00 $409,503.00 $ 846,843.002011 414 1331 166 189 181 $ 715,099.86 $773,251.86 $ 1,488,351.722010 364 1150 142 180 146 $ 705,631.25 $778,203.75 $ 1,483,835.002009 287 922 105 120 121 $ 511,810.00 $584,382.50 $1,096,1932008 210 690 94 82 109 $ 367,963.60 $433,265.20 $801,2292007 271 608 90 87 102 $331,809 $355,609 $687,4182006 139 476 68 61 72 $201,286.80 $214,936.80 $416,2242005 99 366 52 49 53 $179,690.00 $193,340.00 $373i0302004" 56 134 20 19 19 $44,947.00 $44,947.00 $89,8942003" 9 17 7 3 2 $13,505.00 $13,505.00 ' .: $27,010

. Total DCTP $7,771,250.62

" DCTP owners and certifiers received 10% each bonuses in 2003 & 2004"DCTP owners and certifiers received 15% each bonuses in 2005 thru May 2008"DCTP owners and certifiers received 20% each bonuses beginning June 1, 2008" DCTP owners and certifiers received 25% each bonuses beginning April 25, 2009" DCTP owners and certifiers received 20% each bonuses beginning April 30, 2011" DCTP owners and certifiers received 15% each bonuses beginning May 12, 2012"DCTP owners and certifiers received 20% each bonuses beginning May 18, 2013Cnrrant Delaware Farms enrolled: 82

* Retroctive 5% increase ,

Delaware Certified Bonus Monthly Balance

2013 Available Funds May June July Aug Sept OctlNov Balance

$ 1,033,812.26 $ 55,411.50 $ 978,400.70$ 978,400.70 $ 149,511.00 $ 828,889.70$ 828,889.70 * $18,470.50 * $41,837.00 $ 768,582.20$ 768,582.20 $196,314 $ 572,268.20