Indiana Horse Racing Commission Meeting Notes

Date: June 22, 2007

Please note: These are NOT official minutes of the IHRC meeting.  They are notes developed by our representative attending the meeting.

The Indiana Horse Racing Commission (IHRC) met on Friday, June 22, 2007, at the Indiana State Library.  Called to order at 10:00 a.m., the meeting included several topics important to the future of horse racing in Indiana.  Minutes from both the May 22, 2007 and June 8, 2007 meetings were approved by the Commissioners, as written.  The meeting then progressed to the other items included on the agenda.

The first item on the agenda was the presentation of the Chairman’s Award to the outgoing members of the breeds’ Breed Development Committees.  Each member was presented a plaque for their service to the industry.  After a few kind opening remarks, Chairman McNaught turned the floor over to other commission staff members to talk about the award recipients.

Jessica Barnes, Director of Standardbred Racing, spoke about the three outgoing Standardbred representatives, Ernie Gaskin, Nat Hill IV, and Hank Blackwell.  Barnes began her comments by noting it was not difficult to find positive things to say about these gentlemen.  She described her dilemma as, “How to possibly fit it all in and do them justice.” 

Barnes went on to explain the trio was the first members ever appointed to the position, beginning in 1994.  She then discussed how they worked to develop a first class Standardbred racing program in a state where pari-mutual racing had never existed.  Throughout their thirteen (13) years of service, the goal of the committee had been to improve the quality of Indiana Sired horses.  Their goal was met in that Indiana Sired horses are competitive in an array of venues, including races at the Meadowlands.  Barnes also explained the unique qualities each of the men brought to the table.  She noted Nat’s expertise with numbers, helping with projections and budgets.  In addition, she expressed her appreciation for Ernie’s extensive background in racing.  Finally, she recognized Hank’s keen sense for promotions and publicity.  Barnes ended her comments by thanking the group and stating, “I am certainly honored to have had the privilege to be able to work with and learn from them.”

Jacki Brown, Thoroughbred and Quarter Horse Breed Development Director, spoke about the other two outgoing committee members.  She recognized Mari Hulman-George for all of her years of service on the Thoroughbred Breed Development Committee.  Mike Renihan was also thanked for his work on the Quarter Horse Breed Development Committee.

Although they had been announced in a previous news release, the new committee members were also named.  Those present were introduced to all in attendance at the meeting.  The new members of the Standardbred Breed Development Advisory Committee are Michael Christner, Don Eash, and Gordon Tabor.  Jim Hartman will join the committee for Thoroughbreds and Jim Noel will do the same for Quarter Horses.

The next item on the agenda was establishing deadlines for the Breed Development Advisory Committees for the 2008 programs.  After some discussion, the deadline was set for October 1, 2007 for developing their 2008 Program.  The committees were also given a deadline of January 1, 2008 to come up with any structural changes to the program.  Structural changes are anything pertaining to eligibility.  Joe Gorajec, IHRC Executive Director, used an example of a Thoroughbred rule concerning mares based in Indiana.  In short, it is a mare residency requirement whereby the resulting foal is eligible to certain racing events.  The goal of such a requirement is to get more revenue into the state.  A longer commitment should help boost the economic impact on Indiana.  Any structural changes decided would not be effective until the 2009 Breeding Season.  These deadlines were approved by the commission.

Consideration of a timeline for filing and pre-approving 2008 live racing dates was the next topic to be discussed by the commission.  Gorajec suggested a deadline of September 1, 2007, noting the date was consistent with that of previous years.  After a motion to use this date was made, it was approved.

Following the agenda outlined, the next item of business was consideration of a petition from Centaur, Inc. and Centaur, LLC to sell shares of interest in Hoosier Park to five (5) individuals.  Centaur’s attorney, Robert Hagemier addressed the commission, briefly explaining the transaction.  He noted the individuals wanted to purchase an interest in the track to become partners.  Hagemier pointed out the sale price was the same as the price pre-legislation (before the approval of slots).  The shares would be sold for $14.16/share, the same price as every transaction approved by the commission in the past.

Since the two will be working together with other aspects involved in the coming of slots, Commissioner Grimes asked if it is important to share the responsibility of approving such sales with the Indiana Gaming Commission.  He stated, “Should there be some collaboration?”  Grimes noted he had no objection to the sale, he simply wondered about the need for involving the other commission.  Hagemier responded by stating there is some collaboration in that both entities are actively involved in any investigation.  The investigation of these individuals yielded no problems with the parties involved.  The sale of the shares was approved unanimously by the commission.

The final item on the agenda was consideration of the Findings of Fact, Conclusions of the Law and Recommended Order issued by Administrative Law Judge Kathryn Janeway in the case involving Mark P’Pool.  The legal document was dated May 7, 2007.

The Indiana Deputy Attorney General, Gordon White, was present at the meeting to facilitate the commission’s review of the judge’s report.  White went through the process involved to get to this point, in a case where the commission had issued a petition against P’Pool.  In short, Judge Janeway ruled in favor of the IHRC decision regarding the fine and suspension to be levied on P’Pool.  The punishment was a six (6) year suspension and a $30,000 fine.  Objection to the decision is allowed and was entered.  As the next step in the process, there was supposed to be an oral argument before the commission today.  However, since P’Pool’s lawyer (Joe Parisi) could not make the meeting, that portion of the hearing was cancelled.  White then instructed the commissioners to discuss the decision of the judge.  In the end, they could decide to do one of the following: affirm the decision, dissolve the decision, modify the decision, or remand the decision back to the judge for reconsideration.  At this stage, the commissioners were only allowed to talk with White about the case.  The goal of this dialogue was to decide what to do with Judge Janeway’s decision.

Commissioner Grimes was the first to speak.  He asked if the discussion and decision today would become part of the record.  White responded by saying it would be entered.

Chairman McNaught then offered her analysis of the decision.  She pointed out a couple of passages in the decision which summed up everything she had seen and heard relating to the case.  She quoted one specific portion which reads: “The plethora and seriousness of Petitioner’s transgressions calls for enforcement of the mandate to ensure that pari-mutuel wagering on horse races in Indiana will be conducted with the highest of standards and the greatest level of integrity.”  She concluded her comments by saying, “I feel we should accept this decision.”

Commissioner Grimes then asked about the wording of the decision regarding the fine already paid and time already served by P’Pool.  He felt this was not very clear in the judge’s decision.  White replied, stating it is possible, and “well within bounds”, to insert wording to clarify that the other punishment was served.

Commissioner Armstrong then took the opportunity to offer his opinion of the decision.  He stated, “These are serious violations.”  After having followed the case and reviewing the judge’s decision, he said he believes the level of fine and punishments are appropriate for the matter.

Chairman McNaught then made a motion to accept Judge Janeway’s decision, with the wording change requested by Grimes.  When put to a vote, it passed unanimously.

White then informed the commission he will prepare a final order, which includes the modified wording.  Further, he stated that the case is finished as far as the IHRC is concerned.  He did, however, inform the commission P’Pool has the right to appeal the decision.  Such action would send it to civil court.  If this occurs, it will then be possible for the case to eventually be remanded to the IHRC.  Although it had not yet occurred, White wanted to let the commission know it is a possibility.

With no old business facing the commission, Chairman McNaught moved on to new business.  She noted Centaur’s attorney, Robert Hagemier, would again be addressing the commission to bring up some new business.

Hagemier told the commission Centaur has looked into purchasing more land for Hoosier Park from Virgil Cook.  Cook has been a participant since the beginning of racing at the Anderson, Indiana, racetrack.  In fact, he donated the land where the track is located.  With the passage of the slots legislation, Hagemier explained the track would need more space.  The parcel of land involved is nineteen (19) acres located adjacent to and north of the current track site.  He stated he was in front of the commission to get approval to proceed with the purchase.

Gorajec seized this opportunity to inquire into the future use for the land.  Hagemier responded by saying it would be used for barns, possibly another building, and additional parking.  The exact use will depend on the final layout, which the IHRC will have to approve at a future date.  Once the group moves forward, a plan will be submitted to the IHRC and the Indiana Gaming Commission for approval.  At that time, the IHRC will see the plans and have the opportunity to speak to the final development plan for Hoosier Park.  When put to a vote, the approval of the land purchase passed unanimously.

With no further business, the meeting was adjourned.  The next meeting will be Wednesday, July 18, 2007 at Hoosier Park.  This meeting will include discussion of toe grabs and out-of-competition testing.