Delaware Jockey’s Health & Welfare Benefit Board

Minutes of Public Hearing Held March 20, 2006

A public hearing of the Delaware Jockey’s Health & Welfare Benefit Board was held at 12:30 PM on March 20, 2006, in the Horseman’s Office at Delaware Park, 777 Delaware Park Boulevard, Wilmington, DE 19804.

The following board members were present:

Edward J. Stegemeier, Chairman
Bernard Daney, Chairman DTRC, ex-officio member
William Fasy, Delaware Park, Chief Operating Officer
Michael J. McCarthy, DTHA
Jose Caraballo, Jockey
Larry Saumell, The Jockey’s Guild, Member Representative
The following board members were present via conference call
::
Oliver Castillo, Jockey

The following individuals also were present:

Patricia Murphy, Esq., DOJ, DTRC Commission Counsel
John F. Wayne, DTRC, Executive Director
Fritz Burkhardt, DTRC, Steward
John T. Peters, D.V.M., DTRC, Veterinarian
Walter Cullum, Jockey
John D’Agusto, former jockey
Ramon Dominguez, Jockey
Tom Kennedy, Esq., The Jockeys Guild
W. Duncan Patterson, DTRC, Commission Secretary
Sharon Dominguez, Guest
Pedro Lizarzaburu, Retired Delaware Jockey
Penny King, Guest
Lisa Hertzog, Court Reporter, Wilcox & Fetzer
The following individuals also were present via conference call:
Darrell Haire, The Jockeys Guild, Interim President

1.WELCOME AND CALL TO ORDER

Chairman Stegemeier called to order the meeting at 12:40 PM and welcomed those in attendance.

2.APPROVAL OF MINUTES

Minutes from the February 13, 2006 DJH&WBB meeting were approved as submitted.

3.PUBLIC HEARING

Discussion and vote on proposed rules 1.1 through 2.3.1 to define eligibility of Delaware jockeys for health insurance. Copies of the regulations will be

printed out and made available at the next board meeting.

Attached verbatim minutes were taken by the Wilcox & Fetzer court reporter.

4.COMMENTS

Chairman Stegemeier brought up that the issue before the board was to whether or not adopt, reject or make changes to the proposed regulations.

Comments from Mr. Fasy and Mr. Colton were read into the record and are attached to the minutes. There was some further general discussion about the number of mounts noted in the regulations. Comments from Michael McCarthy indicated that he was satisfied with the numbers as noted. There was agreement with Jose Caraballo, Larry Saumell and Ramon Dominguez regarding the number of mounts. Mr. Fasy added that he would go along with the recommendation of the experienced jockeys, but understood Mr. Colton’s point in his letter.

The board commented that perhaps Mr. Colton was applying the old system to the new rules and regulations.

A motion was then made by Chairman Stegemeier to adopt the regulations. Motion was seconded and passed unanimously.

Mr. Thomas Kennedy acknowledged that the list of information that he provided was not accurate, but was just getting back into the fold with them after previously ceasing his relationship with the Guild back in 2001. Some historical information was volunteered by Mr. Kennedy regarding MERCER and P-5 as the third-party administrator on insurance. He assured the board that the Guild was committed to provide health insurance to the riders but expected more changes to take place in the operation of the Guild. Mr. Kennedy added that he wanted to make sure that there was transparency in the actions of the Guild.

Jockey, Ramon Dominguez commented that he had no idea of any change in carriers and does not feel that other jockeys are kept informed of any changes as well.

4.COMMENTS (continued)

Mr. Wayne asked what the status of the matter was involving the King family and their eligibility for coverage under the Delaware plan but was denied coverage by the Guild. Mr. Kennedy reported that he had recommended to the Guild that they settle on an equitable solution to the KING family.

Commission counselor Murphy recommended that Ms. King put together the number of past medical bills and submit them to the board for them to be given to the Guild representatives.

Closing comments by Mr. Wayne was that when a request for information is made to the Guild by the Commission, that the Guild in turn respond to those questions categorically and address them sufficiently. Responses that we have received are not what we requested. If there is a list of 11 questions, then the Commission expects 11 answers

5.ADJOURN

The meeting was adjourned at 1:15 PM.

ATTACHMENT A

1

DELAWARE RACING JOCKEYS'

HEALTH & WELFARE BENEFIT BOARD

PUBLIC HEARING

Delaware Park

Horsemen's Building - 2nd Floor

Wilmington, Delaware

Monday, March 20, 2006

12:45 p.m.

BEFORE:

EDWARD STEGEMEIER

Chairman

LARRY SAUMELL

JOSE CARABALLO

WILLIAM FASY

MICHAEL McCARTHY

OLIVER CASTILLO (via telephone)

BERNARD DANEY

Ex-Officio

APPEARANCES:

On behalf of the Board:

PATRICIA MURPHY, DEPUTY ATTORNEY GENERAL

DEPARTMENT OF JUSTICE

JOHN F. WAYNE

TRANSCRIPT OF PROCEEDINGS

WILCOX & FETZER

1330 King Street - Wilmington, Delaware 19801

(302) 655-0477

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1 THE CHAIRMAN: At our last meeting we

2 decided what we would like to propose as regulations. We

3 advertised in the paper with the idea of having a period

4 of time for public comment, and during that time, as of

5 Friday when I talked to Mr. Wayne, he had said that there

6 had been no public comment and then apparently last night

7 Robert Colton became aware of the fact that we were going

8 to be considering these changes and supplied us with some

9 written comments which I have given to Ms. Murphy as our

10 counsel.

11 So how do we proceed from here?

12 MS. MURPHY: I actually have --

13 MR. WAYNE: You have one for Mr. Fasy, too?

14 MS. MURPHY: A written comment?

15 MR. WAYNE: Right.

16 MS. MURPHY: He handed that us before.

17 The proposals were put out in the Delaware

18 Register of Regulations March 1st, 2006, Volume 9,

19 Issue 9, and what you're proposing to accept are rules

20 and regulations 1 and 2, as well as subsections

21 underneath each.

22 Before you start, what we're going to do is

23 mark a couple of exhibits. The first is going to be the

24 Affidavit of Publication which indicates that your notice

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1 was published in the Delaware Capital Review and the

2 Delaware State News. And I'm going to ask that that be

3 marked as the Board's Exhibit 1. If you want to hand

4 that down to the court reporter.

5 (Board Exhibit No. 1 was marked for

6 identification.)

7 MS. MURPHY: For Board Exhibit 2 I have the

8 copy of the publication in the Delaware News Journal from

9 Thursday, March 2nd.

10 (Board Exhibit No. 2 was marked for

11 identification.)

12 MS. MURPHY: As Board's Exhibit 3 I'm going

13 to pass down a copy of the March 20 letter from

14 Robert Colton, a copy of the February 7th letter from

15 Mr. Fasy, and these are the only two written comments

16 that you received.

17 (Board Exhibit Nos. 3 and 4 were marked for

18 identification.)

19 MS. MURPHY: And then when all of those are

20 marked, I'm going to turn it back over to you to call for

21 any public comment from the visitors today.

22 THE CHAIRMAN: While we're waiting for that

23 comment, since we have filed these proposed changes as

24 public record, if we were to make any changes to these

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1 regulations now, would we be required to go back and

2 refile?

3 MS. MURPHY: You can make nonsubstantive

4 changes. So we can tweak them a little bit, but if

5 you're going to make substantive changes, we're going to

6 have to republish them and put them out there again.

7 At this point, then, I'd like to ask are

8 there any public comments concerning these regulation

9 changes?

10 MR. KENNEDY: I have a question. The

11 question is whether the Commission has studied the impact

12 these regulations would have on eligibility; in other

13 words, how many additional riders would be able to

14 participate in the program as a result of the adoption of

15 these new criteria?

16 THE CHAIRMAN: Yes, we have looked at that,

17 and in terms of eligibility, I think there would be

18 minimal changes to it. I think we're looking at ideally

19 about trying to get to 50 members and I think we're

20 running closer to 36 year in and year out.

21 Mr. Patterson?

22 MR. PATTERSON: Where did the 5,000 career

23 mounts number come from?

24 THE CHAIRMAN: Basically from this group

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1 and just in general discussions as to wanting to make

2 sure that the people that were going to be retired

3 jockeys with coverage had a full career.

4 MR. McCARTHY: I think initially we took

5 some kind of records on the average jockey and how many

6 was an average kind of mount approach. I think you were

7 on the Board then when we did that. We did that at the

8 hotel over there, I believe. I think we got that

9 criteria from that statistically. Seeing how many

10 jockeys had so many rides, that's where that number came

11 from.

12 THE CHAIRMAN: I think it's one of the

13 points that Mr. Colton brought up in saying that

14 5,000 career mounts. We're trying to help those jockeys

15 who most need health insurance and someone could have a

16 lengthy career at Delaware Park and spend most of their

17 career here, retire, and still not qualify as a retired

18 jockey not having 5,000 mounts.

19 MR. PATTERSON: That's where I was coming

20 from. I looked at statistics, too, and I thought -- a

21 long time ago we used that 5,000 figure and I thought it

22 was a little onerous. But if you guys are comfortable

23 with it, far be it for me to question.

24 THE CHAIRMAN: Are there any other

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1 comments?

2 (No response.)

3 THE CHAIRMAN: Have you had a chance to

4 look at Mr. Colton's written comments?

5 MS. MURPHY: We will get to those in

6 deliberation. You want to call for any more public

7 comment?

8 THE CHAIRMAN: Yes. You hear a call for

9 public comment. One final call.

10 (No response.)

11 MS. MURPHY: Then you can entertain a

12 motion to close the public portion of the hearing to go

13 into deliberations.

14 MR. SAUMELL: So move.

15 THE CHAIRMAN: Do I hear a second?

16 MR. McCARTHY: Second.

17 THE CHAIRMAN: Those in favor?

18 THE BOARD: Aye.

19 (Discussion off the record.)

20 THE CHAIRMAN: Do I hear a motion to adopt

21 the regulation changes as proposed.

22 MR. FASY: Moved.

23 MR. SAUMELL: Second.

24 THE CHAIRMAN: All in favor?

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1 THE BOARD: Aye.

2 MR. DANEY: I think we will constantly

3 review to see if things are unfair to make some changes.

4 MS. MURPHY: The final order will be

5 prepared summarizing your conclusions. You will sign

6 that at the next regularly scheduled meeting, and in

7 accordance with the Administrative Procedures Act,

8 following a publication in the Register of Regs, then the

9 rules will become effective.

10 We're done.

11 (The hearing was adjourned at 1:15 p.m.)

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1 E X H I B I T S

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9 CERTIFICATE OF REPORTER PAGE 9

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C E R T I F I C A T E

STATE OF DELAWARE)

)

NEW CASTLE COUNTY)

I, Kimberly A. Hurley, Registered Merit

Reporter and Notary Public, do hereby certify that the

foregoing record, pages 1 to 9 inclusive, is a true and

accurate transcript of my stenographic notes taken on

Monday, March 20, 2006, in the above-captioned matter.

IN WITNESS WHEREOF, I have hereunto set my

hand and seal this 27th day of June, 2006, at Wilmington.

Kimberly A. Hurley

Certification No. 126-RPR

(Expires January 31, 2008)

DJH&WBB March 20, 2006 Minutes

Submitted By: Shelley Perkins

Approved By DJH&WBB On: June 29, 2006

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