Regularly Scheduled Meeting Oklahoma Horse Racing Commission
August 17, 2017 AGENDA
Oklahoma Horse Racing Commission
JOE LUCAS, CHAIR
BECKY GOUMAZ, VICE-CHAIR KEITH SANDERS, SECRETARY
STANTON HARRELL, ESQ., MEMBER WENDY INGERSOLL KEENER, ESQ., MEMBER
PHILLIP KIRK, MEMBER MONTY MARCUM, MEMBER
DONNIE VON HEMEL, MEMBER DOUGLAS WRIGHT, MEMBER
AGENDA
Regularly Scheduled Meeting
Thursday, August 17, 2017, 9:30 a.m.
Meeting Location:
Agriculture Board Room
Department of Agriculture, Food and Forestry
2800 N. Lincoln Boulevard
Oklahoma City, OK 73105
New Address of the:
Oklahoma Horse Racing Commission
2800 N. Lincoln Blvd., Suite 220
Oklahoma City, Oklahoma 73105
(Located in Department of Agriculture, Food and Forestry Building)
Telephone: (405) 943-6472; Fax: (405) 943-6474
E-Mail: ; website: www.ohrc.org
Agenda posted in accordance with the Oklahoma Open Meeting Act
All customers who attend public meetings of the Commission who need special accommodations, i.e., Sign Language Interpreter, amplification device, large print materials, Braille materials, audio cassette materials, readers or other special accommodations must notify the Commission by the deadline date and time for acceptance of agenda requests.
CALL TO ORDER Mr. Lucas, Chair
INTRODUCTION OF NEW COMMISSIONERS Mr. Lucas, Chair
Ms. Wendy Ingersoll Keener of Inola and Mr. Donnie K. Von Hemel of Piedmont have joined the Commission. They began their six-year terms as Commissioners on July 1, 2017.
ROLL CALL Mr. Lucas, Chair
BUSINESS Mr. Lucas, Chair
A. MINUTES
The drafted Minutes of the June 15, 2017 Regularly Scheduled Commission Meeting [Item A.1] will be considered for approval.
THE FOLLOWING MATTERS ARE PRESENTED FOR CONSIDERATION AND ACTION, IF ANY, DEEMED APPROPRIATE BY THE COMMISSION.
B. PRELIMINARY CONSIDERATION OF CY 2018 RACING AND GAMING APPLICATIONS
The Commission received three renewal applications from Remington Park, Will Rogers Downs and Fair Meadows at Tulsa for organization licenses to conduct live racing and simulcasting in CY 2018 as well as gaming applications. Item B.1 reflects the CY 2018 requested live race dates.
In the past, the Commission has determined that a full formal Public Hearing would be conducted only on original applications for organization and gaming licenses. On renewal applications, the Public Hearing is limited to a presentation by a racetrack representative followed by a question and answer period by Commissioners, Commission Counsel and Commission Staff.
The following is a summary of the race day applications received.
1. Remington Park
Remington Park, Inc. [RP] applied to conduct two race meetings:
· a Quarter Horse, Paint and Appaloosa race meeting, 50 days in length, from March 9 through June 2, 2018 and
· a Thoroughbred race meeting, 67 days in length, from August 24 through December 16, 2018.
Remington Park also submitted a Racetrack Gaming Operator License application.
Staff Briefs have been completed on Remington Park’s CY 2018 racing and gaming license applications, respectively [Items B.2 and B.3].
2. Will Rogers Downs, L.L.C.
Will Rogers Downs, L.L.C. [WRD] applied to conduct two race meetings:
· a Thoroughbred race meeting, 30 days in length, from March 12 through May 19, 2018 and
· a Quarter Horse, Paint and Appaloosa race meeting, 28 days in length, from September 8 through November 10, 2018.
Will Rogers Downs also submitted a Racetrack Gaming Operator License application.
Staff Briefs have been completed on Will Rogers Downs’s CY 2018 racing and gaming license applications, respectively [Items B.4 and B.5].
3. Tulsa State Fair (Tulsa County Public Facilities Authority)
The Tulsa State Fair (the Tulsa County Public Facilities Authority) applied to conduct one fair race meeting:
· a Thoroughbred, Quarter Horse, Paint and Appaloosa fair race meeting at Fair Meadows at Tulsa, 34 race days in length, from June 7 through July 28, 2018.
Fair Meadows at Tulsa [FMT] also submitted a Recipient Racetrack Gaming License application.
Staff Briefs have been completed on the Tulsa County Public Facilities Authority’s CY 2018 racing and gaming license applications, respectively [Items B.6 and B.7].
The chart on the next page summarizes the proposed race days as reflected in the applications and the amendments thereto.
Because the issuance of organization licenses includes the allocation of live race dates, and because the Commission, in allocating race dates, attempts to avoid unnecessary overlap and simultaneous competition among racetracks, the Commission has determined that (1) information received regarding any particular application for an organization license is considered as part of the record regarding all of the applications for organization licenses and (2) that deliberations on all organization license applications should take place together.
THE FOLLOWING PROCEDURES PERTAIN TO THE PRESENTATIONS REGARDING RACING AND GAMING RENEWAL APPLICATIONS FOR ORGANIZATION LICENSES.
Each racetrack will be given up to ten (10) minutes to make its presentation on its CY 2018 racing and gaming renewal license applications with a concentration on changes proposed or made since the CY 2017 applications. Following the presentation, Commissioners, Commission Counsel and Commission Staff may ask questions. The period taken with questions and answers will not be charged against the time allotted the Applicant.
Applicants forRenewal
Racing Licenses / Race
Meetings / Number of
Live Race Days
Requested and
Number of Races Per
Breed Requested / Number of
Required Races
By Breed
To Conduct Gaming1 / Race Meeting
Time Frame
(2018)
REMINGTON PARK
Global Gaming RP, L.L.C.
Oklahoma City / Quarter Horse
Paint and
Appaloosa / 50 race days
422 QH races
78 PT/Mixed races / No fewer than 500 races
within a period of 12
consecutive weeks / 3/9/18 – 6/2/18
Thoroughbred / 67 race days
600 TB races / No fewer than
600 races / 8/24/18 – 12/16/18
WILL ROGERS DOWNS
Will Rogers Downs, L.L.C.
Claremore / Thoroughbred / 30 race days
284 TB races / No fewer than
270 races / 3/12/18 – 5/19/18
Quarter Horse
Paint and
Appaloosa / 28 race days
270 QH races
60 PT & AP races / No fewer than
270 QH races
No fewer than 60 PT
and AP races / 9/8/18 – 11/10/18
TULSA STATE FAIR
(Tulsa County Public
Facilities Authority)
Fair Meadows at Tulsa / Quarter Horse
Thoroughbred
Paint and
Appaloosa / 34 race days
170 QH races [EST.]
170 TB races [EST.]
34 PT races [EST.]
34 AP races [EST.] / No fewer than 400 total
races with no fewer than
an average of 4 races
per day for TB horses / 6/7/18 – 7/28/18
1For Remington Park and Will Rogers Downs, the number of races by breed meets the requirements of Section 264, Race Meetings-Number Required, of the State-Tribal Gaming Act, in order to conduct gaming at the racetrack. For Tulsa State Fair, the number of races meets the requirement in Section 264 for Fair Meadows at Tulsa to be an eligible Recipient Racetrack Gaming Licensee.
Possible Executive Session for Deliberations in Individual Proceedings Regarding Racetrack Applications for Racing and the Companion Gaming Licenses
Pursuant to 75 O.S. § 312, 25 O.S. § 307(B)(8) and 311 (B)(1), an Executive Session is proposed for deliberations in individual proceedings regarding CY 2018 organization license [racing] and the companion gaming applications from Remington Park, Will Rogers Downs and Fair Meadows at Tulsa (Tulsa County Public Facilities Authority).
1. Motion and Vote to Go Into Executive Session for the Purpose Stated Above
2. Vote to Reconvene in Open Session
Possible Action:
Possible actions may include: taking no action; taking preliminary action to allot CY 2018 live race dates and directing Commission Staff to draft CY 2018 racing and companion gaming license orders subject to staff reports and consideration of the Staff Briefs and draft orders for consideration in further deliberations at the October 19, 2017 meeting; or continuing consideration to the October 19, 2017 meeting.
C. CHEROKEE NATION BUSINESSES, LLC’S REQUEST FOR EXTENSION OF CREDIT FACILITY
Background
At the September 23, 2013 meeting, the Commission heard a presentation by officials with the Cherokee Nation Businesses [CNB], LLC, regarding CNB’s proposed line of credit financing that involved Will Rogers Downs [WRD]. The Commission approved the following two requests to:
1. Allow WRD to enter into a Continuing Guaranty with the Bank of Oklahoma [BOK], as agent, and thereby guarantee the obligations of WRD’s ultimate parent company, CNB, under CNB’s Credit Agreement.
2. Allow WRD to enter into a Security Agreement with BOK, as agent, and thereby pledge certain of its assets as security for WRD’s obligations under the proposed Continuing Guaranty, and to enter into a Deposit Account Control Agreement with regard to WRD’s operations and checking accounts [but not its escrow account, horsemen’s account, payroll account or any other restricted accounts containing funds held for the benefit of third parties].
Current Consideration
In a July 12, 2017 letter [Item C.1], Mr. Robert Huffman, Jr., CNB Senior Vice President and Chief Legal Officer, advised the Commission that CNB is presently negotiating with BOK to extend the maturity date of the Credit Agreement from June of 2018 to September of 2022, increase the amount of indebtedness thereunder to $150 million and make limited changes to the Credit Agreement.
Item C.2 is the First Amendment to the Credit Agreement. In that agreement, WRD is being asked to acknowledge, consent and ratify its guarantee of the amounts due under the Credit Agreement as amended. The proposed First Amendment includes the form of acknowledgement and consent being requested by BOK.
WRD is requesting approval from the Commission to execute the Acknowledgement, Consent and Ratification by Guarantors and make it a part of the First Amendment, which will evidence WRD’s continuing guarantee of the Credit Agreement and the continuing pledge of WRD assets as collateral.
Prior to distribution of the agenda, Mr. Kelly Cathey, Commission Executive Director, asked Vice-Chair Goumaz, with her banking expertise, to review the documents. After her review, Vice-Chair Goumaz advised that, “given that the Extension of Credit Facility amends only the amount, maturity date and bank group, I see no problem with it. There is no change in the Security Agreement that excluded the protected accounts, so I think we are good.” [Item C.3]
Possible Action:
Possible action may include, but is not limited to: approving the requests, in whole or in part, disapproving the requests, or continuing the matter to the October 19, 2017 meeting.
D. CONSIDERATION OF UPDATING APPROVED REFEREE [SPLIT] SAMPLE LABORATORIES
Background
Rule 325:45-1-19, Laboratories Approved and Designated by the Commission, provides that:
A) Only laboratories approved by the Commission may be used in obtaining analysis reports on urine, blood, or other specimens, taken from the winners or other designated horses of each race meeting. The Commission and the Board of Stewards shall receive reports directly from the laboratory. [3A:204(A)(14)]
B) The Commission shall publish a list of approved Referee Laboratories which must be able to demonstrate competency for that drug or substance reported by the Primary Laboratory, at the limit of detection (LOD) applied by the Primary Laboratory, from which an Owner/Trainer shall select one.
Item D.1 contains the current alphabetical list of approved referee [split] laboratories, including:
· Louisiana State University, Equine Medication Surveillance Laboratory
· Pennsylvania Department of Agriculture, Equine Toxicology and Research Laboratory, West Chester University
· Texas Veterinary Medical Diagnostic Lab System, Texas A&M University
· University of California-Davis
· University of Florida Racing Laboratory
Current Consideration
Commission Staff recommends updating the list of approved split laboratories as follows:
1. Delete Louisiana State University and University of California-Davis.
2. Add Ohio Department of Agriculture, Truesdail Laboratories and University of Illinois.
Item D.2 provides information on the three prospective split laboratories in relation to response time to accept or decline the test sample, average time range to provide test results, and the average cost to determine presence or absence of the substance.
Possible Action:
Possible action may include, but is not limited to: taking no action; amending the approved list, in whole or in part; or continuing the matter.
E. RECOMMENDATIONS FROM THE OKLAHOMA-BRED ADVISORY COUNCIL
The Advisory Council met on August 2, 2017 and forwarded the following recommendations for Commission consideration.
1. Linda Earley, Co-Chair of the Advisory Council, requests funding for the 2017 year-end Oklahoma-Bred champion trophies by breeds with the cost to be allocated by breed. The Advisory Council suggested a continuation of funding of up to $12,500 combined for all breeds.
The Advisory Council unanimously recommends Commission approval of up to $12,500 in funding for the 2017 year-end Oklahoma-Bred champion trophies by breeds to be presented at the 2018 award banquets with the cost to be allocated by breed. This is the same amount as approved by the Commission for CY 2016 year-end awards.
Possible Action:
Possible action may include but is not limited to: taking no action, approving the funding amount as requested, approving alternate funding, rejecting the funding, or continuing the matter.
2. The two horsemen’s representative organizations, the Oklahoma Quarter Horse Racing Association and the Thoroughbred Racing Association of Oklahoma, request funding for the promotional advertising of the Program in industry publications.
The Advisory Council unanimously recommends Commission approval of funding for the annual promotional advertising of the Program in industry publications with up to $25,000 for the Quarter Horse, Paint and Appaloosa breeds and up to $25,000 for the Thoroughbred breed during CY 2018 as requested. This is the same amount as approved by the Commission for CY 2017 promotional advertising of the Program.
Possible Action:
Possible action may include but is not limited to: taking no action, approving the funding amounts as requested, approving alternate funding, rejecting the funding, or continuing the matter.
3 . Thoroughbred Racing Association of Oklahoma’s Funding Request for CY 2018 Thoroughbred Stakes Races at Will Rogers Downs
In a July 11, 2017 letter [Item E.1] Ms. Danielle Barber, Executive Director, Thoroughbred Racing Association of Oklahoma [TRAO], requests that Oklahoma-Bred funds be added to the following six stakes races to be run during WRD’s CY 2018 Thoroughbred race meeting with a payout percentage breakdown of 60/20/11/6/3, totaling $60,000 subject to availability of funds at the time the races are conducted as follows:
Purse Broodmare Stallion
Stakes Races Supplements Awards Awards Total