| Executive Director Email Tony S. Membership/Questions Email Noel A. Insurance Questions Email Marlene R. |
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15 Spinning Wheel Road, Suite 432 • Hinsdale, IL 60521 |
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Board Notes NewMONDAY, DECEMBER 12, 2011-BOARD NOTES Directors Present: Beals, Knicley, Fairley, Cassano, Paul, Engel, H. Williams, Hunt, Welch, R. Williams, K. Rinker, McCaffrey Directors Absent: Willis, N., Willis, K., Widger Others: Arens, Watson, Brubaker, Somone, Paradise, G. Mack, A. Mack Approval of February Agenda: Amend agenda to include Item m): Contract and Item: n): Executive Session. Motion by Director Fairley. Seconded by Director Paul. All in favor. Motion passed. Approval of February Minutes: Motion by Director Paul to approve November 21st minutes. Seconded by Director Cassano. All in favor. Motion passed. Executive Directors Report: Executive Director Somone reported that during that last two days of “Veto” session the GA was dormant as to progression of a “slots at tracks” bill. The IHHA will continue to monitor its status and work with the thoroughbred horsemen and industry advocates for future advancement. The annual IHHA sponsored Thanksgiving Dinner for horsemen at Maywood/Balmoral were both welcomed and successful. The annual IHHA sponsored Children’s Christmas Party is scheduled for December 17th. 2012 Membership applications and brochures are scheduled for mailing this week. Director Rinker is finalizing details for the 2012 IHHA calendar. Particulars for the IHHA wind shirts are being firm up for ordering. President McCaffrey expressed kudos to the membership committee for all its efforts with the 2012 membership drive. He also recognized directors with perfect attendance for 2011: R. Williams, C. Fairley and B. Paul., and commended all directors for their service/ contributions to the IHHA. ACTION ITEMS: Legislative – S. Brubaker reported that a “slots at tracks” bill remained stagnant, as the GA took no action during the last session of “Veto”. Brubaker reported that currently two federal issues impacting horse racing are under lobbyists’ scrutiny: poker legislation and New Jersey sports betting. The lobbyists’ team is working in union with IL. Sen. Durbin to protect IL. racing industry interests. G. Mack reported that recently in conjunction with Arlington Park/Balmoral, the IHHA participated in a radio campaign fostering “slots at tracks”. The economically feasible campaign vs. newsprint ads, featured promos by IHHA President David McCaffrey, former Governor Edgar, etc.. Approximately 3,000 spots aired statewide, many targeted to downstate areas. GrasssRoots and Membership – Director Rinker and the membership committee are completing compilation of materials for monthly sponsors and selection of the cover picture for the 2012 calendar; with a printer target date of mid/late Dec. Race Track Condition and Backstretch – Track conditions are good. Director Welch noted that Balmoral recently employed a new head of security; who implemented a procedure of positioning barricades at the paddock, which is in effect causing trucks/trailers drop-off congestion. To-date Director Welch reported he has been unable to schedule a meeting with the new security chief to remedy this situation. Director Welch will contact Balmoral’s GM to schedule a meeting with the new security director and report back to the board next month. Insurance – All board motioned recommendations for IHHA’s 2012 Insurance Program have been implemented. Legal – President McCaffrey will issue a report next month to the directors regarding the status of recapture and Hawthorne. Purse Account – The purse account is currently -$324,000. Seasonal fluctuations are typical this time of year. The board discussed fiscal policy for the 3% revenues. Payment of Bills – After review of the financials and correction of one (1) erroneous check amount, Director Beals motioned for payment of bills. Seconded by Director Engel. All in favor. Motion passed. Public Relations – Executive Director Somone noted a revision will be made to committee assignments. A separate committee for Customer Relations/Marketing will be designated. New sheets reflecting this change will be handed out at next months board meeting. The Hall of Fame committee is in preliminary stages of exploring dates, venues, etc. for a 2011 awards banquet. Breeders – Director Hunt reported 3rd quarter breeder award payments still have not been received from Balmoral. Contract - The board reviewed and discussed items for 2012 contract negotiations with the tracks. Motion to adjourn by Director Fairley. Seconded by Director Cassano. Meeting ended at 4:30pm. Executive Session - The board entered executive session at 4:31PM. Session ended at 5:15PM. -------------------------------------------------------------- MONDAY, NOV 21, 2011-BOARD NOTES Directors Absent: Willis, N., Willis, K. The IHHA’s office has solicited the Governor, per the Governor’s website, requesting the Governor attend any one of racing evenings at either track now through November 29th; the executive director (as a citizen) has sent requests to the Governor for a meeting also. Executive Director Somone reported appointments of five new commissioners, inclusive of a new chairman to the IRB board by the Governor last month are pending approval. A meet/greet took place with the new chairman in Springfield. Discussions are to be held with HGCA for 2012 renewal services/fees. The annual IHHA sponsored Thanksgiving Dinner for horsemen at both Maywood/Balmoral have been arranged/organized. Legislative – S. Brubaker reported that SB 744 which passed last May has languished; held still by Sen. Pres. Cullerton, and unlikely to be sent to the Governor. During the “Veto” Session, Sen. Lang introduced SB1849. Grassroots and Membership – The Membership Committee met this morning and reported recommendations made to the board last month for 2012 membership goal plans have been finalized; the executive director will proceed with their execution. County Fairs – Director Fairley reported that during his attendance at the annual Colt Association Mtg. many favorable comments were made to him by attendees thanking the IHHA for its financial assistance with payments to county fair race winners, also the IHHA’s ongoing legislative efforts for a “slots at tracks” bill. Insurance – After completion of the annual bidding process, the Insurance Committee met last week with the IHHA insurance broker who reported a minimal renewal rate increase of 1.4% by current insurer Blue Cross/ Blue Shield. Motion to accept recommendation by Director Engel. Seconded by Director Hosea Williams. All in favor. Motion passed. Director Beals made a twofold motion: 1) the board also accept the broker’s recommendation to change current insurance criteria re: dying spouse coverage limitation by updating the criteria to reflect current federal law requirements, and 2) to allow as of 2012, Groom’s eligibility on the IHHA insurance Program. Seconded by Director Engel. All in favor. Motion passed. Motion to adjourn by Director Cassano. Seconded By Director Welch. All in favor. Motion passed. Meeting adjourned at 3:35PM. Executive Session – The board entered executive session at 3:40PM. Session ended at 4 PM. DISCUSSION ITEMS Hall of Fame - Executive Director Somone was given board approval to explore the costs of venues/menus, etc. for hosting a 2011 IHHA Hall of Fame Banquet Awards Ceremony potentially in late Jan or early Feb 2012. He will report his findings to the board at their December board meeting. -------------------------------------------------------------- MONDAY, OCTOBER 24, 2011 – BOARD NOTES Directors Present: H. Williams, Rita Williams, Beals, Engel, Paul, Cassano, Knicley, Fairley, McCaffrey, Rinker Directors Absent: Hunt, Welch, Widger, N. Willis, K. Willis Others: Somone, Arens, Watson, Brubaker, Hoffman, Dixon, Joe Mullins, Ed Teefey, G. Mack, A. Mack, C. Fargo, Chuck Krummick Approval of October Agenda: Amend agenda to include item: M) Executive Session. Motion by Director Engel. Seconded by Director Paul. All in favor. Motion passed. Approval of September 19, 2011 Minutes: Motion by Director Fairley. Seconded by Director Knicley. All in favor. Motion passed. Executive Directors Report: Executive Director Somone reported during the past month time was spent at various fundraisers throughout the state with legislators, etc., to get a reading on the governors’ position on SB 744. Legislators stated the governors’ responses to-date had been ambiguous and confusing. The governors’ position remained obscured until his announcement last week, wherein, he outlined his plan to allow only five casinos (one in Chgo.) and no “slots at track”, etc. Senator Dillard expressed his continued support for “slots at tracks”. The IHHA executive director and lobbyists team also met with representatives of Chicago’s mayor and reiterated the fact if “slot at tracks” is not part of the governor’s gaming package, the IHHA for the record does/will not support the bill. Executive Director Somone reported that although the IHHA is pleased with its’ current insurance carrier and broker; the annual fiduciary requisite of solicitation for bids/quotes for the program are anticipated to be received within the next two/three weeks for review. ADW litigation in conjunction with Maywood/Balmoral (U-Bet) against Churchill Downs/ Twin Spires continues. (See Legal) The executive director reported he recently visited the Chicago School of Agricultural Sciences. The administration and staff (including IHHA member- Dennis Pietranduono) graciously gave him a tour of the facility, and thanked the IHHA for its generous donation. The IHHA will continue its support/ monitoring of the breeding program at the facility. During the upcoming veto session, subsequent to legislative events pertaining to SB744, a rally inclusive of horsemen, labor, etc. is potentially scheduled at Hawthorne Tuesday, Nov. 1st . The executive director will advise directors of forthcoming details. At Maywood an agreement has been reached for nine horse field races be moved to the 5th race slot. Track mgmt. has been alerted their website(s) are in need of a corrective update displaying qualifiers. ACTION ITEMS: Legislative – S. Brubaker reported the governors’ announcement regarding SB 744 last week in essence sabotaged the racing industry while supporting casinos. The governor expressed the sentiment the racing industry had recently received substantial financial support with disbursement of the 3% monies; that along with the industry’s compensation from the 10th license to be appropriated and evaluated by the state annually, should be sufficient. Since the governors’ announcement, the racing industry in union with its supporters, is working on a strategy to nix the governors bill proposal. Grassroots and Membership – Current membership stands at 646. The committee recently held two conference calls to discuss options for increasing 2012 membership. Based on their discussions, the committee made its recommendation to the board. After board review/discussion, Director Engel motioned for the board to accept the committees’ recommendations. Seconded by Director Rinker. All in favor. Motion passed. The board examined/discussed the current exclusionary groom membership IHHA by-law policy. County Fairs – Director Rita Williams, as reflection of the ongoing media effort to highlight the racing industry, passed a recent issue of a county fair newsletter containing an article supporting county fairs to the directors for perusal. Dept of Ag, Bureau Chief, Charlyn Fargo reported the Dept. of Ag. has a new “acting director”, Jim Larkin. Larkin a former Bureau Chief for Ag. Products Inspection the last eight years has experience with county fair racing. Larkin is under a 60 day probationary period. Fargo thanked the board for its contribution to the county fair drug testing program again this year. She briefed the board on the results of the 2011 county fair “drug” testing program: fifty horses were tested; 24 w/regular samples blood/urine and 26 for TCO2. Two positives resulted, both on the same horse. The purse for that race was recompensed; also, a fine was issued. The Dept. of Ag. to-date has paid all the June county fair winners; the Dept. still owes payments for July, Aug, and Sept. Race Track Condition and Backstretch – Track conditions are good. At IHHAs’ Sept.’s board meeting a request was made to track mgmt to consider purchase of mat overlays for stalls at Maywood. The response to-date has been reluctancy; with track mgmt balking at the cost for this expenditure, approximately $30,000. Two issues reviewed by the directors to discuss with track mgmt. are: 1. The updating /posting of procedurals policies/ rules regarding paramedics and on-site track ambulance. 2. The adherence to contractual rules/policy for outriders and/or lack of during a race Insurance – Director Engel reported the IHHAs’ insurance broker is currently awaiting renewal status from the IHHAs’ present carrier BlueCross/Blue/Shield, as well as others. Legal – President McCaffrey reported that he was told by Maywood track mgmt there is a strong possibility of a forthcoming settlement between Bal/Maywood (U-Bet) and Churchill Downs/Twin Spires in the ADW litigation. BetXotic revenues remain paltry; however, the small amount generated to IHHAs’ share has yet to be reflected in the purse account. This issue will be addressed with track mgmt. President McCaffrey announced today the governor appointed new commissioners to the IRB board. Purse Account – Director Beals reminded the board, notice for any changes to the HGCA contract, prior to renewal need to be submitted by Dec. 1st. Director Beals presented to the board the purse committees’ recommendation that the 2012 stakes-race purse account base be raised from $7,500 to $8,000. Motion by Director Beals to accept the committees’ recommendation. Seconded by Director Paul. All in favor. Motion passed. Director Fairley made a motion on stake races. Seconded by Director Knicley. All in favor. Motion passed. Director Paul made a motion concerning classes. Seconded by Director Hosea Williams. All in favor. Motion passed. Payment of Bills – After review of the financials, Director Beals motioned for payment of the bills. Seconded by Director Paul. All in favor. Motion passed. Public Relations – A. Mack reported efforts of media exposure for SB 744 continues. The Chicago Sun Times and Springfield Daily Herald aired coverage of video footage of various people in the horse industry urging Governor Quinn to sign SB744 and Executive Director Somone recently gave an interview on WBEZ. G. Mack advised the IHHA to combat in the media Governor Quinn’s recent misleading comments regarding funds the racing industry received from 3% monies, etc. and to emphasize not one penny of theses monies came from the state or taxpayers money. Marketing/Customer Relations – Director Paul reported that Chicago’s Channel 2 TV show Your Chicago, is scheduled to shoot a segment with IHHA member R. Kuhlmey. The segment will highlight prepping a horse for a race, jog carts, and the starting car, etc. Media consultant Mack will shepherd this event. Executive Session - The board went into executive session at 4:30PM. Executive session ended at 4:45PM. Motion to adjourn by Director Fairley. Seconded by Director Knicley. Meeting adjourned at 4:46PM. DISCUSSION ITEMS Ed Teefey (ISOBA) – The president of ISOBA report that the ISOBA was doing everything it could to remedy its unfortunate situation. Thus, the association’s future role is precarious. Recent ad solicitation for interested parties to join as directors of ISOBA’s new board, so far has elicited five responses. Teefey, along with directors, discussed the feasibility of the IHHA assimilating some of ISOBA’s former roles. -------------------------------------------------------------- MONDAY, SEPTEMBER 19, 2011-BOARD NOTES Approval of August Minutes: Motion by Director Engel. Seconded by Director R.Williams. All in favor. Motion passed. One Hundred t-shirt’s and 1,000 wristbands (give-aways), factored with IHHA ambassadors in the stands to assist spectators with questions, betting, etc., made Super Night’s public relations promotion by the IHHA hugely successful. Special thanks to Directors Hosea Williams, Clark Fairley, and Bernie Paul and ambassadors: Rick Kuhlmey, Butch Burgett, Deb Burgett, Mark Fritts, and Deb Paul for their time and efforts in making this event so celebratory. An agreement re: 3% proceeds was presented to track management, last week, finalization is close. The accounting firm of McGladrey & Pullen, LLP. has concluded its 2010 IHHA audit. Executive Director Somone, IHHA treasurer Beals, and auditor/partner, M. Friedman, also met and reviewed IRS tax implications. As proposed at last months board meeting, a plaque and check were presented to this years county fairs leading driver, Ronnie Gillespie. Executive Director Somone reported he has been attending frequent political fundraisers; keeping SB 744 forefront in legislators sight; sifting/assessing inklings regarding the Governors’ inclinations toward the pending legislation. Legislative – The position of SB 744 remains status quo: in the possession of Senate President Cullerton. Discussions continue between IHHA lobbyists and top Senate Dems and GOP staff, reiterating IHHA’s position SB744 needs to be signed as is; however, if any trailer bill is presented in the Veto Session, Oct. 25-27th /Nov. 8-10th, it must be inclusive of all items beneficial to horsemen as in SB744. Both the IHHA and ITHA continue their united efforts fostering SB744. The 10th License, Rivers Casino in Des Plaines, (recently opened within the last two months) to-date has garnered significant revenues. With its opening, the juxtaposition is revenues at Elgin and the NW Indiana boat slightly declined, but overall state revenues have increased 18%. Shares to horseracing generated by the 10th license continue to accrue; future disbursement is contingent on the discretion of the General Assembly granting an appropriation. Grass Roots and Membership – Current membership stands at 644. The membership committee will meet in October with concerted effort focused on increasing 2012 membership. Race Track Condition and Backstretch – (See Discussion Item 2) Insurance – An insurance committee meeting is to take place Tues. the 20th. S. Curry, IHHA insurance broker, currently is in the process of soliciting fresh bids from providers for the 2012 program, also 2012 renewal rates from the current provider Blue Cross. Legal – The executive director reported expenses in the shared (May/Bal) (You-Bet) ADW litigation declined during the Aug period; he remains vigilantly corrective in monitoring the accuracy of billed attorney hours, etc. Payment of Bills – After review of the financials, Director Engel motioned for approval of payment. Seconded by Director Paul. All in favor. Motion passed. Public Relations – Executive Director Somone respectfully requested the board approve a donation to Racer Placer (a standardbred adoption service, located in WI.) He noted IHHA’s previous years donations, plus the favorable feedback on Racers operations. He gave directors a letter from Racer Placers director, chronicling its efforts to support standardbred horses for adoption and thanking IHHA for its past support. Director Rinker motioned for a donation. Seconded by Director H. Williams. All in favor. Motion passed. Director Rita Williams reported last Friday she transported 2 mares (donated by IHHA Member Dennis Pietranduono) to the Chicago School of Agricultural Sciences in Southeast Chicago for its new breeding program of standardbred horses. Fox News Chgo. and the Assoc. Press Int’l. provided coverage of this event; the Assoc. Press will continue monthly progress on the breeding program. A key component is special needs children will provide care from the foals birth to the yearling sale at the state fair. The birth will be live streamed, with a contest to name the foals. Williams noted this program not only provides therapeutic benefits to special needs children, it also is a great opportunity to highlight/promote the standardbred industry in IL. while further educating the general public. Williams requested a donation for this program from the IHHA. Director Paul motioned the IHHA for a donation toward this program. Seconded by Director Fairley. All in favor. Motion passed. Marketing/Customer Relations – (See Executive Director Report) Breeders – Breeders Awards for the second quarter have been paid. Committee Chairman, Director Hunt, distributed a handout to directors summarizing 2011 Yearling Sales. Encouraging news, both the Land of Lincoln and Illini Sales were up this year. DISCUSSION ITEMS: 1. Super Night – The directors discussed/presented features of Super Night warranting discussion with Track Management. 2. Duke Johnston - Pres. of Maywood and V.P. of Balmoral racetracks reported to the directors the list of repairs presented to track mgmt. from the IHHA has been addressed: Balmoral’s ship-in barn had been cleaned along with new gates, crossties, snaps, hoses and lights installed. The track is also soliciting bids for roof repairs and will be purchasing new fans. The track mgmt will at the present time continue with use of shavings by horsemen, however, it will continue to research what it considers a more economical replacement. Track mgmt expressed confidence that the legal resolution of the You-Bet ADW lawsuit will prove fruitful ultimately. Track mgmt acknowledged the launch of the ADW platform BetXotic has been hampered with problems but they continue to try to work out the kinks. Track Mgmt and the IHHA reached a signed agreement today authorizing the immediate payments from its purse account to Super Night winners; to be reimbursed when funds are received from Dept. Ag. The tracks requested race dates for next year to remain same as this year race: 52 weeks, 3 days Balmoral / 2 days Maywood, with consideration of Tues. racing at Balmoral if the Governor signs SB 744. Motion to adjourn the meeting by Director Engel. Seconded by Director Beals. Meeting adjourned at 5:15PM. MONDAY, AUGUST 22, 2011 –BOARD NOTES Installation of New Board Members: President McCaffrey welcomed and introduced new board member Kimberly Rinker. McCaffrey congratulated the returning directors and thanked all for their participation in the election process. Executive Director Somone presented the official election results/ letter from the accounting firm of McGladrey and Pullen, LLP. Of 1,059 votes (3 voids) the following results for the top five candidates were: Clark Fairley 215, Nelson Willis 200, Hosea Williams 179, Mike Knicley 170, and Kimberly Rinker 168. Motion by Director Engel for board acceptance/approval of the election results. Seconded by Director H. Williams. All in favor. Motion passed. Directors Present: Cassano, Knicley, Engel, Welch, Rinker, Beals, R. Williams, H. Williams, N. Willis, Fairley, Paul, McCaffrey, Hunt Directors Absent: Widger, Willis, K. Approval of August Agenda: Motion by Director Fairley to approve August agenda. Seconded by Director R. Williams. All in favor. Motion passed. Election of Officers: Director Beals motioned that all officers be retained in present positions with exception of the office of ass’t treasurer. Seconded by Director Paul. All in favor. Motion passed. Director Hunt requested the motion be amended with board approval to include the full protocols of the nominations process. All in favor. Motion passed. President McCaffrey called for nominations for the position of President. Director Beals nominated McCaffrey. McCaffrey accepted nomination. Further nominations called for 3x’s with no other nominees, the President declared the nominations closed and won by acclamation. M. Engel nominated for 1st vice president by Director Beals. Engel accepted the nomination. Further nominations called for 3x’s, with no other nominees, the President declared the nominations closed and Engel won by acclamation. Fairley nominated for 2nd vice president by Director Beals. Fairley accepted the nomination. Further nominations called for 3x’s, with no other nominees, President McCaffrey declared the nominations closed and Fairley the won by acclamation. H. Williams nominated for secretary by Director Beals. H. Williams accepted the nomination. Further nominations called for 3X’s, with no other nominees, President McCaffrey declared the nominations closed and H. Williams won by acclamation. R. Williams nominated for ass’t. secretary by Director Beals. R. Williams accepted the nomination Further nominations called for 3X’s, with no other nominees, President declared the nominations closed and R. Williams won by acclamation. Beals nominated for treasurer by President McCaffrey. Beals accepted the nomination. Further nominations called for 3X’s, with no other nominees, President McCaffrey declared the nominations closed and Beals won by acclamation. President McCaffrey nominated Hunt for ass’t. treasurer. Director Hunt declined the nomination. President McCaffrey nominated Director Paul for ass’t treasurer. Paul accepted nomination. Further nominations called for 3x”s, with no other nominees, President McCaffrey declared the nominations closed and Paul won by acclamation. Approval of July 18, 2010 Board Minutes: Director Paul requested the minutes be amended under sec. Marketing /Customer Relations, Par. 1, line 5: Kudos were extended…, to include the name of R. Kulhmey. Motion by Director Knicley. Seconded by Director Welch. All in favor. Motion passed. Executive Directors Report: Executive Director Somone reported within the last month consultants with the IHHA’s public relations firm Mack Communications arranged a meeting with the Chicago Tribune Editorial Board. The positive dynamics of the meeting bore an endorsement last week in the Tribune for a Chicago casino and slots at tracks. Also, IHHA and Thoroughbred executives met with Gov. Quinn and former Gov. Edgar regarding SB744. The forum allowed for questions/answers addressing concerns the Gov. may have on components of the bill. The dialogue was well received. The annual IHHA hosted Groom’s Picnics recently took place at both Balmoral and Maywood. Attendees enjoyed music, games, food/drink, and the t-shirt(s) giveaway. The Springfield Fair IHHA’s BBQ for horsemen was once again a hugh success with nearly 1,500 meals being served. Bright orange t-shirts asking the Governor to sign SB 744 were given out to nearly 1,000 people. As a sea of participants in their orange t- shirts spread over the lawn area at the rally in Springfield during the Governors speech, it made for a media triumph. After the governor’s speech, the executive director, managed to sidle past security, approach the Governor and remind him of his comment of wanting to hearing from supporters of SB744; Quinn acknowledged the visual presence of supporters at the rally. The directors expressed thanks to the executive director, and all the assistants whose efforts helped make the Springfield BBQ and rally such a success. Reported in a recent article, the tally of letters to the Governors in support of SB744 to date is: 11,000 yes, 2,800 nays. The IHHA has another 2,000 letters to send to the Governor. Post-time for Super Night September 16, 2011 is scheduled for 6:30PM. ACTION ITEMS Legislative – President McCaffrey introduced new board member, Director Rinker, to the IHHA’s legislative lobbyists team. Steve Brubaker reported Senate President Cullerton still possesses SB744. Debate continues regarding a possible “trailer” bill; which if it happens, would take place during the upcoming Veto Session scheduled for Oct.25-27 & Nov. 8-10. Also, in the session gaming board issues, etc. will most likely be addressed. Director Paul reported to the board, video interviews with various people in the horse industry urging Governor Quinn to sign SB744 were conducted during the Springfield Fair. The IHHA’s PR firm will edit this media tool; make it available for viewing on You-Tube, with a copy to be sent to the Governor’s office, a link provided to legislators. County Fairs – During this fair season, there have been a few accidents. Members of the IHHA involved have been fortunate in that they receive insurance coverage as one of the many benefits of membership. To those not members it’s brought awareness for a minimal cost, what a good product IHHA membership is. Executive Director Somone proposed to the board a drivers award for the county fairs circuit 2011 sponsored by the IHHA. He proposed a plaque and a check of $300 be presented to this year’s winner. Director Knicley motioned for the IHHA to accept awards sponsorship. Seconded by Director Fairley. All in favor. Motion passed. Race Track Condition and Backstretch – The directors discussed a host of problematic concerns at both tracks that need to be addressed/repaired,i.e, the condition of ship-in barns at Balmoral prior to Super Night; stall boards/floors; light posts; hydrants, crossties, TV’s drivers room, barn roofs, etc. Executive Director Somone will present a compilation in letter format to track management requesting the tracks use their portion of 3% monies earmarked for improvements to address these concerns. Legal –President McCaffrey reported that recently a discussion had taken place with Track Mgmt to resolve each one’s balance of the 3% monies. A pending agreement had been reached. After discussion the board voted to accept the pending agreement. Motion by Director Beals. Seconded by Director H. Williams. Motion by Director Engel for the tracks to apply $90,000 to ICF races not open Stake races. Seconded by Director H. Williams. Motion amended by Director Engel to: a total of 20 ICF races on Super Night with $5,000 added to each purse (finals, consolations, eliminations) for a total of $100,000. Seconded by Director H. Williams. Motion by Director Fairley to allow the IHHA to accelerate payments to horsemen participating in the Springfield and DuQuoin races (per a written agreement with tracks) that repayment to IHHA will be by the HGCA from (funds appropriated by the Dept of Ag) and disbursed directly back into the purse account. Seconded by Director Paul. All in favor. Motion passed. Purse Account –The board reviewed/evaluated the prudency of continued shared costs of litigation with Balmoral/Maywood against U-Bet/Twin Spires (ADW). Payment of Bills –Director Beals after review of the financials motioned for payment of the bills. Seconded by N. Willis. All in favor. Motion passed. Public Relations – Director Paul reported as of Aug 14th, the gaming board lists no revenues generated from the BetXotic platform launched by Maywood/Balmoral a couple of weeks ago. Bettor’s negative feedback about this platform is a registration request for a social security number. The board discussed the recent successful promotional elements utilized for “back to track” night at Maywood. The board unanimously agreed that wristbands rather than whips were a more suitable item, along with t-shirts. Director Paul requested board approval of a $1,500 budget for these things as IHHA promotional give-aways at the upcoming Super Night., Sept. 16th. Motion by Director Beals. Seconded by Director Knicley. All in favor. Motion passed. Marketing/Customer Relations – (see above) Breeders – Breeder Awards for the 1st quarter have been paid by Balmoral, not Maywood. 2nd quarter payments due in July are yet to be received from either track. Director Hunt submitted a breeder committee report for the director’s perusal/ approval. Director Beals motioned for the board to accept the report. Seconded by Director Paul. All in favor. Motion passed. BOARD NOTES – MONDAY, JULY 18, 2011 Directors Present: Knicley, Fairley, Cassano, Paul, Engel, H. Williams, Beals, R. Willliams, Widger, McCaffrey, Welch Directors Absent: Willis, N., Willis, K. O’Toole, Hunt Others: Arens, Somone, Watson, Paradise, Brubaker, Hoffman, Dixon, Mack, G. Mack, A., D. Pietranduono Approval of February Agenda: Motion by Director Beals for Approval of July agenda. Seconded by Director Fairley. All in favor. Motion passed. Executive Directors Report: A summer “field trip” program in Senator Lightford’s district for children to visit Maywood Park is scheduled to begin in August. The ADW partnership program with Maywood/Balmoral is finalized. “BetXotic” is scheduled for testing this week; the launch goal is set for August 1st. The Executive Director recently attended a fundraiser for Governor Quinn. In his brief dialog with the governor re: SB744, the governor suggested he continued to be kept informed through letters, calls, etc. The IHHA annual meeting and election of directors will be conducted Saturday, August 20th at Balmoral Park. Six candidates filed notice of intent and petitions. Candidate questionnaire responses were recently mailed to the eligible membership for perusal prior to receipt of ballots scheduled to be mailed by the accounting firm, Fri., July 22, 2011. The next board meeting will take place Monday, August 22, for the installation of new directors and officers. The Executive Director reported that on Fri. July 8, the IL. Racing Industry won a victory when the Seventh Circuit Court of Appeals ruled (5 to3) in racing’s favor re: the 3% monies. (See Finance) ACTION ITEMS: Legislative – SB 744 status remains the same, currently held in the Senate, perhaps awaiting the Veto Session scheduled for Oct. 25-27 / Nov 8-10. Conjecture is a new “trailer” bill might be introduced during veto session addressing some of the governor’s concerns with SB744. The IL. Supreme Court unanimously ruled the Video Poker Law can move forward. Licensing of bars and video poker companies by the IL. Gaming Board will proceed. The “10th License” Des Plaines Boat began its operations this week. At this time accretion of 3% monies ceases. Subsequently, with the 10th license, a 15% share to the racing industry begins accrual into the state gaming board fund. However, an appropriation by the General Assembly is required to release this funding. The strategy remains for the horsemen to continue activities to promote the economic benefits of the legislation not only for state revenue but also IL. jobs/ agriculture. Horsemen will continue with letters, calls and media press events highlighting/promoting these issues. Grass Roots and Membership – Current membership stands at 634. County Fairs – Grassroots activist Watson and directors: R.Williams and Fairley, have been attending county fairs soliciting participants to sign letters to the governor urging his support of SB 744. Through this collective effort they have gathered hundreds of signatures/letters to-date. Drug testing by the Dept. of Ag. continues at county fairs; with one (1) positive to-date at Decatur. Race Track Condition and Backstretch – Potholes at Maywood and Balmoral have been coldpacked. However, two light posts, one at Maywood, one at Balmoral need repair. Citing the cost of shavings and its removal, the tracks have recently posted notice of exchanging shavings to straw as of Sept. 1st. The board discussed their options. Insurance – The insurance program is operating efficiently. Legal – The board reviewed/ evaluated the pro’s/cons of the continued shared costs of litigation with Balmoral/Maywood against U-Bet/Twin Spires (ADW). Purse Account – The current purse account is +168,000, a slight reduction from its peak a couple months ago. President McCaffrey reported that ITHA president Mike Campbell requested the IHHA’s support on a proposed rules change to the IRB. After discussion the board, Director Paul motioned to support the ITHA’s proposal. Seconded by Director Knicley. All in favor. Motion passed. Payment of Bills – After review of the financials, Director Beals motioned for payment of the bills. Director Cassano seconded. All in favor. Motion passed. Finance – In the Executive Director report he noted that on Fri. July 8, the IL. Horse Racing Industry won a victory when the Seventh Circuit Court of Appeals ruled (5 to3) in racing’s favor re: the 3% monies. Public Relations -The executive director requested board approval for funds for food and t-shirts for the horsemen at the upcoming Springfield Fair Days (August). The board unanimously approved funding. Marketing/Customer Relations – Director Paul reported on the success of the back-to-track night held at Maywood Park last Friday. There was horse in the box stall for people to view and ask questions about; a live band and contests held: gifts of horse whips from the IHHA (distributed by winning drivers), t-shirts, and photos were given to winners, Kudos were extended to Directors: H. Williams, Fairley,Executive Director Somone and R. Kuhlmey, for their assistance/ participation in its execution. The board discussed the feasibilty in future PR relations of offering racing clientele photos incorporated with the IHHA logo. Director Paul reported that the Canadian Horsemen’s Assoc. is constructing a race day documentary to air Saturday, August 6th. The association is requesting participation by other horsemen asking for submittal of videos demonstrating different aspects of the industry, from farriers to racing. Executive Director Somone will post a request on the IHHA website for members to submit videos. Executive Director Somone reported that he had been contacted by a track rep regarding the purchase of a booth for this year’s Super Night. He requested the board’s approval. Motion was made by Director H. Williams, the IHHA in conjunction with Director Engel split the fee for a booth. Seconded by Director Welch. All in favor. Motion passed. Discussion Items IHHA member, Dennis Pietranduono, made a presentation to the board on behalf of the Chicago High School for Agricultural Sciences. The facility is located at 111th Pulaski and fills 35 acres (w/ 20 acres of tillage). It is unique in that it is an AG. school and city farm housing pigs, chickens, horses, cows, etc. A new program is set to begin within three weeks at the facility: the breeding of standardbred horses. Two mares in foal are to be housed there. Special needs children will provide care from the foals’ birth to the sale of the yearlings at the state fair. The plan is to video (live stream the foal’s birth, with a contest to name the foals). He noted this is a great public relations opportunity for the standardbred racing industry in IL; exhibiting not only the therapeutic benefits of horses to special needs children, but a means to educate, promote the industry to the general public. Motion to adjourn by Director Beals. Seconded by Director Cassano. Meeting adjourned at 3:45PM. MONDAY, JUNE 20, 2011 – BOARD NOTES Directors Present: Cassano, H. Williams, Paul, Engel, O’Toole, R. Williams, Knicely, Fairley, N. Willis, McCaffrey, Hunt Directors Absent: Beals, Widger, Welch, K. Willis Others: Brubaker, Arens, Somone, Paradise, Hoffman, Dixon, Watson, Somone, Mack Approval of June Agenda: June agenda amended to reflect Item M: On-line Poker. Motion by Director Fairley. Seconded by Director Engel. All in favor. Motion passed. Approval of May Minutes: May minutes amended to reflect under County Fairs: IHHA board unanimously approved donation of $5,000 to the Dept. of Ag. For County Fair Drug Testing. Under Breeders: 1st quarter Breed Awards payments due changed from March 11 to April 30th, yet to be paid. Motion by Director Fairley. Seconded by Director Engel. All in favor. Motion passed. Executive Directors Report: Executive Director Somone reported on the passage of SB 744 but noted the bill still awaits an undecided Governor’s signature. Consequently, a major letter blitz has been implemented statewide urging the governor to sign the bill as is. The IHHA hosted a well attended horsemen’s meeting last week at the Oak Lawn Hilton where attendees joined in the letter writing campaign. The IHHA’s media consultants have had good success with positive feedback on editorials placed in local papers throughout the state. In an on-going effort information will be posted in county fair programs urging people to call or write the Governor to sign the bill. The tracks: Arlington, Hawthorne, Maywood & Balmoral also have executed letter/petition campaigns. The Executive Director will attend a fundraiser this Thursday evening for Gov. Quinn, during which he hopes to stress the wide-ranging economic benefits of harness racing. The Executive Director also spoke at a labor luncheon last week citing the domino benefits of SB 744 (jobs, etc.) and urged the group to also participate in the letter campaign for the Governor’s support of the bill. A meeting was held last Tuesday with Senator Lightford and a summer program for her “district’s” children to visit the track is moving forward. The ADW partnership platform with Balmoral/Maywood is not finalized yet, meetings/discussions continue next week. ACTION ITEMS: Legislative – Although Senate Bill 744 passed the House and Senate; Senate President Cullerton currently has custody of the bill. Legislative leaders and others continue to meet with the Governor trying to clarify what he has expressed as the bills’ “excessiveness”, and promote the true far ranging economic benefits/implications of the legislation to state revenues and also IL. jobs, agriculture, etc. The agriculture budget sustained a 15% cut for fair purses. Grass Roots and Membership – Current membership is 619, slightly lower than 2010. County Fairs – Directors Watson & R. Williams are promoting the legislative letter campaign for SB 744 at Southern and Northern IL. county fairs . They are actively going into stands, barns and livestock arenas with an explanation of the economic implications of the bill and seeking supporters’ signatures for letters. Margaret Vaughan, lobbyist for the county fairs, last week hosted a news conference in Springfield promoting SB744 and urging the Governor to sign it. Key speakers from the SIU Equine Dept, the Director of IL. Soil/Water Conservation, the FFA , and others addressed the agricultural components impact of this legislation. Press releases were handed out which highlighted the annual agricultural funding provisions of this bill, which if not signed will be greatly diminished or lost. The conference had successful visual impact with TV and newspaper coverage. Race Track Condition and Backstretch – Potholes at Balmoral have been cold-packed. Insurance – The Insurance Committee will meet in the near future to discuss/ review any potential changes to the program’s criteria prior to its 2012 renewal. Purse Account – The purse account is a +$214,000. Payment of Bills – Motion by Director Engel for payment of bills. Seconded by Director Knicely. All in favor. Motion passed. Marketing/Customer Relations – The committee in conjunction with track mgmt is working on a corporate sponsorship give-away promotion (i.e. whips) to customers during “Back to Track Day”. The committee is also working on a concept to thank legislators who supported SB744; with a possible idea of a winner circle photo. Breeders – 1st quarter 2011 Breeder Awards payments due by April 30th have yet to be paid. The committee chairman recently sent a dunning letter to track mgmt.; to-date has not received a response. On-Line Poker – A presentation was made to the Board of Directors regarding the concept of on-line poker in conjunction with casino or racino’s as a future commodity. The developers outlined a multi-step process: A network trust vendor, rules/ regulations guidelines, software, a physical registration location, marketing players, and a ban on interstate play to necessary to meet federal restrictions, etc.. They also spoke of their participation in a recent referendum in Iowa of such and for which a study is being conducted of a mock set-up poker network and its software. The results are subject to review, and implementation subject to the details. Motion to adjourn by Director Engel. Seconded by Director Cassano. Meeting adjourned at 3:30PM. -------------------------------------------------------------- MONDAY, MAY 16, 2011 – BOARD NOTES Directors Present: Beals, H, Williams, Fairley, Knicely, Engel, Cassano, Paul, N. Willis, T. Hunt, McCaffrey, R. Williams, Welch Executive Directors Report: IHHA Columnist’s Mike Paradise articles in the Kankakee Newspaper continue, along with ad placement by the IHHA; both reaping positive feedback and PR. Last week in Springfield, chatter surfaced regarding a potential slots bills containing language for slots at tracks in the Chicagoland area only. Discussions continue on the ADW partnership platform with Balmoral/Maywood. On May 10th an appeals hearing was conducted by a full-panel of judges (8) from the 7th District Court regarding the 3% monies. If 4 out of 8 judges rule in our favor, there is a slight possibility the funds might be released if the boats do not challenge that ruling and again file an appeal to the US Supreme Ct. Timeline for a decision could be anywhere from a month to a few months. A link to the audio portion of the horse racing industry’s arguments presented during the hearing is posted on the IHHA website. CD’s from the gamblers focus group forum recently conducted at Maywood were distributed to track management and directors for review. ACTION ITEMS: Legislative – The current legislative session is scheduled to conclude May 31st, leaving approximately 15 days for slots legislation to be introduced. The legislature is still addressing budget issues, having resolved only about two thirds thus far. GrasssRoots and Membership – Current membership is 611. County Fairs – The Dept. of Ag. has a $150,000 surplus in their budget derived from funds not used in its ICF Program last year. Contractually with Maywood Park, these funds must by used July 1st. The board of directors unanimously voted to authorize $5,000 for county fair testing by the Dept. of Ag. Race Track Condition and Backstretch – Potholes remain problematic at Balmoral’s backside. Track Mgmt stated its awareness of the situation, but its limited manpower thwarts timely efficiency of repairs. The IHHA will ask track mgmt help facilitate the flow of traffic congestion for horsemen who are driving in to unload for races and upload their horses (after their last race). The co-chairman of the Drivers Committee is to speak with drivers regarding the courtesy/importance/significance of meeting with trainer(s) at least a couple minutes pre-post time. Directors H. Williams and Welch will set-up a meeting with track mgmt. to discuss the availability of track tack rooms and review policy eligibility criteria for rooms. Legal – ADW discussions continue with Balmoral/Maywood. Purse Account – The purse account as of last week stands at $217,000. Although, the account netted $27,000, a payment of $22,000 was made to Suburban Downs for purse overpayment owed. Payments to Suburban Downs should be completed by years end. Payment of Bills – After review of the financials Director Beals motioned for payment of the bills. Seconded by Director Engel. All in favor. Motion passed Public Relations – G. Mack passed out copies of the latest PR newsletter to directors, which featured an article on Director Hunt and the declination of the horse industry in IL. Marketing/Customer Relations – The Director of Marketing extend thanks to all those who assisted in bring the focus group forum to fruition. CD’s compiled from the forum were passed to all directors for review. The board discussed working in conjunction with the tracks on the Back to Track National’s Program making it a “Chicago” program. It was noted that although last year the tracks were able to draw spectators; how it handles the customer after they arrive leaves a lot to be desired. The Director of Marketing has round-up board members and volunteers to assist in promoting College Night, with help and instruction to people attending how to bet, etc. Breeders – lst quarter 2011 Breeders awards payments due by April 30th, have yet to be paid. Racer Placer – The board discussed continuing its annual support of the horse adoption agency Racer Placer of Janesville, WI. The directors agreed the facility does good work and its chief executive is supportive of the IHHA and has even participated in the IHHA legislative efforts for slots at tracks. Director Paul motioned a donation in total of $5,000 to be made in two separate payments (checks) of $2,500 during 2011. Seconded by Director Beals. All in favor. Motion passed. RCI – RCI a national group recently proposed a no tolerance policy rule of no drugs of any type be administered to horses on race day. It was noted the IL. Thoroughbred Assoc. is against this , as is the USTA, and the HHI. After board discussion it agreed likewise to oppose this policy. Motion by Director Welch. Seconded by Director Knicely. All in favor. Motion passed. Balmoral High 5 – A proposal was presented to the board from track mgmt for a pentafecta at the Back to Track Day at Balmoral in July with the conditions of a $30,000 guaranteed pool, horse fields of 12/15 and either a mile and eighth or a mile and quarter track. After board discussion the executive director was directed to inform track mgmt the board is not opposed to the idea; but acceptance is subject to the details. Driver Accident Insurance – Executive Director Somone related to the board’s that in conversation with a driver who had been injured, the driver mentioned he has been getting bills to pay a deductible on his health insurance (which is covered by the track who is contractually the licensee liable for deductible payments). Since a few other misguided cases may exist from the past few years the executive director was directed to post on the website and in the driver’s room at the tracks the clause in the contract which explains liability. Motion by Director Beals to adjourn. Seconded by Director N. Willis. All in favor. Motion passed. Meeting adjourned at 4:05 PM. -------------------------------------------------------------- MONDAY, APRIL 18, 2011 - BOARD NOTES Directors Present: O’Toole, Fairley, Knicely, Paul, Beals, Hunt, R. Williams, McCaffrey Directors Absent: Cassano, Engel, Welch, Widger, H. Williams, N. Willis, K. Willis Others: Somone, Arens, Brubaker, Hoffman, A. Mack, Watson, Wright, Walker, Schrock, Sherrie, Fargo Approval of April Agenda: Motion by Director Fairley to approve April agenda. Seconded by Director B.Paul. All in favor. Motion passed. Approval of March Minutes: Motion by Director B. Paul to approve the March minutes. Seconded by Director C. Fairley. All in favor. Motion passed. Executive Directors Report: An appeal on the “freeze” of monies by the 7th District Court re: the 3% proceeds is pending. A hearing date is scheduled for May 10th before an entire court panel. A decision is anticipated within thirty days (June); it is also expected that if there is a favorable ruling for us, the boats will once more appeal to the U.S. Federal Supreme Court further stalling disbursement of monies. The IHHA in conjunction with track mgmt are participating in ongoing talks regarding the selection of a new ADW provider platform. There is no contract as yet; the IHHA maintains the right to exercise its approval of any contract. Last month a letter was sent to all Illinois Representatives/Senators reminding them of the critical situation within the harness industry. Noting although gaming legislation (HB1918 & HB 4758) had been passed in the last few years; to-date the harness industry has not received any benefits of either, due to the legal maneuvers of the riverboats. Favorable feedback to this letter was received from several legislators. ACTION ITEMS: Legislative – Timetable for the Spring Legislative session has reached midpoint, with approximately six weeks remaining. Although a few important portions of the budget have been addressed, a few remain to be resolved. It is believed that budget issues will be primary and tackled before any “gaming” legislation. The IHHA and its lobbyists remain diligent in its legislative efforts and will proceed as advised by counsel and leadership. As of last Friday the Dept.of Justice shutdown three of the largest illegal on-line poker sites. Questions remain as to the effect this may have on ADW companies offering legal on-line horse betting. Grassroots and Membership – Current membership stands at 595; more memberships are expected once the county fair season begins. County Fairs - Director Fairley reported he attended a meeting last week where the entities involved agreed to assist in continuing former ISOBA services, such as, i.e., stallion stake races. Charlyn Fargo – Dept. Ag. reported that county fair nominations remain at nearly status quo from last year. Race Track Condition and Backstretch – President McCaffrey reported to the board that he received a request last Friday from track mgmt asking the IHHA to agree to vacate racing Wednesdays at Balmoral. Track mgmt stated the request is based the lack of horses needed to adequately fill the fields. It was agreed track mgmt could have the item placed on the IRB agenda for its next weeks meeting on Tuesday ( due to fact an 8 day notice is required). However, after board discussion of the further negative implications for the harness industry if this request was to be implemented, the IHHA BOD’s agreed it is opposed to vacating Wednesdays. Legal – President McCaffrey reported on the current status of the pending ADW lawsuit. (in party w/Maywood/Balmoral). He noted that the lawsuit is two-fold. One issue is the ownership of database question; the other is breach of contract (with damages). Purse Account – The purse account is a plus $160,000. It was noted every income line is above average and the net movement is fairly close to 2011 projections mock-up. Payment of Bills – After review of the financials Director Beals motioned for payment of the bills. Seconded by Director O’Toole. All in favor. Motion passed. Public Relations – A. Mack reported that a recent Tribune article finally noted that the harness industry has not received any recompense to-date from the 3% legislation nor the 10th casino legislation. Also, the Mayor of Arlington Heights formerly opposed to “slots at tracks” legislation is now supportive. Mack’s twitter account on behalf of promoting the harness industry currently has over 200 followers, not only from the Thoroughbred, Standardbred and former horsemen, but newspaper reporters and the general public interested in the industry. This format is a valuable tool which imparts not only statewide harness news but also national information. It allows tag messages with links to newspaper articles, websites, Facebook, etc. Marketing/Customer Relations – Questionnaires for the focus group have been finalized and track management will provide video equipment, food and beverages. The scheduled dates are: Balmoral May 7th/Maywood April 29th. Breeders – The committee chairman reported a meeting was held last month in which breeders met to discuss the “breeder” language in last year’s gaming bill. The committee chairman gave a handout to the directors re: breeder’s awards as stated in the Horse Racing Act of 1975; with commentary as to the actuality of how payments have been formulated and paid Motion by Director Beals to adjourn. Seconded by Director Paul. All in favor. Motion passed. Meeting adjourned at 3:50pm. -------------------------------------------------------------- MONDAY, MARCH 14, 2011 –BOARD NOTES Directors Present: Knicely, Fairley, Cassano, Widger, Beals, Engel, Hunt, R. Williams, Welch, Paul, H. Williams, McCaffrey Directors Absent: O’Toole, N.Willis, K. Willis Others: Brubaker, Arens, Somone, Paradise, Fargo, Sherrie, A. Mack, G. Mack Approval of February Agenda: Amend agenda to add Item M – Executive Session. Motion by Director Cassano. Seconded by Director Fairley. All in favor. Motion passed. Approval of January Minutes: Motion by Director Paul to approve the February minutes. Seconded by Director Engel. All in favor. Motion passed. Executive Directors Report: A letter of special mention was sent to Balmoral and Maywood, cc to the IRB, commending overall maintenance of track conditions in light of recent severe weather conditions. A handout of Mike Paradises’ column (with an IHHA ad) in the Kankakee newspaper was given to the directors for their perusal. Noted was the twofold benefit of not only a substantial page (article) size but also, the ability to publicize our own product. The annual HHI - Jerome L. Hauck Scholarship- application is now available for completion and filing. Executive Director Somone will offer guidance to any person(s) on the procedurals for submission. Former Illinois Representative, Art Turner, has been engaged as a new legislative advisor for the IHHA. ACTION ITEMS: Legislative – The new session’s bill introduction deadline is looming this week; all bills introduced must clear committee within their houses of origin to progress to the floor. Approximately 24 gaming shell bills are anticipated to advance; one of these being the horse racing industry bill. It is expected Rep. Lang will submit a bill for the racing industry null of casinos interests. Senator Link’s vehicle bill should also advance. To-date the Dept. of Ag budget is similar to last years. The 10th casino licensee Des Plaines, is scheduled for operation by July. The1999 IL. Gaming Act set aside 15% of tax revenues to assist horseracing. However it is up to the General Assembly to appropriate shares by request. Charlyn Fargo- Dept.of AG., reported the department’s budget for this year is expected to continue at status quo. County fair nominations are strong. Springfield’s schedule will have the same days as last year. DuQuoin however, will be reduced to just weekend days. Race Track Condition and Backstretch – Balmoral’s track condition is excellent. Potholes remained a problem at Maywood and Balmoral’s backside. Executive Director Somone reported in recent conversation with the track’s GM it was stated the receipt of the necessary “coalpack” for upkeep had arrived and repairs will begin. Legal –Annotating litigation is costly; the ADW suit is not only to retrieve rights to the “customer” database, but also, for damages. A recent condition sheet offered double draws Sat/Sun. According to track secretary more combined races will be scheduled with the flexibility of mixing up claimers and classes. The board discussed the impact of Hoosier Park, IN. 2011 racing on IL. Payment of Bills – After review of the financials Director Beals motioned for payment. Seconded by Director Engel. All in favor. Motion passed. Finance – IHHA Executive Director Somone and Treasurer Beals, met last week with the IHHA’s accounting firm. Marketing/Customer Relations – The focus groups set-up date has been changed to be a better fit at Balmoral. Track management will provide video equipment, food and beverages. In light of other ideas to co-promote the industry, talks with craft brewers are progressing regarding participation in an event to be hosted at the tracks. Breeders – As of March 1st, 4th quarter breeder award checks were issued by Balmoral. Executive Session - The board went into Executive Session at 2:45 PM. Motion to end session by H. Williams. Seconded by Director C. Fairley. All in favor. Motion passed. Motion to adjourn meeting by Director Engel. Seconded by Director Cassano. Meeting adjourned at 4:15PM. -------------------------------------------------------------- MONDAY, FEBRUARY 21, 2011 –BOARD NOTES Directors Present: Knicely, Fairley, Cassano, Paul, Beals, R. Williams, T. Hunt, Welch, Engel, Widger, O’Toole, H. Williams, McCaffrey Directors Absent: Willis, K., Willis, N. Others: Arens, Somone, Brubaker, Paradise, Dixon, Watson, N. Brown, Teefey Approval of January Minutes: Minutes amended under Sec. County Fairs, Par. 2 Line 3 correct 2mi with 1 mi. Motion by Director H. Williams. Seconded by Director Engel. All in favor. Motion passed. Executive Directors Report: Under legal guidance and review the IHHA and Balmoral/Maywood entered into a written agreement regarding lost ADW revenues and have jointly filed suit against Churchill Downs/TwinSpires/YouBet. The IHHA in conjunction with Maywood Park plans to host an outing for all new legislators at Maywood; where they would be familiarized with the industry: viewing the backside, take a jog, etc. Clarification was given on the recent announcement of IL. Third Judicial Dist. Appellate Court’s decision to uphold the Will County Court’s dismissal of the 3% monies case. This decision lent itself to a 2008 bill which follows behind the 2005 case still awaiting a court decision in the U.S. Seventh District Court. Although the appellate decision was good news it was not the “big” news. When the result of the Seventh Court judgment is announced notification will be given to IHHA membership immediately. A small percentage of winnings from Super Night remain to be paid. The Dept. of Ag. acknowledged vouchers have been sent to the comptroller for remittance. The 2010 Cardinal/Violet “top five” have been paid along with the Aged Pace at Maywood, however none to-date from Balmoral. ACTION ITEMS: Legislative – With the new 2011 General Assembly start-up in January, a new bill introduction period began; the House bill intro deadline ends Feb. 24th. So far an excess of over 4,000 bills have been introduced; of those 47 are gambling related, seven are substantive, the rest are shell bills. The IHHA directors and its lobbyists have begun the docrination of new legislators and are finding many already to being open and amenable. With the demise of the video poker bill, the state’s budget still requires a substitute revenue source. Meetings are taking place and plans are proceeding accordingly. With recent budget cuts by the state, the Dept. of Ag. horse racing funds faired well sustaining only a minimal reduction. Grass Roots and Membership – The current membership total as of February 18th is 533 versus 2010’s 552 a difference of 21. “Reminder” renewal notices were sent to 751 database members on February 7th; further encouraging more applicants. A suggestion was made for consideration regarding 2012 membership: to remove the pledge from backside of membership cards and replace it with the members IL. District Representative/Senators name/phone number. County Fairs – On March 9th the County Fair Committee will host its annual legislative reception in Springfield. Race Track Condition and Backstretch – In light of the recent blizzard, track conditions at both Maywood/Balmoral were well maintained. Overall the crews did an exceptional job with snow removal, etc. Other recent repairs at Maywood include sewers and some water leaks. Executive Director Somone will send a note of special mention to the tracks. Insurance – The insurance committee hosted a conference call last week and reported to the board the insurance program’s status is healthy. Legal – The joint IHHA - Maywood/Balmoral ADW lawsuit against Churchill Downs has been filed. Payment of Bills – Director Beals reviewed the financials and requested a motion for the payment of the bills. Director Fairley motioned for payment of the bills. Seconded by Director H. Williams. All in favor. Motion passed. Public Relations – Executive Director Somone repeated to the board that at the end of last year IHHA columnist Mike Paradise also began writing for the Kankakee area newspaper. He reminded the board of its approval of the stipulation the IHHA agree to advertise in the paper; which it did so with good results. The advertising allowed the IHHA to choose its topic, at a minimal cost and yet reaches a fairly large audience. The board gave its unanimous consent to continue this line of promotion. Marketing/Customer Relations – The committee related that within the last two weeks it met with Maywood/Balmoral track management to pitch the idea of synergism in conducting interview with focus groups to solicit/garner feedback on their negative/positive perceptions of the industry and suggestions to enhance their gambling experience. Track management welcomed the idea and is allowing the use of a conference room for the meeting and providing food/beverages. Set dates are as follows April 27, 2011 Maywood and April 30, 2011 Balmoral. The committee and the board discussed further ideas to promote the industry. Breeders – Last Monday, fourth quarter breeder awards checks were sent by Maywood, no payments by Balmoral yet. The Committee chairman is working on a comparative report, hopefully to be competed later this week. Hall of Fame – Executive Director Somone presented to the board the out-of-pocket expenses incurred by the IHHA for hosting the 2009 IHHA Hall Fame Banquet. The board discussed its fiduciary responsibility in light of current state of the industry; noting that the hotel of record for the banquet festivities changed hands this year and the previous low package prices were unlikely to be met at any new venue. Coupled with the question if held – when- since there is no extended dark time period this year, thereby, contributing to a much lower attendance rate was it realistic/practicable to try to host a banquet this year? It was noted banquets have been missed in previous years. With no resolution, President McCaffrey tabled the issue and suggested it be revisited next month. Ed Teefey - The president of ISOBA briefed the board on ISOBA’s current status. Executive Session – The board went into Executive Session at 3:20PM. Motion to end session at 4:15PM by Director H. Williams. Seconded by Director Knicely. All in favor. Motion passed. Motion to adjourn meeting by Director Cassano. Seconded by Director Engel. Meeting adjourned at 4:16PM. -------------------------------------------------------------- MONDAY, JANUARY 17, 2011-BOARD NOTES Directors Present: Knicely, Fairley, Cassano, Welch, Engel, Paul, Beals, R. Williams, Willis, N., Willis K., H. Williams, Widger, O’Toole, Hunt, McCaffrey Directors Absent: Others: Somone, Arens, Watson, Brubaker, Hoffman, A. Mack Approval of February Agenda: Amend agenda to add Item m) Executive Session. Motion by Director Beals. Seconded by Director Engel. All in favor. Motion passed. Approval of January Minutes: Motion by Director Beals. Seconded by Director H. Williams. All in favor. Motion passed. Executive Directors Report: The current 2011 membership rate exceeds 2010 by 50% to-date. The IHHA website’s status continues its growth with visits in Dec. and Jan. exceeding 6,000 unique IP addresses. Recent legislative efforts, as well as timely/ concise updates have caught the attention not only of members but other parties. Discussions continue seeking resolutions to the pending litigation by Maywood/Balmoral against Twin Spires/Youbet for loss of ADW revenues and customer database. Director Somone gave a handout (articles) to board directors re: the recent legislative fiasco; in continuity to its membership, a link to the same will be posted on the IHHA website. President McCaffrey recapped for the directors the recent events during the legislative Lame Duck Session. He cited the enormous cohesive efforts of all horsemen, tracks, and unions in support of SB737. He spoke of the bitter shock and disappointment of all parties when the bill was not called for vote. He thanked the IHHA BOD, its lobbyist’s and its membership for never missing a beat in their collective legislative efforts. He praised the power of the membership and their robust calls to legislators to garner/sway support. He remarked the IHHA will again continue in its efforts the enormous struggle for industry survival; to promote “slots at tracks” legislation in the forthcoming session. He noted that with the new session, comes new obstacles, i.e., 20 new legislators to educate, etc. on the plight of the industry, making the task once again herculean. ACTION ITEMS: Legislative – SB 737 expired with the end of the Lame Duck Session. The New 2-year session of the GA began January 12th. All previous bills of the past 2 years are expired. New bills for the upcoming 2-yr period will begin with the return of the legislative body Feb 1st. Since the fallout of SB 737, talk of introduction of new bills in the upcoming session has proliferated. Senate President Cullerton and Senator Link may propose a bill similar to SB 737. The IHHA and its lobbyists will be proactive and will stay abreast of proposed legislation. However, with the return of legislators on February 1st, the racing industry once again faces a formidable task of “schooling” 20 new members on the plight of the industry to influence support and gain enough votes. Grass Roots and Membership – Membership renewals for 2011 have reached 411 as of Jan 13th; 140 more than last year at this time. Member’s response has been a continuing show of support of their industry and its recent legislative efforts. Through the members overwhelming phone calls - a positive impact was made on legislators to support SB 737. With their continuing support, hopefully positive legislative measures will come to pass. County Fairs – The stake payment schedule for 2011 has been revised from the previous 2010- 1st payment on March 15th of $500 then $300, $300 to $400 across the board. 2011 estimated purses for county fairs is approximately $5,500. There will be no ISOBA stake races at Maywood/Balmoral this year. A few of the county fairs will be reduced to one-day fairs and Salem County will not host a fair this year. The Dept. of Ag. is granting fairs $1,000 in track improvement funds. Last week at the County Fair Convention, Margaret Vaughan (fair lobbyist) did an excellent job of informing the attendees re: recent legislative issues; reminding them that SB737 contained a provision for $1mi.in stimulus funding for county fairs. Which allowed for allotments by county applicants, of up to $20,000. With 103 counties, 34 (with races) this averaged to approx. $9,600 per fair. She heeded membership to continue to call Reps/Senators for support of a “slots at tracks” bill in the upcoming session. She announced the county fair committee will host its annual legislative reception in Springfield March 9th. Final payments for the 2010Springfield/DuQuoin fairs were mailed by the HGCA last week. Race Track Condition and Backstretch – Balmoral’s track condition is fine. However, at Maywood (S.E. turn near barn C6) a broken pipe is in need of repair. Conditions in the paddock area at Maywood/Balmoral are unsightly/unsanitary with the disposal of refuse (straw/manure) not being properly contained, etc. Board representatives will talk to track mgmt regarding this issue and the enforcement of Insurance – The program is functioning fine. Legal – ADW revenues from former member’s still utilizing Youbet accounts will be deposited into escrow pending current litigation. The IHHA at this time does not benefit in any revenue sharing from any new ADW accounts opened. Purse Account – The current purse account balance is a positive $126,000. A statistical compilation revealed a $25mi. decline in purses in the past 10 years. In the year 2000 net purses averaged $35mi. whereas, in 2010 only $10.9mi. A final recapture payment to Suburban Downs will conclude in 2011. Payment of Bills – After review of the financials Director Beals motioned for the payment of bills. Seconded by Director Engel. All in favor. Motion passed. Public Relations – A. Mack conveyed the Facebook account was utilized as a tool to drive traffic (new members) to the IHHA website during the recent “Lame Duck” legislative session. Director Fairley reported that with the ghostwriting assistance of our PR consultants, a well-composed letter articulating racing industry issues was recently featured in a downstate paper under his name. The letter has rendered lots of positive feedback /comments from readers, etc. Marketing/Customer Relations – Pending legislative activity in January precluded committee activity. The committee will now reconvene and report at next month’s meeting. Breeders – Third quarter breeder payments by Balmoral Park have been paid. Motion to adjourn the meeting by Director Beals. Seconded by Director H. Williams. Meeting adjourned at 4PM. -------------------------------------------------------------- MONDAY, DECEMBER 13, 2010 –BOARD NOTES Directors Present: Cassano, Beals, Engel, R. Williams, Paul, Welch, O’Toole, Hunt, Widger, McCaffrey, H. Williams Directors Absent: Fairley, Knicley, K. Willis, N. Willis Others: Arens, Brubaker, Dixon, Somone, Hoffman, Paradise, Curry, A. Mack Approval of December Agenda: Amend agenda to add Item L: Executive Session. Motion by Director Cassano. Seconded by Director Widger. All in favor. Motion passed. Approval of November Minutes: Amend Nov. Minutes, under County Fairs, Par. 2 line 2, remove Henry. Motion by Director Engel. Seconded by Director Cassano. All in favor. Motion passed. Executive Directors Report: The past week was a strong legislative week, with many meetings taking place and more scheduled for the future. Along with passage of SB 737 in the Senate; Sen. Kirk Dillard during the senate floor debate, paid special tribute to the Illinois Harness Horsemen’s Association, acknowledging the cogency of the industry. Executive Director Somone and President McCaffrey expressed kudos and thanks to everyone, lobbyists, IHHA members, etc. for all their efforts in this legislative push, and reminded everyone that continued assistance is essential in the upcoming January legislative drive. The Southern Newspaper ran an article inclusive of a letter written by IHHA Director R. Williams to the Quad City Times promoting slots at track legislation. Additional interviews are scheduled with The Southern., etc. The IHHA hosted its’ annual Children’s Christmas party at Balmoral Saturday, Dec. 11th. A gracious thank you was received by the IHHA from Weenonah Brattset, director of the horse adoption agency, Racer Placer, for its donation. The IHHA office received a phone call from a member, praising the IHHA for its efforts on behalf of the horsemen, requesting permission to name the association as a beneficiary of his estate. The IHHA will seek legal advisement regarding this matter. ACTION ITEMS: Legislative – SB 737 passed the Senate with 31 votes, 27 Dem./ 4 Rep. As mentioned in (executive director’s report) Sen. Dillard was one of these GOP’s who acknowledged the IHHA as an entity to be reckoned with. Sen. Bomke came through when we needed him most. Ten Democrats voted no to SB 737; significantly seven GOP’s with districts of substantial horsemen populace, voted no. (Dale A.Righter, John O. Jones, David Luechtefeld, Kyle McCarter, Gale Dahl, Pamela Althoff and Dan Rutherford). The legislative session will commence January 3rd; to-date it is scheduled to run through the 6th, but additional days may be added by the Senate. It is during this window, SB 737 needs to gain House approval (requiring at least 60 votes of 117) conversely, if the bill is modified in any way it would then require the bill’s return to the Senate for approval again making passage challenging (with the rule being 30 votes required). Thus it is crucial the IHHA, it’s lobbyist and members continue the legislative push; persistently contacting/ calling representatives and generating positive media attention, etc. The IHHA team will do a roll call on legislator’s; dissect/ identify and focus who needs to be targeted for the upcoming session. IHHA members will be assigned whom to contact by district. Everyone needs to be fully engaged in this process. Since the recent election, there has been a resignation in the Senate and the loss of a longtime supporter. The legislature in 2011will be comprised of many new faces; it is vital the IHHA lobbyist’s and its members meet and educate these legislators on the industry, along with its’ issues and concerns. Grass Roots and Membership – Letters were sent in early late November for 2011 membership renewal. To-date approximately 200 have been returned. A second reminder, highlighting/reiterating the benefits of membership will take place in late January. A Membership renewal notice will be highlighted on the IHHA website’s home page. County Fairs – Calls for feedback to the Dept of Ag. after recent colt association meetings to-date have been unanswered. Also pending response is the subject of the 2010 ISOBA Banquet/ Awards. Race Track Condition and Backstretch – Balmoral’s track maintenance is good, even with the snowstorm this past weekend. It was suggested however, that Maywood needed more salt on the road from the barn to the track. Insurance – Insurance broker S. Curry reported that although average renewal rates increased within the healthcare industry over 20%, the IHHA was able minimize its increase switching its life insurance carrier to a subsidiary of parent company BlueCross/Blue Shield. Along with its containment of aging demographics, made the renewal more positive for Blue Cross. However with the occurrence of recent Government Healthcare Legislation, industry analysts project annual fees to continue to significantly increase through 2014. Based on the recommendations of the insurance committee Director Engel motioned the board to maintain 2010 rates for its members and accept the transfer of life insurance from Unicare to Fort Dearborn. Seconded by Director O’Toole. Legal – Earlier this year the IRB, when assigning racing dates made a condition of the schedule contingent on Maywood/Balmoral having an agreement on recapture in the contract with the IHHA by December 15, 2010. By law the tracks are entitled to 100% recapture to be paid each year, which the thoroughbreds pay in full each year. The track would like to flip the IHHA recapture payment from 30/70 to 70/30 which would represent an additional sum total of 1.35mi.yearly to be paid The board discussed the condition of the purse account and projections for year-end. The IHHA and the tracks held a meeting last Friday. The board discussed and considered the variables which might adversely affect projections: the Meadowlands impact on simulcast revenue, current level of purses, payment still owed to Suburban Downs, loss of ADW revenue. The board noted that last year the IHHA paid off a 2.5mi deficit to the tracks, even though horsemen suffered through reduced purses. The tracks are claiming cash flow problems. The board considered its strategies and what to use as negotiating tools. It is scheduled to meet with the tracks tomorrow for further negotiations. Purse Account – The balance of the purse account is positive $218,000 to-date. ADW deposits for Sept/Oct are accounted for. Projections indicate Bal/May handle may decrease slightly; the year-end purse account balance should remain positive. Although last month the IHHA board motioned and passed that Fairs Races for $3,500 or less not considered be change on condition sheets to read Fair races for $2,100 or less not considered, a 40% drop; the track secretary has suggested changing the figure to round numbers. Payment of Bills – After review of the financials Director Beals motioned for the payment of bills. Seconded by All in favor. Motion passed. Public Relations – A. Mack reported that its firm recently received a negative “slot at tracks” robo-call from an organization named Patriotic Veterans. Robo-calls promote viewpoints on specific issues by tailoring the calls with ambiguous language supporting their position. The IHHA will continue its effort in conjunction with its PR consultant to promote positive “slots at tracks” legislation with interviews with the Sun Times, radio interviews, etc. Mack also noted two days prior to SB 737’s passage a created Tweet on Twitter allow for a link to the State Election Board website and received over a couple hundred hits. The IHHA website posting of Springfield updates re: SB 737 and link to the live Senate session generated much buzz/activity. In another one of her many efforts, Director R. Williams reported that a couple days prior to January 3rd’s legislative session Local TV channel 4, is scheduled to visit/interview her. Williams will give an interview promoting “slots at tracks” legislation and showcase the horse industry by giving a tour of the barn, etc. Director Paul reported the marketing/customer relations committee had been made aware of a pitch by the USTA regarding a Springtime Pick 4,5,6 guaranteed $25,000 pool races. Races would be funded by various participants such as, i.e., Bal/May, the Hambletonian, Breeders and ADW. The board discussed the topic and agreed although the idea has merit, it is to premature in its current stage to even consider being a participant. Breeders – Third quarter breeder payments by Balmoral Park are still in arrears as of this date. Executive Session – Motion to end Executive Session by Director H. Williams. Seconded by Director Widger. Motion to adjourn the meeting by Director Beals. Seconded by Director Welch. Meeting adjourned at 4:05PM. -------------------------------------------------------------- MONDAY, NOVEMBER 22, 2010 -BOARD NOTES Hackney’s – Palos Pk., IL. Directors Present: Hunt, Paul, O’Toole, Beals, Knicely, Welch, R. Williams, Cassano, H. Williams, K. Willis, N. Willis, McCaffrey Directors Absent: Fairley, Engel, Widger Others: Somone, Arens, Watson, Brubaker, Hoffman, Paradise, Rick Kuhlmey Approval of November Agenda: Motion to approve November Agenda by Director Knicely. Seconded by Director R. Williams. All in favor. Motion passed. Approval of October Minutes: Motion to approve October Minutes by Director K. Willis. Seconded by Director H. Williams. All in favor. Motion passed. Executive Directors Report: A recent horsemen’s meeting in support of slots at tracks hosted at Hawthorne attracted over 200 people (100 being harness horsemen); the meeting garnered media attention and was well received. Numerous articles to-date also have appeared in various newspapers around the state purporting the economic feasibility/benefits for slots at tracks. IHHA’s insurance broker reported that its’ current carrier Blue Cross/Blue Shield has elected to renew its coverage of the IHHA with only a slight increase (1 ½%) in premiums to be absorb by the IHHA. Nominees for the Hall of Fame 2010 will be solicited. However, the date for the event is undecided at this time, pending year end events. The IHHA is sponsoring/hosting Thanksgiving dinner for the horsemen at both Balmoral and Maywood Park. The IHHA’s yearly sponsored Children’s Christmas Party will be held at Balmoral December 11th. Children at Maywood Park will be recipients of toys from Santa also. The IHHA sent memorials for recently deceased harness horsemen: John Cisna, James Kimball and Kyle Reck; the families expressed their appreciation. ACTION ITEMS: Legislative – H.B.3970 lingered in the gaming committee during veto session, as various legislative factions, stymied efforts of HB 3970, while trying to negotiate additional benefits for their constituents, etc. Senate President Cullerton remains committed and has proposed to move the bill from the gaming committee to the executive committee during the next session, the week of the Nov 29th; which would allow a lesser number of votes to garner passage (30 vs. 36). He would however, change the effective date of the bill from Jan 1st date to July 1st. The effective date change does raise some concern over the impact of another six months lag time and the significant loss of another breeding season until slots would be licensed and operable. Thus, it is crucial for all parties to continue to demonstrate their unified commitment to this bill and imperative for members of the racing industry to continue in its efforts to contact legislators and reinforce the benefits of the bill not only for the racing industry but the states’ coffers as well. The implications of a change in effective date however, does greatly effect an earlier mandate by the IL. Racing Board that the tracks and horsemen to reach a contractual agreement on recapture by December 15th. The tracks have suggested a flip in the recapture structure from 30/70 to 70/30, which would have a tremendous negative impact again on the purse account. The board discussed its options. During veto session the boats consortium proposed a stand alone smoking ban bill which is favored by all nine boats, etc.. Grass Roots and Membership – The committee continues its efforts working in conjunction with IHHA members to set up meeting with their legislators to garner support for slots at tracks. The committee is working with IHHA’s PR liaison to send letters to a target list of legislators and newspapers/editorial boards within their districts. County Fairs – Colt Associations were recently given a handout detailing the need for support of slots at track legislation and its benefits to the associations. Evidence of further future decline in county fairs for 2011is exhibited by the demise of the Greenup and Salem County Fairs; with several more electing to downsize to one-day only events. Race Track Condition and Backstretch – The condition of Balmoral’s track at present is fine. However, of concern is the paddock doors being continually open during inclimate weather from the 1st race till the last; track security instructions are to keep doors open, however, horsemen would like to find some compromise for doors to be shut for few hours while horses are out of area. Conditions of the paddock area at Maywood are unsanitary with an abundance of refuse being dumped and not being properly cleansed and sprayed. The board discussed solutions to predicament. Insurance – The 2011medical insurance carrier for the IHHA will remain Blue Cross/Blue Shield. A slight premium increase of 1½ % will be absorbed by the IHHA, rather than its members. Director Beals motioned for the IHHA’s life insurance carrier to be transferred from Unicare to Fort Dearborn. Seconded by Director Paul. All in favor. Motion passed. Legal – The final decision on the 3% monies is still pending. It is in the courts jurisdiction and timeframe as to when the hearing will be held. Purse Account – Balance of the account to date is approximately239, 000; last two weeks have been even and the typical fall downward swing appears to be ended. Notice was sent to the You-bet Accounting Dept. as recent payment is in arrears. Changing “Fair races for $3,500 or less not considered” on the condition sheet to “Fair races for $2,100 or less not considered,” was discussed. Director Beal’s motioned current fair races under $3,500 be changed to $2,100, a 40% drop. Seconded by Payment of Bills –After review of the financials Director Beals motioned for payment of the bills. Seconded by Director Cassano. All in favor. Motion passed. Finance – Committee chairmen were reminded to review their budgetary needs for 2011 and make their projections known to either Executive Director Somone or Treasurer Beals. Public Relations – The Kankakee newspaper, which covers Beecher, Morris, Clark, i.e., is now home to sports writer Mike Paradise, who will provide harness racing coverage. He noted that when Balmoral utilized this paper for advertising the American National Races it help generate an attendance of 8,000 people, more than on Super Night. Based on the breath of a reached audience he respectfully proposed the IHHA commit to an ad. After board discussion, Director B. Paul motioned for the IHHA to do an ad placement this month. Seconded by Director Cassano. All in favor. Motion passed. Breeders – Director Hunt presented his annual breeder committee report. It noted that 2009 yearling sales were the least in the last ten years with only 357 sold at public auction. Sales amount total also the lowest on record back to 1994. 2009 avg. price was $6,017, the avg. sales price down 21% from 2008 and over 35% from 2007. In 2010- 278 yearlings sold at public auction with gross sales at 1.567M, a decline of $581,000 from previous all time low. Yearlings avg. sale price in 2010 was $5,637. The lower price is indicative of the economic health of local racing. Many owners/trainers are still willing to invest in the yearling market, however, many of the IL. based customers are making a choice to spend their dollars in states with more favorable race programs, i.e., IN, Harrisburg, and Lexington, as evidenced by the increase of yearlings purchased by IL. based owners and trainers. The potential loss in 2010 to IL was over $4 million dollars. In testimony to the IL. House Gaming Committee in 2007 the downward trends and loss of revenue to the state was evidenced; to-date the industry has received no tangible benefits. Third quarter breeder payment awards were paid by Maywood as of Nov. 10th; Balmoral Park as of this date is still in arrears. Horse Adoption - The board reviewed contributions made to two standardbred adoption agencies. It was motioned that a contribution be made to the Racer Pacer Association. The motion was seconded. All in favor. Motion passed. DISCUSSION ITEMS: 1. Director H. Williams thanked the IHHA for its participation and generous donation to the Breast Cancer Awareness Program last month at the tracks, noting the drivers and fans alike enjoyed the program. Meeting to adjourn the meeting by Director Beals. Seconded by Director R. Williams. Meeting adjourned at 4:15PM. -------------------------------------------------------------- MONDAY, OCTOBER 18, 2010 - Board Notes Directors Present: Beals, Engel, Paul, Williams, H., Cassano, Knicely, Fairley, McCaffrey, Williams, R., Hunt Directors Absent: O’Toole, Willis, N., Willis, K. Welch, Widger Others: Arens, Watson, Brubaker, Wright, Fargo, Sherrie, Walker, Somone, Hoffman, Simpson, D., Schroeder, Mack, A., Carter Approval of September Minutes: September Minutes amended to reflect a change in verbiage under breeders, 2nd paragraph, line four, from median sale price to preparation price. Motion by Director Paul. Seconded by Director Hunt. All in favor. Motion passed. Executive Directors Report: To date the IHHA grassroots movement has enlisted 88 members to assist vis a` vis in soliciting 60 Senators/Reps for support of the slots bill in the November Veto Session. After President McCaffrey’s and Executive Director Somone’s interview/meeting with editorial boards in Carbondale/DuQuoin; their paper “The Southern” featured an article laden with misinformation. Director Hunt issued a rebuttal letter. A contingency clause was attached to the awarding of 2011 racing dates by the IRB to Maywood/Balmoral mandating the tracks have a 2011 contract with the IHHA in regards to recapture by December 15; thereby, addressing its’ concern with the recent shift/sale of OTB’s and the by-product of increasing 2011 recapture debt to be incurred by IHHA. (Recapture is designated by location, not by ownership). Industry leaders met last week at Hawthorne to discuss/review Senate President Cullerton’s expanded gaming language. After two weeks of rancorous negotiations with the tracks the IHHA prevailed in securing a purse increase of 5%. ACTION ITEMS: Legislative – The IHHA participated in an industry meeting last week to review/discuss the slots bill, all parties agreed on the tweaks to the bill and will met again Nov. 4th to prepare for the upcoming Veto Session (Nov. 16-18, 29, 30 and Dec. 1). The Senate President has called the senate back two week prior to Veto Session for a pension bill vote. Due to borrowing from the fund last year, it has a shortfall of billions of dollars needing to be replenished. Roy Arnold General Manager of Arlington resigned last week. Grass Roots and Membership – The membership committee met to review 2010 membership application rates. The committee recommended the board retain the status quo for 2011 membership. Motion by Director Engel. Seconded by Director Fairley. All in favor. Motion passed. County Fairs – Director Rita Williams reported she had recently attended a Midwest Colt Association meeting and proselytized verbally and by handout sheet the need for horsemen to participate in supporting the slots at tracks movement by contacting/meeting with their legislators. A copy of this handout will be sent to the other Colt Associations. County fair board lobbyist and members will be notified of the substantial apportioned funds allotted within this gaming bill. The Dept of Ag.’s Bureau Chief of County Fairs & Horse Racing thanked the IHHA for its 2010 donation for drug testing at this years fairs, reporting testing culminated with 72 horses which elicited 2 positives. Request for payments for 2010 DuQuoin racing have been submitted by the Dept of Ag to its financial officer for a voucher number. However, the department only processes vouchers when money is in its account, which is expected to be in early Dec. Race Track Condition and Backstretch – The Maywood Backstretch Committee Co-Chairman and President McCaffrey will speak with track management in regards to a cleansing of the paddock area. Insurance – The IHHA’s insurance broker is reporting interest by other health care providers bidding for our 2011 coverage. The current carrier, Blue Cross has expressed interest in renewing its policy. Although our claims this year were not exhorbitant, due to recently effective government mandated changes within the health care industry, providers are citing increase of 5 to 45% to its members in 2011. The insurance committee will meet at the end of October to assess proposals, etc. Legal – The IHHA bears a financial contributory role in the pending litigation against the State of IL. for interest on 3% monies, as a party in the suit. . However, the IHHA was not a participant nor shared any legal expenses in the litigation of the 3% monies itself. Purse Account/Condition Sheet – The recent 5% purse increase should become effective Oct 20th. Projections indicate purse account should be positive at years’ end. Payment of Bills – Director Beals made an inquiry regarding a legal expense (see above legal); after clarification and review of financials Director Beals motioned for payment of the bills. Seconded by Director Engel. All in favor. Motion passed. Finance – Director Beals requested all committee chairs review their projected 2011 budgetary needs and report to either himself or Executive Director Somone if calculations are different from last years so adjustments can be made. Public Relations – A. Mack reported that although a few editorial boards interviews have taken place already i.e., Carbondale/DuQuoin, the timing for further media/press releases is of the essence. With the election in the forefront, it is prudent to hold-off on further releases so our message doesn’t get diluted by election coverage. Prior to the veto session editorial boards will be targeted, template letters for members to sign/send to their newspaper editors will be available, and when the GA is reconvened a white paper on the industry will be distributed to legislators. In the meantime the grassroots effort by the IHHA and its members will continue with the key message remaining pertinent to industry issues. The 10th license in Des Plaines estimated completion time is fall of 2011. As of now the harness industry would get 15% from that license, however, if slots legislation passes, that is negated. Director H. Williams requested the IHHA participate in Breast Cancer Awareness Month (October). Drivers at Maywood and Balmoral on designated day(s)/race(s) would wear the symbolic pink gloves, of which some will be autographed and auctioned off with proceeds going to the breast cancer campaign. After discussion the board supported this worthy initiative and Director Beals motioned to appropriate the $1,200 necessary to purchase gloves, etc.. Seconded by Director Cassano. All in favor. Motion passed. Breeders – Director Hunt will present sales numbers for trotter/pacer(s) being sold when he gets updated information. He will also report on the yearling sales at Kent/Harrisburg and the loss of Illinois dollars to other states next month. Transfer of Funds to PAC – President McCaffrey reported to the board the IHHA PAC account is at a dismally low level. He noted legal/accounting consultations sanctioned the acceptability of a transfer of funds from the General Account to the PAC, and he therefore, respectfully requested the board grant its approval. Director Beals suggested the transfer be done in increments as needed. After discussion by the board Director Hunt motioned for the transfer of funds from the General Account to the PAC. Seconded by Director Paul. All in favor. Motion passed. Negotiations – The board discussed the current impact of the 30% level of recapture payment in the 2010 contract; the ramifications of the reconfiguration of OTB’s incurring another $900,000 owed in recapture for 2011, along with rumor of the tracks trying to renegotiate a substantial percentage increase in the 2011 contract. The board discussed possible strategies for overcoming this obstacle. DISCUSSION ITEMS November Board Meeting - Executive Director Somone suggested the board approved a change of the Nov. board meeting from the 3rd Monday in Nov., the 15th to the 22nd. The Veto session begins Nov. 16, everyone’s attention/ initiatives need to be focused on the veto session. The board gave its’ unanimous approval. Executive Session – The board went into session at 3:35PM. The session ended at 4:00PM. Motion to adjourn the meeting by Director Engel. Seconded by Director H. Williams. Meeting adjourned at 4:01PM. -------------------------------------------------------------- SEPTEMBER 20, 2010 – Board Notes Director Present: Beals, Knicely, Paul, Fairley, R. Williams, Welch, Hunt, Engel, Cassano, O’Toole, McCaffrey, H. Williams Directors Absent: Widger, N. Willis, K. Willis Others: Paradise, Watson, Brubaker, A. Mack, Dixon, Somone, Arens Approval of September Agenda: September Agenda amended to reflect two items under Action Items: L = race dates and M = focus groups. Motion by Director Knicely. Seconded by Director H. Williams. All in favor. Motion passed. Executive Director Report: The IHHA legislative drive for support of the slots bill in the November veto session has begun. Grassroots/Membership Co-Chairperson, Brenda Watson assisted in targeting/ coordinating/scheduling vis-à-vis meetings between Reps/Senators and industry members. To-date nine meetings have been completed with 37 more scheduled during the next four weeks. Response to the IHHA website petition to its membership to participate in the legislative push has been notable as well. IHHA public relations consultants are conducting a media blitz with newspaper articles appearing statewide in both large and small publications. Editorial board interviews are also scheduled for Executive Director Somone and President McCaffrey. Within the next two days they will be interviewed by Gatehouse Papers (whose distribution includes 10 newspapers statewide), and also meet with the Carbondale area editorial board. July/August ADW payments totaling approximately $72,000 should soon be disbursed into the purse account. ACTION ITEMS Legislative – Due to a complaint re: problems with the 1st round bidding and a point system inaccuracy, the video poker machine roll-out is stalled. The Illinois Gaming Board will rebid the contract for a database company to link all poker machines in bars. This situation leaves the state still financially vulnerable and may bode well for slots at tracks. The upcoming Chicago Mayoral Race and its projected contenders and their political/legislative implications were discussed. Grass Roots and Membership – The Membership Committee will meet prior to next month’s board meeting to review and discuss the 2011 membership application/cost. County Fairs – Previously the Department of Ag. granted each county fair a $1,000 stipend for track improvements, such as grading, etc. This funding will no longer be available. Race Track Condition and Backstretch – Issues of concern were voiced re: backside on the Wednesday prior to Super Night and on Super Night itself at Balmoral. Elements of neglect in the added barn area consists of: lack of electricity, deep holes in ground, low hanging sprinklers, backside stalls without mats, missing stall gates and a lack of security in paddock. Another source of contention was the congestion caused by other entertainment horses impeding the travel of harness horses to/from shipping barns, etc. Jim Hannon, GM of Balmoral will be invited to next November’s board meeting to address these issues. Insurance –According to the IHHA insurance broker, the IHHA’s current insurance carrier BlueCross/Blue Shield will soon submit its 2011 proposal. An increase is expected. The insurance committee will meet the first part of October to discuss ways offsetting an increase and review criteria, etc. Legal – Decision on 3% funds still pending. A review of the courts docket indicates a lack of chronological consistency in the methodology of when a case decision is rendered. Purse Account – As of Sept. 11th, the purse account stands at approx. $300,000, with an expected increased to $400,000 shortly, after an ADW deposit. Although track management itself is in disagreement of whether a 10% purse increase is feasible at this time; based on calculations/ future projections, etc. the IHHA board is in agreement that a certain percentage increase is reasonable. Horsemen voiced dissent with byes at the Lady Ann Reed Trot Race on Super Night. Balmoral general racing rules vary from conditions of races such as the American National and Hanover. These variations are listed on condition sheets and stake guides. Despite rumors to the contrary, Super Night payments to driver/trainers were made in full. Payment of Bills – After review of the financials Director Beals motioned for payment of the bills. Seconded by Director Engel. All in favor. Motion passed. Public Relations – A. Mack reported that articles supporting slots have been placed in newspapers across the state, and meetings with editorial boards are scheduled also. Press releases will also be issued when horsemen meet with their state reps/senators. A Dept of Ag. 2010 report noted 1 colt ICF Trotter, stallions down to 87, and 1253 mares. In 2010 = 653 foals born vs. 2009 = 769 foals. In 2010 only 278 sold at public auction. Based on the calculated expenses of raising a foal to yearling sale time is approx. $11,000; with a decline in median preparation price (prev. averaging $15,000) it is no longer economically feasible for horsemen to prepare foals for yearling sales. In the Land of Lincoln Sale 132 horses sold with a median sale price of $5,000. In the Illini Classic 427 horses sold with a median sale price of $2,925. Of the combined 278 yearlings 157 or 53% sold for $3,000 or less. 85% of yearlings sold for $10,000 or less, most under $3,000. There is a direct correlation with the decreased purse structure; more people retain their yearlings whereas, typically 70% were sold now only 35% are. Race Dates – There is a reported rumor that track management is considering amending their already proposed 2011 race dates schedule prior to next Tuesday IRB dates granting. Based on legal parameters a request for changes may be filed up to the granting date. However, the new proposal suggested would negatively impact the horsemen at Maywood and the industry. New proposal would consist of racing at: Balmoral 5 days week for 6 weeks Jan 1- Feb 15th Maywood 5 days week Feb 16th – April 15th (close backstretch Maywood Jan1st never re-open it) Balmoral 5 days week April 16th – December 31st Of the 130 horses stabled at Maywood and 80 lived-in tack rooms on its backstretch, all would be displaced creating a hardship for these people/horses to move to Balmoral. Another issue is horses from Maywood would have to adapt to a mile track; similarly Balmoral horses would have to transition to Maywood’s track during Feb, March, April. Numerous horses could not convert to the changeover. Consequently, many people/horses would just leave the industry or go elsewhere to race, etc. Balmoral says it has more than enough barns, tack rooms to accommodate Maywood people/horses. However, there is question re: conditions at Balmoral. (See Above: Race Track Condition/Backstretch). After board discussion of counter strategies, the board agreed the IHHA reps should meet with track management tomorrow, and convey the IHHA’s proposal to keep the current 2010 schedule with a 3-week dark time. Motion by Director Beals. Seconded by Director Fairley. All in favor. Motion passed. InterTrack (a conglomeration of 15 OTB’s owned by Maywood /Balmoral/ /Hawthorne ) recently had a third-party leased downtown parlor close. Several other OTB’s face similar situations. Focus Groups – Director Paul suggested a new Marketing/Customer Relations Committee be formed with the objective of pooling data, analyzing and targeting what the betting customer thinks/wants from the racing product, subsequently improving the product and increasing its fan base. After board discussion of the benefits and with its’ agreement, President McCaffrey appointed Director Paul as Chairman of the new committee and Director O’Toole as Co-Chairman. Motion to adjourn meeting by Director O’Toole. Seconded by Director Beals. Meeting adjourned at 4:15PM. -------------------------------------------------------------- August 23, 2010 – Board Notes Directors Present: Paul, Beals, H. Williams, Engel, Hunt, Fairley, Cassano, O’Toole, McCaffrey Others: Somone, Arens, Brubaker, Watson, Dixon, Hoffman, G. Mack, A. Mack, M. Paradise, E. Poders M. Engel nominated for 1st vice president by Director H. Williams. M. Engel accepted the nomination. Further nominations called for 3x’s, with no other nominees, the President declared the nominations closed and Engel won by acclamation. C. Fairley nominated for 2nd vice president by Director Hunt. C. Fairley accepted the nomination. Further nominations called for 3x’s, with no other nominees, President McCaffrey declared the nominations closed and Fairley the won by acclamation. H. Williams nominated for secretary by Director Engel. H. Williams accepted the nomination. Further nominations called for 3X’s, with no other nominees, President McCaffrey declared the nominations closed and H. Williams won by acclamation. R. Williams nominated for ass’t. secretary by Director H. Williams. R. Williams accepted the nomination (by proxy - H. Williams). Further nominations called for 3X’s, with no other nominees, President declared the nominations closed and R. Williams won by acclamation. Al Beals nominated for treasurer by Director Engel. A. Beals accepted the nomination Further nominations called for 3X’s, with no other nominees, President McCaffrey declared the nominations closed and Beals won by acclamation. S. O’Toole nominated for ass’t. treasurer by Director Beals. O’Toole accepted the nomination. Further nominations called for 3x”s, with no other nominees, President McCaffrey declared the nominations closed and O’Toole won by acclamation. Approval of July 19, 2010 Board Minutes: Motion by Director Cassano. Seconded by Director Engel. All in favor. Motion passed. Executive Directors Report: Executive Director Somone reported the recent IHHA sponsored picnics held at both Maywood and Balmoral, were successful. Everyone seemed to have a good time and IHHA logo t-shirts were given out to participants. As a prudent measure and to stay abreast of current issues within the gaming industry, Over 1,000 Say Yes to Slots at Tracks buttons were distributed at the Springfield Fair and Back to the Track Night. Although a small item it promotes the message and keeps it animated. A letter recently sent to the Twin Spires/Churchill Downs ADW Account Mgr. requesting payment in full on revenues from it’s overdue account rendered a quick response (within a few days), noting payment had been submitted to Maywood Park for disbursement. The IHHA received a letter from the USTA News Div., expressing laudable sentiments toward the IHHA for its’ employment of Mike Paradise as a columnist. Stating how this forum has provided much needed coverage/commentary of the harness industry (since articles, etc. by the tracks/newspapers is negligible) furthermore, it noted Mike’s notes and quotes are not only informative but enjoyable as well. In early September, the IHHA in conjunction with the ITHA will launch its legislative lobbying plan for directors/members to reach to reach out to every Rep/Senator in their districts in a vis a vis scenario, to rally support for slots at tracks bill in the upcoming November Veto Session. ACTION ITEMS Legislative –Slots at tracks awaits action in upcoming veto session. The House Speaker and Senate President have verbally committed to calling the bill. Strategic concerted efforts by the IHHA lobbyists, PR consultants along with an ad hoc group (thoroughbred, other horsemen and tracks) continue to keep this issue in the forefront with legislators, utilizing various media venues: letters in editorial pages; patronizing fundraisers, giving interview, etc.. A timeline blitz will be synchronized to keep the slots issue and the industry’s plight in the legislators arena prior to the November Veto session. A white paper on the industry is currently ready for distribution. Grass Roots and Membership Report – The current membership stands at 686. With the board election over, new committee assignments are set to begin. When the new membership committee is composed, the committee will meet and harvest new ideas to increase membership participation and grassroots efforts. The Dept. of Ag. has submitted the paperwork for payment of June fairs to the comptroller. To date it not known which if any fairs have been paid; since this item falls under last years state budget, payments by the state may lapse. Articles and letters detailing the plight of the industry, etc. were placed in various county fair programs/local papers. These have ignited questions /discussion with fair directors and participants on the current legislative issues (slots) and the need for all members of the industry to be vocal with their legislators in order to sustain not only county fair racing, but the viability of whole industry as well. Discussion took place on the development of a survey questionnaire addressing participation in county fairs, which could be distributed to respondents at the upcoming DuQuoin Fair and later used as another tool to lobby legislators. Race Track Condition and Backstretch –Director Cassano was successful in getting more fans (air circulation) placed in the barns at Maywood. A limestone hedge surrounding the track area at Maywood still needs to be addressed. Insurance –In September the broker will be soliciting quotes for the 2011 program and should have a report on the effect of claims to-date. Legal –No decision to-date on the 3% funds. Cases within the courts jurisdiction are lagging. ADW cap % is slated on the IRB’s upcoming agenda. Recently, it has been reported betting at OTB’s increased significantly when bettors denied access to certain signals, boycotted and chose to drive to OTB’s to place their bets. Purse Account – As of August 14th, for the first time in a number of years the account has reached a positive balance. As of the last two weeks the account has remained steady. However, cyclically the account tends to decline in the fall. Payment of Bills –Director Beals after review of the financials motioned for payment of the bills. Seconded by Director Hunt. All in favor. Motion passed. Public Relations – (See Executive Dir. Report/ Legislative/County Fairs) Breeders –Breeders Awards for the second quarter are yet to be paid. A letter requesting such will be sent. Final analysis on yearling sales (median sale prices) will be finished next month. At this point figures show a guesstimate of a 20% or more decline from the previous year. Executive Session – The board went into Executive Session at 3:00PM. Session ended at 3:35PM. Motion to adjourn meeting by Director H. Williams. Seconded by Director Engel. Meeting adjourned at 3:36PM. Committee Assignments – Committee description sheets and sign up forms were distributed to board members. After their return, the President will make committee assignments for the 2010-2011 cycle. 2011 Contract – Directors were reminded to review the current 2010 contract and after perusal, submit any changes, revisions, etc. for 2011 negotiations. -------------------------------------------------------------- July 19, 2010 – Board Notes Directors Present: Beals, Knicely, Cassano, H. Williams, R. Wiliams, Engel, Hunt, McCaffrey, Willis, K., Willis, N., Widger Directors Absent: Fairley, Simpson, O’Toole, Welch Others: Brubaker, Arens, Watson, Brown Approval of July Agenda: July Agenda amended to reflect two items: ADW and Interest 3% Money. Motion by Director Hunt. Seconded by Director H. Williams. All in favor. Motion passed. Approval of June Minutes: Motion by Director H. Williams. Seconded by Director M. Knicely. All in favor. Motion passed. The IHHA Board of Directors Annual Election schedule is progressing in a timely fashion; candidate questionnaires are slated to be mailed to eligible members on Tuesday. Ballots will be mailed to eligible membership on July 23rd, with a return deadline of August 20th. In a recent ITHA conference call, the Quarterhorsemen’s Association demanded the ITHA include the Quarterhorsemen as recipients also in the slots at track legislation. Citing their large membership and number of horses, they conclude they should share in the benefits of the legislation. The IHHA will keep abreast of this issue. A letter from the accounting firm McGladrey & Pullen was included in the director’s packet. The letter provides a synopsis of the annual audit procedure which encourages transparency by advising anyone with questions to either call the IHHA Executive Director or the accounting firm. Grass Roots/Membership – Current Membership stands at 686. County Fairs – While conducting testing last week at the Lido/Mercer fairs, the Dept. of Ag’s bureau chief stated that payments to county fairs had been issued through June. However, the Midwest Colt Association disputes that statement, noting to- date they are not in receipt of any payments. Testing at the Carrollton Fair, reveled a positive. A $500 fine was issued and purse monies rendered back. The question of pari-mutuel racing at Springfield/DuQuoin and Mt. Sterling will be considered/decided at the IRB’s Board meeting next week. The IHHA will forego the “Springfield Picnic” this year due its expense. However, it will host a grill for the horsemen participating in the fair; as quid pro quo. Race Track Condition and Backstretch – Approximately ten new benches were recently placed in the Maywood paddock area. Areas of Balmoral Park’s backside remain swampy-like and need attention. Executive Director Somone will investigate complaints of faulty straps and numbers. Insurance – The program is operating fine. In September, the insurance broker will be communicating with the current health care provider as to coverage for 2011, etc. Legal – 17 weeks have passed since a court hearing on the 3% monies, and a decision has not been rendered to-date. In similar circumstances, another case heard on the same day as ours has yet to be decided also. Purse account – The current balance of the purse account will soon be zero when ADW earnings for May and June are received. Although consideration was given to the recent U-Bet merger with Twin Spires/Churchill for causing a state of flux; concern was expressed over the extreme tardiness of ADW payments. This issue will be addressed with the IRB to try to reach reconciliation. Although the purse account will soon be at point zero, the boards’ discussion noted past cyclical history, indicates revenues to begin to decline in the fall. Thus, the feasibility of entertaining any sustainable purse increases will be revisited at next months meeting. Payment of Bills - After review of the financials Director Beals motioned for payment of the bills. Seconded by Director Knicely. All in favor. Motion passed. Public Relations – The IHHA will be participating in the USTA upcoming nationwide sponsored “Back to the Tracks” on August 20th. It was suggested that some type of sponsored promotional give-away be fostered by the IHHA. Breeders – Concern was expressed to the tracks in reference to the history of untimely payments for breeders. It was noted fortunately, that possible future slots legislation corrects not only this issue but the percentages of the purse to be paid to breeders as well. ADW – A question arose on whether the IRB’s current ruling which caps ADW at 5% (for what out-of-state racetracks could charge IL ADW’s) minimizes IL.’s profitability. It was noted that other states have similar rulings, i.e. CA which has a 3 ½% cap and typically states with a lower caps, have more revenues accrue to that state’s horsemen. U-Bet: (TwinSpires/Churchill) are opposed to the cap of 5% and have threatened to pull some of their signals; which would be within their rights legally. Interest on 3% Money – Initially with the expectation of an expedient decision on the 3% case, the funds were placed in zero% interest account; rather than divvied up into (80 plus) multiple-insured, interest bearing accounts. The IHHA will re-open this dialogue with the tracks. Executive Session - Session began at 2:55 PM. Session ended at 3:45PM. Motion to adjourn meeting by Director Engel. Seconded by Director Hunt. Meeting adjourned at 3:50PM. -------------------- JUNE 21, 2010 –Board Notes Director Present: Knicley, Cassano, Welch, Engel, R. Williams, H. Williams, Fairley, N. Willis, Widger, Hunt, McCaffrey Directors Absent: K. Willis, Simpson, O’Toole, Beals Others: Brubaker, Watson, Arens, Dixon, Somone, Paradise Approval of June Agenda: Agenda to be amended to reflect Pari-Mutuel at State/County Fairs under Discussion Items. Motion by Director Knicley. Seconded by Director N. Willis. All in favor. Motion passed. Approval of May Minutes: Motion by Director Engel. Seconded by Director Fairley. All in favor. Motion passed. Executive Directors Report: During the final week of May a bill passed the legislature allowing for the partnerships of OTB’s with VLT’s; which allows current OTB’s to remain functioning and profitable. However, neither the tracks nor horsemen receive any benefits from this legislation. It is believed that JCAR will uphold the current IRB rule as written which caps the percentage at 5% as to what out of state tracks could charge to Illinois ADW’s. The IHHA along w/Maywood/Balmoral/Hawthorne fought Arlington’s previous attempt to get a higher cap which would have allowed for an increase, meaning less revenue generated for in-state horsemen. Accolades to the IHHA lobbyists and vocal horsemen whose diligent efforts in working with the Governor’s office, the Department of Ag and comptrollers’ office finally succeeded in securing the release of last years Springfield/DuQuoin and County Fairs monies (over $1million). The Dept of Labor performed an audit of the IHHA employment records and found the IHHA to be in compliance. Fox News Chicago presented a favorable commentary on slots-at-tracks vs. casinos last week. A link featuring the article/ video is accessible on the IHHA website. Petitions for candidates for election to the IHHA BOD for 2010-2011 are due in the IHHA office this by Friday, June 25th by 5PM. ACTIONS ITEMS: Legislative – SB3146 (Slots at Tracks) is awaiting action in the upcoming November Veto Session. The IHHA, the Thoroughbreds and tracks, will remain vigilant and maintain ongoing efforts with legislators to ensure its successful passage. County Fairs – At last weeks County Fair Board Meeting it was noted that there is a decrease of 21% in total horses nominated for this years state fairs vs. 2009 also, a 26% decline in horse nominated for county fair stake races. The Dept. of Ag’s budget allotment for county fairs has markedly decreased in past years from 66% funding to 20/25%. The Dept. of Ag. is pushing for a consolidation of fairs to limit the impact. Many county fairs once again are borrowing funds to conduct this years fairs. Specific language in SB 4176 (earmarking funding for premiums for county fairs ) is to be printed and presented to county fair directors, etc. to enlighten and prompt their support for the slots at tracks legislation. Race Track Condition and Backstretch – Maywood’s track surface is rock hard although it is dragged, the drag needs to be reset to alleviate condition. Balmoral has two spots on the track requiring immediate attention: by the wire and by the turn (inside); both pool with water and are hazardous. The IHHA is to meet with the track management to get the issues resolved. Purse Account – The current rate that the purse account is diminishing is less than before due to recent shrinkage of weekly handle. Payment of Bills – After review of the financials, Director Beals (via e-mail) directed Executive Director Somone to request the payment of bills. Motion by Director Engel. Seconded by Director N. Willis. All in favor. Motion passed. Public Relations – The IHHA will participate in an upcoming nationwide sponsored back to the Track Day hosted by the USTA, August 14th. Its’ contribution will include Driver/Trainer interviews, backstretch tours, etc. Breeders – The current Senate Bill 3146 contains language for breeder’s awards to be funded by the IHHA (half) and the tracks (half). DISCUSSION ITEMS 1. Pari-Mutuel State/County Fairs (see Legislative-last item) Motion to adjourn meeting by Director N. Willis. Seconded by Director M. Knicely. Meeting adjourned at 2:50PM. -------------------- May 17, 2010 – Board Notes Directors Absent: O’Toole, Simpson Others: Dixon, Paradise, Watson, Brubaker, A. Mack, Dart, Nicolay, Somone, Arens Approval of April Minutes: Motion by Director Fairley. Seconded by Director Beals. All in favor. Motion passed. ACTIONS ITEMS: Legislative –Slots Bill SB3146 passed out of the Executive Committee prior to its adjournment. However, Democratic Senators with riverboats in their district have requested the Senate President not call the bill for a vote. The House Speaker has indicated he will not call the bill for a floor vote, unless the Senate President is in agreement to call the bill for a concurrence vote in the Senate. The IHHA lobbyist, as well as the horse racing industry lobbyists are working in conjunction with some unions to reach out to other Senators to meet and urge the Senate President to reconsider his position and allow the bill to be called for a vote. To date the response from Senators contacted has been positive. The IHHA is running a phone campaign eliciting its membership to contact their Senator and request he/she contact the Senate President and urge him to allow a vote on SB3146. JCAR met last week regarding an IRB rule that limits simulcast fees for ADW providers. Arlington (representing Churchill/TwinSpires) tried to get an “objection” order paced on the rule. The IHHA and Balmoral/Maywood are opposed to this and will continue to support rule as written. Resolution on the issue is postponed until the next JCAR meeting. County Fairs – Payments for county fair purses in 2009 has elicited a discrepancy between the states comptroller’s office and the Dept. of Ag. The board discussed options other than just dunning. The board gave its consensus for the IHHA’s attorney to explore other options i.e., a hardship letter to State of IL requesting release of these funds, etc. Motion by Director R. Williams. Seconded by Director K. Willis. Race Track Condition and Backstretch – Balmoral’s backside is in poor condition with a numbers of potholes still needing to be filled, along with some barn roofs which are still in disrepair. A maintenance crew person at Balmoral recently feel asleep while operating a tractor; running through a fence and taking out approximately 9 posts and 18 rails. The board agreed a letter be sent to the track (with a copy to the IRB) expressing its concern over the operators negligence and the safety issues involved. Although most potholes have been filled at Maywood’s backside, it was noted that in barn area D, holes still need to filled. Insurance – The program is functioning well. Purse Account – The purse account has diminished from a -$2mi at the start of the year to -$379,000. The projection is that within 10-12 weeks the balance should be at zero. It was noted that although this bodes well, typically January through Spring has historically been positive for the purse account with a leveling off during the fall months. Payments to Hawthorne are currently $22,000 mo. and will extend until 2011. However, if the 3% funds are released, the current balance will be paid in whole. Payment of Bills – After review of the financials, Director Beals motioned for payment of the bills. Motion by Director Widger. Seconded by Director Cassano. All in favor. Motion passed. Breeders – A recently placed amendment (346) in the current slots bill allows for breeder award calculations payments be changed from monthly to quarterly. An out of state breeder recently send a letter to an IL. legislator expressing his vested interest in SB3146. Noting that he along with many others out-of-state horsemen generate revenues to the state through their breeding activities, etc., which will be lost if the horse industry in IL. is allowed to perish. He urged the legislator(s) to support SB 3146. It was reported that a recently opened Facebook account detailing the plight of the horse industry has generated a large response. The forum allows for us to re-establish ourselves and build on our fan base for support. DISCUSSION ITEMS: HCGA - A verbal agreement has been reached with the HCGA by the IHHA and tracks; with a written agreement impending. Board Meetings– The board discussed having some future meetings in the Balmoral area. All were in agreement. These will be scheduled accordingly. Motion to adjourn meeting by Director Welch. Seconded by Director N. Willis. All in favor. Meeting adjourned at 3:40PM. -------------------- April 19, 2010 – Board Notes Directors Absent: R. Williams, Knicley, Welch, K. Willis, N. Willis, Simpson, O’Toole Others: A. Mack, Brubaker, Watson, Somone, Arens, Schrock, Fargo, Sherry, D. Simpson ACTIONS ITEMS: Legislative – President McCaffrey reported that the IHHA and IHTA are in unison and recently signed a joint proposal containing details for slots legislation. Unfortunately, to-date the tracks still favor the Burns Bill which negatively impacts the horsemen. He also noted since the tracks themselves are in disagreement on details, i.e., (sliding scale, tax ramifications, etc.) for slots legislation, it is difficult to have any meaningful negotiations. The IRB recently offered to mediate negotiations, which was collectively rejected by the tracks. Since there is no concrete legislative deadline yet, there is still a window of opportunity during this session wherein a bill could be passed quickly .The board discussed possible strategic negotiating options. Currently two pieces of legislation concerning Fairmount Park await action: HB 5064 (Hoffman), has passed the house and awaits Senate action. This bill blocks the IRB from passing legislation or making regulations to impact date awards; it also would allow for the expulsion of the current board, and the creation of a new board. HB 735 (Haines) has passed the Senate, and awaits action in the house; this bill would increase Fairmount pari-mutuel tax and allow Fairmount to become part of the IRB race date requirements. There are currently three gaming bills: SB3146 (Syverson), is a bill to benefit Arlington (Churchill Downs) to establish an OTB in Rockford, by allowing for a change in the definition of what is a “school”; this bill has passed the Senate, and is awaiting House action. Also pending are two shell bills by Senator Radogno with May 7th deadline extensions. SB744 a clean-up bill for video poker would allow unlimited ownership of machines to terminal operators, which in essence would mean large gaming companies could own most or all of the 40,000 machines. (The current law limits owners to 5% market share). It was remarked that the state has $3 billion in its possession of unpaid bills, and with the end of the current fiscal year fast approaching (6-30-10) it is most likely the state will remain in arrears. The courts have amalgamated the disbursement of funds on HB’s 4758 and HB 1918. The tracks however have been trying to make a case to remove the stay. Until there is a final ruling, no funds shall be released and must remain frozen in the tracks bank account. Neither party is allowed access to funds. Grassroots/Membership – Current membership stands at 625. The directors were given an inventory of 2010 unpaid memberships for review and to solicit renewals. Insurance – The program is operating smoothly. The Insurance Committee will meet soon to review/tweak the programs criteria. Stake nominations e-mail have been sent to registrants and the nominations are also posted on the tracks website. On the issue of raising qualifying standards, the following response was yielded by the racing secretary: horses are non- competitive if they can’t meet current standards and as such shouldn’t be racing. Payment of Bills – After review of the financials, Director Beals motioned for payment of the bills. Seconded by Director Fairley. All in favor. Motion passed. Public Relations – Andrew Mack gave directors a draft newsletter for review. This handout is being prepared for legislators and currently includes a letter from President McCaffrey citing the details/difference of HB 4194 and the Burns Bill; an article for slots, etc. Also noted, the tracks have put out a white paper re: industry, which has been sent to newspaper editorial boards. To-date no one has done anything with this. However, it is necessary to keep this on our radar, since much of this data is disinformation, and needs to be countered quickly. Charlyn Fargo (Dept. of AG.) – Due to current budgetary concerns, C. Fargo made an appeal for assistance with funding for 2010 county fair drug testing. With the first fair scheduled for June 7th, time is of the essence, since it’s difficult to secure vets. She noted seventy -seven horses were tested last year (no positives); at a cost of $180 per horse ($ 90 Blood /$90 Urine) $10,000 went for lab work for pre-race blood gas testing. Pres. McCaffrey expressed that due to the debacle of last years non- payment of purses for fair races to-date, and the Dept. of Ag. Acting Directors’ recent downbeat response to the situation, there lingers a negative impression which impacts the incentive to make a contribution. Fargo noted that the funds for testing are placed in a dedicated account. After board discussion, Director Engel made a motion for the IHHA to contribute $10,000 for testing this year. Seconded by Director H. Williams. Motion Passed. HGCA – An agreement has been reached between the IHHA and tracks (Maywood/Balmoral) to split the cost of the HGCA maintaining its services to the horsemen. The IHHA will pay half the expenses, with no reduction in services, beginning March 1st through 2012 (subject to renewal with an opt-out (60 days) option). Tax implications are being reviewed and attorney approval is pending. Motion to adjourn meeting by Director Cassano. Seconded by Director H. Williams. All in favor. Meeting adjourned at 3PM. -------------------- March 15, 2010 – Board Notes Directors Absent: Simpson Others: Brubaker, Arens, Somone, Paradise, A. Mack, Dart, Molaro, T. Carey, J. Johnston, Kelly. Approval of March Agenda: Agenda amended to include Item M: HGCA. Motion by Director O’Toole. Seconded by Director Beals. All in favor. Motion passed. Approval of March Minutes: Motion by Director Beals. Seconded by Director H. Williams. All in favor. Motion passed. Executive Directors Report: The past month has been consumed by legislative issues: slots at tracks; racing at DuQuion/World Trotting Derby (now extinct), and the IL. Bred Springfield Racing Program which has been saved. Currently, the Quarter horsemen have a legislative agenda, hoping to garner a share in simulcast money. The harness and thoroughbred horsemen are united in their efforts against this initiative A letter is to be sent to the IRB requesting it address the discrepancy of fine amounts versus current purses; thereby seeking a reduction and thus making them commensurate but limited to non-integrity issues. Motion by Director Widger. Seconded by Director Welch. ACTION ITEMS: Legislative – Several legislative bills concerning slots at the tracks are currently being sponsored: Churchill Bill (Burns HB 5975) -Track Bill; SB3371 – IHHA Bill, and Speakers Lang Bill HB 4194, 95th GA. HB 5975 offers no ascertainable benefits percentage wise to the horsemen; it also allows the tracks to relinquish obligations to horsemen that have been part of industry’s history, such as the RICF fund. Lang’s HB 4194- 95th GA the preferred bill of the Speaker and his staff, benefits horsemen with an 18.42% total AGR (500 million AGR) and even splits at OTB”s and on breakage. The World Trotting Derby at DuQuoin is as of now extinct. Other horse racing legislation currently existing is a bill to make 3% permanent; a bill to make 15% from the 10th riverboat non-appropriated, finally a bill concerning Arlington’s OTB bill for Rockford. Grass Roots/Membership – Current membership to–date is near 600, a slight decline from same time in the previous year. County Fairs – Notice for the County Fair Reception in Springfield Tuesday night has been untimely, however, the county fair association’s new lobbyist is known for the ability to blanket campuses with flyers and pull an event together rapidly. The Dept of Ag. Bureau Chief, C. Fargo, expressed that without assistance from IHHA, the dept will not be able to support/conduct testing at fairs this upcoming season. $6,000 is the allotted amount for purses in this year’s county fairs budget. Stake payments need to be postmarked today to be eligible. Race Track Condition/Backstretch – As of last Saturday, a weather related issue (water streaming underground) has caused complications in an area of the track, making the infield slightly higher. This area should be rectified today with the track being clad. Insurance – The insurance program is operating smoothly. Legal – President McCaffrey received an e-mail today that an appeal on the second lawsuit re: 3% monies had been overturned. Oral arguments on the other 3% litigation appeal are to be heard April 1st. Purse Account – There has been a rapid decline in the deficit recently with $100,000 collected last week bringing the purse account to less than a negative one million. Payment of Bills - After review of the financials, Director Beals motioned for payment of bills. Seconded by Director Knicley. All in favor. Motion passed. The board discussed the option for the PR rep to try to set-up a meeting with the Tribune’s editorial board. PR for slots at tracks is an ongoing effort with four different editorial letters recently being placed in downstate papers. PR rep is to work in concert with an IHHA director to get articles/letters/information published in another medium, the Farmers Weekly, whose audience range is IL. farmers and IL. legislators; as a means to not only enlightened these groups re: slots at tracks legislation, but acquire further support. Breeders – Breeders Awards money is paid directly to breeders from the tracks share of handle. It is a track expenses. Items of contention are how tracks pay on stake races and when payment is received. In an excerpt from the HR Act, the payment amount is reduced by nominating fees, sustaining fees, etc. however, the problem is how the amount is calculated by the tracks, and how often payments are made. Last years calculation of these funds have shown an underpayment to IL. Breeders by $350,000-$400,000. HGCA – The horsemen’s guaranty account features banking benefits to horsemen. It allows owners to share accounts, facilitating payment transactions, etc. Previously the HGCA was able to provide these services, by interest earned on account holdings. However due to the current economic climate (reduction of amounts in accounts) the declining interest earned is not enough to allow for the HGCA to provide its services without economic assistance or a service fee. DISCUSSION ITEMS President McCaffrey briefed the board that track representatives had requested to address the board regarding their current legislative bill, HB5975 and its benefits. He noted the history of the legislative HB 4194 proposed two years ago and a few of the highlights of it: that it provides a 15% AGR (adjusted gross revenue) to purses; it provides an additional 2 1/4 % for breeder’s funds which goes for Springfield, DuQuoin and the County Fairs; it eliminates recapture; it evens the splits at the OTB’s; it preserves live racing into the future. Motion to adjourn meeting by Director Engel. Seconded by Director Welch. All in favor. Meeting adjourned at 5:30PM -------------------- February 15, 2010 – Board Notes Directors Present: Cassano, Beals, Engel, O’Toole, Willis, K., Williams, H., Williams R., Welch, Widger, McCaffrey, Hunt Directors Absent: Knicley, Fairley, N. Willis, Simpson Others: Arens, Somone, Brubaker, Hoffman, Dixon, Mack, Watson Approval of March Agenda: Agenda amended to include Item M: Feb/March Stake Payments. Motion by Director Beals. Seconded by Director H. Williams. All in favor. Motion passed. Approval of February Minutes: Motion by Director H. Williams. Seconded by Director Beals. All in favor. Motion passed. Executive Director Report: To foster a clearer understanding amongst horsemen groups, discussions have been held during the past four weeks concerning slots at the tracks. A letter was sent by the Executive Director to the IL Speaker of the House requesting a meeting as a concerned constituent, regarding the dire state of the harness industry. The meeting was well received by the Speaker, and enabled the director to heighten an awareness of the intricacies of the industry to the Speaker. ADW monies generated for 2009 equaled $600,000 for the purse account. A hearing for the 3% funds is scheduled for Tuesday, Feb. 23rd. It is expected the court will make a decision within 2-4 weeks; the impression of the track and IHHA attorneys is that this will be the finale for casinos appeals. The Executive Director attended the IN. Harness Horsemen’s Board Meeting Sat., Feb. 13th to present the benefits to horsemen, of membership in the HHI. Moreover additional memberships in the HHI would affect cost containment ACTION ITEMS: Legislative – Two legislative bills concerning slots at the tracks are currently being sponsored. HB 5975- (Churchill Downs Bill) and SB 3371 - IHHA Bill. During the tracks drafting process it refused to let the IHHA have any input into their legislation, thus the IHHA countered proactively with its own legislation SB3371 which features: graduated rates for purses. Purses no longer pooled with Thoroughbreds as in past. Instead the bill allows for tracks with 50% or more common ownership to transfer up to 75% of machines to a location which would generate the most money for the state. (Likely Balmoral would ship machines to Maywood which would generate significant. tax and purse increases). The bill also calls for: repeal of recapture at all track once the first penny is bet in any slot machine at track; live racing guarantees with penalties for dates not raced; 50/50 on breakage, changes for ICF, fairs, etc. An area of concern is HB 5840 which would allow for breed to breed purse distribution instead of the current 6:30 6:30 split. The board and its lobbyist’s discussed the challenges facing gaming legislation in this current session; how best to promote the IHHA’s goals to legislative leaders, thus enhance and insure harness’s balanced share in any future gaming legislation. Grassroots/Membership – A second reminder was sent for membership renewal in early January. Response to date has been ordinary. County Fairs – According to Dept. of Ag Chief, funding for this years DuQuoin Fair is still not appropriated for in the AG’s budget. The board discussed recent reaction by drivers, trainers etc, to the implementation of the “quick start” (giving outside post position horses an opportunity to gain early by increasing start point by about 175 ft.). Although reaction is mixed, it was agreed that more time is necessary to see if this benefits handle. If not track mgmt agreed it will change the program. The IHHA will address with the IRB the possible reduction of fines; making these more commensurate to the recent purse cut. Purse Account – The 3 -week dark period netted approximately $320,000. The first two weeks since the purse cuts have generated $35-40,000 weekly. However, this gain is most likely due to time of year and will diminish in the fall. Public Relations – An attendee at a recent horsemen’s meeting at Balmoral railed it was the IHHA’s responsibility also to market horseracing as a product, not just the tracks. This individual later approached the IHHA president, proclaiming he had a surefire marketing plan to at least double attendance at the tracks and would like to present this idea to the board at its February meeting. The president extended an invitation to this individual to make a presentation at this meeting. This individual failed to show. Breeders – Maywood and Balmoral have made the 4th quarter breeder awards payment. Claiming Rules – Current administrative code requires claims be stamped 30 minutes to scheduled post. A recent situation on Jan 31st with a 9th race delay caused a later post time in 10th race. This conflict allowed for a 9 minute discrepancy period after the 30 minute time to put a claim in on a horse. Unfortunately, a person was not able to make a claim. Based on this situation the board‘s Director Beals motioned the rule be re-written to read 30 minutes to actual off-time. Motion was seconded by Director Cassano. All in favor. Motion passed. Motion to adjourn meeting by Director Beals. Seconded by Director R. Williams. All in favor. Meeting ended at 3:35PM. -------------------- Directors Present: Beals, Hunt, Cassano, H. Williams, Knicley, Fairley, Widger, McCaffrey, Engel, Willis, K., Willis, N., O’Toole. Directors Absent: Simpson, Welch Others: Brubaker, Hoffman, Paradise, Somone, Arens, Brown Approval of February Agenda: Agenda Amended to include item L: Duke Johnston. Motion by Director Fairley. Seconded by Director Beals. All in favor. Motion passed. Approval of January Minutes: Motion by Director Knicley. Seconded by Director H. Williams. All in favor. Motion passed. Executive Session – Board went into session at 1:20PM. Session ended at 2:30PM. Executive Director Report: With the transition to the new health insurance program/provider some minor impediments were experienced; however, everything is in good shape now. The Hall of Fame Banquet/Induction Ceremony is scheduled for Saturday, January 23rd, with scheduled attendance breaking the 200 mark. A meeting took place with new president and directors of ITHA. Based on assessment of the groups attributes, a good working relationship should be feasible. A letter was sent to John Rednour regarding the possible cessation of racing at DuQuoin. Mixed feedback regarding the validity of this topic was reported from a recent ISOBA meeting. The IHHA lobbyist’s will keep this issue forefront in Springfield. A handout was given to directors to peruse, regarding recent controversial testing experienced by NY horsemen. After the recent Lebanon barn fire, a status check of local track(s) was made and revealed they are fire-safety compliant. ACTION ITEMS: Legislative - There is currently proposed language(by the tracks) for slots at the tracks. The tracks would like industry support for a planned media blitz. However, the IHHA does not support the current language. A casino related bill has already been introduced for a Danville Casino. Also, a bill which would require P &L’s of all riverboats to be made public. The ITHA with its new leadership will most likely be introducing several bills (on a variety of topics) this session. The IQHRA recently hired the past ITHA executive director. County Fairs - Last week the USTA Dist. 5, ISOBA and the Upper Midwest Colt Association hosted meetings; the Dept. of Ag., Acting Director and Bureau Chief were in attendance; relaying a message of expected budgetary cuts of 14-17% for 2010 county fair programs. Also due to a paperwork error re: Par. 49 - Colt Associations have either had to use their reserves or borrowed to make last year’s payments to horsemen. The states budgetary woe’s continue; being 5/6months behind in payments to vendors, and consequently losing vendors because of this. Colt Associations do not want to borrow (and incur interest) to pay purses as last year, since they haven’t received their payment from Dept. Ag. yet. Out of 104 County fairs only 35 this year will offer harness racing and these will not only have increased entry fees but decreases purses too. May 1st- August 31st County Fairs are scheduled to host their legislative receptions. Thus, it was suggested a letter be created for industry members, i.e., farriers, feed suppliers, etc. to send to their legislators regarding the impact of budget reductions, lagging payments and reduction/lost of fairs. Insurance – See Executive Director Report Payment of Bills - Motion by Director Engel. Seconded by Director K. Willis. All in favor. Motion passed. Finance - After discussion the board instructed Executive Director Somone to solicit quote(s) for an accountant to conduct an audit of the purse account, as done in previous years as a safeguard measure to check for any discrepancies, etc. Motion by Director Cassano. Seconded By Director Widger. All in favor. Motion passed. Duke Johnston - Backup lighting at Balmoral should be completed within three weeks. A new junction box with two feeds off the main, will allow a switch within 4/5 seconds. There will be two quartz lights placed on each pole. Work is being done by Moscow Lighting Contractors. The 3% monies are being held in an insured account until release is granted. February 23rd is next date for appeals hearing. Hopefully a decision will be reached to dispose the appeal and release the funds. If so, the funds should be allocated by early April. However, if the decision favors the Casinos, and a trial is granted, the process could take up to three years (with the money still on hold) pending a decision. A handout was presented by the track mgmt. to the IHHA directors showing data that Open Stake races have benefitted IL.horsemen proportionally more than outside nominees. The board however reiterated its position that based on the current economic climate and recent purse cuts the IHHA cannot justify supplementing these races from its purse account, and again appealed to the tracks to work in conjunction to preserve, not abolish these races, by their also supplementing these races since they are beneficial to both parties. Track Mgmt responded it would be idiotic for them to supplement these races, since it already costs them to promote these races with advertising in various media forums. The board and track mgmt. discussed options for the purse account deficit. The board internally discussed other options to the stop bleeding of the purse account and acknowledged whether you pay now or defer payment till later, you still have to pay, and as of now the purse account deficit is increasing negatively. Motion to adjourn meeting by Director N. Willis. Seconded by Director Knicley. All in favor. Meeting ended at 5:00PM. -------------------- December 21, 2009 – Board Notes Directors Present: Cassano, Beals, R. Williams, Knicley, Fairley, Hunt, Engel, Welch, Widger, McCaffrey, H. Williams, N. Willis Directors Absent: O’Toole, Simpson, K. Willis Others: Arens, Somone, Brubaker, Dixon, Paradise, Hoffman, Mack A., Fary, T Dart, P. Williams Approval of December Agenda: Agenda Amended to include Horse Donations, Lebanon Fire, Atty Fees (Track) Phil Langley, Executive Session and A. Mack under PR. Motion by Director Fairley. Seconded by Director H. Williams. All in favor. Motion passed. Approval of November Minutes: Motion by Director Knicley. Seconded by Director H. Williams. All in favor. Motion passed. Executive Directors Report: Executive Director Somone reported that earlier this month the IHHA participated along with other Horsemen Groups and Track Representatives in a COGFA (Commission on Government Forecasting and Accountability) hearing regarding the viability of the recently passed video poker legislation as a realistic venue to generate revenue for the construction bill.; the IHHA participated in a press conference and gave testimony. Overall the transition to a new insurance provider has gone smoothly. Commendations to the IHHA’s insurance broker S. Curry for his skillfulness and a job well done. The Hall of Fame Committee met, completed its selection of inductees with board approval. The Induction Ceremony and Banquet will be hosted January 23, 2010. A reminder all directors are expected to attend. The ITHA has elected new leadership; its’ newly elected President is Mike Campbell. However, the election is being challenged by former leaders (s) since voting was so close, therefore, the results could be subject to change. A phone call from a track rep. reported that the track would request from the IRB at it’s December Meeting a status change in categorization of certain newer OTB’s; President McCaffrey responded the IHHA did not and would not support this request. The item was not called up or at the IRB meeting or approved. The IHHA sponsored Thanksgiving Dinners and Children’s Xmas Party at the tracks were well received and successful. A contract negotiation meeting took place last Friday, some simple issues were resolved, however, there still remain a couple of possibly contentious issues to be dealt with. ACTION ITEMS: Legislative – The Commission on Government Forescasting and Accountability (COGFA) recently held a hearing on the viability of poker machines at bars and their ability to generate revenue for the IL. Construction Bill. The IHHA along with other Horsemen Groups and Tracks participated. Track Reps wanted COGFA to state in its report that poker machines would not be able to generate enough revenue to pay for the bill since many communities are opting out; and slots at the tracks would be a more viable solution as a revenue generator. Legislative Spring session begins Jan. 12-14 and then Feb 3 – May31st. Little will likely happen during January’s couple of days. However, after the primary a few issues will most likely come up for review along with legislative act.ion. Governor Quinn recently attended an event at Hawthorne, where he conveyed to a lobbyist that he’s big fan of racing and a proponent for the slots at track, rather than video poker as a revenue generator for the capital bill. He stated he will urge the GA to take a look at slots at track legislation as a feasible alternative. IHHA lobbyist John Nicolay was recently honored by his selection as Speaker of the Illinois’ Third House (this is an amalgamation of all Springfield lobbyists). Recent ethics reforms have brought changes to Lobby Laws for 2010; with an increase in fees and reporting requirements. Grassroots/Membership – 2010 Membership renewal letters/forms were sent out a couple of weeks ago. To-date a few hundred have been returned; with more expected after the Holidays. County Fairs – The Dept. of Ag. released $100,000 in funds to Maywood for payments to fairs. Maywood has chosen to pay ½ to World Trotting Derby first; then ½ to Springfield; lastly ½ to Du Quoin. When Maywood receives the next check for payments it will pay Springfield 1st; Du Quoin 2nd, World Trotting Derby 3rd. Due to budgetary cuts at the Dept. of Ag, a decrease of approximately 14% in county fairs will likely prevail; along with potentially no racing at DuQuoin. Also, the Dept. will again need to solicit for funds to insure a county fair testing program. A Standardbred Advisory Council meeting took place Dec 9th. The Nomination Fee Structure voted in, is a one time payment of $500 or (2) $300 payments split between March and May. Although the IHHA had relayed its proposal for a one time payment of $400 as what its membership favored to the Dept. of AG previously. Race Track Condition/Backstretch – With inclement weather recently, the backstretch area needs improvement; snow and ice removal has been poorly done and the area by the chute is like an icy lake, very hazardous. Also, there is leakage in a barn area. A track rep is to meet with IHHA rep Wednesday to review the areas. The track acknowledged that a recent episode where races where cancelled last Sunday due to inclement weather, was an improper call due to their maintenance failure and will not happen again. The IRB will be monitoring future situations. Insurance – The IHHA transition to a new insurance carrier (Blue Cross) has gone well. This carrier should be effective for at least one year. Since there is no longer a HMO program, a minimally slight increase was incurred by members who will now be on PPO. Legal – The Tracks proposed the IHHA share the legal expenses for litigation (against the State) in an appeal concerning the interest on 3% monies. More facts are needed and the issue will be further discussed during negotiation meetings. Finance – Executive Session Public Relations – A website has been created to save the capital bill by proposing slots at tracks as a resolution. Its contents, hosts articles/letters to media outlets, etc. Also, there is a letter to horseracing fans which allows them to show support by their signature. (This letter with signatures will be capitalized on as evidence to demonstrate to legislators the public’s support for slots at track legislation). The IHHA membership will be advised of the site with a link being provided. The PR firm continues to run Twitter/ Facebook accounts generating interest/support for the industry issues. Executive Director Somone will work in conjunction with the PR firm to originate a Facebook account also. Breeders – A report chronicling/detailing the decline of the Breeders Market was recently sent to State Representative; there will be a follow-up by e-mail. The balance has been paid on the 3rd quarter breeders awards. Horse Donations – After board review, it was determined since generous donations had already been made throughout the year; due to budgetary constraints it is not fiscally feasible to make any further contributions this year. The board will re-visit this topic in 2010. Phil Langley – A proposal was recently presented to track reps by Joe Faraldo of the NY Standardbred Owners, Mike Kimleman (Blue Chip Farms) and the Hambletonian Society. A presentation was made for a new bet, a Pick 6. This bet (races x’s2) would be held every Saturday starting the end of January and simulcast through the Meadowlands in conjunction with Yonkers, Balmoral & the Hambletonian Society; with a suggested $100,000 pool guarantee. With, up to a12 horse field; i.e, 10 Yonkers, 12 Meadowlands, 12 Balmoral; for a little investment of either a $.50 or $1.00 bet. The IHHA was invited to consider participation in this venture. After discussion by the board a motion was made for agreement of 1 twelve horse field a week race; that 2% for the 6-7 place horses is to be funded by the track , with the contingency that if the $100,00 guarantee is not reached the IHHA will cover the funds for 6-7 place horses from its purse account and also, there must be varying classes week to week for the races. Motion Seconded by Director H. Williams. All in favor. Motion passed. Executive Session – The board went into Executive session at 3:50pm. Session ended at 4:14pm. Motion to adjourn meeting by Director Engel. Seconded by Director Cassano. All in favor. Meeting adjourned at 4:15pm. ------------------- Directors Present: Cassano, Engel, H. Williams, Beals, McCaffrey, Knicley, Fairley, Hunt, R. Williams, Simpson Directors Absent: Widger, Welch, K. Willis, N. Willis, O’Toole Others: Arens, Somone, Watson, Brubaker, Hoffman, D. Simpson, Frank Consiglio, ? Mack, Fargo Approval of November Agenda: Motion by Director Engel. Seconded by Director Fairley. All in favor. Motion passed. Approval of October Minutes: Motion by Director H. Williams. Seconded by Director Knicley. All in favor. Motion passed. Executive Directors Report: Executive Director Somone reported that last week the IHHA sent a letter to its membership announcing You-Bet as its “preferred provider” for ADW. Unbeknown to the IHHA within the same week, Churchill Downs announced the acquisition of You-Bet. The IHHA’s ADW contractual agreement is through the tracks with the provider and has an effective date till 2012. However, as in any merger situation there are many unanswered questions, such as, Will rates be renegotiated?; Will Churchill Downs dissolve You-Bet as an entity? The merger will likely take 6 months, and the IHHA will have to react and make decisions as facts become known. Track Management has agreed to replace the saddle pads, and also install more TV’s in the paddock at Balmoral. The IHHA sent a welcoming letter to the IRB’s newly appointed commissioner, Alan Monay. His perspective as a horseman should serve well. The Insurance Committee is working with the broker and lawyer to tweak the language for the criteria, etc. The Appellate Court refused to issue a stay to the riverboats concerning the 3% monies. Although the assumption is that funds may be released within the next few weeks, there is still uncertainty whether the riverboats might again be able to appeal to the Supreme Court. Legal counsel is researching this issue. Legislative - A slot or VLT bill may be less likely to pass during an election year, unless the state’s is unable to secure funds from other resources for capital projects, then receipt of 3% will have less impact legislatively. The current ADW law sunsets in 2012; with the acquisition of You-Bet by Churchill, if our current contract is subject to unfavorable elements in light of this merger, (raised cap fees) some protection/recourse is afforded legislatively with the ability to amend the current laws language if necessary. It was noted that Xpressbet is also contracting with Arlington. However, the provider “TVG” is making an expanded PR effort in the Chicagoland market to entice new members and seems amenable to discussions as a preferred provider. President McCaffrey stressed the issue of cap fees has the potential to seriously impact the future of horsemen and racing. County Fairs – Charlyn Fargo, Bureau Chief of County Fairs & House Racing for the Dept. of Ag reported that a Colt Assoc. meeting is scheduled for Wednesday and the 2010 budget could possibly be facing another cut up to 3%. The board noted its concern over the impact any further budget cuts would have on the future of county fairs, also the nomination fee structure, contesting that in these hard economic times the rates need to be reduced, etc. Brenda Watson was selected as the IHHA’s representative to express its views at Wednesday’s meeting. Fargo noted to date that grants had been released for county fairs with the exception of grants in Par. 49. Due to a clerical snafu, paperwork had to be resubmitted for these grants; although this has been done, funds are yet to be disbursed. She would like assistance in getting this matter expedited. She reminded the board that it’s not the Dept. of Ag’s. fault for sluggish fair payments as the Dept. is under a designated budget structure receiving “ x” amount in initial funding, with the balance done in monthly increments. Thus the Dept. is not only constrained by its budget configuration, but also the states dire budgetary problems. Legal – The board discussed the financial ramifications of a recent request by Track Mgmt to JCAR and IRB for a proposed change to rule 422.10d of the Illinois Racing Act. Requesting draft rules be changed from H.B. 1918 & 4758 funds being applied “prospectively” rather than “retroactively”. Their argument being that since May of 2006 they have paid for improvements to facilities, purses, marketing, other operating expenses, etc. in anticipation of the release of funds from H.B. 1918 and 4758. Therefore, they would like to recover their supposed advanced expenditures. Although our legal counsel and IRB feels strongly the current rules language is crafted on solid legal ground, the tracks may make this an issue. The IHHA Contract/Negotiating Committee was recently sent copies of the current contract for review and solicited to submit their ideas for 2010 contract. The committee is currently in discussions with the tracks regarding 2010 contract. The board discussed further options as negotiating tools, and how to address set time limits to finalize contracts with signatures. Issues such as the funding for Open stake races which are supplemented from our purse account; the need for its revision and the tracks non- committal response to match funding for these races. Executive Director Somone is to send a letter to tracks expressing dismay in the tracks negative response to the IIHHA’s recent appeal of soliciting track management to discuss the idea of finding a viable solution for the funding of the Open Stake races. With its content reflecting the IHHA is trying to preserve not abolish Open Stakes. However, based on the current economic climate and recent purse cuts, the IHHA cannot justify supplementing these races from its purse account. Somone is to publish the IHHA’s rebuttal on this issue on its website to coincide with letter. Public Relations – A notice was sent to membership a couple of weeks ago announcing the upcoming Hall of Fame Induction Ceremony/Banquet January 23, 2010. Listed was the guideline criteria and request for nominations as inductees (due by Friday. Nov. 20th). To-date several nominations have been received. The Board was reminded to suggest membership send in nominations quickly. Breeders – Director Hunt submitted for review to the board a packet of information compiled by him detailing/chronicling the decline of the Breeders Market in IL. He requested the board’s support/approval to forward this information to State Representatives and our PR Agent, G. Mack to be further utilized in aiding the horsemen’s cause. Motion by director Knicley. Seconded by Director Fairley. All in favor. Motion passed. *Nomination Lists – (See Legal) *Byes Stake Races – (See Legal) Motion to adjourn meeting by Director Hunt. Seconded by Director Fairley. All in favor. Meeting adjourned at 3:50PM -------------------- Directors Absent: Widger, Simpson, Beals, Knicley, O’Toole, Hunt Others: Arens, Brubaker, Somone, Paradise, P. Williams, Hoffman, Fary, Nicolay, Dixon, Watson, Mack, G., Mack A., Jim Boffia Approval of October Agenda: Amend agenda to included G. Mack. Motion by Director Engel. Seconded by Director Fairley. All in favor. Motion passed. Approval of September Minutes: Motion by Director H. Williams. Seconded by Director K. Willis. All in favor. Motioned passed. Executive Director Report: Executive Director Somone reported that meetings between the IHHA, its lobbyists and legislative caucus members had recently taken place. Members of the harness industry: a veterinarian, an owner, a breeder, also participated in these meetings to aide legislators in gaining a perspective of the industry and its current plight. The meeting were well received and promoted our cause. ADW is now legal. You-Bet is the IHHA’s preferred provider. For every dollar spent in IL. we share in the split 1/3 track 1/3 ADW 1/3 horsemen. It is significant for horsemen to be aware and sign with our provider, since no revenues come to us from other providers such as i.e., TVG or Twin Spires, etc. President McCaffrey directed a letter be sent to our membership informing them of the above. The expense of third party liability insurance from HHI has increased from $26 pp to $37pp. The Membership Committee will convene via conference call to reassess the current membership fee structure and make a recommendation to the board at next month’s meeting regarding 2010 fees. The tracks are addressing the issue of backup lighting (generators, etc.) at the facility. Legislative - S. Brubaker reported Former Rep. Molaro had proposed a gaming bill regarding VLTs at OTBs; meetings took place with track reps and the horsemen groups to try to garner consensus, to no avail. House Speaker Madigan indicated that any opposition to this bill would result in its blockage. Thus, last week, the first week of Veto Session, no gaming bills were passed. The second week of Veto Session begins Oct. 28-30. No gaming bills are planned. Dixon spoke with the chief officer of the Office of Budge/Management re: release of vouchers for the Springfield/DuQuoin Fairs, he acknowledged that release has been made. S. Brubaker reported within the new ADW law three providers have received licenses: Twin Spires, TVG and You-Bet. The IHHA submitted its comment letter on the emergency “rules” files by IRB; stressing enforcement as a key issue, with unlicensed ADW providers to be blocked by the state. To- date the IRB has restricted Express-Bet in IL. The IRB will release additional rules in November re: content/simulcast fee limitations. S. Brubaker said discussions with tracks re: VLTs at OTB’s and slots at tracks will continue with hopes of proposed legislation for the Spring Session. Gary Mack suggested now is the time for the IHHA and other racing entities to be in concert with their efforts to garner support for the feasibility of slots at tracks legislation. Citing the dire financial condition of the state’s budget, and the lackluster reception of the Video Poker Law by communities (400 to date have opted out). The projected revenues for capitol bill projects have been decimated. The state needs a source of revenue with many state vendors currently waiting a year or more for payment. The media at this juncture even seems okay with the possibility of gaming expansion if it is contained. Mack proposed gearing up a media blitz (Tribune/Downstate IL. papers) for the Spring Session. Suggesting a financial study (analysis of the impact the loss of the racing industry would have on the state of IL.) might be a good tool to sell our issue to legislators. Mack distributed copies of the most recent media newsletter to board members. Andrew Mack reported that he has implemented a social networking account on Twitter. Although it is not affiliated directly with IHHA yet, by utilizing racing articles and columns by IHHA’s Mike Paradise, he’s generated a buzz on some current racing issues. So far tweets are favorable/positive and he suggested the IHHA consider a direct link to its website and use the social media forum to develop a younger generational base. Grass Roots/membership - *(See Executive Directors Report) County Fairs – Director R. Williams reported that the Midwest Colt Association recently had their directors meeting at which it was noted that to-date only half of the Springfield Fair racing payments have been made and none of the DuQuoin. Out of the 5 county fairs in the Midwest Assoc. four had to borrow funds to host this year’s fairs. Because they borrowed, by the time they finally receive payments, the interest on loans will put them in red. Because of the state budgetary woes, most likely dramatic changes will occur at the 2010 Springfield Fair; however, the situation is so dire that county fair racing is in jeopardy overall. Race Track Condition/Backstretch – It was reported the backstretch blacktopping and grading behind barns has been taken care of. However, it was noted saddle pads used on the horses are in shoddy condition. Although this issue has been called to the attention of the paddock judge, there has been no response. It was motioned to send a letter to track reps. Seconded. All in favor. Motioned passed. President McCaffrey requested Executive Director Somone place a copy of letter sent to the tracks, in the next month’s board meeting packets. It was reported the N.E. corner of barn 12 is a high traffic spot in need of repair. It was noted although the tracks have spent money on improvements, these have all benefited the tracks and not the horsemen. Insurance – S. Curry reported he along with the insurance committee met to discuss current criteria. Legal consultation was for sought for guideline suggestions, eligibility language, etc. After review/questions by the committee, the attorney will finalize criteria. Prior to policy renewal, Curry solicited the13 IL. insurance companies for bids. He should have final quotes after November 1st. He will then advise the insurance committee of the specifics of the health plans, and after review, be ready to go with a carrier. Purse Account - The purse account is a -$1.8mi. $100,000 has been lost each of the last three weeks. Although funds from ADW for Aug/ Sept should help reduce deficit to -$1.7mi; a purse cut by November 1st is inevitable without release of the 3% funds. It would be up to track representatives as to percentage of initial cut. And they can contractually reduce by 10% a week thereafter). It was reported that tracks are currently in violation of a requirement for the tracks to publish and send a list within 20 days (to each nominator) for stake races; tracks in violation shall receive a fine, suspension or expulsion. The board discussed options of sending letter to the Racing Board. The board tabled this item till next month. The issue of byes in Stake races was brought up, citing the recent decision by track rep. in the Cardinal Stake where of the 12 horses entered, 4 were given byes so as to have a full field in a race, rather than 2-6 field races. The board discussed the option of making it contractual for the elimination of byes in stake races. However, no decision was reach, since two directors who are on the contract/ negotiating committee were absent; the item was tabled to next month meeting. The board discussed the issue of either the revision/dissolution of Open Stake races. Payment of Bills – After review of the bills, a motion was made by Director H. Williams for payment. Seconded by Director K.Willis. All in favor. Motion passed. Public Relations – Randy Tufftie extended an open invitation to the IHHA to participate in their county fair banquet. The radio station, The Score 670, solicited IHHA to participate in a Holiday Salute to the Troops Program. After discussion the board approved. Motion by Director Fairley. Seconded by Director Engel. All in favor. Motion passed. Lights Balmoral (* see Executive Director Report) The board went into Executive Session at 3:55PM. Session ended at 4:15PM. Motion to adjourn the meeting was made by Director Engel. Seconded by Director H. Williams. All in favor. Motion passed. Meeting adjourned at 4:16PM. Sepetmber 21, 2009 – Board Notes Directors Present: Beals, Cassano, H. Williams, Engel, O’Toole, Welch, Hunt, R. Williams, McCaffrey, Fairley, Knicley, Simpson Directors Absent: Widger, Willis, K. Willis, N. Others: Arens, Somone, Brubaker, Paradise, Mike Antonites, Dixon, Fary, Watson, Mack, Janet Jones Approval of August Minutes: Motion by Director Cassano. Seconded by Director H. Williams. All in favor. Motion passed. ADW legislation recently signed by the governor is now officially legal. You-Bet is the IHHA’s official provider. The Springfield, Maywood and Balmoral picnics were all a great success. Kudo’s were expressed to all who assisted. ACTION ITEMS: Legislative – S. Brubaker reported this years veto session is earlier, October 14-16 and 28-30. He noted that although it’s a long shot for slots at the tracks, it might be more amenable to legislators, since the currently passed Video Poker law is not being embraced by many suburbs; it’s prospect as cure for the state’s budget woe’s has substantially diminished, and a revenue generating program is still necessary to fund capital projects. Brubaker commented that 2010 is an election year. The IL. Primary is scheduled for February. Due to this fact, probably little of substance will be accomplished in the legislature since many legislators will be out on the campaign trail. Thus, if action on a slots bill is not taken during the window of the upcoming veto session; it’s anticipated the next likely timeframe for any activity would be after Feb. with a possible final conclusion in May 2010. Grassroots/Membership – B. Watson reported that the membership committee will convene via a conference call to review/update the current membership forms and will give their presentation and suggested recommendations to the directors at next months meeting. Race Track Condition/Backstretch – Director Simpson relayed an incident recently occurred at Balmoral Park. Lights went out during the course of a race; the situation was extremely hazardous, with horse going up to 35 mi. per hour in complete darkness. Fortunately, they were no major incidents, but many drivers were upset by the track’s lack of back-up lights. (generator, solar, etc.). Insurance – (See above Executive Director’s Report) Legal – President McCaffrey relayed that the IHHA’s attorney is keeping abreast of all latest nuances of the 3% litigation. With another quirk of the suit being the attorneys & tracks having solicited their fees be incorporated into the settlement at a proposed cost of an additional 2 mi. Purse Account/Condition Sheet – The purse account is 1.4 in the hole. The board discussed the current condition sheet and the committee will talk to track representative about abiding by the contract’s. President McCaffrey assigned Director Cassano to the Purse/Condition Sheet Committee. Payment of Bills – After review Director Beals motioned approval for payment of bills. Seconded by Director Cassano. All in favor. Motioned passed. Breeders – Breeders awards have been paid through June. Harness Horse Youth Foundation – Executive Director Somone relayed that he recently received correspondence from Ellen Taylor of the Harness Horse Youth Foundation. The IHHA previously donated to the program, however, to-date in 2009 no contribution was noted. The board acknowledged the positive aspects of this foundation in keeping youths interested in the industry. Director Cassano motioned the IHHA make a donation in the amount of $1,500 as previously. Director Fairley seconded. All in favor. Motion passed. Dates Hearings – President McCaffrey advised the board that the IRB dates hearing was upon them and that he needed direction as to of what stance the board wanted conveyed at the hearing. He noted that the purse account is -$1.4 mi. deficit and increasing rapidly, and without the release of the 3% monies or some other revenue generator, it is impossible to stabilize. He reminded the board that the current contract allows for a purse cut by the track when the account reaches a negative -$300,000. However, to-date, track mgmt has made an exception along with our agreement to eliminate Tuesdays in May/June, it even extended the limit to 2 mi. However, that amount will be reached probably by year end, and with no guarantee for the release of 3% funds, a decision has to be made as to what to agree to for dates. The board weighed various options of blocks of time off. It was noted that last years position of 24 days off in January, had worked fiscally. The board agreed to recommend a five day week schedule Weds./Sun. with a 24 calendar days (15 day dark) in January (4-26). Motion by Director Engel. Seconded by Director O’Toole. Vote 10 Yeas 2 Nays. Motion carried and passed. DISCUSSION ITEMS *NOTE: President McCaffrey extended an invitation to both track owners Maywood-Balmoral and Hawthorne to address/discuss with the board options regarding upcoming IRB Dates Hearings. Hawthorne declined. The board then discussed other issues with Johnston, i.e, high number of entries at Maywood & claimers (quality); condition sheets, open stakes. Johnston expressed willingness to allow the IHHA to write condition sheets, control its purse account; and noted the track would take under advisement revision of open stake races for 2010, etc.. He also stated he will look into rectifying the issue of lights (recent blackout: see Race Track/Backstretch Condition entry above.). He will also investigate the lag in disbursement of Springfield/DuQuoin payments. Charlyn Fargo / Dept of Ag. – Charlyn Fargo thanked the IHHA for it’s hosting the picnic at the IL. State Fair, along with its’ donation to the Dept of Ag. (to assist in its drug testing programs this year at county fairs She reported as of last Friday 50% (Springfield) fees were paid out by HGCA to winners. However, even though the /Dept. of Ag. has completed/submitted all paperwork necessary for the release of vouchers for winners at county fair’s, to-date no disbursements have been made. She cited that all these programs funds are grants from the state budget and the Office of Budget/Management has not released vouchers yet. Executive Session – Board went in to Executive Session at 4:20PM. Session ended at 5PM. Motion to adjourn the meeting was made by Director Knicley. Seconded by Director Beals. All in favor. Motion passed. Meeting was adjourned at 5PM. -------------------- August 10, 2009 – Board Notes Installation of New Board Members President McCaffrey introduced new board member Joe Cassano. Directors Absent: Widger, Simpson Others: Somone, M. Friedman, G. Mack, Ira Smolin, Mike Sheehan, Mike Paradise, Angie Coleman, Brenda Watson, Rufus Jackson, Paul Williams, Dave Staat Approval of August Agenda: Motion by Director Fairley. Seconded by Director N. Willis. All in favor. Motion passed. Election of Officers: President McCaffrey called for nominations for the elections of officers. Director Beals motioned to nominate and re-elect the current officers for the 2009-10 board cycle. President McCaffrey called 3 times for additional nominations. Hearing none, the president declared nominations closed. The motion was then seconded by Director Engel. All in favor. Motion passed. Approval of July Minutes: Motion by Director Engel to approve. Seconded by Director H. Williams. All in favor. Motion passed. Executive Directors Report - Executive Director Somone reported that letters have been sent on the past few Fridays to all the legislators keeping them apprised of the developments re: the 3% litigation. Also a letter was sent to the IHHA membership informing them of the status of the litigation and the IHHA efforts to keep its’ “voice” heard by the legislators. He noted, to –date the response from legislators has been positive with many writing or calling back to discuss this issue and show support. ADW legislation has not been signed yet by the governor. He reported that another phone call came in voicing displeasure with the racing office. It was noted that 2 to 3 phone calls per month come in from horsemen stating their unhappiness with the racing office. The Springfield Fair IHHA picnic will be on the 14th. The IHHA Annual Grooms Picnic is scheduled for August 24th at Balmoral and August 31st at Maywood. Election Supervision Report – Marty Friedman, of the accounting firm McGladrey & Pullen, LLC. reported that due to the circumstance of only five members filing petitions for five positions open; a decision was made to forego a formal election. Following certain procedures, the accounting firm independently printed and mailed a proxy and consent form to every member of the Association. A quorum of 10% of the members consented the following members be named as directors by acclamation at the annual meeting of the association on August 8, 2009: Al Beals, Joe Cassano, Terry Hunt, David McCaffrey and Kay Willis. ACTION ITEMS: Legislative – Paul Williams reported that to-date neither the ADW or Off-Track legislation has been signed by the governor, subsequently if no further action is taken they both will become law. Both Gary Mack and Paul Williams noted that although letters are going out to legislators from the IHHA every Friday, the benefit of grassroots connections is just as important and members (and the harness industries affiliates) need to contact not only their local legislators, but the city (majors) or county officials as well. IHHA members can find their legislators districts on the membership cards and can use the locator on the IHHA website to access addresses and phone numbers. Rep. Reis has expressed his willingness to help move forward legislation in the upcoming Veto Session. It was noted however, that it is difficult to move new legislation during this period, however it is a start. G. Mack reported although there was recent passage of VLT legislation, many locales view this type of gaming unfavorably for their locales and have issued a ban against it. Based on this Mack suggested the IHHA think about filing an Amicus Curiae Brief (“friend of the court” someone not party to the case, who volunteers information on a point of law or some other aspect of the case to assist the court in making its decision) thus, the 3% Litigation. The information may be in the form of a brief/ testimony) not solicited by any parties or by a learned treatise on a matter that bears on the case. Its purpose: to introduce concerns, so the broad legal effects of the courts decision not be based solely on the parties directly involved in the case. However, the decision whether to admit the information lies with the discretion of the court. Mack and Williams suggested another legislative reception would be beneficial at the appropriate time. Grassroots/Membership – After formation of the 2009/10 committee for membership, work will begin on revision(s) for the 2010 membership application. County Fairs – The County Fair “racing” season is winding down. Although, a few fairs experienced some funding issues, matters were ultimately resolved. Also noted was a gradual decline in the number of county fairs from a few years ago: 44 to 37/38 currently. The drug testing program conducted by the Dept. of Ag. was successful again this year. Race Track Condition/Backstretch – With the recent work performed on the straight-away at Balmoral, it has shown signs of improvement. A complaint was raised re: the timing of the watering of the tracks surface: watering needs to be done prior to first race, not after the fourth or so. It was also noted that both stalls at Maywood are in need of some attention; TV’s are needed in the north end (Balmoral) so the horsemen can tell what’s going on; dirt piles by some barns need to be removed. President McCaffrey noted that after new committee assignments, these issues will be addressed. Insurance – Director Engel introduce horsemen Smolin and Staat who addressed the board regarding their concerns about the recent elimination of the tenure category within the IHHA Insurance Program. President McCaffrey retorted that the decision was based on the IHHA’s fiscal responsibility to its membership. In accordance with the insurance company’s compliance department this category should/could be eliminated. McCaffrey noted that the IHHA, along with its insurance broker took all the necessary steps to assist people on tenure by first advising them in plenty of time (notice) of the change in policy and secondly, by the broker giving guidance to viable alternatives. An insurance committee meeting is scheduled for Wednesday at 1:00pm. Legal – Settlement with Hawthorne on the overpaid purse account is anticipated. Purse Account - The Purse account is - $1.4mil.in the hole; there is hopefulness the new 5-day race schedule will help in its stabilization The purse account could possibly drop to $2mil overpaid by Oct/Nov. making purse cuts becoming a reality. Payment of Bills - Motion by Director Beals for payment of bills. Seconded by Director Hunt. All in favor. Motion passed. Public Relations - Post cards to go out during Sate Fair. Breeders - Maywood paid through June 30, 2009. Still waiting for 2nd quarter payment from Balmoral. Visits – An inspection by an IHHA Director to the Racer Pacer facility (horse retirement) in WI, gave it a clean bill of health. Based on that, Executive Dir. Somone requested the board consider the request by Racer Pacer and ASAP for donations be granted. Director Beals made a motion of $2,000 to ASAP and $1,000 to Racer Pacer, with the condition to revisit these amounts next year. Motion seconded by All in favor. Motion passed. DISCUSION ITEMS Committee Assignments – The directors were given a committee form to complete at the board meeting. Executive Director Somone collected these to be reviewed by President, who will assign committee chairmen and appoint committee members shortly. The next Board meeting is scheduled for September 21st; the IRB’s meeting is scheduled for Sept. 24th. Director O’Toole will look into the development initiative for the IHHA to promote itself through Facebook and/or Twitter Account. Motion to adjourn the meeting was made by Director Beals. Seconded by Director Knicely. All in favor. Motion passed. Meeting was adjourned at 4:30PM -------------------- July 20, 2009 – Board Notes Directors Present: Knicley, Fairley, R. Williams, Widger, Beals, H. Williams, McCaffrey, Hunt, Miller, Simpson Executive Director’s Report: Executive Director Somone reported the ADW revenue for May was $59,820. Since disbursement/deposit is one month in arrears, June is expected to be $50,876. He reported a general meeting had taken place with Hawthorne track management regarding 2010 racing dates. Regarding the August 3rd court decision on the 1918 monies: according to the attorneys, the consensus is the release of funds at that time is a remote possibility; with the more likely scenario being for the funds to be released by year end. Legislative: S. Brubaker reported that although the General Assembly is adjourned until the veto session the budget crisis is still not resolved; the current budget is contingent on loans and reductions, thereby allowing a possible window for a gaming bill to be viable in either the veto or spring session. The ADW bill sent to governor on June 26, to-date has yet to be signed. He does have sixty days to sign and it is believed this has been delayed due to the budget crisis. President McCaffrey expressed he found the recent passage of legislation for VLT’s incredulous; based on the fact the legislators had expressly been opponents of gaming expansion. He solicited the lobby team to explain how this legislation was able to gain passage. As he noted once again the dire straits of the industry, he cautioned the lobby team, unless there is legislative relief soon, the cost of their efforts is too high to be maintained by the association. S. Brubaker reiterated that the current state budget still requires a major funding infusion and with that remains an opportunity in either the veto or spring session to push further gaming legislation. The board and lobby team discussed further strategies to enlightened legislators that although H.B. 1918 was passed, it has been mired in legal challenges by the boats. What was to have been a benefit to the horsemen, to-date has brought no relief since no revenues have been disbursed. The board will seek legal counsel on whether it would be advantageous to counter the boats legal challenges with a retroactive counter-suit filed against the riverboats, contesting the unconstitutionality of the earlier legislation in 1987 or 1999. Grass Roots and Membership Report: Current membership is still slightly behind last year at this time. However, some renewals and new registrations are coming in from county fair attendees. County Fairs: Positive feedback has been noted as a result of the current testing at the fairs this year. Also the county fair reports/commentary by IHHA columnist Mike Paradise, have not only been well received, but his coverage has highlighted this fundamental horsemen venue. Race Track Condition and Backstretch: Currently the track condition is okay, it was noted however, that when maintenance includes a surface that is watered more, the set up is better. Executive Director Somone will follow-up regarding the lack of freezer (in driver’s room) for food storage. Insurance: It was noted that since the board’s decision last month to eliminate the category of “tenure” from the IHHA Insurance Program effective September 1, 2009, an opponent has been quite vocal trying to undermine this decision with the rank and file. The decision, based on the IHHA’s fiscal responsibility to its membership, after examination of its current program by its broker, rendered that the prohibitive expense of this subsidy was not cost- effective to the association but actually detrimental; based on the insurance company’s compliance department’s counsel this category could be eliminated. The IHHA took all the necessary steps with its insurance broker to assist people currently on tenure, to be given plenty of notice of the change in policy and alternative viable options. Legal: Balmoral track management had proposed the IHHA lend its support to Balmoral in their recent request of the IRB to eliminate Tuesday racing, rather than face a purse cut. After weighing pro’s/con’s the IHHA’s decision was that, it was in its best interest to support the elimination of racing Tuesdays. Balmoral Park requested the IRB at its July meeting mandate a ruling for the elimination of Tuesday racings dates from July 28th through Oct 27th. The IRB made this mandate. Within a day, track management contacted the IHHA stating this ruling was an erroneous idea and suggested an alternative for consideration: no elimination of Tuesdays, but rather a reduction of the number of race(s) varying in the schedule throughout the week. Without required notification to IHHA or IRB, the track posted a condition sheet for Tuesday the 28th, which violated the IRB mandate. The board discussed its options and decided that it would apprise/contact the IRB, and register it’s disapproval of the tracks action, putting out a condition sheet for the 28th. However, in consideration of the fact it had been published and would be problematic for horsemen entered in the stakes races to be confronted with a change at this time; the IHHA would allow that this date would be an exception, but the mandate for all the other Tuesdays still holds. Payment of Bills: After review of the financials Director Beals, authorized payment of bills. Motion by Director Hunt. Seconded by Director Widger. All in favor. Motion passed. Public Relations: Executive Director Somone presented to the board a PR idea for a nominal cost: a postcard sent from the IHHA to owners (containing a picture of their winning horse at stake races) congratulating them. The board reviewed an example and gave its approval. Due to the favorable feedback since the inception of Mike Paradises’ column on the IHHA website, it was decided to find a method to highlight this feature even more. G. Mack is to explore the possibility of the IHHA’s promoting itself through the development of a Facebook and /or Twitter Account. Breeders: As of July 20th, the 1st quarter breeders awards have been paid by Balmoral, however not the 2nd quarter. Maywood has not paid any 2009 breeder awards to-date. Transfer to Insurance Trust: Executive Director Somone presented a recommendation to the board that it approve a transfer of funds from the IHHA General Account to the Insurance Trust Account to lessen the 2008 tax liability and this transfer would be representative of additional transfers for 2008. After discussion by the board a motion was made by Director Beals to approve the transfer of $50,000 in funds from the General Account to the Insurance Trust. The motion was seconded by Director Hunt. All in favor. Motion passed American Standardbred Adoption/Susan Wellman Gifting: Executive Director Somone reported that recently requests for donations have come from both the American Standardbred Adoption Service and Racer Pacer. Both facilities are based in WI. and undertake the care/ welfare of IL. bred horses without a home. After discussion by the board it was agreed that one of the directors will visit/inspect these facilities, and report his findings to the board prior to a decision for donation being executed. Charlyn Fargo-Dept. of Ag.: Charlyn Fargo, Bureau Chief County Fairs & Horseracing from the Dept. of Ag. graciously thanked the IHHA for its past and recent donation to support testing at county fair races. She reported that pre-race/post race TCO2 testing is being conducted and to-date sixty horses have been tested with no positives. Feedback from racing participants is affirmative. The Dept. of Ag. budget funding is secure for this year. The Dept. is receiving the same funding as last year, due to the fact its source is from the state’s premium funds not the general revenue fund. Also, adjusted purse amounts are to be posted in the Colt Meeting adjourned at 3:15PM. Motion by Director Beals. Seconded by Director Widger. All in favor. Motion passed. -------------------- June 15, 2009 – Board Notes Directors Present: H. Williams, Fairley, N. Willis, Welch, Hunt, R. Williams, Engel, McCaffrey, Widger, Simpson Directors Absent: K. Willis, O’Toole, Miller, Knicely, Beals Others: Somone, Arens, Watson, Brubaker, N. Brown, Dixon, Fary, Dart, Nicolay, P. Williams Executive Directors Report: Executive Director Somone reported that a conference call with track mgmt and You-Bet reps. took place last Friday. Discussion topics included: new membership, increases in handle, and how many people sign up vs. actually betting. Consensus by all sides is to continue to participate in monthly meetings to keep abreast of issues. Executive Director Somone commented that he hoped that all directors had reviewed an article (previously sent in board packets) re: the disparity concerning FL. Standardbred Horsemen & the slots issue as a warning of an erroneous way for an association to tackle this subject. Legislative: S. Brubaker reported on the recent U.S. Supreme Court’s decision not to hear the riverboat’s 3% appeal. It was noted however, that two new lawsuits have been filed regarding this decision and may stall release of escrowed funds. The General Assembly’s recent adjournment without a budget resolution will likely compel its return prior to year’s end; possibly forcing a special session. The Governor has refused to sign the recent Video Poker Bill until the budget if finalized; however, this bill could become law w/o his signature unless he vetoes it. This legislation is a funding mechanism tied to the capital bill. In the law an allowance is made for municipalities to decide it they choose to have machines (it was noted the city of Chicago is on record as expressing its non-participation). The SB744-Slots Bill has passed in the Senate and is awaiting action in the house, although this current bill is not as favorable as past bills it still is viable legislation for the IHHA, containing strong guarantees for “live racing” and repeal of recapture. The boats would own the slots placed at tracks; the split for horsemen would be 60/40 of AGR after taxes and boat expenses; with a guesstimate of revenues projected at 13 mi. annually. The ADW bill passed and awaits the governor’s signature. Arlington recently was successful in passage of an OTB bill allowing for a new OTB in Rockford nearby a daycare center, after it was able to change legislative language as to the definition of what constitutes a “school”. The IRB appealed to lawmakers for additional funding to subsidize its current budget deficit of 3-4 million. The current ADW bill could provide up to 1.5 million in relief. Grass Roots and membership Report: Current membership is slightly lagging behind last year. However, with start of county fairs, membership forms are being distributed and should garner new and renewal registrations. An unpaid membership list (to-date) is being reviewed and the membership committee will solicit those absentees for renewal. County Fairs: A letter was recently sent to Country Fair Speed Superintendent’s and Race Officials requesting their participation for the inclusion of the IHHA website URL on fair flyers and programs. County Fairs are facing a funding crisis, unless additional revenue is found. Starting in July horsemen will be issued two checks. The first check will be half of their winnings (this being paid from March 15th entry fees/stake fees) with the second check issued when fair associations have received additional state revenue. However, because of the lack of guarantee of state funding (with no state budget to-date and funding cut proposals), many fairs associations will not be able to even secure local loans as done in the past for the race payments. It was noted the Colt Associations operating budget has declined from $17,000 in 2007 to$ 10,000 in 2008 to$ 5,000 currently; however, operating expenses for clerks, photos, travel expenses, remain. In discussions with the Dept of Ag. it acknowledged responsibility only for maintaining purses, not other incurred fees. A conference call took place between IHHA representatives and Charlyn Fargo-Dept. of Ag. Bureau Chief County Fairs & Horse Racing, for consideration of a $10,000 donation by the IHHA for county fair testing. The donation is to be sent to Dept. of Ag. and earmarked for fairs. Beginning in July the funds will be utilized and after the fair season a final accounting in detail will be given to the IHHA. Executive Director Somone is to send a letter to track reps requesting better manure removal at Balmoral. Lack of food storage (freezer) is a health concern at the driver’s kitchen at Balmoral; a request will be made of track mgmt for adequate equipment to remedy this situation. Also, a request is to be made for construction of an outside shed for use during inclement weather by horsemen. This action along with reduction of retirees will allow the insurance broker to solicit policy renewal rates by Sept 1st; should constitute lower quotes being given. Legal: The IRB recently requested the IHHA give their interpretation on the disbursements of the riverboat 3% monies (retroactive or forward). After discussion the board decided to go on the record for the monies to be paid going forward. Purse Account: To-date weekly purse account is -$800,000. Payment of Bills: Via e-mail treasurer Beals, authorized payment of bills. Motion by Director Fairley. Seconded by Director Widger. All in favor. Motion passed. Public Relations: G. Mack sent a press release to county fairs urging IL. residents to join the IHHA and it members and show support for county fairs racing. Since IHHA columnist’s Mike Paradise inception of reporting on county fairs, hits to the website increase twofold. Meeting adjourned at 3:30PM. Motion by Director Hunt. Seconded by Director Engel. All in favor. Motion passed. -------------------- May 18, 2009 – Board Notes Directors Present: Beals, Engel, R. Williams, N. Willis, K. Willis, Knicley, Fairley, Welch, Widger, McCaffrey, Hunt, Simpson Directors Absent: H. Williams, O’Toole, Miller Others: Somone, Arens, Paradise, Curry, Mack, Lilly Approval of May Agenda: Revision to May Agenda to include the following items: Steve Curry-Insurance; County Fair Testing; Executive Session. Motion by Director Hunt. Seconded by Director Engel. All in favor. Motion passed. Approval of April Minutes: Motion by Director Engel. Seconded by Director Knicely. All in favor. Motion passed. Executive Directors Report: Executive Director Somone reported that repairs have been made to the roofs of feed rooms at Balmoral and barn roofs will be done shortly also. The Condition Sheet Committee met and expressed its opposition to the tracks current policy of rail assignment. Executive Director Somone reported that the outlay for food for drivers, trainers, owners, etc. during the upcoming Springfield Fair would be between $1,500 to $2,000. At a recent IRB meeting it was mandated the current TCO2 test range level of 39 be changed to 37 effective June 2009. In addition, qualifying for lasix horses will no longer be a requirement, effective in 90 days-July 2009. Tuesday, May 19th the IHHA will host a reception in Springfield for new legislators. The objective is to acquaint legislators with the horsemen’s perspective on the harness racing industry in Illinois. Litigation regarding overpayment of the purse account by Hawthorne, has been remanded by the judge back to IRB for a hearing set for Tuesday, June 9th. To-date there has been no response from the IRS regarding the Sales Tax Issue. The Illinois Supreme Court did not make a decision on the 3% monies today as expected. Their docket contained over 300 cases; two were granted, the rest denied. Our case was not on Monday’s docket. Consultation with the IHHA attorney noted this is not necessarily good or bad; the court is taking its time to review the case. There could be a decision by next Tuesday; however, in the event the courts decision is to hear the case, it could take nine months to one year for a ruling. ACTION ITEMS Legislative – Currently eleven days are left in the session, with the Senate set to adjourn May 29th. There is presently a Video Poker Bill in the legislature. This bill would allow for 3 machines for every liquor license, 5 for every fraternal organization. It seems legislative leaders are looking at this bill as a means to fund a capital bill. The IHHA is in opposition to this bill and editorials state-wide have expressed this opinion as well. The Slot’s Bill draft has been back and forth over the last 48 hours. The IHHA lobbyists are working in conjunction with Sen. Link to benefit the harness industry and insure “ live” racing. Although the current bill is not as beneficial as previous slots bills, it’s getting refined; to-date the boats would run slots at tracks and the split for horsemen is less than in old slot’s bill, but still okay. A re-draft is scheduled to be presented to committee today at 3pm. The ADW bill is currently stalled, however, there is possibility it could be moved. County Fairs – The IHHA County Fair Committee recently met with IHHA lobbyist in Springfield, and the President of Ag. Assoc. to insure legislative language protects county fair racing. IHHA Columnist Mike Paradise will work in union with the County Fair Committee and the superintendent of county fairs to solicit human interest stories for the IHHA website. Race Track Condition and Backstretch - Track conditions are good to-date. Potholes at Maywood have been patched. Balmoral’s potholes are being worked on. Feed room roofs have been repaired. Barn roofs will be done soon. Insurance – To-date all insurance premiums are current. Recently a zero tolerance notice was given to lax policy holders; so far it has been effective. Legal – Review/discussion litigation re: Hawthorne overpayment case. Purse Account –Current purse account as of Saturday May 16th is a -$570,000. Payment of Bills – Motioned by Director Beals. Seconded by Director Engel. All in favor. Motion passed. Breeders – As of last week Balmoral has made payments on the first quarter 2009 breeders’ awards. To-date Maywood is negligent. The breeder’s committee is working with ISOBA , the Dept. of Ag. and Sen. Sullivan on legislation to promote harness racing at county fairs, etc. DISCUSSION ITEMS Change of By-Laws (Date of Annual Election) – Proposal to change the by-laws language regarding the date of the IHHA Annual Election. The current date conflicts with the upcoming Springfield Fair; language modification would allow latitude to avoid future scheduling conflicts. However, it was noted the item needed to be listed on the agenda under action items in order for a motion to be made (Roberts’ Rules). Since it was inadvertently placed under the discussion items, the Executive Director will hereby, give a 3-day notice, then convene a conference call of the directors (special meeting) for a vote, to achieve compliance. Steve Curry (Insurance Broker) –As a means to counteract IHHA rising insurance premiums, Curry initiated a consultation with retiree members of the program. After review of their policies, etc. it was noted that some were actually over-insured and each agreed it would be beneficial for them to change programs. Calls/letters were made/sent to members 65 & older who are eligible for Medicare. After their consultations, if these members choose to opt out for Medicare; the result could be a cost-effective solution for the IHHA garnering a rate reduction by its insurance carrier. County Fair Testing – The Department of Ag’s. Bureau Chief Charlyn Fargo, requested $10,000 for county fair testing. (In Nov. 2008 a motion was made by the board to make a donation of $10,000 to Dept. of Ag. for testing contingent only upon the lack of funding from other sources; if funding is received through legislation or other sources the offer is retracted). Before approval of any donation the directors would like to engage in a conference call with Charlyn to discuss exactly how the money is to be spent. Executive Session – The board went into Executive Session at 2:55pm. Executive session ended at 3:25PM. Meeting adjourned at 3:25PM. Motion by Director Engel. Seconded by Director N. Willis. All in favor. Motion passed. ------------------------- April 20, 2009 – Board Notes Directors Present: O’Toole, Knicely, Fairley, Welch, R. Williams, Engel, H. Williams, Miller, Willis, N., Hunt, McCaffrey, Widger, Beals Directors Absent: Willis, K., Simpson Others: Brubaker, Hoffman, Hunter, Arens, Dixon, Mack, Cassano Paradise, Somone, Fary, Curry Approval of April Agenda: Motion by Director Engel. Seconded by Director H. Williams. All in favor. Motion passed. Approval of March Minutes: Motion by Director O’Toole. Seconded by Director H. Williams. All in favor. Motion passed. Executive Directors Report: Executive Director Somone reported that revenues of $52,000 have been credited to the purse account from You-Bet since February. The IHHA website has shown a marked increase in hits (35%), during the last 6 weeks since the launch of Mike Paradise’s column. An IHHA newsletter has been composed and is currently at the printer; it will be ready for delivery to the membership on Tuesday. Executive Director Somone shared receipt of a financial appeal letter recently sent to HHI directors from the Florida Harness Horsemen’s Association. It cited their dire financial circumstances (no revenue from slots) and spiraling legal expenses ($300,00 to-date); Exec. Dir. Somone heeded this serve as a reminder as to why the IHHA engages lobbyist’s in their legislative endeavors. Executive Director Somone reported that the IRB is implementing some slight rule adjustments as strictly a housekeeping measure. These refinements include: HGCA licensing, Paddock restrictions, and (open stretch) track: no blocking. ACTION ITEMS Legislative – S. Brubaker reported that current legislative session is at its halfway point and will be returning from a 2-week hiatus this week. Due to a lack of compromise with the tracks on recapture language, HB26stalled; thus it was gutted and sent back as shell bill. However, this week the lobbyists will be working on amenable language (partial repeal of recapture and back-fill from pari-mutuel tax) and get something to the Senate. Although HB 1298 ADW passed the Senate with a substantial 43-9 vote; the bill may be thwarted in the house. Brubaker noted there are currently eleven live bills (5-shell bill in the Senate and 6 others.); a video poker bill failed to advance, no recapture reimbursement is included in the budget, nor are any 3% repeal bills. The lottery bill may pose a problem, since it allows the vendor the right to choose games, casino style or live casino, this bill was gutted and sent to Senate. Budgetary concerns are keeping gaming expansion alive. Gov. Quinn’s honeymoon period is over with legislators, and not everyone is on board with his proposed tax increases. Five weeks are left to pass a budget. Brubaker reported that last month the IHHA hosted an event for the Downstate Democratic caucus; another event will be held this Wednesday for the Black Caucus. G. Mack reported that in May, a reception will be held for the twenty new legislative members, as a primer to introduce/educate them on the horsemen’s concerns/ issues. Grassroots/Membership – B. Watson reported current membership is slightly under last years; however county fairs start in June which should affect an increase. Board members were encouraged to review a list of unpaid members and solicit those who have not joined to-date to renew their memberships. Also, board members were asked to review list for outdated information, i.e., (anyone who may be out of business or deceased) and subsequently, notify the office so database records can be updated accordingly. President McCaffrey encouraged directors to focus on ideas to increase membership. County Fairs – The County Fair Association hosted a legislative reception a couple weeks ago, during which it was noted that there has been a serious decline in the correlation of monies refunded from the state as to what is spent on fairs, from 66% to 31%. This years figure may only be in the 20-25% range. These figures in conjunction with the drop in nominations, the low priority fairs have been given legislatively, pose a real question as to their future viability and racing. President McCaffrey suggested the IHHA County Fair committee get together with IHHA lobbyist Brubaker, to find a way to try to ensure a legislative benefit for fair funding. Race Track Condition and Backstretch – Lingering concern was once again expressed over the problem of roof leakage(s) in the barn/feed room areas at Balmoral. Supposedly, the tracks are soliciting bids by contractors. Insurance – (see Discussion Items #1) Legal – President McCaffrey noted that a Supreme Court decision on the pending 3% Impact fee appeal is due by June; he thereby requested volunteers from the board to form an ad hoc committee to finalize the accounting of horsemen’s share of the 3% Impact Fee. Also, for this committee, along with the IHHA executive director, IHHA legal counsel and IRB representative(s) to conduct a meeting with track mgmt to reach a collective resolution for any discrepancies. President McCaffrey then requested another committee be formed to design a new condition sheet based on the aforementioned subject. Within the next two weeks, the committee is to engage in a conference call with track management with it’s new proposal. Purse Account – A handout was distributed to board members with the final 2008 accounting figures for Bal/May and Hawthorne. The current balance of the purse account is -$ 524,000. President McCaffrey conveyed a proposition from track mgmt: the IHHA in unison with track management to support a request of the IRB to allow for allocated race dates for Tuesdays at Balmoral Park be transferred to Maywood. The board addressed the issue of rail assignment by track management. A motion was made by that regardless of the premise, track management eliminate assignment of the rail year round. Motion passed. Payment of Bills – Motion by Director Engel. Seconded by Director N. Willis. All in favor. Motion passed. Breeders – Director R. Williams stressed the need for more breeders to become involved in the association, and she will continue in her efforts to accomplish this objective. DISCUSSION ITEMS Steve Curry (Insurance Broker) – An insurance committee meeting was held last Friday to discuss options to find a cost effective solution(s) to counteract the programs rising premiums. The broker noted that in discussion(s) with insurance carriers a favorable decrease in rates could be secured through the reduction of members who are eligible to be on Medicare, etc. The insurance broker’s compliance dept. validated the association has the lawful option to change criteria components for retirees, those 65 and older and tenured members. Then, as of September 1st when renewal rates are given by insurance carriers the IHHA would be in a better position to receive favorable rates. Springfield (Food) - Executive Director Somone suggested the IHHA host a barbeque for the horsemen at the IL. State Fair this year. He noted that last year due to underfunding the Dept. of Ag/ISOBA were unable to. President McCaffrey directed Somone to obtain estimate(s) and the board will revisit the idea at its May meeting. Board went into Executive Session at 4:10pm. Executive session ended at 4:15pm. Meeting adjourned at 4:15PM. Motion by Director Engel Seconded by Director H. Williams. All in favor. Motion Passed. ------------------------- March 16, 2009 - Board Notes Directors Present: Engel, R. Williams, Beals, O’Toole, Knicely, Widger, Hunt, McCaffrey, Simpson, Fairley Directors Absent: Miller, Willis, K., Willis, N., H. Williams, Welch Others: Brubaker, Arens, Somone, Watson, Mack, Fary, D. Simpson, C. Fargo, Fary President McCaffrey announced the resignation of Board Director Hunter. The board discussed nominations for the position of treasurer; a motion that Director Beals assume that position was made by Director Engel. Seconded by Director O’Toole. All in favor. Motion passed. Approval of March Agenda: Motion by Director Fairley. Seconded by Director Engel. All in favor. Motion passed. Approval of February Minutes: Motion by Director Engel. Seconded by Director Fairley. All in favor. Motion passed. Executive Directors Report: Executive Somone reported he and Directors Hunt and Engel had recently met with a prospective accounting firm and are awaiting their proposal. Executive Director Somone stated to date he has not heard from the Dept. of Revenue regarding their proposal of a published notice regarding Use Sales Tax. Executive Director Somone related that former Tribune handicapper and writer Mike Paradise’s insights ands commentary are now available on the IHHA website. Since its inception two weeks ago there has been a marked increase in site hits, along with many favorable comments. In the near future this is a source for potential revenue enhancements from advertisers. Executive Director Somone recounted a letter regarding the disparity of payments on breeder’s awards had been sent to track management along with copies to members of the IRB. Executive Dir. Somone reported on a meeting he along with, personages from the IRB, UIC lab and track mgmt recently attended regarding the issue of TCO2 testing. The group at the meeting passed a version of post –race testing level lowered to 37 and the pre–race level remains at 39. Charlyn Fargo of the Dept.of Ag. announced the department has the funding and will be conducting pre-race testing at county fairs. ACTION ITEMS Legislative – S. Brubaker reported that Friday, the13th had been the deadline for bills to get out of committee. Of the 14 racing bills in committee (only 4 had any real language) with the other 10 being shell bills. HB 26 had its second reading. Another negotiations meeting will take place next week right before a vote on HB 26, and if no mutually beneficial conclusion is met, Brubaker reports, bill sponsor A.Turner will take the bill to the floor. Brubaker noted there has been some discussion by house members regarding slots at tracks legislation. Rep.Cross & Sen.Radogno held a joint media event last week announcing a gaming for capitol program. Senators Cullerton-Link have also made comments favorable toward slots legislation. Speaker Madigan has remained mute. However, sources on Quinn’s staff reported that every viable option is on the table due to the states dire budgetary concerns. G. Mack reported that the IHHA as in previous legislative sessions will host a meet/greet receptions for targeted legislators beneficial to our interests. On a final note Brubaker reported that 3 proposed bills on the repeal of the impact fee had garnered no momentum, remained in committee; a proposed bill to make the 3% fee irrevocable also failed to advance. Grass Roots and Membership – B. Watson reported that current membership running counter to last year, with an expected increase during county fair season. County Fairs –There was expressed concern for the need for additional testing at county fair level citing a perceived TCO2 problem. Dept. of Ag. Bureau Chief, Charlyn Fargo, reported that the department will have more extensive testing this year. The department will fund testing at cost of $15 per horse with blood samples sent to UIC lab for analysis. Race Track Condition and Backstretch – It was reported the maintenance of the track condition has remained good, even after all the cold weather and heavy rains. There was a complaint that although potholes at Maywood backstretch had been filled the materials used were inferior and thus resurfacing needed to be done again. Executive Director Somone will contact track mgmt regarding this matter. Insurance – Executive Director Somone reported he had recently conversed with the new insurance broker. The broker expressed a company strategy to counteract expenses currently incurred by the IHHA. President McCaffrey reported that a member had contacted IHHA stating more reasonable insurance coverage could be found for its members. The member suggested a program with only per month cost of ($200) and supposedly compatible benefits. However, after research by the IHHA insurance coordinator, it was found that the program lacked comparable benefits; with a major discrepancy found in cost for drug prescriptions program yielding only a 44% reimbursement and a hospitalization initial deductible of $30,000. Purse Account – Director Beals reported that we had our first positive week of the year, resulting in a gain of nearly $25,000. Payment of Bills – Motion by Director Engel. Seconded by Director Widger. All in favor. Motion passed. Finance – Director Beals in an effort to reduce unnecessary paperwork, etc. requested the board review/advise him which parts of the financial packet given out are most relevant to directors. Public Relations – G. Mack handed out a copy of a recent press release announcing Mike Paradises joining the IHHA website as a columnist. DISCUSSION ITEMS Racer Pacer Adoption Services – Executive Director Somone reported he received a solicitation from the Racer Pacer Adoption Services a WI. Based program, which hosts 12 IL horses for a donation, which is also tax deductible. Executive Director Somone noted that although we currently support the American Standardbred Adoption Agency, it would be positive for the IHHA to support another program that assists IL horses. After discussion the board decided to donate $1,000 and re-evaluate this amount after six months. Motion by Director. Engel. Seconded by Director R. Williams. All in favor. Motion passed. Meeting adjourned at 3:28PM. Motion by Director Fairley. Seconded by Director Knicely. All in favor. Motion passed. ------------------------- February 15, 2009 - Board Notes Directors Present: H. Williams, Knicely, Fairley, O’Toole, Engel, Hunt, R. Williams, Hunter, K. Willis, N. Willis, McCaffrey, Widger, Welch, Miller, Simpson Directors Absent: Others: Arens, Hoffman, Brubaker, Watson, Beals, Somone, Lilly, Dixon, Mack, Fary, Paradise, Bartletti, Dyckman, Whitman, Dr. Fitzpatrick Approval of January Minutes: Director Hunt requested the breeders title in the minutes be amended to mirror the modification as in aforementioned; also, to edit the entries composition, per the handout by Director Hunt. Director Knicley requested Par. 4 under County Fairs be deleted. S. Brubaker requested a revision under legislative, Par 3 line 1 regarding the wording on the governors’ dual impeachment. Motion by Director Hunter. Seconded by Director Engel. All in favor. Motion passed. Executive Directors Report: Executive Director Somone apprised the board that a meeting has been scheduled with the Illinois Racing Board, February 25th at 5:30PM regarding TCO2 testing; following on the 26th he has a meeting scheduled with the auditor for a quote. Executive Director Somone noted that although Jim Hannon/Balmoral was scheduled to attend the meeting to discuss ADW, he is unable to attend ACTION ITEMS Legislative – S. Brubaker reported that HB 26 (recapture repeal bill) sponsored by Art Turner, along with noteworthy party membership leaders as co-sponsors, including a committee chairman, and support from the thoroughbred horsemen gives the bill a viable chance for passage. A Senate version of this bill will be filed on Friday. G. Mack noted along with directors the need for a continuing effort to reach out to not only our membership for support but to the media, etc. as well. Steve reported an account wagering bill has been introduced by the Senate President Cullerton, basically the same as last year’s bill. Also, the riverboats have introduced legislation in both chambers for the repeal of the current impact fee bill; this action should be taken on a serious note. To date there are 12 racing bills, 19 gaming looming, with introduction deadlines of Feb. 20th for the Senate, Feb 27th for the house. Plus there are more gambling bills, such as, i.e. coin operator’s bill and multiple lottery bills. County Fairs – Director R. Williams reported in conversation with Bureau Chief Charlyn Fargo the budget for county fair testing to-date is undetermined. Legal – President McCaffrey updated the board regarding the legal issue for the payment of debt (recapture) to Hawthorne (Suburban Downs) for the period of 2006-7-8 equaling $1.2 -million. Purse Account – It was reported the current purse report is a negative - $600,000. President McCaffrey reported the recently negotiated 3% interest re-payment rate on the purse account (versus purse cuts) has cost only approximately $50 week. The dark period netted about $900,000. Payment of Bills – After review of the financials and satisfactory explanation for (see legal) current legal expenses, Director Hunter gave approval for payment of the bills. Motion by Director Engel. Seconded by Director H. Williams. All in favor. Motion passed. Public Relations – Executive Director Somone presented to the directors a solicitation for a donation from an organization named Racer Pacer, (a 501 c) Standardbred Adoption Farm, located in WI. which is currently hosting 12 IL. standardbreds. After discussion the board opted to table the discussion until next month. Breeders Committee – It was reported that 4th quarter breeder award payments still have not been issued to-date. It was decided that the pending letter constructed regarding the disparity of payments (underpayment) on breeders awards immediately be sent to both the tracks and IRB. The board was unanimous in its’ agreement. DISCUSSION ITEMS Joe Barletti/Mark Dyckman – Joe Barletti a tax auditor from Springfield, and former IDR auditor for thirty years made a presentation to the Board. Mark Dyckman – Dept. of Revenue General Counsel acknowledged IL is different from most states. He also, noted although federal law can’t require its collection and a large number of vendors out of state don’t have any requirements to collect this tax, under IL. law the IL. consumer still owes Use Sales Tax. Mr. Dyckman noted that originally as a result of audit problems identified, Mr. Barletti was contacted by some IHHA members to represent them before the Dept. of Revenue to help resolve the Horse Sales Tax Issue. Mr. Dyckman stressed the IL. Dept of Revenue strives to have compliance, rather than be harshly punitive. If there seems to have been confusion on an issue, the dept. will usually enter into a settlement agreement. He promoted the Dept’s. willingness to agree to a voluntary compliance for the industry with a Use Sales Tax 2-yr audit period, instead of 6, and an agreement to waive all penalties. President McCaffrey queried about tangible personal property issue, i.e., if shavings/bedding are considered personal property. Mr. Dyckman responded sawdust was viewed as such: sawdust transported by a hired freight company for $800 load: the breakdown under the law was $400 for shipping non- taxable; however, $400 for shavings was taxable. President McCaffrey inquired of Mr. Dyckman what the Dept. required the association to do. Mr. Dyckman responded the IL. Dept. of Revenue would like the association to get the word out to its membership through either e-mail, text, website posting or meetings (if by meeting the Dept. would be willing to attend and assist members individually). He noted the IL. Dept. of Revenue would ultimately be satisfied with posting on website, and would contact the IHHA in the near future. Bill Whitman, HHI – Mr. Whitman introduced himself to the IHHA directors. He stated he is an agent for Markel Insurance and has worked in conjunction with the HHI Association for the last 10 years administering the third party liability program. He noted his recent attendance at the HHI conference where he and Executive Director Somone met and discussed the policy. Executive Director Somone noticed exclusionary language regarding people who reside in a state that is not a participating member of the HHI 3rd party association even though they have membership through IHHA in IL. This matter has been addressed and a proposed revision is being discussed with the HHI. Mr. Whitman addressed the board giving an overview of the policy; he also passed out a copy of the policy declaration to directors along with his business card. He noted the program is administered through HHI, with approximately 13 other participatory associations in the program, consisting of approx 8,000 members, which thereby minimizes dues. Horses must meet the standardbred definition. (yearlings are included). The policy is an annual, running from June 1st to June 1st. Every year each of the associations must send into the HHI a list of their participating members for the record. The qualification is that person is a paid member of their local association and in good standing. There are two (2) components to the policy: 1. 3rd pty commercial General liability 2) Commercial inland -limited coverage (usually fire). Claims will be paid up to 1 million a year. In aggregate no more than 3 million maximum. Members of participating association in good standing have coverage for actions of a horse which include bodily injury and/or property damage. The horse must be actively racing/training (principally) not a broodmare. In filing claim an owner must provide ownership interest. If horse has multiple owners, and all are member of participating associations, each will be paid their share, however, if there are two owners only one is member of participating association only that owner can file claim and will be paid for 1/2 share. For members in good standing and in participating associations, coverage is extended to owners - volunteer workers/employees, i.e., (trainers/grooms). Under mortality section it was noted that currently listed as scheduled locations are Maywood/Balmoral, however, other training centers are covered if they apply to be included on the policy. The facility must complete and submit an application for approval/inclusion. Dr. Fitzpatrick – Dr. Fitzpatrick addressed the board noting he had been approached a few months ago on the subject of current IL. lasix rule. Some trainers had expressed that the current rule causes hardship for them. Most states don’t have qualifier rule. Dr. Fitzpatrick is scheduled to appear before the IRB at its March meeting as an advocate for the change in this regulation. Dr. Fitzpatrick was asked to present his findings on the pre-race/ post-race TCO2 methodology. The result from testing were 6 trainers received penalties for TC02; a $2,000 fine & banned from racing for sixty days He noted the parameters of 37-39% could be tweaked, reducing level to 37%. Director Hunter noted in a past survey conducted by the IHHA, its membership voted they wanted a pre-race TC02 test program. Director Hunter related to Dr. Fiztpatrick that recently he and Executive Director Somone appeared before the IRB to plead the case for a pre-race testing program to be implemented in IL. Director Hunter asked Dr. Fitzpatrick what it would take to get his support to get on board with IHHA members wanting pre-race testing and present this proposal again to the IRB at an upcoming meeting on the 25th at Balmoral. Director Hunter noted the state of MI. has a model program for pre-race testing with control variables. Doctor Fitzpatrick agreed to review MI. model and render his opinion after review. On a final note, Dr. Fitzpatrick thanked the IHHA for its support of the Necropsy Fund. Mike Paradise – Mike Paradise addressed the board, thanking them for the lifetime achievement award he received at the recent IHHA Hall of Fame. He noted that within twenty-eight hours of this honor, he was told by management of the Maywood/Balmoral track, that they had decided to consolidate their publicity department, downsizing to one person, and his services would no longer be necessary. Within a few more hours he was told by the Tribune (currently under bankruptcy protection) that it would no longer host Chicago Sports.com with Mikes’ harness news/notes. Mike reminded the board he has been a part of this industry for many years, and since the 1970’s has been instrumental in projecting publicity and presenting information to the harness industry members/fans. He noted the venues for publicity/marketing of the harness industry continues to shrink, just at a time when it is needed even more so. Mike proposed the association consider a position with him, wherein, he could continue his daily harness web info. Board members queried Mr. Paradise on details/specifics of his proposal. After discussion, President McCaffrey advised Mr. Paradise the board would take matter under consideration and would be in contact. Meeting went into executive session at 5:15PM session ended 5:30PM. Meeting adjourned at 5:40PM. Motion by Director Engel. Seconded by Director Welch. All in favor. Motioned passed. ------------------------- January 19, 2009 - Board Notes Executive Director Report: Executive Director Somone reported the IHHA Lobbyist team has been restructured, culminating in the elimination of one former member and the addition of John Nicolay of Nicolay & Dart. He also reported that he and Director Hunter recently attended the IRB meeting to address the issue of pre- race (TCO2) testing at the tracks. He reminded the IRB they are the regulatory agent for the industry. He and Executive Director Somone acknowledged that the presentation itself went well. Executive Director Somone reported that he recently met with Darryl Guilstrap of the HGCA, after discussion it was agreed that in order for owners to have more control of their accounts, they will now have the choice of opting out of having drivers paid directly from their account(s) and subsequently, it will be the responsibility of the drivers to collect their fees directly from the owners. Legislative - Steve Brubaker led the introductions of the IHHA lobbyist team. Each lobbyist gave a short bio. Steve lauded the past efforts of team and their successes, i.e. sales tax issue and stated he and the team looks forward to the New Year’s activities. Steve noted that although HB 4758 was signed into legislation this past December the boats have filed a lawsuit trying to overturn both H.B. 1918 and 4758 on the basis of the bills being tainted in conjunction with the governor’s criminal complaint (bribery) and pending impeachment. The boats requested that a protest fund be implemented (pending litigation outcome) and it is currently being administered by the IRB. Steve has spoken with Executive Director Laino of the IRB, requesting an accounting of the accruing funds. Laino reported that he should have a report from the State Treasurer shortly. Steve noted that many other shell bills and substantive bills will be introduced this session. County Fairs – Rita Williams reported that the racing/stakes guides handed out do contain some errors, but corrections are being made and Charlyn Fargo, Dept. of Ag., will bring revised copies to the upcoming IHHA HOF Banquet. She noted the DuQuoin changes are for Sat/Sun Thurs/Fri. Also, a new rule adopted by J-Car disallows racing 2 days in row. Dept. of Ag adopted the previous recommendation of change in stakes payments for this year. R. Williams and President McCaffrey reported that at the USTA Banquet this past Saturday it was announced the association had created a new department for county fairs and a new system for people to call USTA regarding fair judges. R. Williams reported that yesterday at a round table for county fairs, that it was noted that HB 91 contains 1 small paragraph regarding county fairs and the round table expressed concern that this language be protected. Because of the lack of revenue from state for county fairs and the states budget crunch, payments have been very untimely or nil. She noted not all county Fairs have received ’08 monies, but all horsemen have been paid. Race Track Conditions/Backstretch – To-date the track maintenance crew has done a good job with handling the snowy/windy weather conditions. Insurance – Director Engel reported that the insurance committee had met prior to the board meeting and the topic of concern was the 44% rate increase from our present health care insurers. Director Engel motioned for the board to give authorization to the insurance committee to select a broker to shop insurance and present these findings within a timeline of February. Seconded by Director H. Williams. All in favor. Motion passed. Legal – (Contract Negotiations) President McCaffrey reported to the board that during recent negotiations (as of last Friday) the assumption was that a tentative recapture agreement had been reached with Track Mgmt and the contract would just await signatures. Payment of Bills – Director Hunter after review of the financials gave approval for payment of bills. Motion by Director Hunt. Seconded by Director Welch. All in favor. Motion passed. Breeders Association – Director Hunt pass a hand-out to board members showing that based on the 1975 Horse Racing Act, breeder awards for years have been paid in less than the full amount. The under payment(s) now totals in the hundreds of thousands of dollars in losses to breeders. DISCUSSION ITEMS Marty Friedman – Audit Status – Marty Friedman, CPA and partner, from the IHHA accounting firm McGladrey & Pullen LLC, presented the annual audit to the board. It was the opinion after certification examination of the IHHA’s financials (association and PAC) as of 12/31/07, the association balance sheet is healthy. Also noted was the IHHA’s record with timely payment to its vendors. He reported that the association’s tax status with the IRS has been resolved. Also, a settlement was reached regarding tax period in question from 2002 through 2007. A motion was by Director Engel to adjourn the meeting and seconded by Director Fairley. All were in favor. The meeting adjourned at 5:20PM. |
 Notes and Quotes
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