Board Notes New

January 18, 2010 – Board Notes
Hackney, Palos Park, IL.

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.

Grassroots/Membership -   The first batch of 2010 Membership renewals were sent in December.  A few hundred have been returned and processed to-date.  Another reminder letter was sent last week.

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.

Race Track Condition/Backstretch – The track is in fair condition; however, the backside area still needs improvement for existing potholes.  The chute area continues to be hazardous with ice buildup and the lack of materials (salt) to use for thawing.

Insurance – See Executive Director Report

Purse Account – Summary date for last year: ended with $2,116,000 deficit; $480,000 in outs as of January 1st.  No figures for dark period as of yet.

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.
 

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December 21, 2009 – Board Notes
Hackneys – Palos Pk., IL.

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.
The health insurance program includes life insurance policy, and its sliding scale benefits need to be clarified/publicized to the membership.    

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.  

Purse Account/Condition Sheet –The purse account hit a new low with a negative $93,000 last week. 

Payment of Bills/Financials – After review of the current bills, and 2010 financials/ budget, a motion was made by Director Beals for payment & approval.  Seconded by
Director Engel.  All in favor.  Motion passed.

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.

Attorney Fees (Track) - (See Legal)

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.

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November 16, 2009 – Board Notes
Mario’s (North) - Springfield, Il.

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. 
 
ACTION ITEMS

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.
 
Negotiations continue with track management regarding slots. Although they are pushing to finalize a deal now, the IHHA is in a cautious posture, examining what is in our best interest.  Whereas, the issue of VLT’s at OTB ‘s is currently obsolete for now, it is still a wish-list item for the tracks. 

Grass Roots/membership – Brenda Watson reported the Membership Committee convened via a conference call last week to discuss the 2010 Membership requirements.  Its recommendation to the board was for the fees to remain at status quo, but to simplify the category options to:  1. $50 Membership (with Third Party) / $25 additional family member (with Third Party) and 2. Associate Membership ($30).   After board discussion of the increased cost of the third party insurance from $26pp to $37pp and the additional expense incurred to the purse account because of it, the board voted by majority to accept the committee’s recommendation and will deal with the restructure of the breakdown of fees accordingly.   Motion by Director Engel.  Seconded by Director H.Williams.  All in favor.  Motion passed.  

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.
 
Race Track Condition/Backstretch – At the present time conditions on track/ backstretch are satisfactory.
 
Insurance – Insurance Committee Chairman, Engel, reported that the IHHA’s present carrier Unicare has recently announced its divestiture of healthcare interests in IL.  Provider Blue/Cross Blue Shield is the plans current administrator.  Blue Cross typically doesn’t extend coverage to trade associations; due to the circumstances the IHHA will be “grandfathered” in. However, there is a strong probability that the provider may choose to drop us next year or dramatically raise our rates. The IHHA’s broker is currently negotiating with another provider interested in extending coverage to our membership. The committee should have further details by next week. 

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.
 
Purse Account/Condition Sheet – The latest purse account report showed a +$34,000, the first increase since May.  $50,000 from ADW also helped reduce the deficit.  

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. 
 
Payment of Bills – After review of the bills, a motion was made by Director Engel for payment.  Seconded by Director H. Williams.  All in favor.  Motion passed.

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

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October 20, 2009 – Board Notes
Hackney's – Palos Park, IL.

Directors Present:  Cassano, Fairley, Welch, R. Williams. H. Williams, McCaffrey, Willis, K. Willis, N. Engel

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.

ACTION ITEMS:

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.
The concern being that money from the purse account has supplemented these races.  The board feels that funding from our purse account is excessive and may not be warranted at all.  Since the Racing Secretary’s meeting is upcoming and stake books will be out in January; President McCaffrey directed Executive Director Somone to send a letter to track officials advising them it  would like to discuss this issue at their earliest convenience.  If the Executive Director does not hear back within a couple of days, he is to call and schedule a meeting.

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)

Hall of Fame Nominations – The board discussed dates for the inductees banquet for the 2009 HOF.  Three dates (during dark period) were chosen by preference as possibilities: 1. Jan 23, 2010 (Sat); 2. Jan 9, 2010(Sat);  3. Jan. 24, 2010 (Sun).  Executive Director Somone will contact the hotel and check availability of these dates, along with cost of Sat. versus Sun venue.  As usual notification will be sent to IHHA membership next week detailing eligibility/criteria for nominees with a return deadline of November 20th.    

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.
  
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Sepetmber 21, 2009 – Board Notes
Hackney's – Palos Park, IL.

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 September Agenda:   President McCaffrey proposed amendments to agenda: open stakes; executive session.  Motion by Director Engel to approve.  Seconded by Director H. Williams.  All in favor.  Motion passed.

Approval of August Minutes:  Motion by Director Cassano.  Seconded by Director H. Williams.   All in favor.  Motion passed.

Executive Director Report:  Executive Director Somone reported that letters continue to be sent on Fridays to the Senators/Representatives apprising them of the most current developments re: 3% litigation. 

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. 
 
Open Stakes – Director Beals gave a handout to board directors showing the breakdown according to the 2009 contract for stake races. He noted the issue can’t wait to be decided until contract negotiations, because the tracks mgmt starts next month, its’ structuring of 2010 stake races.

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.
 
Duke Johnston / Maywood Race Track - Owner Duke Johnston presented to the board he was open for suggestions on proposals for the dates hearings.  He  suggested  a possible  block of 4/5 weeks off, racing Thurs/Fri Sat/Sundays; or go dark on January 4th with 15 dark days, or  race 4 day week in Jan,/Feb.&  Nov./Dec.  He noted that racing less may improve the product.  President McCaffrey noted that the IRB has a current budget deficit, since Fairmount dates have been decreased from 150 days to 50 the cost is a - $1.3 mi.   He noted Maywood/Bal would apply for 5 days racing with the option to vacate days, rather than request less, since dates can’t be reissued.

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.

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August 10, 2009 – Board Notes
HACKNEYS – PALOS PARK, IL.

Installation of New Board Members

President McCaffrey introduced new board member Joe Cassano.
 
Directors Present:  Beals, Engel, Fairley, Cassano, Knicley, Willis, K. , Willis, N., R. Williams, H. Williams, O’Toole, Welch, McCaffrey, Hunt 

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 

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July 20, 2009 – Board Notes
MARIO’S (North) – SPRINGFIELD, IL.

Directors Present:  Knicley, Fairley, R. Williams, Widger, Beals, H. Williams, McCaffrey, Hunt, Miller, Simpson

Directors Absent:  Engel, O’Toole, Welch, K. Willis, N. Willis, K.

Others:  Somone, Arens, Brubaker, Hoffman, Mack, Hunter, Logan, Fargo

Approval of July Agenda:  Addendum to July Agenda: Report by Charlyn Fargo, Dept. of Ag.  Motion by Director Hunt.  Seconded by Director Fairley.  All in favor.  Motion passed.

Approval of June Minutes:  Motion by Director Widger.  Seconded by Director H. Williams.  All in favor.  Motion passed.

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.

Purse Account: To date the purse account is -$1.2mi.  Last week it went approx. $70-80,000 in hole. 

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
Assoc. Programs.

Meeting adjourned at 3:15PM.  Motion by Director Beals.  Seconded by Director Widger.  All in favor.  Motion passed.

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June 15, 2009 – Board Notes
HACKNEY’S – PALOS PARK, IL

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

Approval of June Agenda:  Director Fairley requested the two discussion items be moved to the action items section.  Motion by Director Widger.  Seconded by Director Engel.  All in favor.  Motion passed. 

Approval of May Minutes:  Director R. Williams, requested line 2 (under County Fairs) strike the wording the President of Ag. Assoc. from May Minutes; as he was not a participant in the reported meeting.   Motion by Director Widger.  Seconded by Director Engel.  All in favor.  Motion passed.

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.
 
Race Track Condition and Backstretch:  Backside conditions at Balmoral are good.  The south end however needs some dirt fill to get level.

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.
 
Insurance:  The insurance committee held a meeting last week via conference call and decided to submit a request to the board to follow their recommendation to eliminate tenure for the IHHA insurance Program.   After discussion, a motion was made to eliminate tenure as a category from IHHA insurance Program effective September 1, 2009.   Motion seconded.  All in favor.  Motion passed.   

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. 

Mel-Carpenter at Balmoral:  Executive Director Somone announced that Mel a long-time carpenter at Balmoral had recently retired.  He suggested the IHHA send a letter commending and thanking him for his good attitude, work ethic & assistance to horsemen through the years.

Meeting adjourned at 3:30PM.  Motion by Director Hunt.  Seconded by Director Engel.  All in favor.  Motion passed.

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May 18, 2009 – Board Notes
1:00PM HACKNEY’S – PALOS PARK, IL.

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.
    
Grassroots/Membership - Current membership is slightly less than last year’s.  However, as county fairs begin in June registrations should increase.

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.

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April 20, 2009 – Board Notes
1:00PM HACKNEY’S – PALOS PARK, IL.

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.   
  
Owner/Trainer Bonus for Horsemen who have stayed - President McCaffrey proposed to the board the IHHA’s adoption of a rewards program for owners/trainers who have predominately raced in IL during the past three stressful economic years.  He noted that Yonkers had implemented a bonus program which rewards trainers finishing 1-5 at a 27% level and Pennsylvania’s winning trainers are eligible for additional 20% on overnight races only.   Executive Director Somone along with committee will research/ seek legal counsel regarding the standards for such a program.

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.

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March 16, 2009 - Board Notes
1:00PM - MARIO’S (North)-SPRINGFIELD, IL.

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.
 
Legal – Breeders letter (see executive directors report)

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.

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February 15, 2009 - Board Notes
1:00PM - HACKNEY’S – PALOS PK., IL.

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 February Agenda: Director Hunt requested the agenda be amended Under #5 Action Items, Sec. K to reflect a modification in verbiage from Breeders Association to Breeders Committee.  Motion by Director K. Willis.    Seconded by Director H. Williams.  All in favor.  Motion passed.   

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.
 
Grass Roots/Membership – B. Watson reported current membership to date is 642; further noting a resurgence is typical during county fair season.

County Fairs – Director R. Williams reported in conversation with Bureau Chief Charlyn Fargo the budget for county fair testing to-date is undetermined.

Race Track Condition/Backstretch – Director Welch and N. Willis reported that the track surface at Balmoral has been in fine condition.  N. Willis noted that wires had been raised on the east side of the road.  Director H. Williams reported that the re-surfacing of potholes had been resolved with just one phone call.  The board discussed the need for clarification on the responsibility of which track department is responsible Marketing/Simulcasting or the Mutual Dept. for the protocols of post-time change listings and the need for these to be posted in a timely fashion.
 
Insurance – (Executive Session)

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.

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January 19, 2009 - Board Notes
1:00PM - Scrementi’s – Steger, IL

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 reported that after review and consideration of Representative Molaro's proposal last month regarding the IHHA joining a Horse Council Association, it is moot. There doesn't appear to be any momentum for this to get started.

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.
 
ACTION ITEMS

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.   
 
Grassroots/Membership – B. Watson reported that current membership as of Jan 15th was 513; a difference of 67 less that last year at the same time.  However, it was noted that since we have had a 3-week dark period this year, members have not been as diligent in sending their memberships in.  She reported a second mailing ( reminder) for membership renewal has gone out this week.

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.
Purse Account – President McCaffrey reported that as of Jan 1st, the purse account is negative 1.7 mil.  However, he is hopeful that the current three (3) week dark period will generate $600-700,000 from simulcast and with the 400,000 in outs the purse will shortly only be -$700,000. 

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.