California Horse Racing Board Votes To Remit HISA Fees; $1.4 Million To Be Paid Via ADW Revenue

The California Horse Racing Board conducted a public meeting in Sacramento at Cal Expo on Thursday, April 21, 2022.

This was the first in-person meeting of the Board since Feb. 20, 2020. All Board meetings for the last two years were conducted via teleconference due to the pandemic.

Chairman Gregory Ferraro chaired the meeting, joined by Vice Chair Oscar Gonzales and Commissioners Dennis Alfieri, Damascus Castellanos, Brenda Washington Davis, Thomas Hudnut, and Wendy Mitchell. 

The audio of this entire Board meeting is available on the CHRB Website (www.chrb.ca.gov)  under the Webcast link. In brief: 

  • Executive Director Scott Chaney gave a comprehensive report on the status of HISA (Horseracing Integrity and Safety Act), which is shifting much safety and medication control oversight from states to the federal government. The first shift involving  racing safety will occur July 1. Procedurally, each state regulatory body must either opt in or opt out of collecting and remitting fees for the program. If a state racing commission opts out or fails to take action, the responsibility to collect and remit fees falls to the horsemen and racing associations in that state.
    Commissioners at the meeting Thursday indicated that the best way for the CHRB to meet its responsibility to regulate horse racing in California would be to opt in rather than delegate any such responsibility to stakeholders. The Board unanimously voted to opt in. This entails a payment of $1.4 million to the HISA Authority for calendar year 2022 expenses.
    Conditioned on proposed statutory authorization, the payment will be split equally between thoroughbred horsemen (purse revenue) and Thoroughbred racetracks (commissions) from their shares of Advance Deposit Wagering (ADW) revenue. This
    will not affect bettors.
    Chaney said the safety regulations largely mirror the CHRB's existing regulations with the exceptions of shoeing and use of the riding crop. He said the shoeing regulations will be stricter than California's regulations, while the crop regulations will be less so. Accordingly, as of July 1, Thoroughbred riders in California  will no longer be prohibited from using the crop with an overhand motion. Quarter horse racing will not be regulated by HISA, so those riders will continue to be  governed by the more restrictive CHRB regulation (i.e. no overhand use).
  • Doctors at the University of California, Davis, gave a comprehensive presentation on sudden deaths in horse racing. Dr. Francisco Uzal, an internationally recognized expert on the subject, said the precise cause of death is never conclusively determined in approximately half the cases worldwide, though much of the time it is presumed to be cardio failure. Dr. Sue Stover said there have been indications that many sudden  death victims had recently been exercising at shorter distances than usual, suggesting that their handlers sensed something was amiss with their horses, so had cut back on their training. This is a subject that can be discussed with trainers during California's mandatory necropsy review. Dr. Carrie Finno reported that advancements in whole genome sequencing could eventually determine whether there is a genetic factor in  sudden deaths. And Dr. Jessica Morgan offered that readily available technology, such  as programs on cell phones, can be used to recognize distress in exercising horses.
  • The Board authorized stakeholders to continue to contribute a share of their ADW  revenue for marketing purposes, specifically player rewards, horse recruitment, and  publicizing the industry's efforts to care for horses. 
  • Public comments made during the meeting can be accessed through the meeting audio  archive on the CHRB website. 

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New Jersey Commission Rescinds Whip Ban; Monmouth Implements Strict Penalties To Support New HISA Whip Rule

Monmouth Park will operate under a crop rule that aligns with House Integrity and Safety Authority (HISA) guidelines starting on opening day, May 7, after the New Jersey Racing Commission voted on Friday to waive the stringent no-crop rule implemented a year ago.

By a vote of 5-1 during a special meeting, the New Jersey Racing Commission approved Monmouth Park's request for a crop “house rule” that will go into effect from the outset of the 62-day Thoroughbred meet.

HISA crop rules go into effect on July 1 in an effort to create uniform rules nationally for racetracks. With the waiver, Monmouth Park is able to avoid having to start the meet with a no-crop rule before transitioning into the new crop rules two months into the meet.

The “house rules” that were approved for Monmouth Park, like those of HISA, allow six strikes per race, with no more than two in succession before a horse has a chance to respond. There is no limit on underhanded strikes.

“We are grateful to the New Jersey Racing Commission members for giving up their time to hold a special meeting on an issue that is important to the entire industry,” said Dennis Drazin, CEO and Chairman of Darby Development, LLC, operators of Monmouth Park. “The Commission recognized that uniformity on crop rules is paramount to our success and to the integrity of our product.

“The wagering public and our fans will benefit knowing we are once again operating under the same rules as other racetracks.”

Under the old rule that was in place for last year's Monmouth Park meeting, crops were only allowed to be used for safety reasons.

Enforcement of the new crop rule during live racing will fall to the Monmouth Park racing office and a three-panel committee comprised of racing officials who review each race to ensure compliance.

The new crop rule also applies to exercise riders.

Penalties for jockeys in violation of the crop “house rules” are as follows: A $500 fine, loss of purse earnings and a three-day suspension for the first offense; a $2,000 fine, loss of purse earnings and a seven-day suspension for a second offense, and a $5,000 fine, loss of purse earnings and dismissal from the grounds for a third offense.

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Oregon HBPA Will Seek Grants Pass Racing License After Boersma Cancelled 2022 Meet

Owner Travis Boersma announced the cancellation of the 2022 race meet at Grants Pass Downs earlier this month after the racetrack lost its “economic engine,” which was intended to be the historical racing machines at The Flying Lark entertainment venue.

(Read more about Grants Pass Downs' cancellation here.)

Now, reports the Thoroughbred Daily News, the Oregon Horsemen's Benevolent and Protective Association (OHBPA) has informed the state racing board that it will attempt to keep Grants Pass open as a training center and possibly a brief fair-style meet this summer.

“When it became apparent that [Grants Pass Downs] was not going to renew their commercial license, we decided that the best thing was for the HBPA to seek that license for itself for the continuation of the commercial meet as well as the obvious benefits of the off-track betting (OTB) network,” executive director Randy Boden said during the Apr. 21 Oregon Racing Commission (ORC) meeting.

Grants Pass will require horsemen to exit the backstretch on April 30, and run the OTB network through June 30, when the racing license expires. The OHBPA would ideally be able to step in at that point, though the short notice will make that difficult.

At the very least, the OHBPA wants to be able to offer the horsemen a place to continue training so that horses will be ready to race at the state's fair meets.

“We are further looking into the possibility of working with Southern Oregon Horse Racing Association (SOHRA) to see if there's a possibility of running a short race meet in between the end of Union and the start of Prineville,” Boden added. “Currently, since we have no racing license until June, we have no standing to run a race meet as the HBPA, but SOHRA has many years of experience running race meets at Grants Pass [prior to Boersma taking over].”

Read more at the Thoroughbred Daily News.

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Former Drug Company Manager Sentenced To Year In Prison For Stealing Thousands Of Bottles Of Adequan

The U.S. Attorney for the Eastern District of New York released the following statement on Wednesday, April 20 about the sentencing of Gregory Settino, 58, of Bethpage, N.Y.: 

In federal court in Central Islip, Gregory Settino, a resident of Bethpage, New York, was sentenced by United States District Judge Joanna Seybert to a year and a day's imprisonment for theft of approximately $750,000 worth of medical products. The Court also ordered Settino to pay restitution of $847,093.

Breon Peace, United States Attorney for the Eastern District of New York, and Ronne G. Malham, Acting Special Agent-in-Charge, Food and Drug Administration, Office of Criminal Investigations, New York Field Office (FDA-OCI), announced the sentence.

“Today's sentence is the finish line of Gregory Settino's criminal conduct. He stole thousands of bottles of drugs, ignored safe handling practices, and allowed them to be given to horses at New York racetracks without regard for the health of the animals – only focusing on his own personal gain,” stated United States Attorney Peace. “Those who jeopardize drug safety and risk the health of others will be held accountable and face serious consequences.”

“The FDA ensures that veterinary drugs are safe and effective so that animals remain healthy. Drugs that are taken out of the legitimate supply chain pose a risk to the animals that take them,” said Acting Special Agent in Charge Malham. “We will continue to investigate and bring to justice those who endanger the health of animals.”

As admitted at defendant's plea, Settino, the production supervisor of manufacturing at a Long Island Drug Manufacturer, American Regent formerly Luitpold Pharmaceuticals, Inc. in Shirley, New York, Settino stole Adequan, a drug manufactured there. Adequan is an injectable equine drug administered to horses to treat degenerative joint disease Settino's thefts of thousands of bottles of Adequan covered a period of eight years, from 2012 to 2020, and Settino sold those drugs worth $750,000 for hundreds of thousands of dollars to trainers and veterinarians at New York racetracks, including Belmont Park. Settino's conduct endangered the health of horses because the drugs were not maintained, stored or transported in accordance with proper procedures for ensuring the safety, effectiveness and efficacy of the drugs. At times, Settino transported the drugs in shoeboxes stored in his car.

The government's case is being prosecuted by the Office's Long Island Criminal Division. Assistant United States Attorney Charles P. Kelly is in charge of the prosecution.

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