Regulation changes that would permit the creation of a second horsemen's group for harness racing in Kentucky may be moving through the validation process, but that doesn't mean everyone is happy about it.
The Kentucky Horse Racing Commission approved language in December 2019 giving a new organization, the Kentucky Harness Association, equal footing to the existing group, the Kentucky Harness Horsemen's Association (KHHA). Racing associations would be permitted to negotiate contracts with either entity with regards to takeout, number of race dates, and other considerations, according to the existing wording of the regulation.
After the language was approved in December, the regulation language went out for public comment and was presented before the Interim Joint Committee on Licensing, Occupations and Administrative Regulations during a meeting July 30.
Representatives of the Kentucky Horse Racing Commission and the KHHA were on hand to field questions from joint committee members as they considered whether to send the proposed regulation along its way to the state legislature.
The Kentucky Harness Association has faced criticism from the KHHA and this publication about its nebulous nature. By its own admission, the organization has three members, no bylaws and no web presence. One of the founding members is Bob Brady, brother-in-law of Ken Jackson, who is a member of the racing commission. Together, the two are partners in Kentuckiana Farm. Jackson co-owns the Lexington Selected Yearling Sales Company along with The Lexington Trots Breeders Association, which is the ownership of the Red Mile racetrack. The Red Mile and Churchill Downs, which owns Oak Grove, spoke in favor of the regulation changes.
Jackson said there's nothing nefarious about the relative lack of structure to the Kentucky Harness Association at this point – it's merely a matter of caution.
“The process that was chosen by the KHA was to go through in a methodical way of getting approved to be able to advocate, to be able to be in this position and then members will be secured at that point in time,” he said. “There are many individuals that have expressed their interest in being a part of this, but to go out ahead of this approval is not the path that was chosen.”
Rep Jerry T. Miller (R-District 36) asked what problem the new regulations were aiming to solve.
“It's not what's being held back, it's about changing and being prepared for what's going forward, making sure the right agreements are in place going forward, making sure the purse funding is spent the proper way to advance the industry, not only the owners but the breeders,” said Jackson.
Rep. Tom Burch (D-District 30) expressed concern that the issue was so divisive at this stage in the process of the rule-making.
“Usually when we get involved in these types of discussions, we send the groups back to work out their problems prior to bringing it in,” said Burch. “The legislature doesn't want to be a referee in these regulations and I believe that's what we're doing here.”
Jackson argued the KHHA doesn't really have a problem with the rule – KHHA has a problem with the idea that it would no longer be the only game in town making contracts.
“The only thing that's in dispute is that the KHHA does not want someone else to come in and help grow the industry,” said Jackson, who said he welcomed any KHHA members who wanted to join the new group. “There's a lot of history here and a lot of things that have happened, and it's time to run the industry professionally.”
Jim Averitt, president of the KHHA, cast doubt on the motivations of Jackson and others, questioning how the Kentucky Harness Association could purport to represent the interests of anyone other than the racetracks given the members' close associations with track ownership.
“Essentially you can have an organization of three people enter into a contract for years simply to race for a day and bind the entire industry,” said Averitt. “Once you give your approval, they don't have to get any more members. They can keep the three members that they have. They don't need anybody else.”
Averitt also pointed out the relative lack of discussion of the regulation at racing commission meetings last year and how he thought it strange that commission members weren't on record as asking about the new group's membership, bylaws, or other background details.
“One of two things happened–either none of those people cared enough about their jobs to ask questions, or there was some kind of deal cut behind the scenes,” said Averitt. “They were informed by Mr. [Marc] Guilfoil [commission executive director] or Mr. Jackson about this new association and they were told all kinds of things.”
Sen. Damon Thayer (R-District 17) reacted with anger to the suspicious nature of Averitt's comments.
“Mr. Averitt, I find your testimony insulting,” said Thayer. “This is the second time in a row I've sat in a committee meeting and come watch you make specious comments that attack the character of men and associations that have invested tens of millions of dollars into the industry. I think you owe this committee and the administrative regulations committee an apology for your terrible testimony.
“You think they don't want to race? Are you kidding me? The sales model for yearlings doesn't work unless you have someplace to race them … I don't know what you're upset about, other than maybe the fact your organization got caught flat-footed.”
Rep. Susan Westrom (D-District 79) wrapped up the proceedings by asking Averitt whether, if the regulation passed, the KHHA could work with the Kentucky Harness Association for the benefit of both. Averitt's answer was no.
The post Sparks Fly In Testimony Before Kentucky Legislative Committee On Question Of Harness Representation appeared first on Horse Racing News | Paulick Report.
