Board Notes

May 18, 2009 – Board NotesHACKNEY’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, MillerOthers:  Somone, Arens, Paradise, Curry, Mack, LillyApproval 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 ITEMSLegislative – 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 ITEMSChange of By-Laws (Date of Annual Election) – Proposal to change the by-laws language regarding the date of the IHHA Annual Election.   The current date conflicts with the upcoming Springfield Fair; language modification would allow latitude to avoid future scheduling conflicts.  However, it was noted the item needed to be listed on the agenda under action items in order for a motion to be made (Roberts’ Rules).  Since it was inadvertently placed under the discussion items, the Executive Director will hereby, give a 3-day notice, then convene a conference call of the directors (special meeting) for a vote, to achieve compliance.Steve Curry (Insurance Broker) –As a means to counteract IHHA rising insurance premiums, Curry initiated a consultation with retiree members of the program.   After review of their policies, etc. it was noted that some were actually over-insured and each agreed it would be beneficial for them to change programs.   Calls/letters were made/sent to members 65 & older who are eligible for Medicare.  After their consultations, if these members choose to opt out for Medicare; the result could be a cost-effective solution for the IHHA garnering a rate reduction by its insurance carrier.   County Fair Testing – The Department of Ag’s. Bureau Chief Charlyn Fargo, requested $10,000 for county fair testing.  (In Nov. 2008 a motion was made by the board to make a donation of $10,000 to Dept. of Ag. for testing contingent only upon the lack of funding from other sources; if funding is received through legislation or other sources the offer is retracted). Before approval of any donation the directors  would like to engage in a conference call with Charlyn to discuss exactly how the money is to be spent.Executive Session – The board went into Executive Session at 2:55pm.  Executive session ended at 3:25PM. Meeting adjourned at 3:25PM.  Motion by Director Engel.  Seconded by Director N. Willis.  All in favor.  Motion passed.-------------------------April 20, 2009 – Board NotesHACKNEY’S – PALOS PARK, IL.Directors Present:  O’Toole, Knicely, Fairley, Welch, R. Williams, Engel, H. Williams, Miller, Willis, N., Hunt, McCaffrey, Widger, BealsDirectors Absent:  Willis, K., SimpsonOthers:  Brubaker, Hoffman, Hunter, Arens, Dixon, Mack, Cassano Paradise, Somone, Fary, CurryApproval 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 ITEMSLegislative – 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 ITEMSSteve 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.-------------------------March 16, 2009 - Board Notes1:00PM - MARIO’S (North)-SPRINGFIELD, IL.Directors Present:  Engel, R. Williams, Beals, O’Toole, Knicely, Widger, Hunt, McCaffrey, Simpson, FairleyDirectors Absent:  Miller, Willis, K., Willis, N., H. Williams, WelchOthers: Brubaker, Arens, Somone, Watson, Mack, Fary, D. Simpson, C. Fargo, FaryPresident 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 ITEMSLegislative – 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 ITEMSRacer Pacer Adoption Services – Executive Director Somone reported he received a solicitation from the Racer Pacer Adoption Services a WI. Based program, which hosts 12 IL horses for a donation, which is also tax deductible.  Executive Director Somone noted that although we currently support the American Standardbred Adoption Agency, it would be positive for the IHHA to support another program that assists IL horses.  After discussion the board decided to donate $1,000 and re-evaluate this amount after six months.   Motion by Director.  Engel.  Seconded by Director R. Williams.  All in favor. Motion passed.Meeting adjourned at 3:28PM.  Motion by Director Fairley.  Seconded by Director Knicely.  All in favor.  Motion passed. February 15 - Board Notes1:00PM - 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, SimpsonDirectors Absent:Others:  Arens, Hoffman, Brubaker, Watson, Beals, Somone, Lilly, Dixon, Mack, Fary, Paradise, Bartletti, Dyckman, Whitman, Dr. FitzpatrickApproval 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 attendACTION ITEMSLegislative – 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 ITEMSJoe 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.-------------------------1/19/09January 19, 2009 - Board Notes1:00PM - Scrementi’s – Steger, ILExecutive 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 ITEMSLegislative - 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 ITEMSMarty 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.-------------------------12/15/09 December 15,  2008 – Board NotesExecutive Directors Report:  Executive Director Somone reported on the recent ruling/penalty re: Driver/Trainer Dan Noble being taken off as driver for a Willis horse two minutes before post-time, and fined $100.  In this race he would have been competing against Keri Bremmer*.   (* Note: It’s a rule violation to compete against another horse in the same race in which there is a financial interest).  However, the contention is that the enforcement of the rule should have taken place prior to the program being printed, etc. and consequently, due to the oversight of the racing office, it caused a problem/hardship for the trainer to secure a driver for that race.   Exec. Dir. Somone related that he had a conversation with Mike Corley (track steward) who acknowledged the racing office has the first responsibility in the enforcement of these rules, then the stewards.He also mentioned he spoke with track rep regarding the issue of the high number of out- of-state horse entries.  The track rep attributed the necessity of allowing these entries both to the decline in the horse population also, the time of year.T. Somone reported he spoke to track security regarding complaints of recent random room inspections without notice/ protocol, etc.  Track security reported there is a protocol for room inspections to which they adhere, i.e., a notice is placed on doors with date/ time of inspection; two (2) members of security team make visits. T. Somone reported that a letter had been sent to track mgmt also on this issue.T. Somone spoke to the Balmoral’s GM regarding the roof leakages in barns/ feed rooms.   As of Dec. 1st weather permitting repairs are to be made, to-date one roof has already been fixed.  Directors Welch & Willis stated to-date they haven’t seen any renovations.  Exec. Dir. Somone will get list of where repairs are supposedly made and the directors will do a follow-up check at these locations to see if repairs have been completed.ACTION ITEMSLegislative – S. Brubaker reported that HB 4758 successful passage was due to the concerted efforts of the IHHA lobbyists, the Exec. Director, the President, IHHA fields Rep. Brenda Watson and the directors.  He noted what a fantastic job was done, and that even Arlington Park’s rep. took notice and commented on the successfully large number of votes garnered.   The bill went to governor on Nov. 24th   and if it is not signed within sixty days, it automatically becomes law, unless vetoed by the governor. S. Brubaker noted that in the event of the resignation/impeachment of the governor, Lt. Governor, Pat Quinn would be the successor.  Steve made his recommendations to the board for the 2009 IHHA legislative agenda:   the legislative team continue to file recapture/repeal (and other shell bills); continue to actively pursue outreach/education re: $98mil owed to purses from un-appropriated recapture; continue ongoing discussions with track rep regarding changes to the racing acts that would favorable for both horsemen and tracks, since working collectively together this past year has proven to be productive.Rep. Molaro addressed the board with a proposal.  Molaro announced he will be leaving the IL. General Assembly after serving seventeen years.  He noted that his affiliation with the tracks went back to his days of growing up on the Southwest side and tendering his first bets at Sportsman’s Park.  He talked of the need for a united front (tracks, harness, thoroughbreds, etc) to advantageously advance any future gaming legislation, whether it be Capital bill with gaming expansion, etc.  He expressed that it would be beneficial to the IHHA to become  a member of the (watchdog lobbyist association) such as the one he is affiliated with, the IL .Horse Racing Council, funded by (a consortium of potentially six (6) members  (tracks and horsemen associations). Grassroots/Membership – B. Watson reported that 2009 membership applications had been sent out to members and form were also placed in both field offices.  To-date 254 have been returned.  County Fairs - Director R. Williams reported that she spoke with Charlyn Fargo, Dept. of Ag and she was told that she is awaiting information regarding county fair funding from Springfield sometime in January.Racetrack Condition/Backstretch – President McCaffrey reported that track conditions are good.  He noted that last Saturday, especially considering the icy weather the track was well maintained.Insurance – Director Engel reported that today, prior to BOD meeting, he talked with the IHHA staff regarding the response of membership to the recent rate increases implemented in the insurance program.  He reported that to date there’s been one (1) cancellation, and one (1) switch to the Medicare Program.  To date no members have switched from the $500 deductible plan to the higher $2,500 deductible plan to reduce their expenses.  He noted it’s too early to have full data, he will report further data at future meetings.Exec. Director Somone reported to Director Welch that a sulky claim for Sutton had been resolved and payment made.Purse Account - A. Beals reported that the purse account is currently -1.6 mil.  Although it was previously thought that outs and the upcoming dark period would bring the  account to break even by February, this has been revised.  However, it was noted that based on the premise of forthcoming revenue from 3% impact fee legislation, the tracks may deflect purse cuts. The board discussed the advantages/disadvantages of fewer races in 2009.Payment of Bills – After review of the financials Director Hunter gave approval for payment of bills.  Motion by Director Engel.  Seconded by Director Welch.  All in favor.  Motion passed.Public Relations - B. Watson reported that tickets for the upcoming Hall of Fame have been distributed to herself, the IHHA office and Betsy (at track) for sale beginning Wednesday, December 17th.Breeders Committee – Director Hunt reported that as of last week Balmoral had made the 3rd quarter Breeder Award payments.Legal – President McCaffrey reported that the Hall of Fame committee had recently met and made their selection of nominees for induction into the 2008 IHHA of Fame.  President McCaffrey presented the following recommendations for board approval.Living Inductees:  Homer Hochstetler and Jerry Graham.  Immortal Inductee: Dan Knox.Equinne Inductees:  Sportsmaster and Misty Misty.  Lifetime Achievement Award: Mike Paradise.  CaretakerAward:  Debra Jo Collier.The board discussed the merit of these inductees.  Director K. Willis requested that an award for the Leading Driver and Trainer at Maywood and Balmoral be given.   The board approved the above recommendations and also to give an award for Leading Driver and Trainer at Balmoral and Maywood Parks.  Motion by Director Engel.  Seconded by Director N. Willis.  All in favor.  Motion passed. President McCaffrey reported on an update from legal counsel regarding litigation of HB1918.  He noted that the IL. Supreme Court ruling of 7-0 also allowed the boats to have 35 days to file notice of their intentions, the riverboats ask for additional 30 day extension; the U.S. Supreme court has given them 120 days.  He noted this is the typical motions/mechanics for this type of litigation.  The sentiment is the court will not hear this case based on the unanimous IL. Supreme Court decision.   Resolution should be by May-June 2009.  S. Brubaker stated that the boats will probably vote to block HB 4758 also.  A. Beals responded that HB4758 amends a statue not a bill.  HB 1918 sunsets are gone.President McCaffrey reported that a general horsemen’s meeting was hosted last week at both Balmoral and Maywood Parks.  Attendance was approx. 85 at Balmoral, 25 at Maywood.  The issue of preference system for IL. horse entries were seen as a clear decisive issue that needs to be addressed in the 2009 contract.   President McCaffrey told the board the negotiating committee will present these items for considerations in the 2009 negotiations, and when  a tentative agreement has been reached it will given to the board for approval and the 8 signatures required.Qualifiers, Dec. 24th – The Director requested that qualifiers scheduled for Dec. 24th be changes to Tuesday, the 23rd instead.  Exec. Dir. Somone is to discuss this with track office.  A. Beals stated that Doc N. had stated that there would not be any qualifiers at tracks during dark period.  Executive Director Somone stated qualifiers were necessary at both tracks during dark period and would add this as another item for discussion with track office.DISCUSSION ITEMSHGCA – The board discussed the payment methods used by the HGCA regarding horsemen account citing a recent case.   Executive Director Somone is to meet with HGCA for further discussions.HB4758 - (See above Legislative-Legal)2009 Preference System - (See above Legal)The board went into Executive session at 5:25PM.  Executive session ended at 5:40PM.Motion by Director Hunt to adjourn the meeting.  Seconded by Director Engel.  Meeting adjourned as 5:45PM. -------------------------12/01/08November 17, 2008 Board Notes Executive Directors Report:  Executive Director Somone reported that flowers had been sent to Senator F. Watson (IL.), N. Willis, and George Bonomo for a speedy recovery from their recent illnesses.  He also, noted that a letter of commendation had been sent to track maintenance man, Al Jozwiak, along with copies to appropriate track management, and congratulatory letters were sent to Mike Murphy (horseman) and newest member of the IRB Board; Mike Tanner on his recent appointment to the USTA Board; further noted was the election of Clark Fairley for a two-year tenure to the Standardbred Advisory Board.Executive Director Somone reported that the IHHA website had been updated to include a complaint forum box, that within the last three weeks no complaints had been filed.Executive Director Somone reported the issue regarding the release of financials from the tracks under the Freedom of Information Act (Sept. 2007) is expected to reach a final decision by mid-December and although this has been a costly endeavor that the outcome should be positive.He also reported that the IRS tax status issue (profit vs. non-profit) has been resolved.  The IRS acknowledged that it erred in the guidance it gave the association for its filing in 1972.  Although, the IRS re-opened the case in 2002, based on the aforementioned, it has subsequently decided the IHHA will be allowed to re-file taxes from 2002 as a for-profit association, without incurring any penalties, etc.  He noted however, that the expense of re-filing will cost the association approximately $8,000.ACTIONS ITEMSLegislative – S. Brubaker reported on the current veto session in Springfield, noting that due to Senate presidency race there was no activity on any gaming bills. Steve reported that that H.B. 1918 litigation was appealed to U.S. Supreme Court and monies from bill may be disbursed by July 2009.Steve reported the 10th license contenders are Rosemont, Waukegan and Des Plaines.    Proposals from the three will be reviewed mid-December with a decision expected by the first of January.G. Mack reported  on a recent  Sun Times article by Chris Fusco & Dave McKinney  lambasting the 15% the harness industry is to set to receive from revenue generated from the 10th casino license mandated by a 1999 gaming law.  Grassroots/membership – Directors Fairley and R. Williams reported that the 2009 membership application forms & letters had been updated and these are targeted to be printed and mailed during the first week of December.County Fairs –  (Also see legislative) Charlyn Fargo, Dept. of Ag., expressed concern over the viability of future county fair racing.  Stating at this time no funds are available for testing and limited funds for purses.  She noted that downstate legislators understand better the plight of horsemen and county fair venues.  President McCaffrey queried if the status of State Fair is in jeopardy Charlyn Fargo noted that there is 2-year contract with Balmoral/Maywood so status quo remains.Race Track Condition/Backstretch –  Director Widger reported that overall track conditions are good.    Director H. Williams reported that the annually sponsored IHHA Thanksgiving Day dinners will take place at Maywood from 4-6PM and Balmoral at 11-3PM.  Also, the children’s’ Christmas party is scheduled for Balmoral on Saturday December 13th.Insurance -  Insurance agent Ron Ray reported that projected renewal rates as of Jan 1, 2009 are expected to increase 49.9% (Note: Ray is in negotiations with the insurance company to decrease this hike).  This leap’s basis is rooted in the 13 claims of 1.1 million dollars paid by the insurer last year under the PPO program. Ray noted that all members of the program must be treated/subsidized equally for the program to be considered non-discriminatory and thereby, not open to liability.Purse Account – Al Beals reported that based on projected $750,000 from the upcoming dark period in Jan and in conjunction with the $700,000 of outs funds  the negative $1.4  purse account should  be close to breakeven by February 1, 2009.President McCaffrey noted that the IHHA’s newest website feature is a navigation page allowing members perusal of the purse account on an updated basis.Payment of Bills – Director Hunter having  reviewed the  financials gave approval for payment. Motion by Director Engel to pay bills.  Seconded by Director Widger.  All in favor.  Motion passed.Public Relations -   Executive Director Somone reported an increase in IHHA website viewing has doubled since execution of new site from 700 to 1400 unique visitors.Director H. Williams requested that the website ad in the track program, reflect the IHHA’s  phone number.Breeders Committee - Contact has been made with John Cisna of ISOBA regarding criteria for breeders for the Hall of Fame award.DISCUSSION ITEMSAmerican National Stake Payments – The board discussed the issue of the current policy of stake payment monies being used to fund purses for a consolation race versus payback to each owner $2,500. Entries – Director Widger reported that currently at Maywood and Balmoral there are many outside horses (from IN) being entered into races.  President McCaffrey noted that recently 350/400 horses vied for 180 positions.  This issue is addressed in the 2008 contract, paragraph 27, thus,  President McCaffrey will discuss this with track management to make sure there is full compliance is being adhered to regarding specifics of starts, etc.Hall of Fame - Executive Director Somone reminded directors to encourage membership to send in their nominations for upcoming Hall of Fame in January.  He also, noted that it would be nice if all directors could be in attendance at this event.Executive Session - The board went into Executive Session at 3:50PM.  Executive session ended 4:00PMMotion by Director Engel to extend Executive Director Somone’s contract to December 31, 2010.  Seconded by Director H. Williams.  All in favor.  Motion passed.Lobbyists – Director Miller requested that S. Brubaker address the issue of the value of the IHHA retaining lobbyists for legislative issues.  S. Brubaker responded that in order for the IHHA to make headway legislatively, it is a necessary requirement to engage qualified professionals.  He requested the board give him a lobbyist budget and within those parameters he would select candidates whose skills would be most beneficial to ascertain future goals.Motion by Director Engel to adjourn meeting.  Seconded by Director H. Williams.  Meeting adjourned at 4:15PM.-------------------------11/04/08October 20, 2008 Board NotesExecutive Directors Report:   Executive Director Somone reported that a letter had been sent to track rep. requesting clarification of the noon detention rule/penalties for stake races.  He noted that a response was received & according to IRB adopted rules:Executive Director Somone reported that monies for county fair races, the Illinois State Fair Race & DuQuoin Fair have been disbursed as of October 17, 2008.  However, monies from the WTD to-date have not been released.Executive Director Somone reported members of the purse committee met with IHHA legal counsel to review/discuss the revenue allocation/distribution from H.B.1918.   Based on calculations the current figures (w/out shared interest) our take is roughly $12 million.Executive Director Somone reported that newsletter had been sent out for October.  Also on the website there is now a link for the purse report, which will be updated weekly.ACTION ITEMS:Legislative -   Steve Brubaker reported that the current November Sessions schedule for the IL. House of Reps. has cut their first week, and plan to meet November 19-21st only.  The Senate is scheduled for both weeks, with meetings November 12-15 and 19th-21st.Steve reported that SB 2072 (3% Bill) which passed in the house, still currently resides in the Senate.Brubaker reported that the boats plan to appeal the current IL. Supreme Court ruling (7-0) on H.B. 1918 to U.S. Supreme Court, making it possibly six (6) months before a final decision is reached.  He noted that because of the IHHA and its’ lobbyists efforts, the IHHA is now recognized for it’s leadership, knowledge, and as an entity willing to work and compromise with/for the total benefit for industry gains.  Gary Mack stated that in conversation with legislators, they dislike dissension within industries trying to promote legislation.  This years Joint Press Conference showed unification, which in turn gave the horsemen’s industry positive press.  Directors Hunt suggested the lobbyist formulate a game plan as to which minority/majority key caucus members would be most beneficial to approach regarding upcoming legislative session.  Motion by Director K. Willis requested the Lobbyist team to develop a direct strategy for approaching key caucuses, etc. and make a formal presentation to the board.  Motion seconded by Director Fairley.  All in favor.  Motion passed. (It is noted that Senate President election will probably not be until Jan. ’09)Grassroots/Membership - B. Watson reported the membership committee recently met to review/discuss 2009 Membership options. B. Watson noted that at last HHI meeting it was reported that many other associations only offer their membership the option of offer 3rd party membership.  However, Director Fairley noted an oversight from last year and thereby, recommended that the $40 family membership for additional family members fee be raised from $15 to $20 to be compatible with the $50/$25 third party membership. Motion to amend membership form to reflect $40 membership with additional family member category be increased from $15 to $20 by director Fairley.  Seconded by Director R. Williams.  All in favor.   Motion passed.Executive Director Somone suggested that, insurance agent, Bill Whitman of Banknorth Insurance Group (3rd party liability company) come to speak/address any questions/concerns of the board at their November or December meeting. Director Welch requested that Executive Director Somone ask Whitman to prepare a coverage handout for the directors to review.President McCaffrey suggested that an additional line be put on membership form requesting cell phone numbers from members so that they can receive important notices/updates via text from the IHHA.County Fairs - Director R. Williams reported that in a follow-up with Charlyn Fargo, Dept. AG that next years racing will remain at status quo.Director Fairley reported he will be attending the Colt Assoc. Meeting November 6th at the Dept. of Ag.,Director R. Williams reported on the importance of keeping county fairs viable.  She noted that funding through Dept. of AG & the State use to be 69% of the budget, however, the current funding budget has been reduced to 33%.   This has negatively impacted the harness meets; Director R. Williams and Fairley requested clarification of their understanding regarding the 1999 stipulation of Fairmount monies of which, they thought 20% of standardbred races was to go to county fairs and 80% to city, and supposedly since 1999, the interest from these monies was to fund county fair budgets with the principal to remain untouched. Steve Brubaker noted the Dept. of Ag. administers these funds, and the Dept of Ag. was originally given a lump sum which they have burned through and now only have the 20% to work with.   He also noted that in 1999 the pari-mutual tax funded county fairs, now these funds go only to the general fund.   Brubaker reported the split law for nighttime was 20% of standardbred purse to county fairs & 80% to thoroughbred.Race Track Condition/Backstretch –  Executive Director Somone reported that the issue of heavy  rains on October  7th ,  wherein, track conditions caused concern for the  safety of horsemen has been dealt with by track reps. Since that date, rainy conditions have been taken care of by the track either being scraped or bladed.Directors Welch/ N. Willis noted that track employee Al Jaswiak does an exceptional job in maintaining conditions.  He’s there early every morning, scrapes track, pulls dirt, & works with the horsemen in addressing their concerns.  Director Welch requested, with board agreement, a letter be written by the Executive Director from the IHHA to the track reps. commending this employee.  Insurance - An insurance committee meeting will be scheduled after Nov. 1st   when they have received the new rates from agent Ron Ray.Legal – Breeders situation – Recapture Owed -  Boats appeal, best guess decision by June.Purse Account -  Executive Director Somone reported the purse account is currently a negative $1.2 million.Payment of Bills – Director Hunter reviewed the financials via fax, and his gave approval for payment of bills.  Motion by Director Hunt.  Seconded by Director Fairley.  All in favor.  Motion passed.Public Relations -  Executive Director Somone advised that the Northern IL. Colt Association will host their banquet next Sunday and Randy Tuftie extended an invitation to all IHHA members to participate.Executive Director Somone reported that the IHHA Hall of Fame Banquet is scheduled for Saturday January 24th 2009.  Hotel arrangements have been made with the Holiday INN of Matteson. Nomination guidelines have been sent to membership last week with deadline of November 28th.Executive Director Somone requested board approval for funding of the IHHA annual Thanksgiving dinner at the tracks (Balmoral/Maywood) also for the children’s Christmas party scheduled for Dec. 13th (Balmoral).  The board granted approval.Breeders Committee - Director Hunt reported that committee has added an additional member, Director Mike Knicley.  DISCUSSION ITEMSPurse Account – Executive Director Somone reported on the seriousness of the debt. This has thereby, caused track reps to talk about implementing purse cuts.  Executive Director Somone noted the IHHA is trying to stave off cuts and hoped with the three (3) weeks dark in January it could allay any further purse reductions.  However, President McCaffrey noted that according to the contractual agreement when purse reaches negative $300,000 the tracks have the right to implement a 10% purse reduction per week.  President McCaffrey stated he requested an extension of credit line f rom $300,000 to $1.5 mi. however, the tracks declined.Director Hunt suggested as an alternative for consideration that the outs be applied to the purse account by Jan. 1st thereby, reducing it to -$500,000.Judges - Director K. Willis stated she has heard many complaints regarding the inconsistencies of the judges at the tracks.  President McCaffrey noted inconsistency is based on who is in tower, which is subject to change on a nightly basis.  To address this issue, President McCaffrey suggested that a complaint box be put on the IHHA website for members to cite their complaints; however, for these to be valid, the member must sign their legitimate name, address and phone and subsequently, the IHHA will forward these along with a letter to the IRB. Director N. Willis motioned to adjourn the meeting.  Seconded by Director K. Willis.  All in favor.  Meeting adjourned at 5:10PM.-------------------------9/22/08September 2008 Board NotesExecutive Director’s Report:A letter was sent to the Dept. of Ag, (as requested at the August board meeting) concerning the  $5,000 donation for black box testing at the County Fairs. A response was received and there seemed to be miscommunication about the actual purpose of that money, however, it was noted that it did go for testing.A letter was sent to Ron Blum of the HGCA concerning disbursement of payment to drivers and trainers next year directly from the HGCA for monies earned at Springfield/DuQuoin Fairs.There was concern that OTB’s were not staying open late enough, thus denying the harness horseman their fair share of simulcast revenue. It was addressed and new policy states that OTB’s must now stay open for all the races, until their completion that are in the Tote system.A letter was sent to all PAC contributors, thanking them for their generosity. Details explaining how our PAC account works were presented for our new board members who perhaps didn’t have a clear understanding of how it operates. It was explained that most of the money for our PAC account was raised through donations but also that $35 from the $50 for membership fees goes to the PAC account. Also the Pac account was updated to reflect our new president Dave McCaffrey. At our previous board meeting the question was raised about the increase of our cost to HHI, the third party liability insurance that we offer. It was checked out and the cost increase was quite simply an increase from the insurance carrier from $22.50 per person to $26.00 per person, resulting in an increase from $13,477 in 2008 to $16,224 in 2009.Our new website has been updated since our last meeting and all were encouraged to participate and give constructive criticisms on how to improve it.ACTION ITEMS:Legislative Report - Steve Brubaker reported there is an ongoing special session occurring right now that doesn’t involve us although we are staying close to the action.The Illinois Supreme Court issued a decision to uphold the legality of HB1918. The Riverboats now have 90 days to appeal to the U.S. Supreme Court where we believe it has virtually no chance to get overturned.Gary Mack discussed details concerning the tenth riverboat and there has been no movement to change favorable language for horsemen to that bill.The lottery lease was discussed and it is questionable whether it will pass. If it does, it still doesn’t cover enough for anything substantial.President McCaffrey wants a committee to explore the dollar amount that will be coming soon from HB 1918. There could be differing opinions on how the money will be split and how it will be allocated. Director Hunter also said he wanted legal counsel to be a part of that first meeting.Membership Report - Next month the committee will make recommendations on membership fees for 2009County Fairs - Director Rita Williams wants to stay in contact with Dept. of Ag. monthly so she can give any updates that horseman need to know. All County Fair money (except Springfield and DuQuoin) has been paid and is up to date. $1,000 for track improvement has been approved for this year for the County Fairs. Charlyn Fargo passed on her appreciation in working with the IHHA. The question was raised about Maywood/Balmoral having to pay out Springfield/DuQuoin monies according to their contract with the state in perhaps 10 days of the completion of the races. Executive Director Somone will follow up and check into that.Racetrack Condition/ Backstretch - Balmoral’s track has never been better, especially considering all the rain it saw on the weekend of the 13th.Joe Barteletti spoke to the board again and reminded all about some of the potential risks are members could be facing. We will follow through and stay close to this situation. There was a motion by Director Miller to allow Joe Barteletti to proceed with discussions with the IRS and he will report back to us his findings.   Motion seconded by Director Engel.   All in favor.  Motion passed.Insurance- Discussed in executive session.Legal - In regards to the dates hearing, the IHHA had voted to support 6 weeks of dark time at the August meeting. At the IRB dates hearing President McCaffrey presented that idea with the thought being we could generate a good amount of money for the purse account through simulcast wagering during that dark time and avoid a purse slash at that time. The IHHA took no position, for or against, Maywood/Balmoral and Hawthorne. The IRB then made their decision to indeed lessen the days of harness racing by going dark for three weeks at the beginning of the year and taking off Tuesdays at the beginning and at the end of the year.Purse Account - The purse account is in terrible shape. We are currently close to $750,000 in the hole to Maywood/Balmoral.Payment of Bills – Motion made by Director Hunter to pay bills. Motion Seconded Director Williams.  All in favor.  Motion passed.Finance - Discussion arose concerning the amount of money spent on lobbyist. The legislative committee will meet and discuss how they can reduce some of these costs.Public Relations - The website is up and running and suggestions of adding the weekly purse report were conveyed. Advertising on the site is being discussed.Breeders Committee – Director Hunt suggested that in association with ISOBA we should coordinate our efforts to further the cause of the breeder in Illinois.DISCUSSION ITEMSDirector Hunter reported he had  recently sent out a mailer discussing the Prairie State Horse Park, an entertainment Complex along the 1-55, I-74, I-72 and I-57 corridor. Director Hunter feels we need an option to Chicago racing, and he spoke passionately about horsemen helping “ourselves” with other alternatives. Terry Hunt responded by saying “many people take shots but not many people are willing to step up with suggestions.” He commended Director Hunter for his efforts and suggested we all should think about helping the industry.The board went into Executive Session at 6:00pm completed at 6:20pmHeath Insurance was discussed during an executive session and the board voted 9-2 that we retain the services of Ron Ray and Brian Lowman as our heath insurance brokers for 2009.Director Simpson motioned to adjourn meeting. Seconded by Director H. Williams.   All in favor.  Motion passed.  The meeting was adjourned at 6:25pm.