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Administration Committee Meeting Thursday, February 4, 2021
+1 651-395-7448
Phone Conference ID: 645 654 530# Microsoft Teams Teleconference
AGENDA
1. Call to Order 2. Roll Call
3. Adoption of Agenda
4. Approval of Minutes – December 17, 2020 5. Action: 2021 Legislative Items
6. Discussion: Review Commissioner’s Manual 7. Adjournment
Note to Public: In effort to maintain order and maximize clarity, please keep microphones muted unless addressed by the chair.
CANTERBURY PARK LOCATION 1100CANTERBURY ROAD,STE.100
SHAKOPEE,MN55379 TELEPHONE: 952-496-7950
FAX: 952-496-7954 WWW.MRC.STATE.MN.US
RUNNING ACES LOCATION 15201ZURICH STREET NE,STE.212
COLUMBUS,MN55025-7908 TELEPHONE: 651-925-3951
FAX: 651-925-3953 WWW.MRC.STATE.MN.US
1
Administration Committee Teleconference Meeting Thursday, December 17, 2020, 3:00 p.m.
MINUTES Call to Order: Chair Idelkope called the meeting to order.
Roll Call: Present – Commissioners Gingold, Goodman, and Idelkope
Adoption of Agenda: Commissioner Gingold made a motion to adopt the agenda as presented. Second by Chair Idelkope. Motion carried.
Approval of Minutes: Commissioner Gingold made a motion to approve the Administrative Affairs Committee minutes of December 7, 2020. Second by Chair Idelkope. Motion carried.
Chair Idelkope said that the Administration Committee had received the new Attachment A, the contract for approval matrix and the Minnesota Racing Commission contract review and approval procedures. General Council Joe Newton spoke on Attachment A of the draft Executive Director Delegation of Authority Order that was before the committee. Joe Newton said this document was drafted for
discussion purposes. Joe Newton noted that item 9 was removed from Attachment A, as requested by the committee previously. A red line explanation of the changes from the previous order and the addition of monetary limitations to the delegation order had also been added. Chair Idelkope opened the meeting up for discussion and questions related to Attachment A. There was no discussion on Attachment A and the changes were approved by the committee.
Chair Idelkope initiated discussion on the Contract Approval Matrix. Joe Newton said that the contracts, as part of the Contract Approval Matrix are not partied to the Minnesota Racing Commission and are contracts between the associations and third-party vendors. Joe Newton also said that a red line explanation of the changes from the previous Matrix had been added.
Andrew Offerman said that the amount limit on the Contract Approval Matrix may be delayed and slow down the contract process if full commission approval is required. Andrew also recommended further discussion on contract approval. Commissioner Goodman asked Andrew for an example of a type of contract that may be delayed. Andrew gave the example of simulcast agreements that may require timely approval. Commissioner Goodman also asked Executive Director Steve May to explain the difference between contract types that would or wouldn’t require Commission approval. Steve explained a previous situation where playing cards were damaged and contracts needed to be approved
expeditiously. Commissioner Goodman agreed with the recommendation to move to a $150,000 contract approval limit by the Executive Director.
Steve May asked for clarification of timelines for the Contract Approval Matrix and recommended an edit to the matrix. Chair Idelkope asked Joe Newton to make edits to the matrix before bringing it before the full commission.
Commissioner Goodman made a motion to go back to the original recommended Contract Approval Matrix. Second by Commissioner Gingold. Motion carried.
Commissioner Gingold made a motion to approve the Contract Approval Matrix. Second by Commissioner Goodman. Motion carried.
Adjournment: Chair Idelkope adjourned the meeting at 3:30 p.m.
ADOPTED THIS _____________TH DAY OF ______________________, __________ BY A
QUORUM OF THE ADMINISTRATION COMMITTEE OF THE MINNESOTA RACING COMMISSION. CANTERBURY PARK LOCATION
1100CANTERBURY ROAD,STE.100 SHAKOPEE,MN55379 TELEPHONE: 952-496-7950
FAX: 952-496-7954 WWW.MRC.STATE.MN.US
RUNNING ACES LOCATION 15201ZURICH STREET NE,STE.212
COLUMBUS,MN55025-7908 TELEPHONE: 651-925-3951
FAX: 651-925-3953 WWW.MRC.STATE.MN.US
240.01 Definitions
Subd. 18. Racing meeting. “Racing meeting” is a series of days in which racing days are not separated by more than five nonracing days unless approved in advance by the commission.
240.11 Licenses Nontransferable
(a) A Class C occupation license issued under this chapter may not be transferred.
(b) A Class A, Class B, Class D, and Class C licenses to provide advance deposit wagering may not be transferred without prior approval by the commission.
240.14 Racing Days Subd. 2.Hearing.
A public hearing is required before the commission may: (1) make an assignment of racing days;
(2) revise the assignment during the year except when race dates will total or equal a greater amount than has been originally assigned; or
(3) assign racing days to a licensee whose license is issued after the initial assignment.
The commission may without a hearing assign one additional racing day to a licensee for each originally assigned racing day during the same racing meeting on which racing was not conducted for reasons beyond the licensee's control.
240.19 Contracts
240.24 Medication
Subd. 2a. Reimbursement.
Increased expenses related to the use of upgraded drug testing technologies and procedures are deemed to be necessary costs within the meaning of section 240.155 and the commission shall may be reimbursed for these expenses from receipts from card playing activities regulated by the commission.
Subd. 3. Fees. The commission shall establish by rule a fee or schedule of fees that may be used to recover the costs of medical testing of horses running at racetracks licensed by the commission. Fees charged for the testing of horses shall may cover the cost of the medical testing laboratory. Fee receipts shall be deposited in the state treasury and credited to the racing reimbursement account.
240.06 Racetrack Licenses
Subd. 7. License suspension and revocation. The commission:
(1) may revoke a class A license for (i) a violation of law, order, or rule which in the commission's opinion adversely affects the integrity of horse racing in Minnesota, or for an intentional false statement made in a license application, or (ii) a willful failure to pay any money required to be paid by Laws 1983, chapter 214;
(2) may revoke a class A license for failure to perform material covenants or representations made in a license application; and
(3) shall revoke a class A license if live racing has not been conducted on at least 50 racing days assigned by the commission during any period of 12 consecutive months, unless the commission authorizes a shorter period because of circumstances beyond the licensee's control pursuant to Chapter 240.30, subdivision 5.
The commission may suspend a class A license for up to one year for a violation of law, order, or rule which in the commission's opinion adversely affects the integrity of horse racing in Minnesota, and may suspend a class A license indefinitely if it determines that the licensee has as an officer, director, shareholder, or other person with a direct, indirect, or beneficial interest a person who is in the commission's opinion inimical to the integrity of horse racing in Minnesota or who cannot be certified under subdivision 1, clause (4).
240.30 Card Clubs
Subdivision 5. Limitation.
The commission shall not authorize a licensee to operate a card club if the licensee has not conducted at least 50 days of live racing at a class A facility within the past 12 months or during the preceding calendar year unless the commission authorizes a shorter period
as a result of an epidemic, natural disaster, flood, war or other because of circumstances beyond the licensee's control that made running 50 days of live racing untenable for either public or equine health, welfare, or safety. Any authorization by the commission to operate a card club for a class A licensee that has conducted less than 50 days of live racing at the class A facility within the past 12 months or during the preceding calendar year must be approved in writing by the horsepersons' organization representing the majority of horsepersons racing the breed racing the majority of races at the licensee's class A facility during the preceding 12 months.
(See Note)
Note: The amendment to subdivision 5 expires December 31, 2021.
240.131 Advance Deposit Wagering
Subd. 7. Payments to state.
(a) A regulatory fee is imposed at the rate of two percent of all amounts wagered by Minnesota residents with an authorized advance deposit wagering provider. The fee shall be declared on a form prescribed by the commission. The ADW provider must pay the fee to the commission no more than 15 days after the end of the month in which the wager was made. Fees collected under this paragraph must be deposited in the state treasury and credited to a racing and card-playing regulation account in the special revenue fund and are appropriated to the commission to offset the costs incurred by the Commission as described under 240.30, subdivision 9 or the costs associated with regulating horse racing and pari-mutuel wagering in Minnesota.
363A.36 Certificates of Compliance for Public Contracts
Subdivision 1. Scope of application.
