Call to Order and Roll Call
The 3rd meeting of the Interim Joint Committee on Licensing and Occupations was held on Monday, September 16, 2013, at 10:00 AM, in the Club House at Keeneland Race Course. Representative Dennis Keene, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator John Schickel, Co-Chair; Representative Dennis Keene, Co-Chair; Senators Denise Harper Angel, Jimmy Higdon, Christian McDaniel, Morgan McGarvey, R.J. Palmer II, Dan "Malano" Seum, and Damon Thayer; Representatives Tom Burch, Denver Butler, Larry Clark, Jeffery Donohue, David Floyd, Dennis Horlander, Joni L. Jenkins, Reginald Meeks, Brad Montell, David Osborne, Darryl T. Owens, Ruth Ann Palumbo, Sal Santoro, Arnold Simpson, Diane St. Onge, Ken Upchurch, and Susan Westrom.
Guests: Rusty Cress, Bert May, Dinsmore and Shohl LLP; Chris Calabucci, Elite Professional Education; John Ward, Executive Director, Marc Guilfoil, Director of Racing, Mary Scollay, DVM, Equine Medical Director, Jamie Eads, Director of Incentives and Development, Greg Lamb, Supervisor Pari-Mutuel Wagering, Kentucky Horse Racing Commission.
LRC Staff: Tom Hewlett, Bryce Amburgey, Carrie Klaber, Michel Sanderson, and Susan Cunningham.
Approval of minutes
A motion to approve the minutes from the July 12, 2013 meeting was made by Representative Burch and seconded by Representative Westrom. The motion was carried by voice vote.
Welcome to Keeneland
Vince Gabbard, Vice President of Keeneland, welcomed members to the racecourse noting that the meeting was taking place in the original Club House structure. He noted that while Keeneland is well known for its racing and is the largest thoroughbred auction house in the nation, with over 52 countries represented at the September Yearling Sale. Mr. Gabbard told members that there would be a tour of the racecourse after the meeting.
Continuing Education for Hairdressers, Estheticians, Cosmetologists, and Nail Technicians
Rusty Cress, Dinsmore & Shohl LLP, said that HB 311, passed in the 2012 regular legislative session, eliminated the requirement of continuing education for licensees under the Board of Cosmetology and Hairdressers. The continuing education system was said to be working poorly, but bill did not establish new criteria. Currently, hairdressers, estheticians, cosmetologists, and nail technicians are operating salons without any continuing education requirement. The issue is the reinstatement of a continuing education requirement and appropriate changes to the system.
Chris Calabucci, Elite Professional Education, said the main concern with the lack of continuing education is the rise in infections in the community. Sanitation is a major issue in salons. It is important for instructors to be current on proper practices in order to teach licensees. Former problems with delivery of continuing education can be addressed so that the integrity of the education can be maintained. Elite Professional Education still administers continuing education to licensees in Kentucky who voluntarily maintain current practices in preventing the spread of community-based diseases.
Rusty Cress told members that reinstatement of the continuing education requirements would include two hours dedicated to public health, sanitation, and safety education. These requirements were not in the previous law. The industry uses instruments that require proper sterilization. New legislation should exempt a licensee who has reached the age of 60 or who has maintained an active license for 30 years from continuing education requirements. Home study courses, such as an internet-based class or a correspondence class, would still be acceptable. There will be a proposal to allow the board to contract with a third party administrator to perform the continuing education program.
In response to a question from Senator Schickel, Mr. Cress said there has been a meeting with the sponsor of HB 311 RS12 and with the board to begin discussions to try to reach a consensus.
In response to a question from Representative Montel, Mr. Calabucci said the new proposal would require eight hours annually, which is two more than the previous requirement.
Representative Floyd commented that the need for an increase in the number of hours falls flat when there is a clause that relieves some licensees due to experience.
In response to a question from Senator Higdon, Mr. Cress said the current draft only reinstates the continuing education requirement. Inspection by the County Health Department can be added. Currently the board inspects salons and seems to be doing a good job.
In response to a question from Representative Clark, Mr. Calabucci said his business, Elite Professional Education, provides continuing education credit through correspondence and on-line. Fees in Kentucky are $17.95 for six hours, and $29.95 for instructors’ continuing education.
In response to a question from Representative Jenkins, Mr. Calabucci said his company offers training on recognizing the signs of domestic violence. That training is currently being offered in Florida.
In response to a question from Representative Owens, Mr. Calabucci said that there is anecdotal information regarding outbreaks of infections stemming from nail salons and other industry sources. Bert May said that most cases are not reported to the health department either by the salon or individuals. Regarding fees, the recommendation is for the board to charge a fee to providers that have been approved to provide continuing education.
In response to a question from Representative St. Onge, Mr. Calabucci said his company provides a certificate of completion of continuing education.
In response to a question from Representative Horlander, Charles Lykins, Executive Director, State Board of Cosmetology, said there are 21,200 active or inactive cosmetology practitioners, 3,400 nail technicians, and 350 estheticians in the state.
Representative Keene said he views continuing education as a way for professionals to stay up-to-date in their profession.
Kentucky Horse Racing Commission update
Jamie Eades, Director of the Division of Incentives and Development, said that there are three separate funds that are paid from the 6 percent sales tax charged when a stallion is bred to a mare in Kentucky. The money is divided with 80 percent going to the thoroughbreds, 13 percent to standardbreds and 7 percent to the non-race breeds. There are 11 breeds participating in the non-race breeds program.
The thoroughbred industry has been flat in recent years; however, Kentucky continues to lead in breeding and racing. This year the estimated number of mares bred in Kentucky is 15,000. In 2012, 30 percent of North American foal crop came from Kentucky. This year the breeder incentive fund deadline has been extended. There are 7,687 mares nominated to the program and more applications are being processed.
Last year the regulation for eligibility was changed so that horses racing out-of-state could be awarded funds. Also, during the past two years, the fund has been co-mingling its marketing funds with the Kentucky Thoroughbred Owners and Breeders Association. This allows the fund to advertise its benefits to a larger area. Since 2006, over $87 million has been paid to breeders.
The standardbred program uses its 7 percent to fund the Kentucky Sire Stakes. This program concludes in September at the Red Mile with trophy presentations by the Governor and First Lady. Horses that participate in this program are sired by stallions standing in Kentucky. Tops in Lexington will feature a story on the history of Red Mile, showcasing the Sire Stakes as the richest stakes in North America.
During the last legislative session, the General Assembly passed SB 110, allowing standardbred horses foaled by resident mares, regardless of whether they are sired by Kentucky stallions, into the program. This is expected to grow the program by making more horses eligible to enter the Sire Stakes.
In the non-race breeds program, the Kentucky Quarter Horse Breeder Incentive Fund has seen an increase in horses participating in their show category. The Walking Horse Breeder Incentive Fund has experienced an increase in new owners participating and is one of the largest breeds participating in the non-race program. The saddlebred program has increased by 20 percent this year.
In response to a question from Representative Montel, Ms. Eads said that the breeding activity is flat, even though Kentucky continues to lead in the percentage of horses bred nationally. The average award looks different because of the change in regulation allowing more horses to participate. The dollar allocation is the same, but since it no longer matters where a race takes place, more horses are receiving awards.
In response to a question from Senator Higdon, Ms. Eads said that every time a stallion is bred to a mare in Kentucky there is a 6 percent sales tax. This money is allocated to the Breeder Incentive Fund. Because thoroughbreds are the predominate breed, they get a larger percent in the split.
Greg Lamb, Supervisor of Pari-mutuel Wagering, said the handle for historic racing continues to go up with a record $2 million wagered this last Saturday. Kentucky Downs purses have increased from $750,000 to $450 million in two years, based on revenue generated from historic racing at the track. From January 1 to December 31, 2013, machines will handle a projected $300 million. Ellis Park’s handle on historic racing was up during its live meet.
In response to a question from Representative Clark, John Ward, Executive Director of the KHRC, said he has had no direct conversation with other Kentucky racetracks about adding historic racing after the court has ruled on instant racing. He noted that Ellis Park is near a mature gambling market, and historic racing has not been as well received there. Mr. Lamb said that some tracks are considering building a track near Corbin. They are considering buying the license of Thunder Ridge and moving that license to Corbin, adding a historic racing facility at that track.
Mary Scollay, DVM, Equine Medical Director said that during the past 11 months commission veterinarians have administered Furosemide to 12,000 horses, with four administration errors by commission veterinarians in the first five weeks of the program. This resulted in two scratch starts. Due to these errors the commission changed the protocol for race day administration. Today there is a Salix Coordinator, who monitors activities of the veterinarians to ensure horses are treated on time and appropriately. There is a master treatment sheet that is reviewed by all veterinarians with the coordinator. The veterinarians have radios to communicate with each other and the coordinator in case of questions. Before a veterinarian treats a horse he notifies the Salix Coordinator, therefore if there has been a change the treatment can be stopped before administration. Color coded tags are placed on stalls with a different color for each day to eliminate confusion regarding treatment for each day. A treatment sheet with detailed information on each horse is available for review each day.
Since the commission began the program, horses that are sent to the test barn after races have shown a Lasix concentration slightly less than 30 percent. This tells the commission that previously Lasix was being administered too close to race time, as close as an hour before race time. Now, after the regulation, Lasix is administered four hours prior to a race. The range of concentration has narrowed as well, suggesting that supplemental injections given after the four hour deadline have stopped.
The benefits of this program are to the wagering public, who get accurate medication information. Ship-in horses arrive on time to get their Lasix four hours before their race. There is enhanced security in the barn to stop prohibited practices prior to races. Horses that arrive after the four hour deadline are given the opportunity to race without Lasix and the public is notified. Horsemen have the assurance that all horses are given medication in a fair manner. Soundness evaluations, assessment of exercise history, and review of race video replays help determine risk factors and have reduced racing fatalities. An Equine Mortality Review panel has been formed to collect information when a horse is fatally injured on a racetrack.
HFL Sports Science, a laboratory in Lexington, does drug testing for the commission and has received its accreditation. A rapid response protocol has been established giving the commission the ability to promptly initiate a strategic response to substances reported as emerging threats to the integrity of competition.
In response to a question from Representative Meeks, Dr. Scollay said she would compile the total number of starts in North America last year, the projected number of starts for Kentucky this year, and total number of starts in Kentucky last year, and send them to him. There has been a high level of compliance from the veterinarians with the regulation, and there have been no penalties.
In response to a question from Representative Westrom, Dr. Scollay said 97 percent of race horses are still receiving Lasix. It is age specific with fewer of the younger horses using race day medication. In Europe Lasix is not permitted during racing; however, it is permitted and used during training.
In response to a question from Representative St. Onge, Ms. Eads said that in 2011 and before, more money was allocated in Kentucky to fewer horses. Before the regulation change, a little over half of the money was allocated to races won in Kentucky, and to a smaller horse population.
Senator Thayer said that the Breeders Incentive program changed the regulation in 2012 to reward breeders, no matter where their horses go.
Representative Clark thanked the KHRC for changing the dates of the Churchill Downs calendar to accommodate racing in September.
In response to a question from Senator Seum, Dr. Scollay said Lasix reduces blood pressure by diuresis and, even though the cause of exercise-induced pulmonary hemorrhage has not been determined, it has been shown that by reducing the horse’s blood pressure the occurrence of this hemorrhaging is decreased. Use of Lasix became popular in the late 1970s to help the horse. However, it has also been identified as a performance enhancer.
In response to a question from Representative Burch, Dr. Scollay said the regulation that went into effect last fall eliminated the use of adjunct bleeder medications that had been permitted in Kentucky. Since then, there has not been an increase in the number of horses bleeding on the racetrack.
Represent Osborne commented that he has been skeptical of the race day administration policy. He said he was unsure the commission was prepared to implement the policy, adding there was a lack of regulations and policies in effect to adequately give guidance to the process. The problems were recognized and addressed quickly and listening to horseman’s concerns have made the policy effective. He said the industry should not lose sight of what was best for the equine athlete.
Senator Thayer recognized trainer Buff Bradley and congratulated him on Groupie Doll’s track record setting performance during her last race in Pennsylvania.
Representative Keene informed members that the next committee meeting will be October 11, at 10:00 AM in Room 129 of the Capitol Annex. The topic for the meeting will be Advanced Practice Registered Nurses.
There being no further business to come before the committee, and with a motion and second, the meeting was adjourned at 11:32 AM.