ARC 2468C
RACING AND GAMING COMMISSION[491]
Adopted and Filed
Pursuant to the authority of Iowa Code sections 99D.7 and 99F.4, the Racing and Gaming Commission hereby amends Chapter 5, “Track, Gambling Structure, and Excursion Gambling Boat Licensees’ Responsibilities,” Chapter 6, “Occupational and Vendor Licensing,” and Chapter 10, “Thoroughbred and Quarter Horse Racing,” Iowa Administrative Code.
Item 1 clarifies the qualified agreements that must be submitted to the Commission for approval.
Item 2 extends the duration of occupational licenses to three years.
Item 3 requires jockeys to be licensed prior to the first post time of the race card for the day in which the horse is entered.
Item 4 amends the definitions of “overnight race,” “post time,” “purse race” and “stakes race.”
Item 5 requires that any person on horseback on facility grounds must wear a helmet and safety vest.
Item 6 clarifies instances in which stewards’ decisions cannot be appealed.
Item 7 clarifies when stall positions will be given.
Item 8 clarifies how and when horses on a veterinarian’s list are removed.
Item 9 clarifies the proper recording of a horse’s sex.
Item 10 provides clarification of what is required for a jockey’s safety vest.
Item 11 provides clarification of a horse’s eligibility when the horse appears on any other jurisdiction’s list.
Item 12 clarifies an instance where a horse is excused by the stewards.
Item 13 clarifies instances of coupling.
Item 14 provides clarifications for entries in split or divided races.
Item 15 provides clarification concerning the naming and engaging of riders.
Item 16 provides clarification regarding limitations on scratches.
Item 17 provides clarification pertaining to required workouts.
Item 18 provides clarification on equipment changes.
Item 19 provides clarification regarding a valid open claim certificate.
Item 20 changes the number of claims allowed.
Item 21 provides clarification pertaining to transfers after claims.
Item 22 provides clarification concerning an instance in which stewards may disallow a claim.
Item 23 provides limitations on compounded medications.
Item 24 provides clarifications with regard to use of approved NSAIDs.
Notice of Intended Action was published in the December 23, 2015, Iowa Administrative Bulletin as ARC 2320C. On January 12, 2016, at 9 a.m., a public hearing was held at the Iowa Racing and Gaming Commission, 1300 Des Moines Street, Suite 100, Des Moines, Iowa. There were two attendees representing the same stakeholder interests, and both individuals made verbal comments. In addition, the Commission received a follow-up letter from this stakeholder interest after the hearing. The concerns shared related to the proposed change specified in Item 6. There was concern that the proposed amendment raised constitutional concerns, namely with regard to due process.
The Commission reviewed and discussed the comment received both with legal counsel and at the Commission’s meeting on March 3, 2016. No changes have been made to the amendments published under Notice of Intended Action.
After analysis and review of this rule making, no impact on jobs has been found.
These amendments are intended to implement Iowa Code chapters 99D and 99F.
These amendments will become effective May 4, 2016.
The following amendments are adopted.
	Item 1. Amend subrule 5.4(8) as follows:
	5.4(8) Commission approval of contracts and business arrangements.
	a. 	Qualifying agreements.
	(1)	All contracts and business arrangements entered into by a facility are subject to commission jurisdiction. Written and verbal contracts and business arrangements involving a related party or in which the term exceeds three years or the total value in a calendar year exceeds $100,000 regardless of payment method are agreements that qualify for submission to and approval by the commission. Contracts and business arrangements with entities licensed pursuant to rule 491—11.13(99F) are exempt from submission to and approval by the commission. For the purpose of this subrule, a qualifying agreement shall be limited to:
	1.	Any obligation that expends, encumbers, or loans facility assets to anyone other than a not-for-profit entity, or a unit of government for the payment of taxes, or utilities an entity that provides water, sewer, gas or electric utility services to the facility.
	2.	No change.
	3.	A previously approved qualifying agreement, if consideration exceeds the approved amount in a calendar year by the greater of $100,000 or 25 percent or if the commission approval date of an ongoing contract is more than five years old.
	4.	No change.
	(2)	No change.
	(3)	A qualifying agreement must be submitted within 30 days of execution. Commission approval must be obtained prior to implementation, unless the qualifying agreement contains a written clause stating that the agreement is subject to commission approval. Qualifying agreements that are ongoing or open-ended need only be submitted on initiation, unless there is a material change in terms or noncompliance with 5.4(8)“b”(4). or to comply with 5.4(8)“a”(1)“3.”
	b. 	Purpose of review. The commission conducts reviews to serve the public interest to ensure that:
	(1) to (3) No change.
	(4)	Iowa resources, goods and services are utilized. Resources, goods, and services shall be considered to be made in Iowa, be provided by Iowans, or emanate from Iowa if one or more of the following apply:
	1. to 7. No change.	
A facility shall be considered to have utilized a substantial amount of Iowa resources, goods, services and entertainment in compliance with Iowa Code sections 99D.9 and 99F.7(4) as amended by 2004 Iowa Acts, House File 2302, section 11 and section 43, respectively, if the facility demonstrates to the satisfaction of the commission that preference was given to the extent allowed by law and other competitive factors.
	c.  and d.  No change.
	Item 2. Amend rule 491—6.8(99D,99F) as follows:
491—6.8(99D,99F) Duration of license. A license issued by the commission is valid for two three calendar years. The license shall expire at the end of the second third calendar year, unless an extension is granted by the administrator.
	Item 3. Amend rule 491—6.29(99D) as follows:
491—6.29(99D) Time by which owner, jockey and trainer must be licensed. The owner (includes stable names, partnerships, and corporations), the jockey and the trainer of a horse entered to race must both be licensed by the first post time of the race card for the day in which the horse is entered.
	Item 4. Amend the following definitions in rule 491—10.1(99D):
“Overnight race,” also known as a purse race, means a race for which entries close 96 hours, or less, before the time set for the first race of the day on which the race is to be run contest for which entries close at a time set by the racing secretary.
“Post time” means the scheduled starting time for horses to arrive at the starting gate for a contest.
“Purse race” means a race for money or other prize to which the owners of horses entered do not contribute money toward its purse and for which entries close less than 96 hours prior to its running.
“Stakes race” means a contest in which nomination (if applicable), entry, and starting fees contribute to the purse. No overnight race shall be considered a stakes race. Special designations or classifications for stakes races such as “graded stakes” or “black type” shall be determined by the appropriate breed registries or recognized authorities.
	Item 5. Amend subrule 10.2(9) as follows:
	10.2(9) Helmets and vests. A facility shall not allow any Any person on horseback on facility grounds unless that person is wearing shall wear a protective helmet and safety vest of a type approved by the commission.
	Item 6. Amend subparagraph 10.4(4)“a”(6) as follows:
	(6)	General enforcement provisions. Stewards shall enforce the laws of Iowa and the rules of the commission. The laws of Iowa and the rules of racing apply equally during periods of racing. They supersede the conditions of a race and the regulations of a racing meet and, in matters pertaining to racing, the orders of the stewards supersede the orders of the officers of the facility. The decision of the stewards as to the extent of a disqualification of any horse in any race shall be final for purposes of distribution of the pari-mutuel pool. The administrative standard of review for a disqualification decision is abuse of discretion. A decision by the stewards regarding a disqualification of a horse due to a foul, interference, or a riding infraction may not be appealed.
	Item 7. Amend subparagraph 10.4(8)“a”(3) as follows:
	(3)	Assign the starting gate stall positions to assistant starters and notify the assistant starters of their respective stall positions more than ten minutes on race day before post time for the each race;
	Item 8. Amend paragraph 10.4(17)“g,” introductory paragraph, as follows:
	g. 	A horse placed on the veterinarian’s list in Iowa, bleeders exempt, may be allowed to enter only after it has been removed from the list approved by the commission veterinarian. Any horse placed on the veterinarian’s list will be removed from any future race in which the horse has been entered. Requests for the removal of any horse from the veterinarian’s list will be accepted only after a minimum of three calendar days have elapsed from the placing of the horse on the veterinarian’s list have elapsed. Removal from the list will be at the discretion of the commission veterinarian, who may require satisfactory workouts or examinations to adequately demonstrate that the problem that caused the horse to be placed on the list has been rectified. Horses that are entered to race and then placed on the veterinarian’s list for any reason will not be allowed to enter a race for a minimum of three calendar days beginning the day after the horse was scheduled to race.
	Item 9. Amend subparagraph 10.5(1)“a”(14) as follows:
	(14)	Immediately Properly recording the sex of the horses in the trainer’s care with the horse identifier and the racing secretary and immediately reporting the alteration of the sex of a horse in the trainer’s care to the horse identifier and the racing secretary.
	Item 10. Amend subparagraph 10.5(2)“q”(2) as follows:
	(2)	A jockey’s weight shall include the jockey’s clothing, boots, saddle and its attachments. A safety vest shall be mandatory, shall weigh no more than two pounds, and shall be designed to provide shock-absorbing protection to the upper body of at least a rating of five as defined by the British Equestrian Trade Association.
	Item 11. Amend subparagraph 10.6(1)“a”(10) as follows:
	(10)	A horse appears on the starter’s list, stewards’ list, paddock list, or Iowa veterinarian’s list, notwithstanding a horse appearing on the veterinarian’s list as a “bleeder.” In addition, a horse appearing on any starter’s, stewards’, or paddock judge’s list, or the veterinarian’s list in another jurisdiction, is ineligible unless the horse is removed from the list by the day of the race and approved by the board of stewards to enter.
	Item 12. Amend subparagraph 10.6(1)“b”(4) as follows:
	(4)	A horse is brought to the paddock and is not in the care of and saddled by a currently licensed trainer or assistant trainer unless excused by the stewards.
	Item 13. Amend paragraph 10.6(2)“c” as follows:
	c. 	Coupling. There will be no coupled entries in any race. In races, excluding stakes races, that overfill, trainers must declare preference of runners with identical ownership at time of entry. Same-owner, second-choice horses will be least preferred. A trainer or owner may not enter more than three horses in a race unless the race is split or divided.
	Item 14. Adopt the following new subparagraphs 10.6(2)“d”(3) and (4):
	(3)	A trainer shall be allowed to enter more than the maximum number of entries allowed under paragraph 10.6(2)“c” if the entries are declared at time of entry as “split entry only” and preference is given by the trainer for the trainer’s first three entries.
	(4)	The racing secretary shall split an overnight race so that common ownership, identical ownership, or common trainer will divide as equally as possible between two or more races.
	Item 15. Rescind paragraph 10.6(2)“l” and adopt the following new paragraph in lieu thereof:
	l. 	Naming/engaging of riders. Riders must be named at the time of entry. If, at the conclusion of the draw of a race, a trainer does not have a rider, all riders who are available shall be made known to the trainer at that time via telephone or in person by the stewards or their designee. A trainer who does not name a rider prior to the conclusion of the draw of a race, and reasonable attempts have been employed to contact the trainer with no response, shall have an available rider engaged at the facility placed on the horse, determination of which shall be drawn by lot. Riders properly engaged as a first or second call in a race must fulfill their engagements as required in paragraph 10.5(2)“l.”
	Item 16. Amend paragraph 10.6(8)“c” as follows:
	c. 	Limitation on scratches. No horse shall be permitted to be scratched from a race if the horses remaining in the race number fewer than seven betting interests, unless the stewards permit a lesser number. When the number of requests to scratch would, if granted, leave a field of fewer than seven, the stewards shall determine by lot which entrants may be scratched and permitted to withdraw from the race. Veterinarian scratches will be preferred and accepted without regard to the number of entries.
	Item 17. Amend paragraph 10.6(9)“a” as follows:
	a. 	When required. No horse shall be allowed to start unless the horse has raced in an official race or has an approved official timed workout satisfactory to the stewards. A horse that has not started for a period of 60 days or more shall be ineligible to race until it has completed a published workout satisfactory to the stewards prior to the day of the race in which the horse is entered. The workout must have occurred within the previous 30 days for a thoroughbred or within the previous 60 days for a quarter horse. Horses that have not started for a period of six months or more must have two published workouts, one of which must have occurred within the previous 30 days for thoroughbreds or within the previous 60 days for quarter horses. First-time starters must have at least two published workouts and with one having occurred within the previous 30 days for thoroughbreds or within the previous 60 days for quarter horses, be approved from the gate by the starter, and have a published workout from the starting gate.
	Item 18. Amend paragraph 10.6(10)“b” as follows:
	b. 	Equipment change. No licensee may change the equipment used on a horse from that used in the horse’s last race, unless with permission of the stewards. No licensee may add blinkers or cheek pieces to a horse’s equipment or discontinue their use without the prior approval of the starter and the stewards. First-time starters must race with or without blinkers or cheek pieces in accordance with the gate approval card issued by the starter. In the paddock prior to a race, a horse’s tongue may be tied down with clean bandages, clean gauze, or with a tongue strap.
	Item 19. Amend paragraph 10.6(18)“a”(1)“3” as follows:
	3.	Has a valid open claim certificate. Any person not licensed as an owner, or a licensed authorized agent for the account of the same, or a licensed owner not having foal paper(s) registered with the racing secretary’s office or who has not started a horse at the current meeting may request an open claim certificate from the commission. The person must submit a completed application for a prospective owner’s license to the commission. The applicant must have the name of the trainer licensed by the commission who will be responsible for the claimed horse. A nonrefundable fee must accompany the application along with any financial information requested by the commission. The names of the prospective owners shall be prominently displayed in the offices of the commission and the racing secretary. The application will be processed by the commission; and when the open claim certificate is exercised, an owner’s license will be issued.
	Item 20. Rescind subparagraph 10.6(18)“a”(2) and adopt the following new subparagraph in lieu thereof:
	(2)	Number of claims. An ownership entity (sole owner, partnership, racing stable, corporation or owner/trainer acting as an owner) shall not claim more than one horse in a race. An authorized agent or trainer acting on behalf of an ownership entity shall not submit more than one claim in a race with or without commonality of ownership.
	Item 21. Rescind paragraph 10.6(18)“g” and adopt the following new paragraph in lieu thereof:
	g. 	Transfer after claim.
	(1)	Forms. Upon a successful claim, the stewards shall issue in triplicate, upon forms approved by the commission, an authorization of transfer of the horse from the original owner to the claimant. Copies of the transfer authorization shall be forwarded to and maintained by the commission, the stewards, and the racing secretary.
	(2)	No claimed horse shall be delivered by the original owner to the successful claimant until the claim is approved by the stewards. Every horse claimed shall race for the account of the original owner, but title to the horse shall be transferred to the claimant from the time the horse becomes a starter; and said successful claimant becomes the owner of the horse unless the claim is voided by the stewards under the provisions of this paragraph. Only a horse which is officially a starter in the race may be claimed. A subsequent disqualification of the horse by order of the stewards shall have no effect upon the claim.
	(3)	The stewards shall void the claim and return the horse to the original owner if:
	1.	The claimed horse suffers a fatality during the running of the race, dies, or is euthanized before leaving the track.
	2.	The commission veterinarian, during the veterinarian’s observation of the horse coming off the track or upon its arrival to the test barn, determines the horse will be placed on the veterinarian’s list as unsound or lame. The stewards shall not void the claim if, prior to the race in which the horse is claimed, the claimant elects to claim the horse regardless of whether the commission veterinarian determines the horse will be placed on the veterinarian’s list as unsound or lame. An election made under this rule shall be entered on the claim form.
	3.	The race is called off, canceled, or declared no contest.
	(4)	Other-jurisdiction rules. The commission will recognize and be governed by the rules of any other jurisdiction regulating title and claiming races when ownership of a horse is transferred or affected by a claiming race conducted in that other jurisdiction.
	(5)	Determination of sex and age. The claimant, within 48 hours, shall be responsible for determining the age and sex of the horse claimed notwithstanding any designation of sex and age appearing in the program or in any racing publication. Horses that are spayed or gelded shall be properly identified as such in the program. If the claimant finds that a mare is in fact spayed or that the status of a male horse is inaccurate as stated by the program, the claimant may return the horse for full refund of the claiming price.
	(6)	Affidavit by claimant. The stewards may, if they determine it necessary, require any claimant to execute a sworn statement that the claimant is claiming the horse for the claimant’s own account or as an authorized agent for a principal and not for any other person.
	(7)	Delivery required. No person shall refuse to deliver a properly claimed horse to the successful claimant. The claimed horse shall be disqualified from entering any race until delivery is made to the claimant.
	(8)	Obstructing the rules of claiming. No person or licensee shall obstruct or interfere with another person or licensee in claiming any horse, enter into any agreement with another to subvert or defeat the object and procedures of a claiming race, or attempt to prevent any horse entered from being claimed.
	Item 22. Amend paragraph 10.6(18)“i” as follows:
	i. 	Deceptive Disallowance of claim. The stewards may cancel and disallow any claim within 24 hours after a race if they determine that a claim was made upon the basis of a lease, sale, or entry of a horse made for the purpose of fraudulently obtaining the privilege of making a claim; or if an eligible claimant improperly obtains information or access to horses by being present in the paddock during the claiming race unless the claimant has a horse in that claiming race, as determined solely by the stewards. In the event of a disallowance, the stewards may further order the return of a horse to its original owner and the return of all claim moneys.
	Item 23. Adopt the following new subparagraph 10.7(1)“d”(6):
	(6)	No person shall possess, use, or distribute a compounded medication within the premises of the facility if there is a Food and Drug Administration-approved equivalent of that substance available for purchase unless approved by the commission veterinarian. Veterinary drugs shall be compounded in accordance with all applicable state and federal laws. Compounded medication shall be dispensed only by prescription issued by a licensed veterinarian to meet the medical needs of a specific horse and for use only in that specific horse. All compound medications must be labeled as required by law.
	Item 24. Amend paragraph 10.7(1)“k” as follows:
	k. 	Non-steroidal anti-inflammatory drugs (NSAIDs).
	(1)	The use of one of three approved NSAIDs shall be permitted under the following conditions:
	1.	The level does not exceed the following permitted serum or plasma threshold concentrations which are consistent with administration by a single intravenous injection at least 24 hours before the post time for the race in which the horse is entered:
	●	Phenylbutazone (or its metabolite oxyphenylbutazone) – 5 micrograms per milliliter;
	●	Flunixin – 20 nanograms per milliliter;
	●	Ketoprofen – 10 2 nanograms per milliliter.
	2.	No change.
	3.	The presence of more than one of the three approved NSAIDs, with the exception of phenylbutazone in a concentration below 1 microgram per milliliter, flunixin in a concentration below 3 nanograms per milliliter, or ketoprofen in a concentration below 1 nanogram per milliliter of serum or plasma, or the presence of any unapproved NSAID in the post-race serum or plasma sample is not permitted. The use of all but one of the approved NSAIDs shall be discontinued at least 48 hours before the post time for the race in which the horse is entered.
	(2)	No change.
[Filed 3/7/16, effective 5/4/16]
[Published 3/30/16]
Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/30/16.