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Thoroughbred Horse Racing Jockeys and Workers: Examining On-Track Injury In- Surance and Other Health and Welfare Issues

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Thoroughbred Horse Racing Jockeys and Workers: Examining On-Track Injury In- Surance and Other Health and Welfare Issues THOROUGHBRED HORSE RACING JOCKEYS AND WORKERS: EXAMINING ON-TRACK INJURY IN- SURANCE AND OTHER HEALTH AND WELFARE ISSUES HEARING BEFORE THE SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED NINTH CONGRESS FIRST SESSION NOVEMBER 17, 2005 Serial No. 109–62 Printed for the use of the Committee on Energy and Commerce ( Available via the World Wide Web: http://www.access.gpo.gov/congress/house U.S. GOVERNMENT PRINTING OFFICE 26–997PDF WASHINGTON : 2005 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 0ct 09 2002 11:15 Apr 20, 2006 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 F:\DOCS\26997.TXT HCOM1 PsN: JOEP COMMITTEE ON ENERGY AND COMMERCE JOE BARTON, Texas, Chairman RALPH M. HALL, Texas JOHN D. DINGELL, Michigan MICHAEL BILIRAKIS, Florida Ranking Member Vice Chairman HENRY A. WAXMAN, California FRED UPTON, Michigan EDWARD J. MARKEY, Massachusetts CLIFF STEARNS, Florida RICK BOUCHER, Virginia PAUL E. GILLMOR, Ohio EDOLPHUS TOWNS, New York NATHAN DEAL, Georgia FRANK PALLONE, Jr., New Jersey ED WHITFIELD, Kentucky SHERROD BROWN, Ohio CHARLIE NORWOOD, Georgia BART GORDON, Tennessee BARBARA CUBIN, Wyoming BOBBY L. RUSH, Illinois JOHN SHIMKUS, Illinois ANNA G. ESHOO, California HEATHER WILSON, New Mexico BART STUPAK, Michigan JOHN B. SHADEGG, Arizona ELIOT L. ENGEL, New York CHARLES W. ‘‘CHIP’’ PICKERING, ALBERT R. WYNN, Maryland Mississippi, Vice Chairman GENE GREEN, Texas VITO FOSSELLA, New York TED STRICKLAND, Ohio ROY BLUNT, Missouri DIANA DEGETTE, Colorado STEVE BUYER, Indiana LOIS CAPPS, California GEORGE RADANOVICH, California MIKE DOYLE, Pennsylvania CHARLES F. BASS, New Hampshire TOM ALLEN, Maine JOSEPH R. PITTS, Pennsylvania JIM DAVIS, Florida MARY BONO, California JAN SCHAKOWSKY, Illinois GREG WALDEN, Oregon HILDA L. SOLIS, California LEE TERRY, Nebraska CHARLES A. GONZALEZ, Texas MIKE FERGUSON, New Jersey JAY INSLEE, Washington MIKE ROGERS, Michigan TAMMY BALDWIN, Wisconsin C.L. ‘‘BUTCH’’ OTTER, Idaho MIKE ROSS, Arkansas SUE MYRICK, North Carolina JOHN SULLIVAN, Oklahoma TIM MURPHY, Pennsylvania MICHAEL C. BURGESS, Texas MARSHA BLACKBURN, Tennessee BUD ALBRIGHT, Staff Director DAVID CAVICKE, Deputy Staff Director and General Counsel REID P.F. STUNTZ, Minority Staff Director and Chief Counsel SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS ED WHITFIELD, Kentucky, Chairman CLIFF STEARNS, Florida BART STUPAK, Michigan CHARLES W. ‘‘CHIP’’ PICKERING, Ranking Member Mississippi DIANA DEGETTE, Colorado CHARLES F. BASS, New Hampshire JAN SCHAKOWSKY, Illinois GREG WALDEN, Oregon JAY INSLEE, Washington MIKE FERGUSON, New Jersey TAMMY BALDWIN, Wisconsin MICHAEL C. BURGESS, Texas HENRY A. WAXMAN, California MARSHA BLACKBURN, Tennessee JOHN D. DINGELL, Michigan, JOE BARTON, Texas, (Ex Officio) (Ex Officio) (II) VerDate 0ct 09 2002 11:15 Apr 20, 2006 Jkt 000000 PO 00000 Frm 00002 Fmt 6011 Sfmt 0486 F:\DOCS\26997.TXT HCOM1 PsN: JOEP C O N T E N T S Page Testimony of: Amos, Don, Chief Operating Officer, Magna Entertainment, Inc., accom- panied by Andrew Staniusz, Corporate Counsel and Director of Em- ployee Relations ............................................................................................ 27 Daney, Bernard J., Chairman, Delaware Thoroughbred Racing Commis- sion ................................................................................................................. 87 Finamore, John V., Senior Vice President of Regional Operations, Penn National Gaming, Inc ................................................................................... 10 Fravel, Craig R., Executive Vice President, Del Mar Thoroughbred Club .. 33 Giovanni, John, former National Manager, The Jockeys’ Guild ................... 80 Haire, Darrell, Regional Member Representative, Jockeys’ Guild ............... 100 Maline, Martin A., Executive Director, Kentucky Horsemen’s Benevolent and Protective Association, Inc .................................................................... 69 Metzger, Daniel J., President, Thoroughbred Owners and Breeders Asso- ciation ............................................................................................................ 56 Monahan, Dick, Director and Racing Council Chairman, American Quar- ter Horse Association .................................................................................... 96 Riedel, Richard, Executive Director, Kentucky Racing Health and Welfare Fund ............................................................................................................... 74 Roark, John O., President and Chairman, National Horsemen’s Benevo- lent and Protective Association .................................................................... 59 Scherf, Christopher N., Executive Vice President, Thoroughbred Racing Association ..................................................................................................... 14 Sexton, Steve, Senior Vice President of Kentucky Operations and Presi- dent of Churchill Downs ............................................................................... 22 Shapiro, Richard B., Commissioner, California Horse Racing Board .......... 90 Van Clief, D.G., Jr., Commissioner and Chief Executive Officer, National Thoroughbred Racing Associations .............................................................. 19 Violette, Richard A., Jr., Chairman, Board of Directors, New York Jockey Injury Compensation Fund .......................................................................... 84 Williams, Rose Mary, Director of Racing, Mountaineer Race Track and Gaming Resort .............................................................................................. 13 (III) VerDate 0ct 09 2002 11:15 Apr 20, 2006 Jkt 000000 PO 00000 Frm 00003 Fmt 0486 Sfmt 0486 F:\DOCS\26997.TXT HCOM1 PsN: JOEP VerDate 0ct 09 2002 11:15 Apr 20, 2006 Jkt 000000 PO 00000 Frm 00004 Fmt 0486 Sfmt 0486 F:\DOCS\26997.TXT HCOM1 PsN: JOEP THOROUGHBRED HORSE RACING JOCKEYS AND WORKERS: EXAMINING ON-TRACK IN- JURY INSURANCE AND OTHER HEALTH AND WELFARE ISSUES THURSDAY, NOVEMBER 17, 2005 HOUSE OF REPRESENTATIVES, COMMITTEE ON ENERGY AND COMMERCE, SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS, Washington, DC. The subcommittee met, pursuant to notice, at 1:02 p.m., in room 2322 of the Rayburn House Office Building, Hon. Ed Whitfield (chairman) presiding. Members present: Representatives Whitfield, Stupak, Barton (ex officio), Inslee, and Burgess. Staff present: Tom Feddo, majority counsel; Mike Bloomquist, majority counsel; Clayton Matheson, research assistant; John Halliwell, policy coordinator; Mark Paoletta, chief counsel; Alan Slobodin, majority counsel; Peter Spencer, majority professional staff; Terry Lane, deputy press secretary; Jonathan Pettibon, legis- lative clerk; David Nelson, minority counsel; Elizabeth Ertel, re- search assistant; and Chris Treanor, staff assistant. Mr. WHITFIELD. I would like to call this hearing to order. I am sorry we are already 2 minutes late but we have a lot or witnesses today. In fact, a total of 17 and I really do appreciate all of you taking time from your busy schedules to be with us as we explore this important issue of thoroughbred horse racing jockeys and workers, and I might add Quarter Horses, as well. And examining on-track injury, insurance and other health and welfare issues. I would also make the comment that we have already read all of the testimony, which I thought was very good and quite thor- ough on all of the issues. And we are going to go on and start all of our opening statements and the reason that we are is because it looks like very soon, we are going to have two floor votes. One will be a 15-minute vote and one will be a 5-minute vote and then we are going to come right back and we will get started because we look forward certainly to the testimony of everyone on the panel today. Many of you know that we have already had one hearing that focused upon the Jockey’s Guild and its leadership. And as a result of that hearing, and not only just that hearing but other issues as well, as you probably know within the last two or 3 days the jock- eys took matters into their own hands, and rightfully in my view, eliminated Mr. Gertmenien and his leadership from the Jockey’s (1) VerDate 0ct 09 2002 11:15 Apr 20, 2006 Jkt 000000 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 F:\DOCS\26997.TXT HCOM1 PsN: JOEP 2 Guild. I think that was a right decision because it was quite obvi- ous that under his leadership, that the Jockey’s Guild, they totally lost their Disability Fund. All of the funds were depleted from that Fund. They totally lost their catastrophic coverage because the Guild allowed the policies to lapse and certainly did not notify them of that. And under the Gertmenien leadership, such a bad re- lationship with the other players in the industry was created that the Guild lost the over $2.2 million that went to them each year from the tracks themselves. So we are hopeful that under new leadership that the Guild can become quite effective in doing what it was set out to do, and that is to provide adequate health cov- erage for the members of the Jockey’s Guild. I would also say, however, that those of us on the committee do not view this to be the end of the story. Because we do feel quite strongly that this whole issue of jockey’s health, the lack of a cen- tralized data system on
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