PROPOSED ACTION ON REGULATIONS

TITLE 4. CALIFORNIA HORSE RACING BOARD

NOTICE OF PROPOSAL TO AMEND RULE 1867. PROHIBITED VETERINARY PRACTICES

The California Horse Racing Board (Board/CHRB) proposes to amend the regulation described below after considering all comments, objections or recommendations regarding the proposed action.

PROPOSED REGULATORY ACTION

The Board proposes to amend Rule 1867, Prohibited Veterinary Practices, to add ractopamine and zilpaterol, or their metabolites or analogues, to the list of drug substances whose possession and/or use of on the premises of a facility under the jurisdiction of the Board is considered a prohibited veterinary practice.

PUBLIC HEARING

The Board will hold a public hearing starting at 9:30 a.m., Thursday, July 19, 2012, or as soon after that as business before the Board will permit, at the Del Mar Surfside Race Place, 2260 Jimmy Durante Blvd., Del Mar, California. At the hearing, any person may present statements or arguments orally or in writing about the proposed action described in the informative digest. It is requested, but not required, that persons making oral comments at the hearing submit a written copy of their testimony.

WRITTEN COMMENT PERIOD

Any interested persons, or their authorized representative, may submit written comments about the proposed regulatory action to the Board. The written comment period closes at 5:00 p.m., on July 16, 2012. The Board must receive all comments at that time; however, written comments may still be submitted at the public hearing. Submit comments to:

Erica Ward, Regulation Analyst
California Horse Racing Board
1010 Hurley Way, Suite 300
Sacramento, CA 95825
Telephone (916) 263-6025
Fax: (916) 263-6022
E-mail: esward@chrb.ca.gov

AUTHORITY AND REFERENCE

Authority cited: Sections 19440, 19562, 19580, and 19582, Business and Professions Code. Reference: 19580, 19581, and 19582, Business and Professions Code.

Business and Professions Code sections 19440, 19562, 19580 and 19581 authorize the Board to adopt the proposed regulation, which would implement, interpret or make specific sections 19580, 19581, and 19582, Business and Professions Code.

INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW

Business and Professions Code section 19440 provides that the Board shall adopt regulations for the control of horse racing. Business and Professions Code section 19562 states the Board may prescribe rules and regulations under which all horse races with wagering on their results shall be conducted in California. Section 19580 of the Business and Professions Code requires the Board to adopt regulations to establish policies, guidelines, and penalties relating to equine medication in order to preserve and enhance the integrity of horse racing in California. Business and Professions Code section 19581 states that no substance of any kind shall be administered by any means to a horse after it has been entered to race in a horse race, unless the board has, by regulation, specifically authorized the use of the substance and the quantity and composition thereof as specified. Section 19582 of the Business and Professions Code provides that violations of Section 19581, as determined by the Board, are punishable as set forth in regulations adopted by the board.

Board Rule 1867, Prohibited Veterinary Practices, states that an act or practice which may endanger the safety and welfare of the horse and rider/driver is a prohibited veterinary practice. The rule also identifies those acts, practices, drugs or substances that fall into the "prohibited practices" category. The Board proposes to amend Rule 1867 to add ractopamine and zilpaterol to the prohibited veterinary practices category. Ractopamine is a beta agonist similar to clenbuterol and albuterol, and is used as a feed additive to increase weight-gain in livestock. Ractopamine helps keep nutrients from going into fat stores so as to enhance muscle mass. It is not approved for use in horses. Zilpaterol is an adrenergic agonist drug used as a feed additive for cattle at slaughter age to produce rapid weight and muscle gain. Zilpaterol has anabolic properties, similar to the steroids some athletes take to build muscle and provide a performance edge. The Racing Commissioners International (RCI) lists ractopamine and zilpaterol as a Category III drug, or a drug that may or may not have a therapeutic use in horses and may have the potential to affect performance.

POLICY STATEMENT OVERVIEW OF ANTICIPATED BENEFITS OF PROPOSAL

The proposed amendment of Rule 1867 promotes fairness. The regulation prohibits trainers and owners from using ractopamine and zilpaterol which could give them an unfair advantage in a race. Prohibiting the drugs not only allows horses an equal chance of winning a race, but also promotes the protection of horse health and safety. Ractopamine and zilpaterol are approved for cattle and swine, not horses. If the horses' health and safety are protected, the jockeys who ride the horses will in turn have their health and safety protected. In addition, if the horses entered to race are not having drug positives, the public will have more confidence in California horse racing and see it as an honest product, which may result in increased wagering. An increase in wagering will have a positive economic impact on the industry by increasing handle, which in turn increases purses and commissions.

Consistency with Existing State Regulations: The Board does not believe that the proposed regulation is inconsistent or incompatible with existing state regulations.

DISCLOSURE REGARDING THE PROPOSED ACTION/RESULTS OF THE ECONOMIC IMPACT ANALYSIS

Mandate on local agencies and school districts: none.

Cost or savings to any state agency: none.

Cost to any local agency or school district that must be reimbursed in accordance with Government Code Sections 17500 through 17630: none.

Other non-discretionary costs or savings imposed upon local agencies: none.

Cost or savings in federal funding to the state: none.

The Board has made an initial determination that the proposed amendment of Rule 1867 will not have a significant statewide adverse economic impact directly affecting business including the ability of California businesses to compete with businesses in other states.

The following studies/relevant data were relied upon in making the above determination: none.

Cost impact on representative private persons or businesses: The Board is not aware of any cost impacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed action.

Significant effect on housing costs: none.

The adoption of the proposed amendment of Rule 1867 will not (1) create or eliminate jobs within California; (2) create new businesses or eliminate existing businesses within California; or (3) affect the expansion of businesses currently doing business within California. The proposed amendment of Rule 1867 will benefit California by promoting fairness. The regulation prohibits trainers and owners from using ractopamine and zilpaterol which could give them an unfair advantage in a race. Prohibiting the drugs not only allows horses an equal chance of winning a race, but also promotes the protection of horse health and safety. Ractopamine and zilpaterol are approved for cattle and swine, not horses. If the horses' health and safety are protected, the jockeys who ride the horses will in turn have their health and safety protected. In addition, if the horses entered to race are not having drug positives, the public will have more confidence in California horse racing and see it as an honest product, which may result in increased wagering. An increase in wagering will have a positive economic impact on the industry by increasing handle, which in turn increases purses and commissions.

Effect on small businesses: none. The proposal to amend Rule 1867 does not affect small businesses because horse racing is not a small business under Government Code Section 11342.610.

CONSIDERATION OF ALTERNATIVES

In accordance with Government Code Section 11346.5, subdivision (a)(13), the Board must determine that no reasonable alternative considered by the Board, or that has otherwise been identified and brought to the attention of the Board, would be more effective in carrying out the purpose for which the action is proposed, or would be as effective and less burdensome on affected private persons than the proposed action, or would be more cost-effective to affected private persons and equally effective in implementing the statutory policy or other provision of law.

The Board invites interested persons to present statements or arguments with respect to alternatives to the proposed regulation at the scheduled hearing or during the written comment period.

CONTACT PERSON

Inquiries concerning the substance of the proposed action and requests for copies of the proposed text of the regulation, the initial statement of reasons, the modified text of the regulation, if any, and other information upon which the rulemaking is based should be directed to:

Erica Ward, Regulation Analyst
California Horse Racing Board
1010 Hurley Way, Suite 300
Sacramento, CA 95825
Telephone: (916) 263-6025
E-mail: esward@chrb.ca.gov

If the person named above is not available, interested parties may contact:

Harold Coburn, Regulation Analyst
Telephone: (916) 263-6397

AVAILABILITY OF INITIAL STATEMENT OF REASONS AND TEXT OF PROPOSED REGULATION

The Board will have the entire rulemaking file available for inspection and copying throughout the rulemaking process at its offices at the above address. As of the date this notice is published in the Notice Register, the rulemaking file consists of this notice, the proposed text of the regulation, and the initial statement of reasons. Copies may be obtained by contacting Erica Ward, or the alternative contact person at the address, phone number or e-mail address listed above.

AVAILABILITY OF MODIFIED TEXT

After holding a hearing and considering all timely and relevant comments received, the Board may adopt the proposed regulation substantially as described in this notice. If modifications are made which are sufficiently related to the originally proposed text, the modified text, with changes clearly marked, shall be made available to the public for at least 15 days prior to the date on which the Board adopts the regulations. Requests for copies of any modified regulation should be sent to the attention of Erica Ward at the address stated above. The Board will accept written comments on the modified regulation for 15 days after the date on which it is made available.

AVAILABILITY OF STATEMENT OF REASONS

Requests for copies of the final statement of reasons, which will be made available after the Board has adopted the proposed regulation in its current or modified form, should be sent to the attention of Erica Ward at the address stated above.

BOARD WEB ACCESS

The Board will have the entire rulemaking file available for inspection throughout the rulemaking process at its web site. The rulemaking file consists of the notice, the proposed text of the regulation and the initial statement of reasons. The Board's web site address is: www.chrb.ca.gov.