State Racing Commissioners are betting that higher bonds will discourage racetrack personnel from appealing small fines for minor track infractions.
The three-member commission voted unanimously Wednesday to propose changing commission rules to raise the bond, or security fee, that must be posted to appeal rulings of track judges or track stewards from the current $100 to $500.
"I believe in due process, I really do, but on the other hand, there's a cost related to it," Chairman Jack Rossi said of the higher bond.
Raising the bond was one of several recommendations presented by Joe Moore, commission acting executive director, and Deputy Attorney General Kelli Talbott to address an issue of the commission having to spend thousands of dollars to stage appeals hearings for fines of as little as $150.
Commissioners raised concerns this spring, after the commission spent thousands of dollars for appeals of at least two small fines, including spending more than $15,000 to hear the appeal of a thoroughbred trainer fined $500 for an altercation at the Charles Town Racetrack.
For each appeals hearing, the commission is required to hire a hearing examiner and a court reporter, and also pay all travel expenses and, frequently, rental costs for a meeting room for the hearing. Also by law, Talbott is required to bill the commission $140 an hour for legal services while representing the commission in appeals hearings.
While the commission has focused on appeals of small fines, Talbott noted that track judges and track stewards also can impose "career-ending" multi-year suspensions and large fines for more serious infractions.
"Not all of these are frivolous," she said, adding that generally, only a small percentage of fines are appealed.
"It kind of ebbs and flows as to how many appeals we get and what the issues are," she told the commission. "It seems like lately, we've gotten quite a few."
The commission can also order track personnel who lose their appeals to reimburse costs of the hearings, excluding legal fees, and Talbott said the form for filing appeals now includes an advisory stating: "If you do not substantially prevail in your appeal, the West Virginia Racing Commission may assess the costs of the hearing incurred in excess of your security fee."
"It's not a threat. It's an attempt to put permit-holders on notice that it's something they should consider," she said.
The proposed procedural rule change has to go out for public comment, and ultimately would have to be approved by Revenue Secretary Bob Kiss.
Reach Phil Kabler at philk@wvgazettemail.com, 304 348-1220, or follow @PhilKabler on Twitter.