TX Horsemen: No Confidence in Future

Paulick Report

Texas Lt. Gov. Dan Patrick announced Tuesday that House Appropriations Chairman John Otto has agreed to a proposal by Senate Legislative Budget Board members to fund the Texas Racing Commission for three months. However, the horsemen’s organization representing Thoroughbred and Quarter horse racing say the extension gives owners and trainers “no confidence in the future of racing” in Texas and they have “no reason to remain in the state.”

Published reports said Gov. Greg Abbott has indicated he will sign the agreement.

The deal apparently ends a one-day shutdown of Texas racetrack operations – both live racing and simulcasting – though as of Wednesday morning there was no official word from the Texas Racing Commission authorizing tracks to reopen. All Texas tracks were closed for simulcasting on Tuesday. No live Thoroughbred racing is scheduled until Friday’s program at Retama Park in San Antonio.

The shutdown resulted from a budget impasse as the new fiscal year began Sept. 1.

The hold-up of Texas Racing Commission funds was instigated by Patrick, who serves as president of the Senate, and Sen. Jane Nelson, a powerful member of the Legislative Budget Board. Patrick and Nelson are unhappy over the Texas Racing Commission’s approval last year – and reaffirmation last week – of regulatory language to permit the installation of historical racing pari-mutuel wagering machines at Texas racetrack. The Republican lawmakers say the commission overstepped its bounds by expanding gambling in the state.

A court challenge has held up implementation of historical racing – which began at Oaklawn Park in Arkansas in 2000 and is now offered at tracks in several other states, including Kentucky – but Patrick and Nelson have used their clout with the Legislative Budget Board to withhold funds from the commission over the issue.

Otto – who represented the House after Speaker Joe Straus recused himself because of his family’s investment in the horse industry – wanted the Legislative Budget Board to fund the commission for a full year, but apparently relented on Tuesday to the three-month compromise.

In his statement, Patrick said the three-month extension for funding gives Texas Gov. Greg Abbott time to replace three of the Texas Racing Commission’s seven members – Gary P. Aber, DVM; Michael F. Martin, DVM; and Vicki Smith Weinberg – whose terms expired Feb. 1, 2015. Aber and Martin were two of the four commissioners who voted against the repeal of historical racing regulations.

Andrea Young, president of Sam Houston Race Park in Houston, was skeptical.

“We haven’t seen the funding agreement being reported and we remain skeptical about the way it has been handled,” Young said. “A decision to provide the agency only three months of funding does not give the Texas racing industry the stability it needs to be successful. No business can survive in that environment. We still believe a full vote by the LBB is necessary. Absent that, we will be right back here in three months.

“As of now, we have not received any notification that we may resume simulcast racing on Wednesday.”

The Texas Horsemen’s Partnership, the representative horsemen’s organization for both Thoroughbred and Quarter horse racing in Texas, issued the following statement Tuesday after Patrick said a deal was reached to extend the Texas Racing Commission’s budget for three months:

“The Texas Horsemen’s Partnership, LLP would like to thank Chairman Otto and the other House members who serve on the Legislative Budget Board for working to secure full funding for the Texas Racing Commission. However, the announcement of a three-month funding plan from Lt. Governor, Dan Patrick yesterday requires a response from our organization.

“Marsha Rountree, Executive Director of Texas Horsemen’s Partnership states, ‘We are terribly disappointed to hear the announcement from the Lt. Governor this afternoon, stating that he has worked out an agreement with Chairman Otto allowing for three months of administrative funding for the Texas Racing Commission. We have not seen the agreement and hope that there is still time to change the terms of the agreement and fully fund the Commission.

“‘Unfortunately, for Texas horsemen and racing fans, the three-month funding agreement might be the closing curtain for racing in our state.’

“On Monday, August 31st, Texas Racing Commission Executive Director, Chuck Trout, sent a letter to the Legislative Budget Board requesting only three months administrative funding ‘to allow the agency to wind down operations in an orderly fashion that would be greatly beneficial to our employees, licensees, the entire pari-mutuel racing industry and the state of Texas as a whole’. Mr. Trout requested three months of funding to close the Texas Racing Commission and the Legislative Budget Board has announced that they are giving him exactly that.

“If the Legislative Budget Board follows through on a temporary, three-month funding agreement, there is no reason for horsemen to remain in the state. Three months clearly provides no certainty for hard working horsemen.

“The racing industry needs to be able to see far enough into the future to make plans based on realistic expectations. The message that the Racing Commission is only funded for three short months gives the horsemen of Texas absolutely no confidence in the future of racing here. Thousands of jobs could disappear as horses are moved to other racing states with more certain futures.

“The horsemen of Texas request full funding of the Texas Racing Commission and that there be a full meeting of the Legislative Budget Board to conduct a recorded vote on the funding of the Texas Racing Commission. The men and women who work in this sector of agri-business deserve to have a vote on their future, held in the light of day.”

Lt. Gov. Patrick’s statement: “I am very pleased to announce that House Appropriations Chairman John Otto has joined the Senate Legislative Budget Board (LBB) members’ plan to extend temporary administrative funding for the Texas Racing Commission. This authorization immediately allows the commission to operation for the next 90 days.

“It also allows Governor Greg Abbott additional time to name members to the three expired terms of the Texas Racing Commission.

“Any disagreement with the commission that resulted in this stalemate was never about ending horse and dog racing in Texas. Instead, it was about making sure the appointed commissioners follow the law as directed by the legislature and a state district judge.

“I appreciate the hard work of Chairman Otto and Chairwoman Jane Nelson for working to resolve this issue today.”

Critics of Patrick and Nelson have said the two Texas lawmakers were influenced by casino interests in neighboring states that were among their largest campaign contributors.