The Texas legislature recently determined that the state racing commission will continue to receive funding despite threats that it would be defunded or dissolved for allowing historical racing at horse and dog racetracks statewide without the legislature’s approval. To assure its continued existence, the commission voted to repeal the historical racing rules. Texas Racing Commission Vice Chair Ronald F. Ederer said, “It’s no secret that the Senate, and various parties, have actually said our funding would be withheld if we continued with historical racing. Why start a fight with them? They hold the purse strings. To not do this would start a war. And it’s a war we can’t win.” Ederer added, “We have supported this industry as much as we could. We are doing what we have to do.”
The full commission could consider the proposed repeal of historical racing rules next month, then take public comment for a month and vote on the issue in August.
Along with approving funding for the commission, the legislation noted all central administrative funding such as salaries must be approved by the Legislative Budget Board. State Senator Jane Nelson commented, “When an agency does not demonstrate a fundamental understanding of where its authority ends and the legislature’s begin, we have to take additional steps to ensure checks and balances. That was the purpose of this rider, and now the Legislative Budget Board can provide greater oversight over the use of the commission’s funds.”
State Rep. Matt Krause said, “What I wanted was a message to be sent to agencies that act outside their constitutional bounds. If that message is received, that’s great. I know there will be further scrutiny of the commission in future years.”
Last August, the commission approved historical racing at dog and horse racetracks statewide. Supporters said historical racing would help struggling Texas racetracks compete with out-of-state tracks that offer casinos, bigger crowds and larger purses. Opponents said the machines would allow casino-style gambling in the state.
Nelson filed a state budget that stripped $15.4 million in funding from the Racing Commission. She had called the commission is “an agency that has gone rogue, in my opinion.” State Senator Craig Estes filed a proposal to dissolve the commission and transfer its duties to another agency, but that bill never made it to a committee hearing.
Krause asked a judge to prevent the commission from voting on historical racing, but after a Tarrant County judge declined to issue a restraining order against the agency, commissioners voted 7-1 to allow historical racing. Krause filed a lawsuit claiming commissioners lacked the authority to allow the machines, but that suit was dismissed. A second, successful lawsuit was filed in Travis County by a coalition of charitable bingo groups that said the machines might force them to shut down. Officials with the racing commission said they won’t appeal the ruling, but a coalition of racetracks said they will.
The Racing Commission is self-funded by the industry it regulates. It collects millions of dollars a year in fees paid by racetracks and license holders such as owners, trainers and jockeys. That money is turned over to the state, which allocates it back to the commission.
Industry officials are concerned about the proposed repeal. Marsha Rountree of the Texas Horsemen’s Partnership said, “We had great hope when the commission approved these rules. By repealing them, you are knocking our legs out from under us. We deserve the right to see it through to the end.”
