Deadline passes on Texas commission shutdown

The racetracks in Texas were unable to conduct simulcasting on Tuesday after a midnight deadline passed Monday without funding for the Texas Racing Commission’s administrative costs in place. The tracks are also unable to conduct live racing in a development that immediately impacts Retama Park, which is in the midst of a Thoroughbred meet, and Lone Star Park, which on Sept. 18 is scheduled to open a Quarter Horse meet featuring the prestigious Challenge Championships.

The commission’s general counsel issued a directive after hours on Monday that live racing and simulcasting would have to cease at 12:01 a.m. Tuesday. It read in part that the commission “has not yet received the required authorization from the Legislative Budget Board to expend administrative funds past Aug. 31, 2015.” The commission offices regulate racing in Texas. Representatives of Texas Gov. Greg Abbott’s offices were not available to give an update in two calls from Daily Racing Form on Tuesday.

Despite the standstill, horses were able to train at both Retama and Lone Star on Tuesday. Sam Houston is not scheduled to conduct live racing until January. Horsemen’s organizations, meanwhile, were encouraging industry members to contact politicians. Jan Haynes, president of the Texas Thoroughbred Horsemen’s Benevolent and Protective Association, said on Tuesday morning she had reached out to the National HBPA and planned to contact politicians in the cities that house tracks in Texas.

“I can’t even tell you the sadness. People are devastated,” Haynes said. “They don’t know what to do, where they are going to move their horses. It’s also the feed people. It’s the farriers. It’s the vets. It’s everybody. It’s a domino effect.”

Haynes is among many in the industry who feel the budget issue is tied to historical racing. The commission voted not to repeal rules providing for the electronic parimutuel game at its most recent meeting Aug. 25. Its jurisdiction to establish such rules had been challenged in court earlier this year, with a judge ruling it was a matter for the legislature. A number of racing organizations in Texas have appealed the judge’s ruling. There are currently no historical racing terminals operating at tracks in Texas.

There was thought in some corners that the shutdown had been averted for at least three months after a statement was issued from the offices of Texas Lt. Gov. Dan Patrick at the close of business Monday. It read in part that the senate members of the state’s legislative budget board unanimously agreed to keep the agency open through the first quarter of the 2016 fiscal year, which runs through Nov. 30, 2015.

It has been unclear where the Texas house members of the state’s legislative budget board stand, and a call to a key representative’s offices was not returned. However, the Texas Thoroughbred Association issued a notice Tuesday that indicated the house side was in favor of funding the commission for two years. Andrea Young, president of Sam Houston, issued a statement Tuesday asking for the senate and house members of the state’s legislative budget board to conduct a public vote on the commission funding issue that has led to the shutdown of racing in Texas.

“Texans deserve transparency in government, especially when the government shuts down their entire business,” she said.

According to the release from Patrick, the legislative budget board had previously appropriated $15.4 million to the commission, but made its administrative funds of $1.5 million subject to legislative budget board approval this year. The administrative funding was not approved Monday by the senate legislative board members, but they “agreed to let” the commission move funds previously appropriated to administrative cost areas for three months, according to the release.

“We have been looking for a way to avoid a shutdown,” Texas Sen. Jane Nelson (Rep.) said in the release issued by Patrick’s offices. “Last week’s actions were disappointing, and we cannot look the other way when an agency exceeds its authority.”

Haynes is going to meet with her board on the matter and there is a chance horsemen could take legal action. Young in a statement Monday night said Sam Houston is exploring its legal options.

“We urge the lieutenant governor to stand up for 36,000 jobs now before this goes any further,” said Young.

The hope is that the shutdown will ultimately be a temporary one for Texas.