PO. BOX 12068
CAPITOL BUILDING
AUSTIN, TEXAS 78711
51 21463-0112

FAX: 512/463-0923

DISTRICT OFFICE

1235 S. MAIN STREET, SUITE 280
GRAPEVINE, TEXAS 76051
817/424-3446

FAX: 817/488?6648

E-MAIL: jane.nelson@senate.state.tx.us

The Honorable John Otto

 

The Senate (oi the State eif Texas
Jamie NEBIISQH

Senate District 

August 31, 2015

Chairman, House Appropriations Committee

P.O. Box 2910

Austin, TX 78767

Dear Chairman Otto:

Committees:

FINANCE, CHAIR

SUNSET ADVISORY COMMISSION, CHAIR
LEGISLATIVE AUDIT COMMITTEE
LEGISLATIVE BUDGET BOARD

STATE AFFAIRS

I am writing in regard to Rider 7 in the Texas Racing Commission bill pattern of the General
Appropriations Act for the 2016-17 state budget, relating to Commission?s administrative

?lnding.

This session the Commission received an appropriation of $15.4 million. Under Rider 7, the
Commission?s administrative funding million over the biennium) is subject to approval by
the Legislative Budget Board (LBB). In order to receive the administrative funding, by August
31, the Commission must receive permission from LBB. This is determined by the Lieutenant
Governor, the Senate Finance Chair, the House Appropriations Chair and the Speaker of the
House. The Speaker has recused himself.

It is the unanimous decision of the Senate LBB members not to approve the administrative
funding at this time. However, the Senate agrees to allow the Commission to receive a transfer
of money from their general appropriation not to exceed the cost of administration for 90 days.
Under Article 9 of the General Appropriations Act, the Governor must agree to this transfer. The
commission has asked for a 90 day extension. The primary reason the Senate is granting this
extension is to allow the governor, if he chooses, time to replace 3 members of the Commission
whose terms have already expired. 

Serious doubts have been raised about the leadership of this agency, which exceeded its authority
and violated the Texas Constitution by approving Las Vegas-style slot machines known as
historical racing last year. The vote was taken by the Commission?s board members, who are not

elected, but appointed by the Governor, in spite of a letter of opposition from a majority of the
Texas Senate.

Last November, a Travis County district judge struck down the historical racing rule, stating that
the agency overstepped its authority. The Commission forfeited its right to argue for the rule in
court by declining to join the lawsuit. Yet last Tuesday, despite sending signals they would
repeal the rule, the Commission, in a 4?3 vote, once again rebuffed members of the Legislature
and the Court and refused to do so.

Some in the racing industry have incorrectly stated that members of the Legislature want to end
racing in Texas. That is not the issue at hand. This disagreement is over whether a state agency

should be allowed to circumvent the Legislature to approve an expansion of gambling a clear

violation of the Texas Constitution.

I sincerely hope we can agree on a way forward that allows racing to continue Without abdicating
our responsibility to hold agencies accountable when they abuse their authority.

Very truly yours,

Senator Jane Nelson
Chair, Senate Finance Committee