Another power move? Senate aims to take KY Horse Racing Commission away from Beshear

The Kentucky Horse Racing Commission would no longer be part of the governor’s oversight under a bill amended and passed in the Senate Friday.

Senate Majority Floor Leader Damon Thayer, R-Georgetown, filed the amendment to Senate Bill 3 to move the commission under the office of Republican Commissioner of Agriculture Jonathan Shell. It was adopted in a voice vote.

The Kentucky Horse Racing Commission is the regulatory body that oversees Thoroughbred and harness horse racing and now sports wagering in the state. It sets race dates, awards horse racing licenses and regulates parimutuel wagering..

At the moment, the commission is under the umbrella of the Kentucky Cabinet for Public Protection, which also regulates financial institutions, insurance, professional licensing, alcoholic beverages, charitable gaming, real estate, construction, and the boxing and wrestling commission.

The Kentucky Department of Agriculture, which is headed by a separately elected official, not an appointed cabinet officer, regulates pest control, gas pumps, hemp licensing, animal health and includes the office of the state veterinarian.

What would change with racing commission move

Thayer’s bill gives the racing commission “sole discretion” over how the Department of Agriculture would perform any administrative duties over the commission. Thayer and other advocates say it makes the commission more independent.

Thayer’s amendment also would require that all commission appointees from Democratic Gov. Andy Beshear be confirmed by the Senate, which is currently controlled by a 30-8 GOP majority.

Current Kentucky Horse Racing Commission chairman Jonathan Rabinowitz did not immediately response to a request for comment on the potential change.

What does the Kentucky Horse Racing Commission do?

Seats on the Kentucky Horse Racing Commission are generally seen as some of the most high-profile appointments that a governor can confer.

The commission oversees the Kentucky Derby, the most popular horse racing event in the world.

The commissioners were responsible for upholding the ruling that stripped the 2021 Kentucky Derby win from trainer Bob Baffert after Medina Spirit tested positive for a banned substance. And in 2019, the racing commission upheld the disqualification of Kentucky Derby first-place finisher Maximum Security, handing the win to Country House, a 65-to-1 longshot.

Comparison to Fish, Wildlife fight

Much of the discussion on the Senate floor Friday centered around the rest of the bill, which would administratively detach the Department of Fish and Wildlife Resources from the governor and attach it to the Department of Agriculture. That portion of the bill has received significant push back from sportsmen and women and some outdoors groups.

Citing similar concerns, many Republican senators joined Democrats in voting against the bill, though it still passed 20-16 with only Republicans supporting it. Discussion of the amendment was limited only to Thayer’s presentation of the amendment.

Why Thayer sought the change

“I’ve always thought it odd that it has to go to a cabinet agency to get approval for its expenditures, the vast majority of which are restricted funds approved by this legislative body. Now that the racing commission is responsible for the oversight of historical horse racing and sports wagering, it is a much bigger agency,” Thayer said.

Thayer has long been an advocate for the horse industry, pushing strongly for the successful legalization of “historical horse racing” machines, slot-like games only available through horse racing tracks. He also was a proponent for a sports betting legalization bill that attached regulation of the practice to the commission.

What happens next

Senate Bill 3 is one of multiple initiatives the legislature has pursued this session to strip administrative oversight and responsibilities away from the governor. It’s passed many such measures in the recent past as well.

Sen. Robin Webb, D-Grayson, led opposition against the fish & wildlife portions of the bill.

“Why are we here talking about this, when we would be the only state in the nation to do this and probably be the laughingstock of the nation? It would set us back 30 or 40 years in policy with fish and wildlife species and management,” Webb said.

She said she hasn’t always agreed with Beshear’s handling of the department — she’s previously passed two major bills related to fish and wildlife that were vetoed by the governor — but that Senate Bill 3 goes too far.

Webb also cited a “lack of synergy” between the practice of agriculture and the practice of wildlife preservation and promotion as reason to vote against the bill.

Senate Bill 3 sponsor Sen. Jason Howell, R-Murray, said the bill preserves the independence of fish and wildlife.

Sen. Rick Girdler, R-Somerset, mentioned “political games” being played with the department as reason for his yes vote.

“I want it to be Fish and Wildlife. I don’t want it to be a pawn of the executive branch,” Girdler said.

Sen. Brandon Storm, R-London, abstained from voting on the bill. Storm is related to the commissioner of the Department of Fish and Wildlife Resources, Rich Storm.

With Senate passage, the bill now advances to the House. A vote has not been scheduled.