Yesterday’s announcement by New York state controller Thomas DiNapoli that he was issuing a subpoena forcing the New York Racing Association to allow state auditors to see its books brought the expected headlines this morning
. It also brought a sharp response from NYRA, which said the move was misleading and it will fight it in court as an illegal action.
If DiNapoli was looking for publicity, he got reams of it. His office did not respond to media phone calls once the release was drawing headlines. But NYRA was quick to fire back. Listed below is its response in part, particularly revealing on the issue of regulation.
“NYRA operates without a single penny of taxpayer subsidy. The revenue NYRA received as a result of the franchise renewal in 2008 was consideration paid to NYRA by the state in exchange for over one billion dollars worth of real estate....As the holder of the state thoroughbred racing franchise, NYRA is one of the most pervasively regulated private companies operating in New York state. As a not-for-profit, NYRA is overseen by the state attorney general. As a racing association, NYRA is overseen by the state Racing and Wagering Board. As a state franchise, NYRA is overseen by the state Franchise Oversight Board. As a generator of tens of millions of dollars in pari-mutuel taxes for the state, NYRA is overseen by the state Department of Taxation and Finance. Both the Racing and Wagering Board and the Department of Taxation and Finance maintain fully staffed offices at each NYRA racetrack. NYRA cooperates fully with those state agencies that have actual legal authority to regulate and audit its operations. The state appoints 11 of NYRA’s 25 directors, who oversee and approve NYRA’s annual budgets. Any suggestion that the taxpayers are placed at risk by the constitutional prohibition on controller audits of NYRA is misleading. The state constitution prohibits the controller from auditing not-for-profit associations, as the state’s highest court has clearly ruled. The law is clear. If NYRA and the controller cannot agree amicably on the clear meaning of the Court of Appeals decision, we should agree to immediately seek a declaratory judgment from the judiciary to quickly resolve the matter.”
(Harness Tracks of America)