| Advisory Opinion request, submitted by Dane Ciolino on behalf of his client, as to whether the Code of Governmental Ethics ("Code") permits Stephen Landry to own race horses while serving as the Executive Director of the Louisiana State Racing Commission. |
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The Louisiana Racing Commission is a state agency responsible for regulating horseracing and pari-mutuel wagering in Louisiana. This regulation is accomplished through the issuance of licenses to racetracks, off-track wagering parlors, horse trainers, owners, training centers, vendors, and others. The Commission may grant, refuse, suspend, or withdraw licenses to horse owners or fine a licensee for a violation.
Mr. Stephen Landry was appointed as Executive Director of the Louisiana Racing Commission in February of 2024, taking office in March 2024. The Executive Director constitutes an administrative and advisory position for the commissioners, and Mr. Landry is not a voting member of the commission.
Prior to his appointment, he was and still is a 1/3 owner of two racehorses and a 50% owner of a third racehorse. Prior to Mr. Landry's March start date, he was assured by the Chairman of the Commission, Ed Koehl, that he could perform the duties of this position while also owning racing horses.
The law is silent as to whether the Executive Director may own horses.
Legislation was just passed this year providing for ownership of racehorses by members of the Louisiana State Racing Commission. See House Bill 840. The bill was signed by the Governor on June 11, 2024, and went into effect on August 1, 2024. The new law significantly changes the old law and provides that any member of the commission may be an owner of racehorses that participate in any race meeting licensed by the commission. Prior law mandated that three members of the commission shall be owners of racehorses which participate in any race meeting licensed by the commission. See La. R.S. 4:144B(20(b). Otherwise, members of the commission were prohibited from owning directly or indirectly racehorses which participate in any race meeting licensed by the commission.
In addition, commission members are not prohibited from owning a horse that sired or bred a racehorse that participates in a race meeting licensed by the commission or from participating in a breeder or stallion award. See La R.S. 4:144B(4). These are the only statutes which explicitly address the ownership of racehorses in connection with the Louisiana Racing Commission.
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La. R.S. 42:1113A(1)(a): No public servant, excluding any legislator and any appointed member of any board or commission and any member of a governing authority of a parish with a population of ten thousand or less, or member of such a public servant's immediate family, or legal entity in which he has a controlling interest shall bid on or enter into any contract, subcontract, or other transaction that is under the supervision or jurisdiction of the agency of such public servant.
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Adopt the proposed Advisory Opinion.
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| Assigned Attorney: |
Mallory Guillot |
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