Florida Senate committee votes to advance decoupling bill

Repeating what two House panels already did this winter, a Florida Senate committee listened to a parade of impassioned opposition from horse-racing stakeholders Tuesday afternoon before advancing the controversial bill that would let Gulfstream Park decouple its racing and slot-machine licenses.

By a 5-2 vote of the committee for regulated industries, Senate bill 408 was “reported favorably” after a nearly two-hour hearing. It still has two other committee hurdles to clear before it could get a floor vote, something that already awaits the companion House bill 105.

Flashback: House committee approves decoupling bill.

Trying to reassure 71 opponents who showed up and went on the record at the Tallahassee hearing, the committee member who sponsored the Senate bill said he hopes it pushes both sides to hammer out a compromise that would preserve Florida’s racing industry.

“To sit here and say that it’s not with like a heavy heart that we’re having this conversation would be a lie,” said Danny Burgess, a Tampa Bay-area Republican. “There’s no satisfaction in presenting a bill and getting it passed when you have so many in the audience that understandably are incredibly scared and concerned about what happens to their livelihoods and their line of work and everybody that’s affiliated with that. There’s no pleasure in that. All I can reassure you with is a deep commitment that we are seeking to get this right.”

Burgess pointed out that his version of the bill that was amended formally Tuesday would not allow Gulfstream Park to decouple for three years with a requirement for at least four more years of racing before any shutdown. By comparison, the House bill would require two years’ notice and three more years of racing.

The added time did not sway the opponents, many of whom rode a bus 185 miles north from breeding country in Ocala to the capitol complex. Most sported stickers that said “No decoupling.”

“Putting out a seven-year poison pill seems to be counterproductive and kind of shooting ourselves in the foot,” said Jan Meehan, vice president of the Tampa Bay Downs Horsemen’s Benevolent and Protective Association.

“The very threat of this decoupling bill has slowed commerce,” Ocala Breeders’ Sales general manager David O’Farrell said. “Mares are already leaving the state. We did not recruit a new stallion for this year because of the impending legislation. And quite honestly, just the threat of this bill causes me to want to wait and see how things play out before I go looking for new stallions for the future.”

Most of the arguments repeated the talking points from two previous hearings in the House, notably the potential loss of more than 30,000 jobs and $3 billion in annual revenue and that decoupling would do nothing more than benefit the Stronach Group, which owns Gulfstream Park.

The last of the 28 speakers who got podium time to speak against the proposal warned the committee that, if it were to pass, it was likely to face legal challenges. Florida attorney Vanessa Nye said it would break the 20-year-old deal that made horse racing a requirement to have slot machines at Gulfstream Park.

“It opens the door to lawsuits and sets a very dangerous precedent,” said Nye, also a horse owner and breeder. “If we allow decoupling here, what’s next? What’s to stop others from demanding the same? We risk unraveling decades of regulatory balance, jeopardizing jobs, weakening oversight and accelerating development pressures on open land.”

There was committee pushback for three speakers, including Hall of Fame trainer Mark Casse. Pressed by Burgess about the current law that requires Gulfstream Park to race a minimum of only 40 days per year, Casse said, “The seven years will help. ... I met with (Senate) president (Ben) Albritton about 45 days ago, and he said, ‘Look, we have to come up with a plan.’ ”

Committee members both for and against the bill appeared sympathetic with speakers who said the decoupling proposal was dropped on them with little notice.

“The Stronach Group is trying to cram this down their partners’ throats,” Briardale Farm owner Joe Imbesi said. “Their partners are the horsemen, the owners, the trainers, the people that put on the show. They are the ones that allowed gambling to begin.”

Senate majority leader Jim Boyd was conspicuous in being one of the two Republicans who voted Tuesday against the bill, even though he hoped its mere existence would lead to a compromise.

“I’m hopeful that whether this bill passes or fails today that conversation can be had,” Boyd said. “The stakeholders can come to the table. They can agree to points that will be good for all sides.”

The lone public speaker in support of the bill was a Stronach Group lobbyist who begged to differ with the idea that decoupling came out of nowhere.

“Some people came up here and said, ‘I just heard about it two weeks ago.’ There’s associations that have formed three weeks ago on this bill, out-of-state folks and everything else,” Jeff Johnston said. “But the people, the breeders, the Florida horsemen, we started this journey over the summer. What we did is we came to them and said, guys, we’re looking at the (economic) numbers (for racing). The numbers are in decline.”

Committee vice chair Jason Pizzo, a Democrat whose district includes Gulfstream Park, expressed discomfort in the government subsidizing an industry that is seen to be in decline.

“When you talk about supply and demand, when you talk about growth, when you talk about stimulation, when you talk about all of these things, but you do so on a subsidy, that’s not sustainable,” Pizzo said.

He also said he was troubled by the perception that racing constituents were caught off guard by the legislation.

“I’m going to find out who’s at fault for (not informing) all of you,” Pizzo said. “For those of you who just found out about this, it’s one of two reasons. It’s because either someone was really poor at disseminating the information to you, or two, they didn’t take it seriously.”

Through two votes of House panels and one in the Senate, Pizzo and Mack Bernard of Palm Beach became the first Democrats to support decoupling. Republicans who hold super majorities in both chambers of the legislature have been mostly in favor. 

The bill still needs to be heard by the appropriations committee and the rules committee before it could be voted on by the full Senate. The annual Florida legislative session ends May 2.

If decoupling were approved, Tampa Bay Downs also would be allowed to break the ties between its racing and gaming licenses, specifically its card rooms. Tuesday’s focus, however, was on the Stronach Group, which has pushed the hardest for decoupling.

Just before Tuesday’s vote, Burgess concluded by asking, “If I was in the industry, I’d ask why would I want to be tied to a hostile partner in that endeavor?”

Horse Racing Nation covered the hearing via live video streaming from The Florida Channel.