The New Mexico Horsemen's Association is seeking the return of more than $8 million it alleges the New Mexico Racing Commission has been collecting improperly from horsemen since 2004 to pay liability insurance for jockeys.
The representative organization for both Thoroughbred and Quarter horse owners and trainers in New Mexico filed suit in Bernalillo County District Court on Dec. 2 against the commission – which is a part of the Tourism Department of the state of New Mexico – five commissioners and executive director Ismael “Izzy” Trejo.
The complaint, a petition for declaratory judgment and relief, outlines the responsibilities of the racing commission under New Mexico law, including how retained revenue from wagering on live and simulcast races is to be distributed.
“New Mexico law, N.M.S.A. 1978, 60-1A-19, only allows the money distributed pursuant to the Horse Racing Act, to the Horsemen to be used for two distinct and clear purposes, one for purses and the other for medical benefits of the members of the New Mexico Horsemen's Association,” the complaint states.
The horsemen allege that the New Mexico Racing Commission ordered them to divert a portion of their money to racetracks for liability insurance for jockeys.
According to the complaint, $8,426,181.09 has been taken from the New Mexico Horsemen's Association since 2004 for jockey insurance.
“The Racing Commission has no power or authority to violate the statute or to direct the money received by the Horsemen be used for another purpose other than that which the statute directs,” the complaint states.
In addition, horsemen allege the commission has improperly ordered horsemen to pay a “gate fee or starter's fee” every time a horse races.
“The costs of operating the 'gate' are and always have been an expense of the association putting on the race, that is a cost or expense of the racino and not the owner or trainer of the horse entering the gate for a scheduled race,” the complaint states, adding that “there is no provision in New Mexico law that allows the Racing Commission to access a fee to horsemen for the starter's gate.”
Finally, the complaint alleges that the New Mexico Racing Commission improperly demands the Horsemen's Association pay a fee for a license. “The Horsemen's Association does not race horses, or train horses and is a benevolent, non-profit organization and no license is required,” the complaint alleges
The suit asks the court to “order the New Mexico Racing Commission repay and return $8,426,181.09 to the New Mexico Horsemen's Association.” It also seeks an order that the New Mexico Racing Commission “cease and desist from ever directing monies be spent by the New Mexico Horsemen's that by statute are designated for certain purposes.”
Richard Erhard, executive director of the New Mexico Horsemen's Association, declined to comment on the suit. The New Mexico Racing Commission's executive director, Izzy Trejo, could not be reached for comment.
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