Landry pushes change to allow Louisiana Racing Commission director to still own racehorses
Gov. Jeff Landry is backing a law change that would allow an appointed director of the Louisiana Racing Commission to continue owning racehorses, even though the director oversees their licensing as part of his government job.
The proposed exception is included in House Bill 397, a sweeping piece of legislation that would also make dozens of changes to Louisiana's ethics code for elected officials and public employees.
Stephen Landry became the commission's top staffer in 2024 after the governor appointed new members to its board. At the time, Stephen Landry, who is not related to the governor, had a partial ownership stake in two racehorses.
Stephen Landry did not return a call made to his office Thursday.
The commission is responsible for regulating horse racing and betting in Louisiana. It issues licenses to racetracks, training centers, off-track betting operations and racehorse owners like Stephen Landry.
Commissioners can also suspend and withdraw racehorse owners' licenses it previously granted. The Louisiana Board of Ethics told Stephen Landry last year in an advisory opinion that state law is 'silent' on whether he can own racehorses while serving as the commission's executive director.
State employees are prohibited from doing business with the agencies where they work, however. Using that logic, the ethics board told Stephen Landry he would not be able to apply for a racehorse owner's license when he needs a renewal in 2026 if he still serves as the commission's executive director.
The change the governor is pushing would remove that barrier for Stephen Landry. Landry proactively sought the ethics board's opinion about his horse ownership after the Paulick Report, a horse racing news outlet, raised concerns about him taking the commission director's job.
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'How's he supposed to investigate and recommend to his commissioners potential changes to the state's breeders' incentive program objectively?' editor-in-chief Natalie Voss wrote about Stephen Landry in a 2024 commentary. 'What's he going to do if he's alerted [a co-owner of his horse] has a possible rule violation being investigated by the staff? How would he deal with an appeal of a disqualification coming from one of his active (or recent) ownership partners?' 'The Association of Racing Commissioners International model rules expressly prohibit this, both for employees of a commission (like the executive director) or for employees under the executive director,' Voss added.
The racing commission's chairman, Ed Koehl, told Stephen Landry when he took the executive director position that he could own horses without any fear of conflict, Stephen Landry's attorney, Dane Ciolino, wrote in a letter to the ethics board.
The commission, and not the executive director, votes on whether to grant or withdraw an ownership license, Ciolino said.
Under a law approved last year, all 13 state racing commissioners who decide on ownership licensing can own racehorses that compete in Louisiana. Previously, only three of the 13 commissioners were allowed to own racehorses. This year's ethics bill, sponsored by Rep. Beau Beaullieu, R- New Iberia, reiterates that Louisiana Racing Commission members, in addition to the executive director, can own horses that race in Louisiana. Beaullieu's proposal cleared its first legislative hurdle Wednesday when it passed the Louisiana House and Governmental Affairs Committee. It's goes next before the full House of Representatives.
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